using brand as an effective weapon to compete in the market - a case study of nhat linh company

8/12/2019 Using Brand as an Effective Weapon to Compete in the Market - A Case Study of Nhat Linh Company

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USING BRAND AS AN EFFECTIVE WEAPON TO COMPETE IN THE MARKET:

A CASE STUDY OF NHAT LINH COMPANY

by

Duong Manh Cuong

A research study submitted in partial fulfillment of the requirements for the degree of Master ofBusiness Administration.

Examination Committee Dr. Truong Quang Chairman! Dr. "ans #toessel

Dr. Clemens Bechter

$ationality %ietnamese

&re'ious Degree( Bachelor of Engineering"anoi )ni'ersity of Transport * Communications"anoi+ %ietnam

#cholarship Donor The ,o'ernment of #-it erland/#-iss De'elopmentCooperation #A%!

Asian 0nstitute of Technology#chool of Management

Bang1o1+ ThailandApril 2334


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ACKNOWLEDGEMENTS

0 -ish to express my profound gratitude and great appreciation to my ad'isor Dr. Truong Quangfor his 'aluable guidance+ ad'ice and encouragement throughout the research study.

#pecial than1s are extended to the other members of the Examination Committee+ Dr. "ans#toessel and Dr. Clemens Bechter for ta1ing interest and gi'ing 'aluable suggestions to impro'ethe content of this study.

Deep appreciation and than1s are also extended to Mr. $guyen %an Dong Assistant Manager+Mr. $guyen %an Bien+ Deputy Manager+ and Ms. $guyen Thu &huong of $hat 5inh Co. 5td. for

pro'iding me the needed information and data to complete this research study.

5ast but not least+ 0 -ould li1e to than1 the go'ernment of #-it erland for pro'iding me a full

scholarship to study at #A% in "CMC+ %ietnam and at #chool of Management in Bang1o1+Thailand.


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ABSTRACT

0n a mar1et economy+ the success or failure of the companies depends on ho- they fulfillconsumers6 needs and -ants. 0n a fierce competition en'ironment+ companies must compete -itheach other in terms of price+ quality+ ser'ices+ technology+ inno'ation+ and brand name+ etc. Todifferentiate their products from other competitors6+ companies often create brand names for their

products or their corporate. Therefore+ branding has become an essential means for companies tosur'i'e and de'elop in the long term.

0n case of -ide product portfolio+ 7branding8 e'en replaces 7mar1eting8 acti'ities. Manycompanies recogni e that branding is the most effecti'e -eapon to -in consumers6 purchasingdecision. 0ndeed+ attracting consumers becomes a 'ery difficult tas1 for any company in a highlycompetiti'e mar1et.

Although a company gets many benefits from its brand name+ it is not easy to manage a strong brand. To understand more ho- a company builds and manages its brand to get the full benefitfrom it+ a study into the case of the 5i9A brand at $hat 5inh Co.+ 5td.+ an auto 'oltage stabili erA%#! manufacturer+ is underta1en.

The case study -ill focus on analy ing the external mar1et en'ironment+ the company internalsituation and its brand de'elopment and management basing on inter'ie-s -ith the Companymanagers and its employees. At the same time+ a customer sur'ey is carried out to e'aluate -hatconsumers 1no- about 5i9A6s brand name and products. :rom the analysis of the sur'ey results+some recommendations for 5i9A branding management and communication program -ill bemade to help the Company manage its brand better and to strengthen its 5i9A brand name in the

A%# mar1et.


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2.0 &rand osition......................................................................................12

2. omm#nication Program.....................................................................13

2.1/ &rand !everage..................................................................................13

2.11 $m ortant actors or ilding Strong &rands................................14

Chapter >;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?

A$A5@#0# 9: T"E C9M&A$@ C)==E$T #0T)AT09$;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?

3.1 * ternal *nvironment nalysis...........................................................15

3.1.1 Macro *nvironment..........................................................................153.1.2 The "ndustry #nvironment...............................................................17

3.2 $nternal nalysis..................................................................................2/3.2.1 $ompany %vervie&.........................................................................2'3.2.2 $ompany (erformance...................................................................213.2.3 )trate*ic intent................................................................................233.2. $ompany )tructure.........................................................................23.2.5 $ompany resources and core competencies..................................2

3.3 S%O( nalysis....................................................................................3/

Chapter 4

Company6s Brand Management;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>4

4.1 !iO s Positioning ..............................................................................31.1.1 The A+)s ,ar-et...........................................................................31

4.2 &rand nalysis.....................................................................................32.2.1 The ori*in of the name....................................................................32.2.2 i%A symbo/....................................................................................32.2.3 Trade mar- protection.....................................................................33.2.3 Advertisin* activities........................................................................33

4.3 &rand Management ...........................................................................34

4.4 &rand !everage nd * tension...........................................................34

4.4 (he om any s &rand $ntention..........................................................35


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4.4 oncl#sion............................................................................................35

Chapter ?;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>

findings 9: the Customer sur'ey;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>

5.1 Overvie6 of the Sam le s haracteristics...........................................3"

5.2 ons#mers &rand 6areness and their &ehavior..............................3"5.2.1 0rand a&areness............................................................................365.2.2 0rand choice...................................................................................375.2.3 Factors Affectin* $onsumers $hoices of A+) 0rand.....................38

5.3 7#estions Relating (o !iO Prod#cts ...............................................35.3.1 i%A name......................................................................................3!

5.3.2 $ountry of ori*in.............................................................................. '5.3.3 i%A -no&/ed*e information sources.............................................. '5.3. i%A usa*e .................................................................................... 15.3.5 $onsumers eva/uation of i%A A+).............................................. 15.3.6 (rice of i%A A+)s......................................................................... 25.3.7 i%A shops convenience ............................................................... 25.3.8 i%A advertisement contents.......................................................... 25.3.! i%A promotion pro*ram................................................................. 3

5.4 oncl#sion...........................................................................................43

Chapter ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;


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".4 !iO &rand Position............................................................................40

".5 &randing activities in line 6ith its intention strategies.....................406.5.1 $onso/idate i%A brand name in the orth.................................... 86.5.2 # pand its mar-et share and brand a&areness in the )outh..........5'6.5.3 i%A e pansion to other forei*n mar-ets........................................516.5. i%A $A0 # brandin* ...................................................................51

Chapter ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;?2

Conclusion and recommendations;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;?2

,.1 oncl#sions..........................................................................................52

,.2 Recommendations...............................................................................53

=eferences;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;??

A&&E$D0 ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4


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LIST OF TABLES

Table 2.4 The Brand &osition Trap;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

Table >.4( %ietnam6s Economic 0ndicators;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4?

Table >.2( #ummary of the Business 9pportunities and Threats;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;23

Table >.>( 5i9A A%# Current &roduct 5ine;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;24

Table >..?( #ummary of the Company6s #trengths and Fea1nesses ;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2

Table >. ( #F9T Analysis #ummary;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>3

Table ?.4( :actors Affecting Consumers Choices of A%# Brand;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>

Table ?.2( =espondent6s E'aluation of 5i9A A%#s;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;( =espondents6 E'aluation of 5i9A Ad'ertisement Contents;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

LIST OF FIGURES

:igure 4.4( =esearch :rame-or1;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2

:igure 2.4 A Brand 0s More Than a &roduct;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

44

:igure 2.2( The Brand Management &rocess;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;44

:igure 2.> ( A %ariety of Fays of 5e'eraging Brand;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4.4( Changes in :oreign Direct 0n'estment;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;4

:igure >.2( $hat 5inh Company6 s 9rgani ational Chart;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;2

:igure ?.4( =espondent6s A-areness about A%# Brands;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>

:igure ?.2( Brand #election of =espondents;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;>

:igure ?.>( 0nformation #ource for Gno-ing 5i9A;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;


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Chapter 1

INTRODUCTION

1 1 Rat!"#a$e "% the Re&ear'h

0n a mar1et economy+ the success or failure of the companies depends largely on ho-companies fulfill consumers6 needs and -ants. 0f the products or ser'ices meet theconsumers6 needs physical and emotional!+ consumers -ill be satisfied. 9nce they aresatisfied -ith the products+ they -ill continue to buy or refer to other consumers by means of7-ord;of;mouth8. As a result+ the companies -ill enHoy a long;term profitability andcustomer6s loyalty.

0n a fierce competition en'ironment+ companies must compete -ith each other in terms of price+ quality+ ser'ices+ technology+ inno'ation+ and brand name+ etc. To differentiate their products from other competitors+ companies often create brand names for their products ortheir corporate. Consumers are made a-are of the products by their brand names -ith unique+distincti'e and particular characteristics. 0n this case+ the choice of a customer for a product+then+ is a result of brand recognition for quality or uniqueness of the company6s offer.

Therefore+ branding has become an essential means for companies to compete -ith othercompetitors. 0n case of -ide product portfolio+ 7branding8 e'en replaces 7mar1eting8acti'ities. Many companies recogni e that branding is the most effecti'e -eapon to -inconsumers6 purchasing decision. 0ndeed+ attracting consumers becomes a 'ery difficult tas1for any company in a highly competiti'e mar1et.

Although a company gets many benefits from its brand name+ it is not easy to create andmaintain a strong brand. To understand more ho- a company builds and manages its brand toget the full benefit from that+ a study into the case of 5i9A brand at $hat 5inh Co. 5td.+ anauto 'oltage stabili er A%#!manufacturer is carried out.

