Building and developing brand at phu nhuan trading joint stock company (pnco)

MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Building and Developing Brand at Phu Nhuan Trading Joint Stock Company PNCo In partial fulfillment of th

MEIHO UNIVERSITY Graduate Institute of Business and Management

MASTERS THESIS

Building and Developing Brand

at Phu Nhuan Trading Joint Stock

Company (PNCo)

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr Ching-Wen Mo

Co Advisor: Dr Pham Xuan Giang Graduate Student: Nhu Dinh Tuyen

December, 2010

AKNOWLEDGEMENTS

First of all, allow me to thank to University Board of the Ho Chi Minh City University

of Industrial and Meiho University, Taiwan

I would like to thank Dr Ching - Wen Mo, professor of Meiho University, Taiwan (MU Taiwan) Thanks to professors, teachers has participated in teaching and management, has helped me facilitate the completion of this training program

I would like to thank Dr Pham Xuan Giang, Assistant Professor of the Ho Chi Minh City University of Industrial, has enthusiastically taught me the very valuable experience Thanks to teachers, lecturers in postgraduate training; the lecturers teachers of Faculty

of Business Administration, and the EMBA2 classmates at the Ho Chi Minh City University

of Industry

Please also send sincere thanks to Professor, officers and administrative staff; Taiwan’s graduate students of EMBA course at Meiho University, Taiwan

Building and Developing Brand at Phu Nhuan Trading Joint Stock Company (PNCo)

ABSTRACT

Brands play an important role for businesses, for consumers and for the economy Brands are intangible assets, but have great value of the business There are many famous companies in the world not only by the scale of investment, technological innovation, which

is due to the brand Such as coca-cola brand value in 2010 was 70.4 billion dollars; IBM brand is worth 64.7 billion dollars (Interbrand 2010)

- Brands contributed significantly increase in turnover and profit

- Brands to help businesses easily perform the contract, maintain traditional customers while attracting new customers, potential customers In fact, consumers are often drawn, conquered by goods brands, popular and stable For example, when

it comes to beer consumers think of Heineken beer brand, Saigon etc These businesses have long known brands will create and reinforce the loyalty of large traditional customers, attracting more potential customers, even customers of rival firms’ competition

Strong brands, sustainable help businesses to create its image, reduce costs for trade promotion activities, marketing activities; support businesses implement policy to penetrate and expand markets and distribution process favorable product distribution efficiency

Brands delivers competitive advantage for businesses, helping business has conditions and defense against other competitors Brands create a brand consumers trust for quality, good prices Consumers know the origin of products and help consumers reduce costs, time

to learn the product Brands help protect the interests of consumers

State trademark protection situation will prevent counterfeit, fake consumer fraud Famous brand encourage consumer psychology, consumers are not only willing to pay for the product value but also pay for their satisfaction when buying products with famous brand

In economies market, opening up and integration of the brand is a symbol of strength and national pride Comes to electronic goods that people are talking about Japan or wine is said to be thinking of France A country with many famous brands and with long tradition is a manifestation of the survival and development Thus, we can say that the brand is a great valuable asset of a business, because it can affect attitudes and behavior of consumers

The relationship between brands and customers can see as the conclusion Customer trust and loyalty in the brand and understand that the brand will benefit themselves through the use of products and services with reasonable prices, marketing programs, promotions and other support services Besides, brands also assumed an important role for the enterprise, which is to bring all staff aware and proud to work for companies with famous brands

Keywords: Brand, Brand Consumers Trust, State Trademark Protection

Building and Developing Brand at Phu Nhuan Trading Joint Stock Company (PNCo)

Contents

AKNOWLEDGEMENTS I ABSTRACT II Contents IV Tables VII Figures VIII

Chapter1 Introduction 1

1.1 Background and Motivation 1

1.1.1 Company profile PNCo 1

1.1.2 Status and development prospect of the Company compared to other enterprises in the same industry .2

1.1.3 Assessing the suitability of the Company’s development orientation toward the industry orientation, the State policies and general trends in the world .3

