Increasing brand awareness of two new kinds of wine named van loc and vodka hy in hanoi delta joint stock comapany

NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT  HO HA GIANG “INCREASING BRAND AWARENESS OF TWO NEW KINDS OF WINE NAMED VAN LOC AND VODKA HY IN HANOI DELTA JOINT STOCK COMAPANY” Hanoi, May 2011 NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES ENGLISH FOR BUSINESS DEPARTMENT HO HA GIANG “INCREASING BRAND AWARENESS OF TWO NEW KINDS OF WINE NAMED VAN LOC AND VODKA HY IN HANOI DELTA JOINT STOCK COMAPANY” Supervisor: MSc Nguyen Thi Hong Van Hanoi, May 2011 Ho Ha Giang - CQ493935 - Business English 49 A ACKOWLEDGEMET This is the first time I have done such a serious and methodical research like this report for the past four years in our University To be honest to say, this mission has been not easy and simple at all as my first thought, and I have faced to many difficulties when starting to write I am very glad to share this achievement to many individuals who have helped me during the process of doing this report Firstly, I would want to give my sincere thanks to Ms Nguyen This Hong Van, my supervisor, for her great kindness and contribution I have had so much problem when choosing the topic and the purposes I was nearly stuck for a time before Ms Van gave me a clue that made everything clear and easy The most lovely characteristics of my supervisor are her gentleness and wholeheartedness reflecting in the way she supported me From my heart, I honestly wish her the best health and career success Secondly, I would want to express my sincere gratitude to my supervisor and colleagues at Hanoi Delta JSC Mr Vu Tuan Anh the Director, accountant Nguyen Thi Phuong and especially the Deputy Director, Mr Ngo Van Chien have help me so much when I had the internship period in the company Whenever I had any wonder or any question, they always gave me the best instruction Their contributions have help me to improve my knowledge so much that I have not gained in the scope of University I warmly wish them the most happiness There cannot be lack of my thankfulness to my classmate Pham Tra My who introduced me to Hanoi Delta JSC Because we had our internship in the same unit, so we often exchanged the information as well as opinions She helped me to find out the suitable company for my internship and that kindness leads to this achievement From the bottom of my heart, I would want t give my best wishes to her And finally, I highly appreciate all the important and useful documents that my teachers at the Faculty of Foreign Languages have edited for us such as Principles of Marketing, Business Communication, English for international business management and EAP writing These text books are my instructor to apply the most exact theories and are part of this report Hope that much more interesting and useful syllabus will be edited for the future generation of our faculty Ho Ha Giang - CQ493935 - Business English 49 A TABLE OF CONTENT EXECUTIVE SUMMARY V INTRODUCTION CHAPTER I: Introduction of the company and two new products Overview of wine 1.1 Snap shot of origin of wine 1.2 Vietnamese traditional culture of drinking wine 1.3 Overview of the current rice wine market in Vietnam Delta Group Hanoi Delta JSC .5 Van Loc and Vodka Hy 4.1 Van Loc 4.1.1 Viet Xua distillery- where Van Loc was born 4.1.2 Characteristics of Van Loc .7 4.2 VodkaHy 4.2.1 Origin 4.2.2 Characteristics of Vodka Hy CHAPTER II: Theoretical framework 11 Brand and brand awareness 11 1.1 What is brand? 11 1.2 Brand awareness 11 1.2.1 What is brand awareness? 11 1.2.2 Type of brand awareness 12 1.3 Brand name selection 12 1.4 Customer buying behavior 13 1.4.1 What is customer buying behavior? 13 1.4.2 Characteristics affecting consumer behavior 14 Marketing .14 2.1 What is marketing? .14 2.2 Marketing strategy 15 2.2.1 SWOT analysis 15 2.2.2 Marketing Mix .16 CHAPTER III: Analysis and Findings 20 The popularity of Van Loc and Vodka Hy-matter of brand awareness 20 Customer’s evaluation on Van Loc and Vodka Hy- the application of 4Ps 21 Ho Ha Giang - CQ493935 - Business English 49 A 2.1 Product 21 2.1.1 Uniqueness 21 2.1.2 Quality 22 2.1.3 Packaging 24 2.2 Price .25 2.3 Place- matter of distribution channels and selling place 26 2.4 Promotion .29 CHAPTER IV: Recommendations .31 Sponsoring and managing events 31 Building the Brand Ambassador 32 Exploiting e-marketing .32 Promotion policy 35 Improving the quality of marketing staff 35 Improving the product’s characteristic itself .36 CONCLUSION 37 APPENDIX 38 REFERENCES 41 Ho Ha Giang - CQ493935 - Business English 49 A LIST OF FIGURES FIGURES Figure Experts of Viet Xua distillery Figure Block of bigger Van Loc Figure The smaller version of Van Loc .8 Figure