1 ( Pr")$e* State*e#t

To compete -ith other competitors in automatic 'oltage stabili er mar1et+ $hat 5inhCompany has to build its o-n brand name and manage it -ell. This study -ill see ho- theCompany manages its brand as an effecti'e -eapon to compete -ith other competitors.

1 + O),e't!-e& "% the Re&ear'h

This study focuses on analy ing brand management of the Company. 0ts specific obHecti'esare(

To analy e the external mar1et en'ironment of the auto 'oltage stabili er industry and theCompany situation.

To analy e the current Company branding management process .

To sur'ey customer6 attitudes to-ards the Company6s brand/products.

To recommend a brand strategy and mar1eting communication program for the Company.

4


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1 . Re&ear'h Meth"/"$"0

The conceptual frame-or1 of the study can be illustrated by the :igure 4.4

F!02re 1 1: Re&ear'h Fra*e3"r4

Data '"$$e't!"#: Data for the study -ere collected from t-o sources(

Primary data: The primary data -ere gathered through direct in;depth inter'ie-s -ith the

Company6s Board of Directors+ Mar1eting Managers+ and other 1ey staff members of theCompany. 0n addition+ a sur'ey by questionnaire -as conducted to e'aluate theconsumers6 attitudes to-ard the Company6s brand/products. The number ofquestionnaires sent out -as 233. Both buyers and non;buyers of the Company6s productsare respondents of the sur'ey.

Secondary data: rele'ant data on the current mar1et and possible target mar1et of theCompany and competition -ere collected from public media+ the Ministry of &lanning and0n'estment+ %ietnam Chamber of Commerce and 0ndustry+ from the 0nternet+ and othersources.

2

SWOT A#a$ &!&SWOT A#a$ &!&

C"*pa# Bra#/!#0C"*pa# Bra#/!#0 C"#&2*er S2r-eC"#&2*er S2r-e

L!terat2re Re-!e3L!terat2re Re-!e3

De-e$"p a Bra#/!#0 Strate0De-e$"p a Bra#/!#0 Strate0

C"#'$2&!"# 5Re'"**e#/at!"#&C"#'$2&!"# 5Re'"**e#/at!"#&


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Data a#a$ &!&:

Qualitati'e analysis -as done for secondary data and primary data collected from inter'ie-s.Quantitati'e analysis -as done for primary data collected from the questionnaire sur'ey inorder to e'aluate consumer6s brand a-areness+ factors affecting their purchase decision+ andtheir attitudes to-ards 5i9A6s A%# products. The soft-are ## 43.3 -as used to process

quantitati'e data.1 6 S'"pe a#/ L!*!tat!"#& "% the Re&ear'h

Though the Company6s products are a'ailable throughout the country+ the customer sur'ey-as done in "anoi and its 'icinity only+ as "anoi represents one of the t-o main mar1ets ofthe A%# products.

The research ha'e some limitations due to follo-ing reasons( i! =ele'ant data collected fromdifferent sources may be inconsistent. ii! 0t is difficult to get some sensiti'e information fromthe Company6s managers. iii! 0t is difficult to get an o'erall picture of the attitude of

consumers throughout the country to-ards the Company products -hen the customer sur'eyis only conducted in "anoi.

1 7 Str2't2re "% the Re&ear'h Rep"rt

The research report -ill be organi ed as follo-s(

Chapter 4( A general introduction+ comprising rationale+ identification of the problem+obHecti'es+ methodology of the research study and its scope and limitations.

Chapter 2( 5iterature re'ie-.

Chapter >( Analysis of the external en'ironment and the Company6s strengths and-ea1nesses.

Chapter


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Chapter (

LITERATURE REVIEW

( 1 I#tr"/2't!"#

An increasing number of the -orld6s most influential companies ha'e recogni ed theenormous 'alue of their brands . Fell;de'eloped bands ha'e become an effecti'e strategic-eapon to -in consumer6s heart and mind. This applies for all companies+ big and smallali1e.

Branding has become much more important recently because of the proliferation of choicethat is made a'ailable to consumers. To ha'e competiti'e ad'antage -ithin the -holeindustry+ the successful corporation should ha'e not only good quality of products+ ser'icesabo'e other competitors but also good image in the consumersI mind. That is brand name.

Brand name makes the companys product distinctive from those of competitors.

This chapter -ill re'ie- the literature in'ol'ing building and maintaining brand. The chapter-ill also highlight the importance of branding in the mar1etplace.

( ( What !& a Bra#/8

There are many definitions of 7brand8. :ollo-ing are some of them(

Gotler 2333! defines a brand as 7a name+ term+ sign+ symbol+ or design+ or a combinationof them+ intended to identity the goods or ser'ices of one seller or group of sellers and todifferentiate them from those of competitors.8

According to "an1inson and Co-1ing 4 !+ a brand is a simply a product or ser'ice-hich can be distinguished from its competitors. The distincti'eness reflects a brand6s

positioning relati'e to the competition and by its personality. #uccessful brands are those-hich meet the needs and aspirations of a defined target mar1et.

Gapferer 4 2! ma1es a clear distinction in -riting that+ 7products are -hat the companyma1esJ -hat the customer buys is a brand.8 Therefore brand can be understandable as the

product in the customer 'ie-point. A brand is landmar1. Buyers are actually purchasing a position in the minds of potential customers be in the stalls or in the royal circle.

Arnold 4 2! comments that brand is the personality or identity of a product+ range of

products or an organi ation+ deri'ed from consumer perception of both tangible andintangible attributes. Brands are recogni ed and understood on an emotional le'el+ in a-ay that most of their founders -ould find astonishing.

Tennant 4

price in an easily recogni ed and remembered form.

0n short+ all these authors agree that a brand identifies the seller or maker . 5i1e identificationcards+ it is a -ay of differentiating the company6s product from those of another company.

This becomes the increasingly important issue in fiercer competition no-adays+ -hereconsumers al-ays ha'e a greater choice of offers.


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( + The I*p"rta#'e "% Bra#/ Na*e

( + 1 The *a!# '"#tr!)2t!"# "% )ra#/&

As stated earlier+ many companies ha'e recogni ed brands as a po-erful strategic -eapon.&o-er brands can pro'ide their o-ners -ith considerable re-ards if handled correctly and

managed sensibly. They can ensure a gro-th in mar1et share and corporate profitability.#tobart 4

To serve as a focus for consumer loyalty . Thus+ they can be de'eloped into assets thatgenerate steady and reliable streams of cash flo-. They help to guard against competiti'eencroachment.

To capture the promotional investment put into it. Enormously 'aluable brands li1e Coca+Goda1+ &epsi and Marlboro are still benefiting massi'ely from the past huge ad'ertising.This ability to capture promotional in'estment is in direct contrast to -hat happens -ith

generic goods or commodities+ -hich ha'e no brand name or image. To be of critical strategic importance to their owners. 0n fact+ brands enable

manufacturers to communicate directly -ith consumers regardless of the actions of themiddleman. This communication gi'es their producers po-er to-ard retailers.

Temporal 2333! indicates the benefits of po-er brands to-ards companies andconsumers as bello-s(

The market power of brands: "ere are some -ays in -hich strong brands can transformordinary businesses into elite ones

#ur'i'al in ad'erse condition 5onge'ity Transportability across national cultures ,reater distribution po-er Crossing mar1et boundaries #taff moti'ation+ recruitment and loyalty Mo'ing a-ay from commodity status

The financial rewards of brands: &o-erful brands pro'ide long;term security and gro-th+higher sustainable profits+ and increased asset 'alue because they achie'e(

Competiti'e differentiation &remium prices "igher sales 'olumes Economies of scale and reduced costs ,reater security of demand

?


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:or consumers+ they buy branded products because of the follo-ing reasons( Brands generate choice Brands simplify decisions Brands offer quality assurance and reduce ris1s Brands help self;expression Brands offer friendship and pleasure

( + ( A )ra#/ !& *"re tha# a pr"/2't

Brand is more than a product. Branding is about the -ay people percei'e+ not about the products in isolation Aa1er+ 4 !.

A brand represents a pact bet-een brand o-ner and consumer. Brand allo-s consumers toshop -ith confidence in -hat is an increasingly complex -orld. The brand offers theconsumer a guarantee of quality+ 'alue and product satisfaction.

&roducts cannot spea1 for themsel'es. The brand is -hat gi'es them meaning and spea1s forthem. :igure 2.4 describes all possible attributes of a brand.

The most important attribute of a successful brand is+ of course+ the product itself. Creating a brand image for a product+ -hich does not match the consumers6 expectation+ is a formula fora certain failure Tennant+ 4

"o-e'er+ non;tangible factors ha'e come to play an increasingly important role. =ecently+ the-ay in -hich branded products or ser'ices ha'e been distinguished from one another hasincreasingly concerned non;tangible factors rather than tangible factors. Therefore+ brandinghas become a highly s1illed and speciali ed discipline. 0t concerns -ith managing andmaintaining a mix of factors+ both tangible and intangible to attract consumer loyalty #tobart+4

F!02re ( 1 A Bra#/ I& M"re Tha# a Pr"/2't

#ource( Aa1er 4 !