1.1.4 Technological level .3

1.1.5 The situation of research and development of new products 4

1.1.6 The situation of product quality inspection .4

1.1.7 Marketing activities .4

1.1.8 Company name, logo, trademark .5

1.1.9 Labor structure, regulations and policies related to employees 5

1.2 Research Objectives and Research Questions 6

1.2.1 Research objectives 6

1.2.2 Research questions 7

1.3 Research Scope and Limitations 7

1.3.1 Research scope 7

1.3.2 Limitations .7

Chapter 2 Theoretical Basis of Brand Building 1

2.1 The Concept of Branding 1

2.1.1 The definitions of branding 1

2.1.2 Distinguishing the brand and trademark .1

2.2 Process of Building and Developing Brand 2

2.2.1 Develop overall strategy .3

2.2.2 Identify the brand elements 7

2.2.3 Brand protection 11

2.2.4 Building media strategy .11

2.2.5 Measurement and correction branding 13

2.3 Strategic Branding 14

2.3.1 Competitive strategy .14

2.3.2 Quality in competitive trends and brand building 16

Chapter 3 Research Methods 20

3.1 Research Process 20

3.2 Research Methods 22

3.2.1 Research on qualitative 22

3.2.2 Research on quantitative 23

3.3 Questionnaire Design 23

3.4 The Accuracy of Data 24

3.5 The Reliability of Data 24

Chapter 4 Analysis and the Results 26

4.1 General Information Objects Through a Questionnaire Survey 26

4.1.1 Results of the gender 26

4.1.2 Results of the age 26

4.1.3 Results of the education level .27

4.1.4 Results of the career 28

4.1.5 Results of the working time .28

4.2 Opinion Results about the Determinant Groups of Building and Developing Brand Strategy of PNCo Company 29

4.2.1 Results of evaluation of vision and mission .29

4.2.2 Results of Assessment of Brand Positioning 30

4.2.3 Results of the assessment of elements of brand 31

4.2.4 Results of assessment of character and essence of the brand .32

4.2.5 Results of the assessment of communication strategy .33

4.2.6 Results of the assessment of synchronization strategy building and developing brand of PNCo .34

Chapter 5 Conclusions and solutions 35

5.1 Conclusions 35

5.1.1 The advantages 35

5.1.2 The limitations need to change .36

5.2 Solutions 37

Reference 39

APPENDIX A - English Questionnaire 42

APPENDIX B – Vietnamese Questionnaire 46

Tables

Table 1-1 Labor Classifications 5

Table 2-1 Can See the Difference between the Two Terms Through the Following Chart 2

Table 2-2 Comparison of Brand Model 6

Table 2-3 Criteria for Measuring Brand Strength by Interbrand 14

Table 3-1 Reliability of Survey Data 24

Table 4-1 Results of the Gender 26

Table 4-2 Results of the Age 26

Table 4-3 Results of the Education Level 27

Table 4-4 Results of the Career 28

Table 4-5 Results of the Working Time 28

Table 4-6 Results of Vision and Mission 29

Table 4-7 Results of Assessment of Brand Positioning 30

Table 4-8 Results of the Assessment of Elements of Brand 31

Table 4-9 Results of the Evaluation of Character and Essence of Brand 32

Table 4-10 Results of the Assessment on Communication Strategy 33

Table 4-11 Results of the Assessment of Synchronization Strategy Building and Developing Brand of PNCo 34

Figures

Figure 1-1 Logo PNCo 5 Figure 2-1 Process of Building and Developing Brand 2 Figure 2-2 The Process of Establishment of the Mission Statement 4 Figure 3-1 Research progress is made follow the steps shown specifically by the

following diagram 22

Building and Developing Brand at Phu Nhuan Trading Joint Stock Company

(PNCo) Chapter1 Introduction 1.1 Background and Motivation

Integrate into the deeper world economy, Vietnam enterprises must understand many areas such as economic, scientific, technical, market etc., be aware of the fierce competition of the market To survive and develop, the enterprise have no other way except to build yourself a strong brand, firm to compete with other products, other brands

of domestic and foreign enterprises

In a small book of Johnson and Johnson company reaffirmed that “The company name and brand is the most valuable assets of the enterprise.” According to James R Gergory and Duong Huu Hanh, a strong brand name can bring the benefits as follows:

- Will bring better business results: revenue and higher profits

- The financial situation better

- A strong and well know brand make customers trust, secure and proud to use the services and products

- Maintaining of loyal customers and attract new clients

- Reduced marketing costs, facilitate the conduct of marketing activities such as launching new products, new services, expand the brand, expanding distribution channels

- Strong brand is easy attracting investors and talent

- Strong brand will create barriers for competitors (Duong Huu Hanh, 2005, Administrative Brand Equity.)