Vodka Hy-block of two/300ml/bottle - the front side and rear side Figure Vodka Hy-single 750ml bottle groom on 10 Figure The picture of bride and the Vodka Hy label 10 Figure 7: SWOT factors .16 Figure The Marketing Mix 18 Figure 10 The extended marketing mix 19 Figure 10 Recognition level of peole given samples of Vanloc .20 Figure 11 Percentage of customers using different kinds of wine in weddings 21 Figure 12 customers’ feedback about Vanloc’s concentration .23 Figure 13 Percentage of consumers choosing different levels of Vanloc’s alc/vol 23 Figure 14 Customers’ feedbacks about Vanloc packaging 25 Figure 15 Number of people buying Van Loc in three different channels 27 Ho Ha Giang - CQ493935 - Business English 49 A EXECUTIVE SUMMARY Delta Group and Hanoi Delta Joint Stock Company (JSC) are doing business in producing, importing and distributing many kinds of wine Recently, both two units have been producing two kinds of Vietnamese traditional rice wine named Van Loc and Vodka Hy Currently, they are facing to a tough problem of raising brand awareness of the customers This problem leads to the low turnover and hence directly affects the business of Delta Group and Hanoi Delta JSC From this above trouble, the most essential purpose of this small report is to find out how popular Van Loc and Vodka Hy is, what opinion and evaluation of the customers are and hence to propose some effective recommendations to increase the brand awareness All these purposes are to serve the biggest main objective of increasing the sales number This report is divided into four main parts: The first part is to introduce both two companies and the overview of winetheir business field as well as all important and necessary information of Van Loc and Vodka Hy The second part is to study some theories of brand, brand awareness and several aspects of marketing including marketing mix, marketing strategy and customer buying behavior The third part aims to conduct the level of brand awareness of Van Loc and Vodka Hy in Vietnamese market, evaluations and opinions of the customers on their capacity They are interested and impressive by the way two new products are packaged but not highly appreciate the method of distributing and selling them And the final part is recommendations of this report directly concern to the problems Some recommendations are given out such as sponsoring and managing events, building the Brand Ambassador, exploiting E-marketing, implementing promotion policy, increasing the quality of sales staff and improving the quality of product itself On the basis of these findings, this report in some ways is the considerable answer for the current problem of Hanoi Delta JSC and hence to improve the its current business Ho Ha Giang - CQ493935 - Business English 49 A INTRODUCTION For a long time, it is said that the business world is the war This comparison becomes extremely sound in the situation of modern business, as the globalization is breaking out and infiltrating into every aspect of the daily life Recently, the international economy is in the recession and severely increasing inflation This is causing the decreasing purchasing power of the customers Even the seasoning organizations and their products are also affected, so it is easy to understand how much more difficulties the fledgling companies and products have in attracting the customers While the long-standing products have an advantage of being known popularly, their images have been imprinted in the customers’ minds That is why the top mission for those ones to fulfill is to build the customers’ brand awareness of them and then to increase that awareness Once the brand awareness has taken shape and improved, those products will undoubtedly continue to survive in the very fierce competition This above thing is correlative to the current case of Hanoi Delta JSC and its products The company is set up in 2009, and is one of branches of its mother company- the Delta Group It mainly plays as a wine and soft-drink distributor for the mother company The products of Hanoi Delta JSC range from the foreignimported wine like Chivas, Whisky, Brandy, etc…to the other soft-drinks However, at this time the company is making effort to launch two new entries to the market The special thing is that these two new products are the children of the company itself and its mother company In details, one product named Van Loc made from Vietnamese traditional rice and produced by the Delta Group Another one is Vodka Hy which is also made from rice and by the leaders of Hanoi Delta JSC themselves Both these two new players are under the distribution of Hanoi Delta JSC and the turnover of them will obviously affect the success of the company The problem