PRODUCTS'"peAttr!)2te&92a$!tU&e&

Brand&ersonality

9rgani ationalAssociations

Country of 9rigin

#elf;Expressi'eBenefit

Emotional benefit

Brand;Customer=elationships

#ymbol

)ser 0magery

BRANDBRAND


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( . The Bra#/ E 2!t

)psha- 4 ?! defines 7the brand equity is the total accumulated 'alue or -orth of a brandJthe tangible and intangible assets that the brand contributes to its corporate parent bothfinancially and in terms of selling le'erage.8

Brand equity can be defined as the added 'alue pro'ided to a product or company by its brandidentity. 0t is the set of associations and beha'iors that increase or decrease the 'alue of the brand compared to its financial 'alue alone &ettis+ 4 ?!.

0t is pointed out that brand equity does not Hust happenJ it is a combination of quality product+ad'ertising+ mar1eting programs+ point;of;sale programs ; a bundle of consumer experiencesthat create the ultimate brand image. 0t requires a long sophisticated process of the brand

building and maintaining.

According to Gotler 2333!+ a brand can con'ey up to six le'els of meaning. There areattributes+ benefits+ 'alues+ culture+ personality and users. The challenge in branding is to

de'elop a deep set of meaning for a brand+ it is called as a deep brandJ other-ise it is ashallo- brand. :or instance+ Mercedes is a deep brand because -e understand its meaningalong all six dimensions.

This author also suggests fi'e measurements of brand equity. Brands 'ary in the amount of po-er and 'alue they ha'e in the mar1etplace(

Brand unawareness ( most buyers in the mar1etplace do not 1no- that brand.

Brand awareness ( brands for -hich buyers ha'e fairly 1no-n measured either by brandrecall or recognition!.

Brand acceptability: most consumers -ould not resist buying these brands.

Brand preference: brands that are enHoy a high degree of brand preference. Consumers-ould select those brands o'er the others.

Brand loyalty: brands command high degree of brand loyalty. The loyal consumer -ill-al1 out of the store to buy it else-here in case of stoc1;out of his fa'orite brand.

0t is noted that brands ha'e become tradable assets. There ha'e been many big mergers andacquisitions o'er last decades. 0n most cases+ the price of the acquired company highlyexceeds its tangible assets example the cases of $estle and =o-ntree!. 0t is reasonable tothin1 that the extra 'alue comes from the company6s brand.

( 6 Bra#/ I/e#t!t

( 6 1 De%!#!t!"#

A brand identity pro'ides direction+ purpose and meaning for the brand. Aa1er 4 ! gi'es a'ariety of definitions of brand identity such as(

Brand identity is a unique set of brand associations that the brand strategist aspires tocreate or maintain. These associations represent -hat the brand stands for and imply a

promise to customers6 form the organi ation member.

Brand identity should help establish a relationship bet-een the brand and the customer bygenerating a 'alue proposition in'ol'ing functional+ emotional or self;expressi'e benefits.


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Brand identity consists of t-el'e dimensions organi ed around four perspecti'es ; the brand;as;product+ brand;as;organi ation+ brand;as;person+ and brand;as;symbol.

Brand identity structure includes a core+ extended and proposition identity. A brandidentity is to brand strategy -hat 7strategic intent8 is to a business strategy. #trategy intentin'ol'es an obsession -ith -inning real inno'ation+ stretching the current strategy and a

for-ard;loc1ing dynamic perspecti'e.

( 6 ( The )ra#/ p"&!t!"# trap

A brand position has been defined as 7the part of the brand identity and 'alue proposition thatis to be acti'ely communicated to the target audience and that demonstrates an ad'antage o'ercompeting brands8.

Thus+ the brand position guides the current communication programs and is distinct from themore general brand identity construct. There is a distinction bet-een three related constructsas illustrated in the Table 2.4.

The brand position trap occurs -hen the research for a brand identity becomes a search for a brand position+ stimulated by a practical need to pro'ide obHecti'es to those de'eloping thecommunication programs. The goal becomes an ad'ertising tag line rather than a brandidentity.

Ta)$e ( 1 The Bra#/ P"&!t!"# Trap

Bra#/ I*a0e Bra#/ I/e#t!t Bra#/ P"&!t!"#

"o- the brand is

no- recei'ed

"o- strategists -ant the

brand to be percei'ed

The part of the brand identity and

'alue proposition to be acti'elycommunicated to a target audience

Source: Aa1er 4 !

( 6 + F"2r )ra#/ !/e#t!t per&pe't!-e&

Aa1er 4 ! classifies brand identity into < categories(

;1< The )ra#/=a&=pr"/2't

Although strategists should a'oid the product;related associations+ they remain to be animportant part of a brand identity as they are directly lin1ed to brand choice decisions and theuse experience. &roduct;related associations may comprise product;scope+ product attributes+quality/'alue+ uses+ users and country of origin.

;(< The )ra#/=a&="r0a#!>at!"#

The brand;as;organi ation perspecti'e focuses on attributes of the organi ation rather thanthose of the product or ser'ice. #uch organi ational attributes as inno'ation+ a dri'e forquality+ and the concern for the en'ironment are created by the people+ culture+ 'alues+ and

programs of the company. 9rgani ational attributes are more enduring and more resistant tocompetiti'e claims than are product attributes. 0t is difficult to duplicate an organi ation -ithunique people+ 'alues+ and programs. These attributes may apply to a set of product classes.


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;+< The )ra#/&=a&=per&"#: )ra#/ per&"#a$!t

The brand;as;person perspecti'e suggests a brand identity that is richer and more interestingthan one based on product attributes. 5i1e a person+ a brand can be percei'ed as beingupscale+ competent+ impressi'e+ trust-orthy+ fun+ acti'e+ humorous+ casual+ formal+ youthful+or intellectual. A brand personality can create a stronger brand in se'eral -ays. :irst+ it can

help create a self;expressi'e benefit that becomes a 'ehicle for the customer to express his orher o-n personality. #econd+ brand personality can be the basis of a relationship bet-een thecustomer and the brand. Third+ a brand personality may help communicate a product attributeand thus contribute to a functional benefit.

;.< The )ra#/=a&=& *)"$

A strong symbol can pro'ide cohesion and structure to an identity and ma1e it much easier togain recognition and recall. 0ts presence can be a 1ey ingredient of brand de'elopment and itsabsence can be substantial handicap. #ymbols in'ol'ing 'isual imagery can be memorableand po-erful. A strong symbol can be the cornerstone of a brand strategy.

( 6 . The !/e#t!t &tr2't2re

Brand identity consists of a core identity and an extended identity. 0n addition+ the identityelements are organi ed into enduring patterns of meaning+ often around the core identityelements Aa1er+ 4 !.

;1< C"re !/e#t!t

The core identity represents the timeless essence of the brand+ -hich contains the associationsthat are most li1ely to remain constant as the brand enters to ne- mar1ets and productsclasses. 0n addition+ the core identity for a strong brand should be more resistant to changethan elements of the extended identity. )ltimately+ the core identity follo-s from the ans-ersto some tough+ introspecti'e questions+ such as(

Fhat is the soul of the brandK Fhat are the fundamental beliefs and 'alues that dri'e the brandK Fhat are the competencies of the organi ation behind the brandK Fhat does the organi ation behind the brand stand forK

;(< E?te#/e/ I/e#t!t

The extended brand identity includes elements that pro'ide texture and completeness. 0t fillsin the picture+ adding details that help portray -hat the brand stands for. 0mportant elementsof the brand6s mar1eting program that ha'e become or should become 'isible associations can

be included. A brand personality does not often become a part of the core identity. "o-e'er+it can be exactly the right 'ehicle to add needed texture and completeness by being part of theextended identity Aa1er+ 4 !.

The extended brand identity may include product scope+ retail experience+ slogan+ logo+ personality+ and relationship.

( 7 Va$2e Pr"p"&!t!"#

Aa1er 4 ! stated that 7a brand6s 'alue proposition is a statement of the functional+emotional and self;expressi'e benefits deli'ered by the brand that pro'ide 'alue to customer.


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An effecti'e 'alue proposition should lead to a brand;customer relationship and deri'e purchase decision.8

&ropositioning is a description of an appeal of a brand to its consumers. 0t offers the reason-hy a consumer might prefer the brand. There are three types of benefit+ -hich brand name

product/ser'ice can bring to consumers(

Functional benefit: The benefit based on a product attribute that pro'ides functional utilityto the consumer. #uch a benefit -ill usually relate directly to the functions performed bythe product or ser'ice for the customer. The functional benefits ha'e limitation of failureto differentiate+ easy to copy. 9ther benefits attributes can o'ercome those limitations.

motional benefit: Fhen the purchase or use of a particular brand gi'es the customer a positi'e feeling+ that brand is pro'iding an emotional benefit. 0t adds richness and depth tothe experience of o-ning and using the brand.

Self!e"pressive benefit: A brand can pro'ide a self;expressi'e benefit by pro'iding a -ay

for a person to communicate his or her self;image.

:or each indi'idual+ the people -ill ha'e an associated self;concept and a need to express thatself;concept. The purchase and use of brands is one -ay to fulfill this need for self;expression. :or example+ using a positioned brand name products/ ser'ice -ith strong

personality associated -ith a 'isible athlete generates self;expression Aa1er+ 4 !.