1.1.1 Company profile PNCo

Phu Nhuan Trading Joint Stock Company is formerly Phu Nhuan Trading Company was established in 1992, with the ownership is a State enterprise

On 03/11/2003, implementing policies equalization of State, People's Committee of

Ho Chi Minh City issued a decision 4735/QD-UB about transfer Phu Nhuan Trading Company to Phu Nhuan Trading Joint Stock Company

On 11/06/2004, the company officially went into operation with the certificate of business registration No 4103002394 by the Department of Planning and Investment of

Ho Chi Minh City issued

Company’s capital is 36 billion

Some branches of the company:

- Trading: Import - Export (domestic and foreign markets)

- Producing and processing agricultural products

- Services: Hotels, restaurants, leasing warehouses, offices, shops etc

- Investment: finance, construction etc. (Phu Nhuan Trading Joint Stock Company,

2010, statement)

1.1.2 Status and development prospect of the Company compared to other enterprises in the same industry

The company's position in the industry: Company have been established long ago

with business functions Commerce - Services - Export, PNCo brand name is increasingly more customers in and outside the country known Also, with a long history in business process product consumption market familiar and loyal customers, the company has made a lasting reputation and gained the trust of customers, so the position of the company on the market is firm, stable consumption market share and revenue growth, profit of the company through the years is quite high

Items of business of the company’s main export are coffee Robusta and cashew kernels; it occupies a large proportion of the total export turnover of the company In addition, the company also exports other agricultural products such as straw mushrooms, canned fruit etc

The company is also managing, using and exploiting some building in the center city; this is one of advantage of company that can develop business services restaurants and other investment projects on leased office buildings and hotels

Development prospects of the company: After three years of joining WTO, the

main agricultural products of Vietnam like rice, coffee, rubber, pepper, tea etc have been confirmed in the position where most of the continent with export volumes of “top” leading of the world According to the general development trend of the economy, the demand for office buildings and apartments for rent is increasing while company has advantages in this product line (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.1.3 Assessing the suitability of the Company’s development orientation

toward the industry orientation, the State policies and general trends in the world

Orientation of the company is continuing to maintain and focus on developing import and export trade with the main products are coffee, cashew kernels, straw mushroom At the same time, diversify the business services that contribute increasing value and service quality and also have contributed to spread the risk in business activities of the Company This is entirely consistent with the development of the sector, the State's policies and general trends in the world In addition, the investment and development business shopping center, office buildings, apartments for rent is to contribute to the branding and developing company (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.1.5 The situation of research and development of new products

With many years of working in the field of commercial services, management team and staff of PNCo has accumulated many experience Utilize and promote this advantages, the company will continue to invest and develop the traditional item is export

of agricultural products, and gradually balance between export and food services including constantly increasing proportion of food especially in the field of conferences - weddings, birthdays etc and service offices, apartments and rental housing to meet growing needs in society Currently, the company is expanding its business activities in some localities in which the canned straw mushrooms enterprise in Dong Thap Province

is also in the development strategy of the company's new products (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.1.6 The situation of product quality inspection

In addition to coordinating with the quality management agencies check quality of products and services of the Company, the company also built a system of quality control standards appropriate to each particular field of activity, for the purpose of inspection and supervision to provide customers with products and services with best quality (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.1.7 Marketing activities

To enhance the promotion and raise brand image PNCo through advertising on mass media and electronic information website of the Company

Clearly defined groups of target customers, thereby, offering promotions program

to suit each customer and the purpose of long-term sustainable development as well as immediate objectives of the Company

In parallel, PNCo brand known through support programs such as gifts, funding for humanitarian programs, hand love and gratitude homes etc (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.1.8 Company name, logo, trademark

Company Name : CÔNG TY CỔ PHẦN THƯƠNG MẠI PHÚ NHUẬN

English Name : PHU NHUAN TRADING JOINT STOCK COMPANY

Abbreviation : PNCo

Logo – Trademark :

Figure 1-1 Logo PNCo Source: Phu Nhuan Trading Joint Stock Company, 2010, statement

1.1.9 Labor structure, regulations and policies related to employees

Employees of the company at 30/05/2010 are 177 people, with the structure of labor as follows:

Table 1-1 Labor Classifications

Recruitment Policy: To enhance human resource management in a professional

manner and contributing to increased efficiency of production and business of the

Company, PNCo has built regulations on recruitment on the basis of State laws, rule and regulations of the Company Recruitment is the process of finding, selecting the right people in the right place and right time to meet labor needs in the company

Training Policy: Training and developing human resource is a strategic solutions to

create competitive advantage of companies, has effect to maintain and improve the quality of human resources, to meet the needs and aspirations of development of employees, helps the laborers regularly updated knowledge to perform their functions and duties of themselves with voluntarily work and better attitudes, created for employees a new ways of thinking and work as a basis for promoting creativity, professionalism, and improve adaptability to work in future-oriented development of the Company, in time meet the performance business strategy of the company Therefore, training and developing human resource is a top priority of the company

