Solutions to exploit brand “halico” more effectively in hanoi liquor joint stock company

I NATIONAL ECONOMICS UNIVESITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT  ¬ NGUYEN THU HANG SOLUTIONS TO EXPLOIT BRAND “HALICO” MORE EFFECTIVELY IN HANOI LIQUOR JOINT STOCK COMPANY Hanoi-5/2011 Nguyễn Thu Hằng-CQ493821-Business English 49A NATIONAL ECONOMICS UNIVESITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT  ¬ SOLUTIONS TO EXPLOIT BRAND “HALICO” MORE EFFECTIVELY IN HANOI LIQUOR JOINT STOCK COMPANY Name Studen ID Class Field code Supervisor : Nguyen Thu Hang : CQ493821 : Business English 49A : 701 : Ms Nguyen Phuong Hoai, MA Hanoi- 5/2011 Nguyễn Thu Hằng-CQ493821-Business English 49A TABLE OF CONTENT LIST OF CHARTS, FIGURES, TABLES ACKNOWLEDGEMENTS I EXECUTIVE SUMMARY II INTRODUCTION III CHAPTER 1: INTRODUCTION OF HALICO 1.1 Introduction of Halico 1.1.1 The period of foundation and development of Halico 1.1.2 Business lines of Halico 1.1.3 Halico’s organizational structure 1.2 Halico’s problem: CHAPTER 2: THEORETICAL FRAMEWORK .5 2.1 Brand 2.1.1 Brand definition 2.1.2 The importance of brand 2.2 Brand exploitation: Expanding and developing distribution channel 2.2.1 Developing indirect distribution channel .7 2.2.2 Developing direct distribution channel 2.3 Brand exploitation: Transferring brand elements 10 2.3.1 Transferring trademark ownership .11 2.3.2 Transferring license to use trademark 11 CHAPTER 3: ANALYSIS AND FINDINGS .13 3.1 The real situation of expanding and developing distribution channel in Halico 13 3.1.1 In Vietnam market 13 3.1.2 In foreign markets 19 3.2 The real situation of transferring brand elements 21 3.3 Summary of achievements 21 3.4 Summary of existing shortcomings 22 CHAPTER 4: RECOMMENDATIONS .24 4.1 Paying attention to improve and develop distribution channel more effectively 24 4.1.1 To indirect distribution channel 24 4.1.2 To direct distribution channel .26 4.2 Transferring brand elements to market brands especially in foreign markets in the context of WTO integration 27 4.3 Exploiting brand in combination with protecting brand 28 CONCLUSION .30 APPENDIX REFERENCES Nguyễn Thu Hằng-CQ493821-Business English 49A LIST OF CHARTS, FIGURES, TABLES Chart 1: Halico’s structure Figure 1: Hanoi Liquor Factory in 1898 .1 Figure 2: Hanoi Liquor Factory now .1 Figure 3: Halico’ brand .6 Figure 4: Halico’s Catalogues 19 Table 1: Turnover of Halico in 2008, 2009 2010 Table 2: 10 top franchise systems in America 12 Table 3: Halico’s agent systems 13 Table 4: PG number in Halico, 2010 15, 16 Table 5: Programs Halico joins, 2010 17 Table 6: Funding, rewarding programs Halico joins, 2010 17 Table 7: Halico’ Branches 18 Table 8: Export turnover of Halico .20 Table 9: Export turnover of Halico in some foreign markets .20 Table 10: Halico’s rewards 21 Table 11: Feedbacks from Halico’s Agents 22 Table 12: Target turnover of agents 25 Table 13: Stages of building professional sales system 26 Nguyễn Thu Hằng -CQ493821-Business English 49A ACKNOWLEDGEMENTS Beside my personal effort, the support both from my department and the company during my internship plays a very important role in finishing this report First, I would like to give many thanks to Ms Tran Thi Thu Giang, Dean of Faculty of Foreign Languages for the opportunity to implement this study Then, I would like to thank Ms Nguyen Phuong Hoai for her enthusiastic help at any time Her instruction about academic knowledge and her direct support in revising and correcting my mistakes are very grate help in completing my report Thanks teachers in Department of Business English in general and Ms Hoài in particularly for their enthusiasm in helping students finish their important report Second, thanks all staff in Halico from the bottom of my heart for their help during my internship Thanks Mr Ho Van Hai, General Manager of Halico for giving me this internship position Thanks Mr Nguyen Hong Minh, Vice Chief of Marketing Department for his direct support and instruction to write this report Thanks all staff in Marketing Department of Halico for instructing and advising me during my internship process Finally, once again, many thanks for everyone who indirectly or directly helps me complete the report I Nguyễn Thu Hằng -CQ493821-Business English 49A EXECUTIVE SUMMARY Brand is an invaluable asset of any company And this asset will become more valuable if the company know how to exploit it the most effectively So I implement this short study under authorization of my teacher to give useful recommendations for Halico in particular and other companies in general My conclusions come from my knowledge and experience gained from my internship process and the secondary data of various kinds of internal information, which is provided by Halico, and literatures I have read Analyzing the data clarifies following main things:  The real situation of exploiting Halico’ brand in term of indirect and direct distribution channel in both domestic and foreign markets  The real situation of transferring brand elements   Achievements which Halico gains Shortcoming which Halico has to face with On the basis of these findings, it is recommended that to indirect distribution channel, Halico should focus on agent, horeca channel to retain and develop markets To direct channel of distribution, online sales channel should be paid more attention Halico should also consider brand transfer and combination of brand exploitation