( @ Strate0!' Bra#/ Ma#a0e*e#t

Brand management is abo'e all about balancing 'ariety of inputs. Balances ha'e to be struc1 bet-een the external mar1et and internal capabilities of the companyJ bet-een the company6s

inputs into the product and the influences on the consumer perceptionJ bet-een the short;termneed to maximi e profit and the long;term need to in'est and de'elop Arnold+ 4 2!.

This author also suggests a model for the brand management process containing fi'e steps asillustrated in :igure 2.2.

This model describes the brand management process as an incremental one+ -hich stands atthe Hunction of company and consumer. Brand management encompasses all steps of this

process.

Step 1: Mar4et a#a$ &!&

Basic mar1et analysis is abo'e all the trac1ing of trends. 0nformation must be gatheredcontinuously+ li1e military intelligence. A company must understand the follo-ing aspects ofits territory(

The si e and scope of the mar1etJ The segment in the mar1etJ The players in the mar1et and their positionsJ The trends in all these areas.

43


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F!02re ( (: The Bra#/ Ma#a0e*e#t Pr"'e&&

Source: Arnold 4 2!

Step (: Bra#/ &!t2at!"# a#a$ &!&

Brand situation analysis should produce(

An in;depth understanding of the brand personality and 'aluesJ A picture of the brand anatomy+ and ho- its attributes are contributing to its o'erall

positionJ The same information for competitors brands.

Step +: Tar0et!#0 %2t2re p"&!t!"#

The strategy formulation phase should produce( A 'ie- on the future character of the mar1etJ A strategy outlining the future targeted brand positionJ Benefits offeredJ Brand personality de'elopmentJ #cope of brandJ

44

Mar4et A#a$ &!&Mar1et definitionMar1et segmentationCompetitor positionsTrends

Mar4et A#a$ &!&Mar1et definitionMar1et segmentationCompetitor positionsTrends

Mar4et A#a$ &!&Brand personality/0ndi'idual

Mar4et A#a$ &!&Brand personality/0ndi'idual

Tar0et!#0 F2t2re P"&!t!"#&:uture de'elopment/

Brand strategy

Tar0et!#0 F2t2re P"&!t!"#&:uture de'elopment/Brand strategy

Te&t!#0 Ne3 O%%er&0ndi'idual elements of mixTest mar1ets total offer!

Te&t!#0 Ne3 O%%er&0ndi'idual elements of mixTest mar1ets total offer!

P$a##!#0 5 E-a$2at!#0 Per%"r*a#'e5e'el of expenditure

Type of support acti'ityMeasurement against obHecti'es

P$a##!#0 5 E-a$2at!#0 Per%"r*a#'e5e'el of expenditure

Type of support acti'ityMeasurement against obHecti'es


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Target segment.

Step .: Te&t!#0 #e3 "%%er&

The practice of ad'ance testing is designed to do the follo-ing( ,ain understanding of contribution of indi'idual brand attributes to the o'erall positionJ

Assess ho- changes to any element of the brand -ill influence its positionJ Test the total brand proposition -hen attac1ing ne- mar1ets or after fundamental change.

Step 6: P$a##!#0 a#/ e-a$2at!#0 per%"r*a#'e

&lanning and trac1ing acti'ities are designed to pro'ide the follo-ing( A clear plan for timing and obHecti'es in consumer terms! of mar1eting acti'ityJ A basis for Hudging the le'el of acti'ity and in particular the le'el of expenditure

necessary to achie'e those obHecti'esJ A program of e'aluation mechanisms to monitor progressJ

A basis for continuing mar1et analysis.( Bra#/ p"&!t!"#

Brand position is the part of the brand identity and value proposition that is activelycommunicated to the target audience and that demonstrates an advantage over competingbrands.

The four salient characteristics of a brand position as reflected by the phrases 7part+8 7targetaudience+8 7acti'ely communicated+8 and 7demonstrates ad'antage.8

;1< A part "% the !/e#t!t -a$2e pr"p"&!t!"#

Fhen a brand position exists+ the brand identity and 'alue proposition can be de'eloped fully+-ith texture and depth. They do not ha'e to be concise statements of -hat is to becommunicated+ because the brand position ta1es on that role.

Brand position can be changed -ithout changing the identity or 'alue proposition of -hich itis a subset. The brand position includes the core identity+ points of le'erage -ithin the identitystructure+ and the 'alue proposition benefits that dri'e relationships!.

;(< The tar0et a2/!e#'e

The brand position should also target a specific audience+ -hich may be a subset of the brand6s target segment. There can also be a primary and secondary target audience.

;+< A't!-e '"**2#!'at!"#

That implies that there -ill be specific communication obHecti'es focused on changing orstrengthening the brand image or brand;customer relationship. These obHecti'es+ if feasible+should be accompanied by measurement.

Brand image reflects current perceptions of a brand. 5i1e brand identity+ brand position ismore aspirational+ reflecting perceptions that strategists -ant to ha'e associated -ith the

brand.

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Comparison of the identity -ith image -ill usually result in one of three differentcommunication tas1s being reflected in brand position statement( augmenting an image#reinforcing an image or diffusing an image .

;.< De*"#&trate a# a/-a#ta0e

:inally+ brand position should demonstrate an ad'antage o'er competitors. The bottom line isthat the position should specify a point of superiority that is a part of the 'alue proposition.The point of ad'antage should resonate -ith customers and be differentiating;that is+represent something different from -hat competitors pro'ide.

( C"**2#!'at!"# Pr"0ra*

The communication program consists of the follo-ing acti'ities Gotler+ 2333!

4. 0dentifying the target audience2. Determining the communication obHecti'es

>. Design the message


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F!02re ( + : A Var!et "% Wa & "% Le-era0!#0 Bra#/

#ource( Aa1er 4 !

( 11 I*p"rta#t Fa't"r& F"r B2!$/!#0 Str"#0 Bra#/&

To ma1e brands strong+ the follo-ing guidelines in order should be implemented Aa1er+4 !

4. Brand identity2. %alue proposition>. Brand position


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Chapter +

ANALYSIS OF THE COMPANY CURRENT SITUATION

+ 1 E?ter#a$ E#-!r"#*e#t A#a$ &!&

A company6s external en'ironment consists of the industry en'ironment in -hich theCompany competes and the country in -hich it is located. 0n this chapter+ factors influencingA%# industry -ill be considered.

+ 1 1 Ma'r" E#-!r"#*e#t

E'"#"*!' E#-!r"#*e#t

0n an effort to o'ercome the currently stagnant trend and try to boost the economic gro-th ofthe country+ the %ietnamese go'ernment has implemented the open;door and reform policysince 4 . As a result+ the country has achie'ed considerable economic de'elopment sincethen.

:rom its lo- le'el of ,D& gro-th of


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F!02re + 1: Cha#0e& !# F"re!0# D!re't I#-e&t*e#t

#ource( Data of 4 to 4 ( M&0+ 4 J Data of 4 ;2333( $guyen+ 2334.

0n deed+ the Asian financial crisis forced a number of foreign in'estors in %ietnam to-ithdra- or restructure their business. 0n addition to numerous high ris1s associated -ith the%ietnamese mar1et e.g. poor infrastructure and a lac1 of transparency in the legislati'esystem!+ foreign in'estors are generally becoming more prudent in direct in'estment. Theslo-do-n in :D0 acti'ities is negatively affecting the demand for industrial $%Ss# as foreignin'estors used to buy a large amount of A%#s for their in'estment proHects.

Another important e'ent is that %ietnam is expected to Hoin A:TA in 233>+ i.e. the tariffs formany import and export products -ill be remo'ed or reduced. 9n the one hand+ it -ill be

much easier for companies to import materials -ith lo-er prices and expand its mar1et toother neighboring countries. The competition -ill be stronger as foreign competitors -ill alsoextend their mar1et to other countries. Therefore+ pri'ate enterprises can favorably e"pand itsmarket internationally. They+ ho-e'er+ ha'e to prepare for coping -ith future foreigncompetitors.

De*"0raph!' a#/ S"'!a$ E#-!r"#*e#t

Fith the population of around 3 million at present ,eneral #tatistics 9ffice+ 2333!+ %ietnamis among the most populous countries in the -orld. 0ts urban population is 2>.?L in 44 .


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The economic de'elopment in recent years has brought about the emergence of a middle+-hich is estimated at ? to L of the population http(//tradeport.org/mar133 .shtml !.Therefor# the demand for durable products will increase and thereby open a potential market

for $%S producers.

"o-e'er+ there is a big gap bet-een li'ing standards of the urban areas and the countryside.

Differences in annual income and purchasing po-er can be seen bet-een the $orth and the#outh of the country. A report Hointly prepared by the FB+ )$D& and ADB points out that%ietnam remains a poor country( > L of the population still li'es under the po'erty line and3L of the labor force+ 2? million people+ are underemployed or unemployed. Thus# the

market for $%S products at present is mainly concentrated in big cities.