Through the issues mention above, the purpose of research and development building brands will help the company position, improve its competitiveness to survive and grow (Phu Nhuan Trading Joint Stock Company, 2010, statement)

1.2 Research Objectives and Research Questions

1.2.1 Research objectives

With the problems described above, to implement the building and developing the company's brand into a strong brand and have reputation in the competitive situation then the company must perform 6 objectives following:

(1) Identify the vision, mission of PNCo;

(2) PNCo brand positioning;

(3) Building brand element of PNCo;

(4) Building character and essence of the brand of PNCo;

(5) Building and developing communication strategy of PNCo;

(6) Strategic brand development PNCo to become strong brands, has branches in different products, with highly competitive in Vietnam

1.2.2 Research questions

To implement these goals we need to answer the questions:

(1) PNCo is necessary to determine the vision, mission yet?

(2) PNCo brand positioning is needed yet?

(3) PNCo is necessary to build the elements of the brand yet?

(4) PNCo is necessary to build the character and the essence of the brand yet?

(5) PNCo is necessary to build and develop media strategies yet?

(6) PNCo is necessary to build brand development strategy to become a strong brand, has branches in different products, with highly competitive in Vietnam yet?

1.3 Research Scope and Limitations

1.3.1 Research scope

The scope of implementation is the company's customers, staff and employees in all departments, branches of the company's business and leaderships of company in Ho Chi Minh City, Dong Nai Province, Gia Lai Province, Vinh Long Province, and Dong Thap Province

1.3.2 Limitations

Limitations of the project are only research the building and developing brands in markets where companies have business facilities such as Ho Chi Minh City, Vinh Long Province, and Dong Thap Province

Chapter 2 Theoretical Basis of Brand

Building 2.1 The Concept of Branding

2.1.1 The definitions of branding

David A Aaker (1991) proposed that brand determine the origin of the product and

a sign make company easy distinctive He said a brand is a distinguishing name and / or symbols (such as logos, trademarks evidence, or design packaging) knowingly identify goods and services or a seller or a group of seller and to distinguish goods and services with the goods and services of competitors

According to Philip Kotler (1995): “Branding can be interpreted as names, terms, symbols, graphics or the combination of them to confirm the seller of products and to distinguish them from rival products.”

Besides, Ambler & Styles (1996) explain that branding is a collection of attributes which provide benefits and value to targeted customer they find

2.1.2 Distinguishing the brand and trademark

The term of trademarks and brand name are used to distinguish the products, services or difference organization However, the trademark is often used in legal documents For example, under Article 72, Intellectual Property Law on 2005, trademark

is defined as follows: “Trademark is the visible sign under the form of letters, words, pictures, images including images of three-dimensional image or combination of that factors, is represented by one or more colors are capable of distinguishing goods or service of trademark owner's with other goods and services owner’s.”

Table 2-1 Can See the Difference between the Two Terms Through the Following Chart

Enterprises registered with the State

agencies as prescribed by law Enterprises building and customers rated with their experience

Express certification of State agencies Demonstrating confidence and loyalty of

customers

Building base on the legal system and

appear on legal documents

Building base on the system of enterprises organizations and present in the minds of customers

Be protected by law, a sole proprietorship

enterprises and others to use prohibited Customers love and acceptance is the differentiation of customers when they

heard the name of the business

There are specific values, obviously Abstract value, difficult to evaluate

Tangible: registration, certification Intangible: love, loyalty

Used in legal provisions Used in the economic field

Source: Luat gia pham, 2010

2.2 Process of Building and Developing Brand

The process of building and developing brand is made of five steps:

- Step 1: Develop the overall strategy

- Step 2: Identify the brand elements

- Step 3: Protect the brand

- Step 4: Develop communication strategy

- Step 5: Measurement and correction

Figure 2-1 Process of Building and Developing Brand

Source: Lantabrand, 2010

Identify the brand elements

Protect the brand

Develop communication

2.2.1 Develop overall strategy

Develop overall strategy is to identify long-term goals, outlined guidelines, directions and how to achieve that goal With an overall strategy clearly planned from the start, businesses will know where and how to get to the destination Create a solid foundation and an important basis for the selection of strategic and objectives in the future All activities related to brands must compliance and close to the overall strategy to ensure perform synchronization, right direction, efficient use of resources, saving time and cost