and brand protection Chapter below will be used to discuss them in more detail I I Nguyễn Thu Hằng -CQ493821-Business English 49A INTRODUCTION Introduction of the research topic In today’ context, there is no doubt that the more the world develops, the more important role brand plays Can you answer why consumers like Coca-Cola more than Pepsi although they cannot find the big difference in this two kinds of drink? It is the strength of brand Because of brand’s valuable strength, companies now consider building, exploiting and protecting brand as their top concernment This report will focus on analyzing the brand exploitation in a particular company named Hanoi Liquor Joint Stock Company Rationales To design a meaningful and symbolic brand is very difficult However, to exploit it is more difficult Nowadays, businesses gradually realize the importance of brand and pay special attention to brand exploitation In fact, not any business can use its brand to bring about the most profitable result So, “How to exploit brand the most effectively?” is still a big question for businesspeople “How to exploit brand the most effectively?” is also a hard question for Hanoi Liquor Joint Stock Company Although this company was founded for an enough long time (from 1898), its reputation is too modest in comparison with its real ability One of reasons of this unbalance is that Halico has not exploited all value of its brand Therefore, this short report is written to help Halico review its real situation at first, and then give solutions to exploit brand “Halico” more effectively Research questions This report will answer three main questions below Why has not “Halico” Brand been known widely in Vietnam market and foreign markets? Why has not Halico exploited “Halico” brand effectively? How can Halico improve the effectiveness of exploiting its brand? Scope of the research I I I Nguyễn Thu Hằng -CQ493821-Business English 49A This report will be written about “Halico” brand in Vietnam market and foreign markets which Halico has exported its product to Methodology Analytical, logical and dialectical methods will be used to analyze and compare the information above to reveal the real situation of brand exploitation in Halico Moreover, from my gained knowledge and experience and the analyzed data above, solutions to exploit brand “Halico” more effectively will be given I V Nguyễn Thu Hằng-CQ493821-Business English 49A CHAPTER 1: INTRODUCTION OF HALICO Chapter is designed to review the foundation and development periods of Halico at first, and then point out its problem which will be analyzed in detail in next chapters Moreover, some basic terms will be defined to facilitate readers’ reading and understanding 1.1 Introduction of Halico 1.1.1 The period of foundation and development of Halico Hanoi Liquor Joint Stock Company in 94 Lo Duc Street is the former Hanoi Liquor Factory, which was built by the French Fontaine Distillery in 1898 This is the biggest factory of five factories built in Indochina Zone Figure 1: Hanoi Liquor Factory in 1898 (www.Halico.com.vn) After the war, Vietnamese Government was responsible for controlling the factory and began producing again In 2006, according to government decision No 1626/QD-BCN November 16, 2006, Hanoi Liquor Joint Stock Company was officially founded Figure 2: Hanoi Liquor Factory now (www.Halico.com.vn) Nguyễn Thu Hằng-CQ493821-Business English 49A After 100 years of development since the factory was founded, Halico now becomes one of the biggest liquor producing companies With advanced technology, experienced employees, especially skillful management board, Halico has created liquor products which not only have good quality and reasonable price but also meet rules of food safety and environmental protection Halico is famous with popular trade-marks such as Vodka, “Rượu Hà Nội”, “Lúa Mới”, “Nếp Mới”, “Ba Kích”, etc In addition, new and luxurious liquor products such as Vina vodka, Bluebird vodka, etc is also being believed and used by domestic and foreign consumers Special features of Halico liquor are mellow flavor, typical of Vietnamese rice During the period of foundation and development, Halico gains many achievements in Vietnam and in the world With tradition and experience in the field of producing liquor, Halico commits to bring safer and better products serving domestic and international markets, introduces brand “Halico - Men say hồn Việt” to global markets 1.1.2 Business lines of Halico Halico focuses on six key business lines as below: - Production of alcohol, wine and other alcoholic and nonalcoholic beverages - Trade, import and export of alcohol, wine and other alcoholic and nonalcoholic beverages, equipment and raw materials for alcohol production - Consultancy, technology transfer, supply with equipment and alcohol production lines - Production and trade wrapping and packing - Transportation business - Hotel, housing business and rental services of houses, offices, shops (not including bars, karaoke rooms and discotheques) 1.1.3 Halico’s organizational structure Halico was formerly a state owned company and now operates in form of Joint Stock Therefore its structure changed apparently and is described in the chart From the chart, it can be seen that shareholders is the most powerful people in the company The structure has a supervising system which can helps the company operate effectively Diretors are people who is assigned by