0n addition+ the consumers ha'e become more sophisticated by getting acquainted -ith ne-methods of mar1eting in a consumption mar1et. According to a research on %ietnameseconsumers6 beha'iors conducted by AC$ielsen Co.+ %ietnamese consumers began to payattention to brand name more than e'er before #aigon Times Fee1ly+ 9ctober 4


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The r!&4 "% #e3 e#tr ) p"te#t!a$ '"*pet!t"r&

#o far+ only domestic companies compete in the A%# industry in %ietnam. :oreigncompanies ha'e not yet entered the A%# mar1et because of 'arious reasons+ such as highimport tax and high transportation fee+ etc. :urthermore+ they do not thin1 that this is a bigmar1et for them to enter in a long run+ as the need for using A%# arises+ only -hen the

electric current is unstable. )sing A%# to 1eep the po-er current stable is Hust a situationalsolution. Fhen the country pro'ides enough po-er and has a good po-er distribution system+it is not necessary to use A%#.

:ollo-ing are discussions of forces affecting the ris1 of ne- entry by potential competitors(

Capital requirement

At present+ it is easy for a local company to enter into this industry. The A%# business usuallydoes not require much money to run. E'eryone can set up a business -ith %$D 2 billion upfront capital. E'en some small -or1shops can also produce the products.

Product differentiation

There is not much difference in A%# products. &roduction technology in use is almost similarin 'arious companies. Therefore+ ne- companies can compete -ith established ones easily interms of technology. "o-e'er+ the product durability depends mainly on the quality of thesilica metal bars co'ered by bron e -ires. And high quality silica metal bars can only beimported. $e- domestic companies -ith small in'estment are facing difficulties in buyingthese high quality materials. Big companies get the ad'antages than1s to their economies ofscale.

Easy access to technology

0n the A%# industry+ companies can easily access to technology. Different companies canha'e the same technology. :urthermore+ there is no disrupti'e technology in this industry at

present. "o-e'er+ it ta1es time and efforts for small companies to buy the technology sincethe technology for producing A%# must be imported.

Economies of scale

Among companies in this industry+ only a fe- ha'e higher mar1et share and dominate themar1et. These big companies may ha'e the economies of scale and the ability to import high

quality materials. This -ill be a barrier for ne- entry and a disad'antage for existing small producers in the industry.

Established brand in customers

As mentioned in #ection >.4.4+ customers are increasingly paying attention to brands. Brandidentity and a-areness are also maHor obstacles for ne- companies to compete in the mar1et.Consumers often see1 for products offered by long established and -ell;1no-n companies inthe industry. Thus+ it is difficult for ne- companies+ e'en -ith big in'estment capital+ tocompete in the mar1et.

4


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Current situation of industry

The A%# industry already has a 'ery high competiti'e structure and reached a mature phase.#ome big companies are playing significant role in the mar1et and 'irtually dominate theindustry. At present+ there are about 0* domestic companies ser'ing the A%# mar1et. Most ofthem are located in "o Chi Minh City. 1hat 2inh 3o. is the only big $%S company located in

/anoi. Therefore# it is not easy for producers in /o 3hi 4inh 3ity to e"pand their markets to /anoi and not easy for new entrants to enter into the $%S market in /anoi.

R!-a$r a*"#0 '"*pet!t"r&

Slow growth of industry

The slo- gro-th of the A%# mar1et at this moment has forced companies to compete fiercelyin order to ta1e o'er the mar1et shares of others. The demand for the product is slo-ing do-nin big cities such as "anoi and "o Chi Minh City+ but increasing in other pro'incesCompany report+ 2333!. To o'ercome this challenge+ companies ha'e to expand their

business to other pro'inces. This -ill create a strong competition among exiting companies inthe industry all o'er the country.

Brand identity

As consumers are beginning to pay attention to brand name -hen they -ant to buy A%# products+ the fi'e biggest local A%# producers ha'e spent a lot in ad'ertising+ sponsorshipand public relations programs to create consumers6 a-areness to-ards their brand names.&roducers -ith -ell;1no-n brand name ha'e gained competiti'e ad'antage+ -hile other smallcompanies are actually left -ith fragmented and small shares in the A%# mar1et.

Barrier to exit

Although doing business in this industry need not much money 4 to 2 billion %$D could besufficient to run a business!+ companies ha'e disad'antages to exit. 0t is difficult to use themachine for other purposes. 0t is e'en more difficult for big companies to exit than smallones. This tends to intensify competition among existing companies.

Bar0a!#!#0 p"3er "% )2 er&

The number of buyers is 'ery large. "o-e'er+ their buying quantity is small+ especially forindi'idual customers+ -ho usually buy one or t-o products throughout their li'es. Buying

A%# products requires high in'ol'ement. Customers usually -ant high quality and -ell;1no-n products. The price does not affect their buying decision much. :urthermore+ there areonly fe- big companies offering the same products dominating the -hole mar1et. Therefore+the bargaining po-er of buyers is lo-.

Bar0a!#!#0 p"3er "% &2pp$!er&

0n the A%# industry+ although domestic suppliers can pro'ide many materials+ they cannotsupply the main materials -ith high quality. That is the reason -hy companies ha'e to rely onforeign suppliers li1e Thailand companies for high quality materials. Thus+ the bargaining

po-er of foreign suppliers is high. "o-e'er+ there are no problems in s-itching suppliers+ as

the s-itching cost is rather lo-.

4


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A-a!$a)!$!t "% &2)&t!t2te&

As mentioned earlier+ consumers -ill not buy or use the product as and -hen the po-ersystem pro'ides stable po-er current. "o-e'er+ it -ill certainly ta1e a long time before%ietnam can o'ercome the current po-er problem. At present+ there is only one substitute

productJ the 'oltage adapter. "o-e'er+ this product is not superior to A%#. Thus+ A%#

products can retain its strong position in the mar1et for some time to go.:rom the external factor analysis+ the follo-ing 1ey opportunities and threats are identifiedTable >.2!.

Ta)$e + (: S2**ar "% the B2&!#e&& Opp"rt2#!t!e& a#/ Threat&

O p p " r t 2 # ! t ! e & There -ill be more mar1ets to ser'e because of the urbani ation and the

increasing li'ing standards of urban population in maHor cities!. %ietnamese consumers become more brand conscious.

A%# producers can expand its mar1et internationally. A%# producers ha'e opportunities in mobili ing capitals from financial

institutions. #MEs gain supports from the go'ernment and international organi ations.

T h r e a t &

The gro-th rate of demand for A%#s is decreasing+ especially for industrialA%#s.

Entrance of potential local competitors into the mar1et. &roducers -ith imported materials suffer from the de'aluation of %ietnamese

currency. &roducers -ith imported materials depend to much on foreign suppliers. :ierce competition among big existing companies as different competitors can

produce A%#s -ith the same quality by importing high quality materials.

+ ( I#ter#a$ A#a$ &!&

+ ( 1 C"*pa# O-er-!e3

$hat 5inh Co.+ 5td. -as established on August th+ 4 < under the license $o.4> 3/,&;)B+issued by the "anoi &eople6s Committee.

Address( 22 Tay #on #treet+ Dong Da District+ "anoi Tel( < <


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deemed comparable to imported products from =ussia former #o'iet )nion! and fromTai-an and Oapan. "o-e'er+ the price is 2 to < times cheaper than those imported products.That is -hy his product has been recommended and -idely consumed.

Fith the de'elopment of his business o'er time+ Mr. 5inh decided to establish his o-ncompany. The ne- establishment ga'e him the legal identity to import materials to produce

A%# -ith large quantity that generated more benefits.To differentiate his A%# product from that produced by other electricity equipment-or1shops+ the founder has put a simple name 7 5i9A8 on his products -ithout registering itas trademar1. The letters 2i are the initial letters of the founder+ Mr. 5inh. - and $ are theinitial letters of 79n Ap8+ the %ietnamese translation for auto 'oltage stabili er. #ince then thename has been used and recogni ed -idely by the consumers. "e then reali ed the necessityof registering his A%# product name and applied for a license on Ouly th+ 4 .>!.

Ta)$e + +: L!OA AVS C2rre#t Pr"/2't L!#e

O#e pha&e AVS Three=pha&e AVS

M"/e$ Capa'!t M"/e$ Capa'!t

$5;>?3 3.>?G%A $5;>+333F/> >G%A

$5;?33 3.?G%A $5; +333F/> G%A

$5; ?3 3. ?G%A $5;43+333F/> 43G%A

$5;4333 4G%A $5;4?+333F/> 4?G%A

$5;4?33 4.?G%A $5;23+333F/> 23G%A

$5;2333 2G%A $5;2?+333F/> 2?G%A

$5;>333 >G%A $5;>3+333F/> >3G%A

$5;


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+ ( + Strate0!' !#te#t

The Company6s mission+ obHecti'es and strategies ha'e been mentioned in the inter'ie- asfollo-s(

M!&&!"#

The Company6s mission is 7to be a leader in $%S products and electric wires and cables in%ietnam8 .

O),e't!-e&

0n order to achie'e the abo'e mission+ the Company has the follo-ing obHecti'es(

To continue impro'ing the management system+ physical conditions+ product quality andits competiti'eness in its A%# business.

To focus on product inno'ation and de'elopment and use its 43;year accumulatedresources to de'elop ne- products.

To construct electric -ires and cables factory and put it into operation as soon as possible.

Strate0!e&

The Company de'elops and implements its strategy at three le'els(

3orporate strategy: The Company uses growth strategy for its core businesses. 0n particular+it plans to construct a ne- factory in "ung @en pro'ince to catch up -ith the increasingdemand in electric -ires and cables.

Business strategy: The Company uses differentiation strategy to compete -ith 1ey players inthe industry by differentiating its product line. "o-e'er+ the Company has also paid attentionto reducing costs by ta1ing ad'antage of the economies of scale.