2.2.1.1 Identify the brand vision

Chernatony (2001) believes that a powerful brand vision indicates the long-term, stretching intent for the brand which must excite staff, en-courage their commitment and enable them to interpret how they can con- tribute to success Besides, Ngoc Quang (2005) considers that vision is a picture, a vivid picture of what can happen in a brand's future It suggests a long-term orientation, which shows the desire, and the determination

of the brand name of what desire would reach Vision brand was created on the basis question: In the long term future, what is the brand wants to achieve? Common vision towards this ideal and perfect in a distant future A vision leads to success is to bring long-term vision and determination; have pioneering character, leading and creative in find ideas; agreed on the objectives, orientation and use resources efficiently, encourage and motivate employee's work

2.2.1.2 Identify the brand mission

“The mission of the brand is a concept refers to the brand's purpose, rationale, significance of the birth and existence of it”

Mission brand is often built on the basis of customer orientation It represents a long term goal that brand commitment to customers, customers that the brand will focus

on service, things that make a difference which brand trying to build, and financial targets which brand will contribute

To form a mission statement, business usually answers the following issues:

- Customers: Which customers is brand meeting the needs of?

- What are products or services of the enterprise?

- Where is the main enterprise market?

- Technology is the leading concern of business or not?

- Concern for the survival, development and profitability: the enterprise is constrained by economic goals or not?

- Philosophy: what are values, aspirations and philosophy of business activities?

- Culture: What are the standard rules and basic beliefs of business?

- What are competitive advantage and special power of business?

- Community image have a concern primarily of business?

- The care staff: How is the attitude of business to employees? Do the employee

is a valuable asset of the business or not?

However, not all mission statement which also includes all the above problems

Depending on the objectives and business strategies those enterprises give reasonable choice

Figure 2-2 The Process of Establishment of the Mission Statement

Source: Ngoc Quang, 2005, Brand Vision

So the positioning includes two parts:

1 Determine what business want customers see, evaluate and feel about their brand

2 Coordinate activities for customers to remember the brand in a certain position in

their mind

Surveying the external environme

nt and conditions identified

Redefine idea about the brand mission statement

Build brand mission statement

Implementation brand mission statement

Businesses always want to create and occupy a place memorable in the minds of potential customers However, not only businesses want to locate in any position but also must consider factors such as capacity, customers and competitors to determine the position where we can achieve and efforts to implement activities how to achieve the target position

There are many ways to create a competitive advantage Positioning follows the attribute, the benefits, the use, the users, the competitors, product categories, the quality

or the price etc Next is to analyze competitors both directly and indirectly to find out their strengths and their weaknesses Then, analysis of the business and brand in all aspects: finance, marketing, human resources, technology, market, brand awareness Enterprises can use SWOT model or combination with PEST model to analyze and find out the value, benefits, and the different features which products and services of the brand

or even different in thought, in the minds of customers to position the success

Over time, even a better position but at some time in future, businesses will also need repositioning Because the needs of customers’ tastes can change, new competitors appear, or position of enterprise is no longer fit reality When you change the position of a brand to make sure the new location is appropriate to retain old customers while attracting new clients (Tran Nha, 2004, Brand Positioning)

2.2.1.4 Select brand model

In the overall strategy, a very important content should be clearly defined from the start is choosing the model and brand structure

There are three major brand models:

- General brand: Enterprise is only building a single brand, all products and services of enterprises have brought a brand

- Individual brand: Enterprise is building individual brand for each products and services, each product has a separate brand

- Multi Brand: Enterprise is build general brand and also build individual for each products and services

Table comparing the advantages and disadvantages of the brand model

Table 2-2 Comparison of Brand Model

Model Advantages Disadvantages

- Get the visibility of the brand orientation, simple management capabilities

- All activities are contributing to increasing brand value

- Advantages when launching new products

-Building costs and developing brand is low

- Capability expands items and activities fields were limited

- Failure of any products

or services also has disadvantage effects for the brand

Individual brand:

Enterprise is

building

individual brand

for each products

and services, each

- Brand of business is not affected when

a product or service failure

- Can be launching new products to compete in the same market

- Easy to purchase brand, other products

- Costs of launching new products, building and maintaining brand is high

- Requires high capacity management

- Less contribute to the enterprise brand value

- Customers do not know who they buy product

- Customer is oriented

- Take advantage of the prestige of the brand as the enterprise platform to support and create confidence for the brand of products and services