is laying under the matter of newness Customers have not known or even heard about them yet The crucial purpose of this report is to find out the key answer how to build and raise up the brand awareness of the customers on Van Loc and Vodka Hy, hence to increase the turnover of them In details, these two above purposes are subdivided into the smaller objectives The first objective is to study how popular the Ho Ha Giang - CQ493935 - Business English 49 A two newborn Van Loc and Vodka Hy are in the Vietnamese market As being predict, the result may be not positive and the next step will be implemented to know why they have not been known much The second purpose which is not less important is to learn about the customers’ ideas and opinions of those two new products And final aim is to propose some suggestions and recommendations of a marketing strategy that could be effective to solve this problem Certainly, through the process of realizing research, the theory of brand, brand awareness and the theory around marketing will be acknowledged This report will be carried out to answer these two following questions: Why not people know clearly about the Van Loc and Vodka Hy? What are their opinion ( quality, appearance, price, etc…)? What is company doing to build the brand awareness of these product? Which effective marketing strategy to increase the brand awareness in the future? This research will use the primary data that withdrawn from the result of some interviews and survey These two methods are done with some agents and intermediary customers around Hanoi who frequently get wine from the company and then sell them to the final consumers and the customers using the free samples of Van Loc and Vodka Hy The secondary data is collected from the annual reports and business strategy of Hanoi Delta JSC as well as the documents in the library and other sources These above database will be thoroughly analyzed with the support of some charts, diagrams, tables and product illustrations Normally, the drinks made from the fermented fruits or cereals are generally called “alcohol” Only drinks made from grape are named “Wine” However, in the extent of this report, the term “Wine” will be temporarily borrowed to express the common alcohol, for examples, one made from rice will be called the “Rice wine” to simplify the complication around the matter of terms and definitions if there is any controversy Ho Ha Giang - CQ493935 - Business English 49 A CHAPTER I: Introduction of the company and two new products Overview of wine 1.1 Snap shot of origin of wine The legend says that the human being in the Nile Delta has known about wine for about 8,000 years B.C This place was famous for so many wild grape trees laden with fruits At that time, the man was still so wild, they ate the uncooked red meat They just had cooked meat when fire was created Gradually, animals were not enough for the increasing number of people, so they had to think about gathering fruits as well They gathered and collected so many kinds of fruits for a reserve As a result, all that fruits fermented and pervaded a very comfortable aroma Their tastes were a mix of sweet, sourness and bitter and they brought to the people a feeling of relaxation and happiness This kind of drink was named “Spirit” Eventually, human being found out the cereals to support their livelihood, they also knew to make the similar drink from the fermented cereals like one from the wild fruits before As thousands of year passing by, the modern man today still loves that marvelous drink which is widely called “Wine” 1.2 Vietnamese traditional culture of drinking wine Vietnam is the traditional agricultural country for generations, Vietnamese people have got acquaintance with the method of making wine from many kinds of agricultural products for a long time There are much disagreement about the exact time wine was made in Vietnamese area However, beyond controversy that wine has been tied with the cultural and spiritual life of the Lac Viet tribal since the th century B.C Wine has become a bridge not only among natural people but also between them and the ancestors and the deities in the Tet holidays, religious festivals as well as the very important events like funeral and wedding In many mountainous regions and midlands, people use some kinds of fruit such as apricot, plum and some cereals like maize and cassava to produce wine The plainsman uses rice to make wine Nowadays, there are so many kinds of wine including the foreign-imported red wine in Vietnamese market, however, the traditional fermented-rice wine still plays an very important role in the popular daily life of each Vietnamese social class, and this will undoubtedly continue in the future