Functional strategy:

&roduction( mass;production+ using ne- and modern technology -ith impro'edmanagement s1ills.

Mar1eting( extensi'e communication and intensi'e distribution net-or1 through retailers.

Policies and management principles:

"igh quality assurance

:ocus on inno'ation

Encouraging -or1ers to impro'e their s1ills

:rom the abo'e strategies+ together -ith its top;do-n management culture the Company hasthe follo-ing strengths and -ea1nesses(

2>


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Stre#0th&

The Company can use its core resources to its best ability differentiation -ith economiesof scales and scope! to compete -ith other competitors in the A%# and electric -ires andcables mar1ets.

The Company also has a highly centrali ed decision;ma1ing structure. Most decisions aremade by the director of the Company. This is understandable+ considering the history ofthe Company and the personality of the director also founder!. This type of organi ationhelps create a more discipline en'ironment in -hich all the employees 1no- exactly theaims and obHecti'es of the Company+ thus being much easier to be mobili ed to-ardachie'ing the common goals.

The Company culture emphasi es on high 9uality through quality chec1s. As part of itsdetermination+ the Company has also registered for 0#9 332 standards for its electric-ires and cables.

Wea4#e&&

The top;do-n management approach can also be a -ea1ness as it may result in stifling ofinno'ati'e ideas from the lo-er employees thereby reducing the Company6s creati'ity.

The capability to manage a number of retailers is limited.

+ ( . C"*pa# Str2't2re

F!02re + (: Nhat L!#h C"*pa# & Or0a#!>at!"#a$ Chart

#ource( Company6s report+ 2333

+ ( 6 C"*pa# re&"2r'e& a#/ '"re '"*pete#'!e&

;1< Mar4et!#0

The Company offers high;quality products -hich are -ell positioned in the A%# mar1et. 0tuses both push and pull strategies brand and retail oriented!+ aiming at expanding itsdistribution net-or1. The sales acti'ities are supported by intensi'e ad'ertising on nationaland local T% channels and ne-spapers and other sponsorship acti'ities. 0t has set up

23


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Chapter .

COMPANY S BRAND MANAGEMENT

. 1 L!OA & P"&!t!"#!#0

. 1 1 The AVS& Mar4et

&rior to the ad'ent of A%#s+ most of %ietnamese consumers used electric 'oltage adapters todeal -ith unstable po-er current. "o-e'er+ this solution is not economical and could be onlytemporary. 9ccasionally the users ha'e to chec1 -hether output currents are stable or not. 0fnot+ they had to manually adHust the lo- or strong outputs to the normal le'el.

:urthermore+ the A%# supply could not satisfy the high mar1et at that time. Most of A%#s-ere bought from =ussia for family usage. $o trade of A%# -as made at that time. Thesefirst generation of A%# also consumed quite a lot of po-er e'en though they did not pro'ideoutputs to other electric equipment.

9nly middle and rich families could afford to buy A%#s that mostly imported from =ussia+Oapan+ China and Tai-an. E'en so+ the imported A%#s ha'e only fe- capacity le'els+ unableto meet the requirement of modern electric home appliances such as -ashing machine+refrigerator+ air conditioner+ etc.

As the li'ing standards has continuously increased in recent years+ people start to buy moreelectric home appliances. Today+ consumers are -illing to pay for A%#s despite of high price+as they do not -ant to ha'e their expensi'e home appliances out of order due to unstable

po-er current.

Fhile imported A%# cannot meet customer requirements+ domestic A%#s offer a -ide rangeof capacity for the consumers to choose. 0n addition+ locally made A%# is reliable andcheaper than imports+ as most high quality home;made A%#s are produced -ith importedtechnology and materials+ in that A%# producers Hust produce some small parts and assemblethem together.

Among the high;quality A%#s produced domestically+ 5i9A A%#s are on the lead. 5i9A product is the first locally made A%# that can meet consumers6 requirements of today. That is-hy the Company6s products are -idely accepted all o'er the country.

Tar0et '2&t"*er&

0t can be said that the target consumers of the Company6s A%#s are those ha'ing expensi'ehome appliances and &Cs. The number of households+ -hich represent the emergence of amiddle class+ in %ietnam that ha'e had T%+ cassette recorder+ refrigerator+ etc. is not smallsince 4 3 and is increasing -ith the time.

Along -ith the economic de'elopment of the country+ many :D0 proHects ha'e been appro'edand implemented. :actories and other ser'ices such as hotels need more po-er. Fith its high

po-er consumption+ po-er supply is in shortage. The country6s po-er transmission line at present is also not good+ resulting in the instability of the po-er current+ especially -hen thetransmission distance is long. Thus+ there arises a high and urgent demand for products toreco'er po-er for production and business use.

>4


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Moreo'er+ there are no imported A%#s to stabili e industrial po-er system -hich used the >; phase po-er!. $hat 5inh Co. is mar1et;oriented enough to be one of the first producersintroducing > phase A%#s in %ietnam.

0n short+ the Company6s 5i9A A%#s are used as alternati'e for imported products -ith highquality and rather lo- price and aimed at t-o mar1et segments( households ha'ing expensi'e

electric home appliances and factories or other business entities li1e hotels.. ( Bra#/ A#a$ &!&

. ( 1 The "r!0!# "% the #a*e

The name 75i9A8 arose -hen the Company6s founder -anted to differentiate its A%#s fromother competitors6. The founder put a simple name 7 5i9A8 on its products -ithoutregistering for its trademar1. 5etters 5i are the t-o initial letters of the founder6s name+ Mr.5inh+ and 9 and A are the initial letters of 79n Ap8+ the %ietnamese translation of auto'oltage stabili er. #ince then the name has been -idely used for the -hole product range. "e

then reali ed the necessity of registering his A%# product name and applied for the license inOuly th+ 4


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F!02re . 1 L!OA L"0"

Despite some adHustment to its original logo+ there is no problem -ith its brand at themoment. The 5i9A brand is -idely 1no-n and accepted by %ietnamese consumers.

. ( + Tra/e *ar4 pr"te't!"#

There are many -ords -hich ha'e the same pronunciation as 5i9A. 0n 4 + the Companyregistered many -ords that are pronounced the same as 5i9A such as 5@9A+ 5E9A+ 50FA+5@9A+ 5iMiTa+ 5EQ)A. #ince the Company also ad'ertised its products on the radio+ it isdifficult for people to 1no- exactly -hich name is the brand name of the Company. That is-hy the Company had to register these -ords to protect other competitors from using this

brand name.

As mentioned abo'e+ the 5i9A logo -as also registered. #o both 5i9A brand name and itslogo ha'e become 'aluable assets of the company o'er times. The question is ho- thecompany uses+ maintains and de'elops these assets in order to get their full benefits.

Although all the names and logos that the Company has registered are 'alid -ithin %ietnamterritory only+ they are not 'alid in international territories. Therefore+ Hut li1e any othercompanies if the Company -ant to protect its brand names and logos internationally+ it is amust it registers them properly in the future mar1et destination Quang+ 2333!.

. ( + A/-ert!&!#0 a't!-!t!e&

Along -ith the gro-th of his business+ many people ha'e got accustomed to the Company6sA%# product name+ 5i9A. The Company has also spent a lot in ad'ertising in the local T%+ne-spapers and maga ines. The Company has planned an annual budget for ad'ertisingranging from to 43 percent of its re'enue. 0n recent years+ the budget for ad'ertising has

been bet-een 4.? to 2 billion %$D Company =eport+ 2333!. This ad'ertising budget is quitesi able for a #ME in %ietnam+ -hich highlights the Company6s determination to use modern

>>

The companyname is

illustrated

The companyname is

illustrated

The po-ercurrent is

stable

The po-ercurrent is

stable

The brand

name ofA%#

The brand

name ofA%#

Company6s

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Company6s

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mar1eting techniques to de'elop and maintain its position in the mar1ets. 0n the -ords of theCompany6s director it -ants to build strong 5i9A brand name in the mind of %ietnamese

people and to stimulate the demand for the Company6s products.

5i9A commercials are often sho-n on national and local T% channels at prime times. 9n thenational channel+ 5i9A spots are sho-n during the brea1 of the English &remier :ootball

matches+ i.e. the Company focuses mostly on male audiences. &ro'incial T% channels are alsoused for sho-ing its ad content since the Company -ants to reach potential consumers inother pro'inces far from big cities.

To reach other audiences+ the company has spent its money on ad'ertisement on someselected ne-spapers and maga ines. 0n addition+ it has participated in national trade sho-sand sponsored some cultural programs to ma1e its brand 1no-n to the mass.

The Company6s ad'ertisement messages mostly focused on the functional benefits and didnot mentioned emotional benefits much. :urther more+ the -ay of deli'ering the intendedmessage is not 'ery impressi'e but rather con'entional+ typical for a technical product.

. + Bra#/ Ma#a0e*e#t

The Company does not clearly define -ho is in charge of brand management+ nor it has aconsistent brand management strategy. The Director is the one -ho decides on all brandingacti'ities of the Company -ith the assistance of his young brother+ the Company6s %iceDirector.