- Can do business products in many areas

- Brands need more time

to build

- Building costs and developing brand are high

Source: Nguyen Q Thịnh, N T Trung, 2009

2.2.1.5 Identify objectives and plans

A building and developing complete brand strategy must reflect the goals and plans

in each period All must be set in a concrete and detailed, must be measured through quantifiable by numbers, feasible and have set specific timelines To achieve the objective of the brand, companies need a plan of financial and personnel The budget for the brand and people to make and implement control strategies to ensure the right track and effectively

2.2.2 Identify the brand elements

The business needs to determine factors, including:

- The elements of brand awareness

- Benefits and trusted of brand

- Character of brand

- Essence brand

2.2.2.1 The elements of brand awareness

As these signs can be expressed in words, read or sound effects on hearing such as name, slogan, or music signs are identified through visual as drawings, logos, packaging and color For a brand easy to memorable, easily recognizable, accepted, preferred and loyal customers, these factors need to be built in a harmonious and consistent, demonstrating the brand's meaning, comply with core values based on the vision, mission and positioning of the brand If the vision and the mission are viewed as the foundation of the brand of these factors are the basic materials to create the brand (Trong Tan, 2004)

2.2.2.2 Benefits and brand trust

Branding contribute to create value to consumers, a feeling of luxury and honor A famous brand will give customers a certain value Brand to create a psychological assured

of quality when consumers choose a brand that is, it was putting their faith in the brand They are completely assured of quality goods and services supplied (Nguyen Q Thịnh,

N T Trung, 2009)

2.2.2.3 Brand personality

As a special factor, expressing human characteristics associated with the brand It

is expressed through the characters, real people, real objects or images to describe the

distinct characteristics of the brand Human aspects of the brand make the brand becomes fun, attractive and sympathetic impression created through the close of real character, real object or cute character, and interesting character This character takes on bold cultural meanings and rich of symbols It is a useful vehicle in the process of building brand awareness

The steps to build the brand: define target customer groups; identify needs hobbies, establishment of a customer record fine, creative brand personality fit with the character

of the target customer groups Also can use pricing strategy, competitors etc to build the brand personality (Trong Tan, 2004)

2.2.2.4 Brand character

Brand character is characteristic of factors and different of brands When brand positioning, business has raised the brand's essence as a statement of business to customers So, should clearly have been positioned as a commitment to the brand promise to customers This will help build trust in customers

A business idea is different solid foundations to build the brand essence The idea business can be developing a breakthrough product, a new business model or a unique method of marketing The difference can be built based on characteristics of organizational culture, attitudes of service staff, customer service and products But the difference is required to clearly different, completely different, and not just a little more difference (Trong Tan, 2004)

2.2.2.5 Some other elements of the brand

2.2.2.5.1 Name

The name was read as part of the brand, it is the key fundamentals of the most indispensable brand Name is the easiest element to interpret It takes a lot of time to describe the characteristics of the product, packaging or logo graphics on than just saying

a name The name is the first impression in customers’ perceptions The name helps customers associate, reminiscent of a succinct and subtle way the brand

Name of brand is created by the particular way in accordance with the different objectives of the business Follow are the ways to give common names, such that businesses often use:

- Use words to create: combination from the character, create a new word could pronounced and not in the dictionary

- Use common words: those from the existing use, really mean

- Use compound words: combined use of words and syllables is easy to identify

- Use abbreviations: can pronounce and carry a certain message, i.e the first letter of the business name

The points to note when give a brand name: significant, impress, easy to remember, internationalization, to meet requirements for protection (Hoang Xuan Thanh, 2003)

2.2.2.5.2 Logo

Logo (as Latin is logo typos) is a graphical elements (symbols, letters indicated, logos, images etc) combined with the way it forms an expression marks, images representing an individual persons or organizations, an event etc Represent the brand to make customers recognize, remember and find your products and services

Principles when designing the logo:

- Different, simple, easy to remember, easy to adapt and make sense

- The shape and style: simple, easy to read, sustainable, stable and impressive (Ngo Cong Thanh, 2009)

2.2.2.5.3 Slogan

The slogan is the short text, concise description of product or service business Slogan often concise content, and contain meaningful message that business wants to send to customers to increase customer awareness of the brand, to help businesses consolidate brand positioning Hence, the slogan must be described peeling characteristics and interests of own products, describe the essence of the brand, as the same time remind and bringing specificity to the brand

The slogan design principles:

- The slogan not too long and must be easy to remember

- Highlight the main benefits of the brand

- Impression and demonstrate the differences and competition of the brand

- The high essential and reflecting company's strategy

- Remind brand

- Bring positive feelings about the brand

- No risk for competitors to imitate the idea (Hoang Xuan Thanh, 2003)