Fhen as1ing about the soul and other attributes of 5i9A brand name such as brand identity+ brand personality and brand equity the %ice Director said that the Company did not knowthose things . The Company6s ad'ertising messages Hust tried to sho- consumers its high

quality A%#. #ome slogans li1e 7an ideal A%# for all electric equipment8 or 7happiness toe'ery family8 -ere added on the ad content in association -ith functional benefits of its 5i9AA%# 5i9A A%#s -ith durability and reliability+ etc. features are produced from importedmaterials -ith modern ,erman technology!. 5i9A6s functional benefits sho-n on the ads-ere also supported by the Company6s technology.

The Company has no information to measure the reaction of its consumers on this matter. #ofar+ no customer sur'ey or research has been done on the impacts of its ad'ertising campaignand promotion on sales.

n short# although the 3ompany has spent a lot on advertisement and promotion# it does not fully appreciate what a brand is. t ,ust put a brand name on its $%S and tried to createconsumers awareness of its brand name through aggressive advertising. For furtherbusiness development# the 3ompany should pay more attention to systematic brandmanagement.

. . Bra#/ Le-era0e A#/ E?te#&!"#

The Company had used its 5i9A brand name for other products using this as a corporate brand umbrella. 0t has put 5i9A logo on some supplementary products li1e emergency lamp+soc1et+ 'oltage adapter+ etc. "o-e'er+ it should be noted that 5i9A name is Hust registered forits A%# only. )sing the name registered for one product on other products is not a good

practice+ both legally and practically. Moreo'er+ if those products are not good+ some defectsfor instance+ the 5i9A brand name -ill be affected or damaged.

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The Company also expanded the scope of its A%#+ and its one phase A%# to >;phase A%#s-hich are used for industrial po-er system. The extension to >;phase A%# has opened a ne-mar1et for the Company under the same brand.

0n the same fashion+ the Company uses the name 5i9A CAB5E for its ne- product electric-ires and cables!. "o-e'er+ the Company has applied separately for this brand name

registration. By so doing+ the Company ma1es use of the 7silver bullets8 effect from its 5i9A brand name. The Company started ad'ertising for its 5i9A CAB5E since the end of the year2333. This product is expected to be the Company6s high flyer in the future.

. . The C"*pa# & Bra#/ I#te#t!"#

As mentioned on #ection >.2.>+ the company -ants to strengthen its 5i9A brand name andremain firmly in the leader position in the A%# mar1et. To do so the Company has spent alarge share of its re'enue in ad'ertising campaigns+ public relations and other culturalacti'ities as -ell as trade exhibitions.

The Company intends to expand its business to electric -ires and cables business. This business -ill be the core of the company in the future. To optimi e the benefits of itsestablished brand+ the company uses 5i9A name as a prefix for the brand name of its electric-ires and cables products+ since 5i9A name is already familiar to many %ietnamese people.The name chosen for the ne- product+ therefore+ is 5i9A CAB5E.

The Company also intends to export its 5i9A A%#s to foreign mar1ets such as China andother neighboring countries in the future. 0t is noted that the company had exported its 5i9AA%# to China sometimes before. #ome Chinese traders also bought its A%# for sales inChina+ -here 5i9A A%#s6 quality are accepted by local consumers. 0n order to succeed inthese foreign mar1ets+ it is necessary for the Company to ascertain -hether its current brand

name+ logo and other ad'ertising content are suitable to other foreign cultures or not. Thisrequires combined efforts from other functional departments not only from mar1eting andfrom the -hole company.

. . C"#'$2&!"#

The abo'e;mentioned acti'ities of the Company ha'e sho-n that though the Company has not-ell understood the importance of brand name+ its in'estment in building the brand+ to someextent+ has so far contributed to the success of its brand name. "o-e'er+ during the inter'ie-+the Assistant Director of the Company+ admitted that ad'ertising messages are not soimpressi'e to attract buyers but only able to create a-areness about 5i9A brand. This

problem can be attributed to the shortage of 1no-ledge on brand management and the essenceof brand+ as -ell as the -ea1ness of the ad'ertising agent in de'eloping the ad'ertisement.

These arguments highlight the need for a clear for its brand management in line -ith theCompany6s 'ision+ strategy and its internal strengths. This brand strategy should also rely onthe consumer6s beha'iors to-ards the A%# mar1et and its 5i9A A%#. :or this+ the Companyshould systematically build its brand identity and brand positioning according its actualmar1et potential and future 'ision of its business. 9n the basis of this+ it can construct aneffecti'e communication program to its target audiences+ -hich are no- expected to co'er the-hole electric and electronic range.

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Chapter 6

FINDINGS OF THE CUSTOMER SURVEY

The sur'ey is underta1en to in'estigate consumers6 a-areness about auto;'oltage stabili er brand name and their e'aluation to-ards 5i9A brand in details. 0ts obHecti'es are(

To e'aluate the brand a-areness of consumers to-ards A%# products.

To 1no- important factors affecting consumers6 beha'iors in ma1ing A%# buyingdecision.

To e'aluate the consumers6 a-areness to-ards 5i9A brand in details.

To understand the consumers6 e'aluation on the strengths and -ea1nesses of 5i9A A%#and 5i9A6s mar1eting mix.

9n the basis of the findings+ some recommendations are pro'ided to impro'e 5i9A A%# brand name position.

6 1 O-er-!e3 "% the Sa*p$e & Chara'ter!&t!'&

233 questionnaires -ere deli'ered and the number of 'alid questionnaires after ta1ing outin'alid ones! is 4 3L bet-een > and ?3+ 44L o'er ?3and only 4L under 23 years old Appendix+ Table A4+ A2!.

0n terms of educational le'el+ about 3L of the respondents graduated from college oruni'ersity. More than 4 L of them finished high school and 42L master degree or abo'e. Thenumber of respondents -ho ha'e degree lo-er than high school is 'ery fe-+ Hust 4LAppendix+ Table A>!.

#ince there are not many under 23;year;old and o'er ?3;year;old respondents in the sample+the first group -ill be grouped -ith those from 23 to >? years old and the latter -ill be group-ith those from >? to ?3 years old for easily analy ing the data. The respondents -ith highschool dergree and under are grouped together+ so are those -ith college and uni'ersitydegree and abo'e.

6 ( C"#&2*er& Bra#/ A3are#e&& a#/ the!r Beha-!"r

6 ( 1 Bra#/ a3are#e&&

The result of question 4 has sho-n that the respondents 1ne- 5i9A brand the most amongexisting popular brands of A%#. More than L of the respondents 1ne- this brand. :romthe results+ it can be said that the ad'ertising efforts of $hat 5inh Co. ha'e been effecti'e ingenerating customer a-areness to-ards its brand name :igure ?.4!.

The second popular A%# brand name follo-ing 5i9A is that of A#T. More than half of therespondents 1ne- the A#T brand name. The A#T products ha'e been ad'ertised frequently insome popular ne-spapers and maga ines+ as -ell as participated in many trade fairs. 0t should

be noted that though the producer of A#T is located in "o Chi Minh City+ customer

a-areness about A#T is rather high in "anoi+ -hich is not the most important mar1et of thecompany. This indicates that A#T is one of maHor competitors of $hat 5inh Company.

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Therefore+ 5i9A brand -as not only -ell;1no-n but also selected by the respondents -henthey -anted to buy an A%# product. Therefore+ -e can say that 5i9A -as a good brand namein the A%# mar1et in "anoi.

:rom the results of the sur'ey sho- that there is no relationship bet-een gender+ age andeducational le'els and the choice of A%# brands Table A43!.

6 ( + Fa't"r& A%%e't!#0 C"#&2*er& Ch"!'e& "% AVS Bra#/

The respondents ran1ed safety and reliability among the most important factors affecting their buying decision. The next important factor affecting their buying decision -as brandreputation of the product. :ollo-ing reputation -ere durability and noise!free characteristics.&rice and user;friendly factors -ere the next important factors after durability and noise!freeTable ?.2!.

Ta)$e 6 1: Fa't"r& A%%e't!#0 C"#&2*er& Ch"!'e& "% AVS Bra#/

Fa't"r& N Mea# St/ De-!at!"#9thers < ?.3333 .3333

#afety 4 4


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and promotion factors bet-een different age groups. Those under >? years old ran1edsupporting ser'ices more important than those bet-een > to ?3 years old and abo'e ?3 yearsold. :or promotion factor+ although it -as ran1ed belo- neutral point less important!+ thoseabo'e > years old considered it more important than those under >? years old Table A4


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6 + ( C"2#tr "% "r!0!#

More than four fifth of the respondents 1ne- that 5i9A products -ere produced by localCompany -hile nearly 23L of them thought that the products -ere made by foreign one.#ince 5i9A name+ the abbre'iation name of 7 5inh 9n Ap8 5inh Auto %oltage #tabili er! +is similar to other %ietnam brand names such as %0$ATABA+ CA#)M0$A+ B0%0$A etc+

consumers easily recogni ed it as local products Table A23!.The result of the sur'ey analysis sho-s that there -as no relationship bet-een gender+ agegroups+ education le'els and their 1no-ledge about the 5i9A name origin. Therefore+ -e cansay that 5i9A name -as easily recogni ed as a %ietnamese brand name Table A24!.

6 + + L!OA 4#"3$e/0e !#%"r*at!"# &"2r'e&

$early 3L of the respondents 1ne- 5i9A through ad'ertising programs and around


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The Company6s sponsorship programs -ere also not the effecti'e means to communicate -ith people about the Company6s products. That is -hy the Company should reconsider thiscommunication means in order to use its ad'ertising budget more effecti'ely and efficiently.

9ur results sho- no difference in the attitudes to-ard the sources of information for 1no-ing5i9A among different gender+ age groups and educational le'els Table A2>!.

The results let the Company 1no- -hich are the most effecti'e means to communicate -ithconsumers. :rom that the Company can construct its communication program in order to bestutili e its ad'ertising budgets.

6 + . L!OA 2&a0e

More than L did not Table A2

=espondents ran1ed 5i9A A%#6 s afety and reliability the best characteristics. They ratedthese t-o characteristics more than < in the scale from 4 to ?. The respondents agreed thatdurability# brand reputation# user!friendly# and noise!free features are the next bestcharacteristics of 5i9A A%#. They ran1ed 5i9A A%#6 s i;e and design Hust only abo'e theneutral point of the scale Table ?.

Ta)$e 6 (: Re&p"#/e#t & E-a$2at!"# "% L!OA AVS&

N Mea# St/ De-!at!"#

#afety 44 . 2

=eliability 423 . 2. 24< . 4

Brand reputation 44? >. 2 . 43

)ser;friendly 44 >. 4? . >?2 $ose;free 44 >. 2 4.32

#i e 44 >.> 4 . 2

Design 44? >.43 .

The results sho- no difference in the e'aluation of 5i9A A%#6 features bet-een genders andamong education le'els Table A2 + A>4 !. There is only a difference bet-een age groups ine'aluating safety and brand reputation of 5i9A A%#. The younger group+ under >? years old+e'aluated both safety and brand reputation better than the elder group+ o'er > years old

Table A>3!. &erhaps+ the reason is that elder people are often more cautious than theyounger.


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Ta)$e 6 +: Re&p"#/e#t& E-a$2at!"# "% L!OA A/-ert!&e*e#t C"#te#t&

Fa't"r& N Mea# St/ De-!at!"#

Easy;to;understand ad content 4 >. 4 3 4.34

Easy;to;remember ad content 4 3 >.2 4> 3. ? .3? 4.43

&roduct information 4?< 2. ? 4.3 4

Music and Hingles 4?> 2.2< < 4.3?>4

9thers 4 4.3333 .3333

There -as no difference in e'aluating the Company6s ad'ertisement bet-een different gender

groups. "o-e'er+ there -as a different opinion bet-een age groups and educational le'els.Fhile those o'er >? years old considered that product information in the ad content is notgood+ the other age groups thought that product information in the ad is acceptable. Thoseha'ing undergraduate degree and abo'e also e'aluated 'oice characteristics in the ad content-orse than those -ith lo-er degrees Table A> + A> + A? paied more attention to media than the other group Table A


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affecting their buying beha'ior. Although they are price;conscious+ they consider theabo'e mentioned characteristics more important than price. They are -illing to pay high

price for A%# -ith safety+ reliable+ durable and popular brand name characteristics.Therefore+ the company should not only rely on its high quality A%#s to attractconsumers+ but also build its brand name a-areness further.

To enhance its brand name a-areness+ the company should optimi e on its ad'ertisingcampaigns to communicate -ith consumers. As re'ealed from the result of the sur'ey+ 3

percent of the respondents 1ne- 5i9A from ad'ertising campaigns sho-n on T%+ne'ertheless+ the Company6s ad'ertising content -as not considered good by therespondents. 0t should be noted that the company has spent a lot on its ad'ertisingcampaigns so far for not much effect. Therefore+ the company should pay more attentionto the quality of the ad content.

$e-spapers and maga ines also pro'ide effecti'e channels for the Company tocommunicate -ith target consumers. "o-e'er+ the company should select the most read

by its target consumers in order to gain the highest cost;effecti'e benefits.

Ford;of;mouth from satisfied consumers is an important means to build its 5i9A brandname. "o-e'er+ this only happens as and -hen the company6s A%#s ha'e been used ande'aluated directly by the consumers. That is -hy product quality+ product price and othersupporting acti'ities such as technical assistance+ after sales ser'ice and free deli'ery+ etc.are all necessary factors that enhance the consumers reference to-ards their friends andrelati'es. Although the respondents did not specially mention that such acti'ities assupporting ser'ices -ere the most important affecting their buying decision+ they arecertainly important to enhance the customer6s -ord;of;mouth.

Therefore+ the company should focus not only on its product6s quality+ but also on its othersales related acti'ities to ma1e it a full fledged customer;oriented company to get full benefitsfrom that.

0n sum+ to fulfill its ne- obHecti'es and mission+ the Company should continuously impro'eits A%# quality to remain superior to that of others and try to de'elop a good distributionsystem and supporting ser'ices. At the same time+ the Company should also impro'e thequality of its ad'ertising campaigns to impress the consumers in order to increase theconsumer6s a-areness for its 5i9A brand name and thus further push the demand for the

products. 9nly by so doing+ the Company can optimi e on its current strengths and de'elop afirm and long lasting competiti'e edge for its future gro-th.


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Chapter 7

DEVELOPING A BRANDING STRATEGY FOR LIOA

:rom -hat has been found at the Company internal situation and its obHecti'es+ together -iththe results of the sur'ey+ -e can say that although 5i9A brand name is quite strong in%ietnam A%# mar1et+ it should be protected from fierce competitions from other A%# brandnames. The competitors are spending a lot of their money for ad'ertising acti'ities aiming atgaining the mar1et share in the slo- gro-th A%# mar1et.

The company has not ad'ertised for its 5i9A on T%s for a long time. 0t has Hust ad'ertised forits 5i9A Cable and neglected its 5i9A A%#. Moreo'er+ 5i9A ad'ertising quality is notimpressi'e to audiences since the Company does not -or1 out its brand positioning.

"ence+ apart from its other acti'ities in product+ price and distribution+ the Company shoulddo the follo-ing acti'ities to use its 5i9A brand name as a 'aluable asset.

)nderstand ho- to manage a brand systematically

5earn the nature of the brand name+ its brand personality+ brand identity+ brand equity andits brand anatomy.

:ind a good ad'ertising agency to ma1e its ad'ertisement Building communication programs in line -ith its corporate strategy and branding

strategy+ brand identity and brand position for particular areas.

Consolidate its brand name in the $orth

Expand its mar1et share and brand name a-areness in the #outh.

&repare necessary actions to export 5i9a A%# to the #outh China mar1et

9nly by doing these acti'ities+ can the Company ma1e its 5i9A brand name actually strong in%ietnam A%# mar1et and use it as an effecti'e -eapon to compete -ith other competitors.

7 1 De-e$"p!#0 L!OA Bra#/ I/e#t!t

7 1 1 The )ra#/ a& a pr"/2't

Pr"/2't &'"pe a&&"'!at!"# 3!th pr"/2't '$a&&: 5i9A A%# is di'ided into 2 1inds+household and industrial products. Therefore the Company can ser'e t-o types ofconsumers+ family and industrial ones. Fhen thin1ing of 5i9A A%#+ people -ill 1no-that the product is a'ailable for their electric equipment both at their family and at their

business. The Company can use 5i9A as the company brand name to communicate -ithconsumers.

Pr"/2't re$ate/ attr!)2te&: Fhen people buy 5i9A they -ill get a high quality productJsafety+ reliability+ durability+ and use;friendly product. They -ill recei'e free deli'ery ifneeded and product -arranty -ithin > years.

92a$!t a#/ -a$2e: :or 5i9A A%#+ it is considered the highest quality products -ith

reasonable prices. #ince the Company is the big one among A%# manufacturers+ it can benefit from the economies of scale and scope and easily buy imported high qualitymaterials. That is -hy the cost of producing the highest quality is not much higher than


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that of competitors+ if not smaller. Therefore+ consumers can get the highest qualitydomestically made products -ith affordable price.

A&&"'!at!"#& 3!th 2&e "''a&!"#: The product is used -hen unstable po-er current occursor -hen the po-er current is too lo- or too high for some time. Fith the presence of5i9A these problems -ill be settled and consumers feel safe for their other modern

electric equipment.

A&&"'!at!"#& 3!th 2&er&: &eople ha'e to use the product due to the unstable po-ercurrent happening at their li'ing en'ironment. &eople+ -ho are careful and -ant theirmodern electric equipment to be safe+ usually use the product.

C"2#tr "% "r!0!#: 5i9A A%# is a %ietnamese product. 0t has a name similar to other%ietnamese products. as mentioned abo'e the name 5i9A means 75inh 9n Ap8 5inhAuto %oltage #tabili er!. Moreo'er+ Although the brand name does not suggest thecountry of origin+ it suggests the name of producer and is 'ery similar to the name of other%ietnamese products li1e CA#)M0$A+ "A50DA+ ")DA ... #outh =ubber Company+"anoi And Denmar1 O% Bre-er Company+ "ue And Denmar1 Bre-er Company!.Therefore it easy for people to reali e that it is domestic product.

7 1 ( The Bra#/=a&="r0a#!>at!"#

$hat 5inh Co. is an organi ation -ith inno'ation culture to pursue for the highest quality products in order to get and maintain the position of A%# mar1et leader in %ietnam that it hasaimed at. 0n addition+ the Company has better

using brand as an effective weapon to compete in the market - a case study of nhat linh company

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