2.2.2.5.4 Music performance

Musical performance is a brand elements expressed in music Just heard a piece of music can tell what brand it is The downside of the music signal does not add a logo or symbol and can not be attached to packaging, brochures and posters that can only attract listeners and make entries on the TV or radio ads more attractive, lively Theme song was written based on core values of brand (Hoang Xuan Thanh, 2003)

2.2.2.5.5 Packaging

Hoang Xuan Thanh (2003) proposed that packaging is a protective effect, description and product launches Packaging has impact on the selection and purchase of the customer Therefore, packaging must be nice designed, outstanding, eye-catching to attract the attention of customers while creating rapid awareness and attachment to the brand Apart from technical criteria, factors such as color, size, style, writing, graphics, materials, tools of the packaging must be caution when designed to applying the following characteristics:

- Bring specific style of the brand (anti-counterfeit, fake)

- Provide necessary information and convince about the benefits of the brand

- Preserve the product is not damaged and easily transported

- Convenient to use as easy open, easy close, easy to handle, easy to store, and easy to get the product out

- Impression and outstanding create the differences

- Attractive creating value

2.2.2.5.6 Color

Enterprises should choose for brand a predominant color Because colors stimulate emotional bodies, create react and change the status of human psychology Colors will tell the meaning of the brand, conveys the message of the brand to customers In addition,

it also serves as a factor to recognize and remind the brand (Ngo Cong Thanh, 2009)

2.2.2.5.7 Other elements

Brands are made up of many factors, not just the name, logo, slogan or packaging

It also includes many other factors such as taste, culture, customer behavior, advertising messages and many other intangible factors We can say the brand is created from the

entire belong to brand including the content and form The whole things which brand show to the outside world that customers, partners and the public feel, are affecting the brand image Customer assesses brand through its manifestations

2.2.3 Brand protection

Enterprises have to build brand and also protection it Cause building without protect the brand will have lost brand and more costly to recover the cost of the brand Register Intellectual Property of Vietnam Department and International organizations in countries are how to protect the brand The registration, at the same time,

it is the legal basis to combat the infringement of brand ownership

After register for protection, businesses need to constantly review the market, collecting information related to the brand, and preventing brand infringement In addition, businesses also need to create barriers to protect the brand as to continuously enhance the brand position, apply scientific and technical progress

2.2.4 Building media strategy

After building and register protection, enterprises need to take the brand to consumers This is the period that brand going into practice and will be verified through feedback from the market Integrated communications strategy is a means of communication to help businesses convey brand image to customers The communication tools are commonly used are:

2.2.4.1 Website

Enterprises should build a website to promote brand image Site should fully reflect all information of the brand Ensure aesthetic, beautiful interface and graphics, reflecting the professionalism, speed, faster browsing, content-rich, frequently updated The form and content of the site must comply with the standards of the brand system To bring the site to customers, the public, businesses should have informed the website address, connect to the search engine and bought key from advertising on search engines online (Nguyen Quoc Thinh, Nguyen Thanh Trung, 2009)

2.2.4.2 Advertising

Duong Huu Hanh (2005) points out advertising are the marketing tool of the business That is the effective way to convey information to customers or to create interest around the world such as Coca-Cola and Honda; or to increase product sales Enterprise could advertise in multiple media like television, newspapers, radio, magazines, outdoor posters, leaflets, catalogs, brochures, etc Nguyen Quoc Thinh & Nguyen Thanh Trung (2009) further explain when selecting advertising media, something that enterprise should be noted is customers, psychological characteristics, and characteristics of target customers, the advantages and disadvantages and cost of each vehicle

Public Relations

Public Relations (therefore PR) is an indispensable strategic tool, plays an important role in building and developing brand PR not only helps businesses interact with customers but also with many other subjects as government, communities, investors, suppliers, and the media Nguyen Quoc Thinh & Nguyen Thanh Trung (2009) believe that PR is often used to introduce new products, renew old products, resolving the crisis, building understanding, establish trust and enhance brand awareness Different definition

of basic PR can help create more reliable than advertising is that PR is a third party said about the business, while the advertising is talking about his own business Thus, PR is less commercial, information diversity and richness, conveys in a professional way and very natural, sympathetic and easy to go into the heart, and highly persuasive Hutton (1999) further explained the field of public relations has left itself vulnerable (1) to other fields that are making inroads into public relations' traditional domain, and (2) to critics who are filling in their own definitions of public relations

2.2.4.3 Event and sponsorship

Turco (1993) has presented Information on sponsor recall and image enhancement should be communicated to present and prospective corporate sponsors to further emphasize the importance of their affiliation with sport events Moreover, Nguyen Quoc Thinh & Nguyen Thanh Trung (2009) clarify that sponsored activities and events are directly involved or funding for participants in the field of culture, music, sports, society,

etc the purpose of brand promotion Normally, it was simply understood as an amount paid for the right to present business name and logo in the stadium or venue event Unlike other media activities, it offers special value for the brand, and empowering the brand's reputation is strongly influenced by the crowd and the emotions of viewers

2.2.4.4 Community activities

For the public aware of the existence of the brand, remember and love the brand, beside of advertising, PR, sponsor, enterprises need to have more responsibility in protecting the environment, performs social activities as aid, charity care, community care, not just consumer products Businesses participating in community activities will enlisted the emotional from customers, investors, government and public The fine activities of business will contribute positively in creating a good impression stored deep

in customer’s mind (Nguyen Quoc Thinh, Nguyen Thanh Trung, 2009)

2.2.4.5 Exhibition

Exhibition is where companies display products and meets, contact with customers and partners It also attracted the attention of the media, politicians and other departments

So, join the exhibition not only for direct sales but also on display, introducing the brand

to partners, customers and the public Businesses can promote the brand through direct sales activities, advertising, promotion and public relations at the exhibition Moreover, enterprises can gather customer information, research needs and behavior of customers, direct contacts and enhance relationships with customers, understand competitors, testing new products, exploring potential markets, testing the acceptance product of client, contact suppliers or finding partners (Nguyen Quoc Thinh, Nguyen Thanh Trung, 2009)

2.2.5 Measurement and correction branding

Measurement is necessary activities to assess the current status of the brand From these results, enterprise will be compared the goals and adjust in time However, the identification of measurement criteria are complex and make the measurement is not simple

Brand measurement model of the Interbrand is useful in measuring the enterprise's own brand The following are key points that business need to note for understand what is the brand's strengths of business from there building and developing brand

This model is not completely perfect but it gives instructions for certain brand

owners You should also ask yourself whether you need to do to build your brand stronger

Table 2-3 Criteria for Measuring Brand Strength by Interbrand

1 Capacity lead (Leadership) 25

According to Michael Porter, brand strategy is a reaction that organizations choose

to compete with rivals based on sustainable competitive advantages to achieve brand

objectives The strategy will determine the direction of an enterprise “If you have

strategy like competitor strategy, you have no strategy If the strategy is different, but is

easily copied, it is a poor strategy If this strategy is different and unique, and hard to

copy, you have a strong and sustainable strategy.”

In general, the brand strategies typically form in one of three levels: the group,

business unit and department functions In particular, the business unit level is the main

segment of the competition took place in the industry

2.3.1.1 Strategy leading cost

This strategy aims to become the low cost producer in the industry with certain

quality standards Then, the company will sell products with the average price of the

entire industry to earn higher profits than competitors, or will sell for lower than average

price to gain more market share

If the “price war” took place, companies can still maintain a certain level of interest,

while the competitors have to bear losses Even when there is no conflict or contradiction

in price, this economic development, expand and prices drop, then the company can keep lower produce costs can still receive profit over long periods Leading strategic costs are often applied to large market

Enterprises can rely on a number of methods to gain advantage about cost If competitors can not afford to cut costs as the same, the company can maintain its competitive advantage based on the leading cost

The successful enterprises in the application of leading strategic costs often have the following characteristics:

- The ability to access capital to invest in better production equipment This is a barrier that many companies can not overcome

- Product design capability to increase production efficiency; for example, create

a small detail to shorten the assembly process

- Have high levels in production

- Have effective channels of distribution

Risks can occur when competitors are also able to lower production costs Even with the help of modern technology, competitors may have the unexpected break in production, removed the competitive advantage of businesses in cost leading

Strengths and weaknesses of strategies leading low-cost:

Strengths:

- Companies save costs in production and helps businesses can offer products and services at lower prices from competitors that will help enterprises have larger market share that mean consuming a lot more products and services Businesses will have greater total profit

- Companies can sell products or services with lower prices can also help enterprises avoid risk when consumers switch to purchasing products or services of competitor cause price of products or services supplied by businesses to the market is too high

- Can make low cost products are also one of the factors creating barriers to other businesses to join the industry

- When the input material prices increased enterprise still control of the situation