perception image of piaggio in consumers’ mind and consumer habit of using media

Đỗ Tuấn Anh 7C ACKNOWLEDGEMENT My report is completed not only thanks to my efforts but also with many people to whom I would like to express my deep and sincere gratitude Firstly, I would like to express my warm and sincere thanks to my supervisor , Ms Van Anh, teacher of English , Foreign Trade University for her continuous support of my study and research, her great efforts to explain things clearly and simply, for her corrections, comments, criticism, suggestions during the process of report. Her guidance helped me very much in all the time of research and writing of this report. Lastly, and most importantly, I would like to thank my parents, my friends for supporting and encouraging me throughout the process of doing this graduation report. Đỗ Tuấn Anh 7C TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………… 1 INTRODUCTION 2 1. Introduction of the research topic……………………………………………… 2 2. Rationales……………………………………………………………………… 3 3. Research questions………………………………………………………………4 4. Scope of the research……………………………………………………………4 5. Methodology…………………………………………………………………….5 CHAPETR I: THEORETICAL BACKGROUND 6 1.1. Definition of public relation 7 1.2. The significance of public relation to Piaggio 7 CHAPTER II: REAL SITUATION OF PR ACTIVITIES OF PIAGGIO 8 2.1. Specific PR activities of Piaggio in previous years 9 2.1.1. Vespa festivals 10 2.1.2. Sponsoring for fashion shows 11 2.1.3. Inauguration of manufacturing factory in 2009 12 2.1.4. Other activities 13 2.2. Evaluation of PR activities of Piaggio 15 CHAPTER III: PERCEPTION IMAGE OF PIAGGIO IN CONSUMERS’ MIND AND CONSUMER HABIT OF USING MEDIA 3.1. Perception image of piaggio in consumers mind 17 3.2. Consumer habit of using media 19 CHAPTER IV: PR PROPOSALS FOR PIAGGIO 4.1. General objectives 21 4.2. Proposed PR activities for the Piaggio company 23 4.3. Proposed PR activities for its products 25 CONCLUSION APPENDIX REFERENCES 2 Đỗ Tuấn Anh 7C EXECUTIVE SUMMARY My report aims to suggest some PR proposals for Piaggio in VN to attract more consumers. Nowadays, PR becomes more and more important for businesses to confirm the brand’s position in consumers mind as well as to raise the companies’ profit, sales . However , PR activities play an important role in helping the company reconfirm its brand position as well as launch its new products like Piaggio VN to consumers. This report aims to give some PR proposals for piaggio VietNam to attract more cusotmers as well as raise brand’s position in consumers mind. The report are devided into four main chapters. The first chapter is about Public relation . Readers will know more clearly about PR concept and its process. Moreover , the role of PR to businesses in general and for Piaggio company in particular will be specificly clarified . The second chapter is about specific Piaggio PR activities. Also, in this chapter, PR activities of the company are pointed out and evaluated on the basic theory of the first chapter and the result of survey. So, PR activities of Piaggio has gained lots of achievements as well as has its own problems. The awareness of Piaggio brand’s position as well as its new products are not very high. In other word, PR activities of this company are not successful in raising the knowledge of brand’s position in consumers’ mind. In third chapter, readers will know about perception image of piaggio in consumers’ mind and consumers’ habit of using media. Again, the company don’t really leave impressive image in consumers’ mind. Besides, readers will have more understanding of consumers’ using habit of media. The second , third chapter will be the basis of suggestions in the last chapter for PR activities in the company. The suggestions aim to reconfirm its famous brand and launch its new products to consumers more effectively. These are conveyed on the most favorite information channels. These are famous magazines like heritage, gold…or popular websites such as dantri.vn, vnexpress.com, vietnamnet.vn … (according to the result of survey conducted on sirvina.com). 3 Đỗ Tuấn Anh 7C INTRODUCTION 1. Introduction of the research topic Nowadays, PR activities in Viet Nam has a lot of shortcomings. Piaggio VietNam is not an exceptional one. Entered Viet Nam from the beginning of 20th century, piaggio is not very successful in ancient motorbike line. Recently , a manufacturing factory of Piaggio is established in Vinh Phuc in 2009 with investment capital thirty millions USD. In addition, a factory will be inaugurated in 2012 with investment capital up to 40 millions USD. Apparently, the company puts their big hope in Viet Nam motorbike market. Therefore, PR activities will be very helpful to Piaggio in this time. On the other hand, they will help to launch its new products to consumers and help to the company to reconfirm its brand position. Because of these , the report “some PR proposals for Piaggio in Viet Nam to attract more customers” is complemented . 2. Rationals The report aims to measure, evaluate the effectiveness of Piaggio PR activities. The report also give readers the consumers’ understanding, perception about the company . Then, some PR propsals will be brought out to help the company develop more and attract more consumers. To do this, it is neccessary to have thorough understanding about PR activities , the role of PR to the company and perception image of company in consumers’ mind. So the report focuses on three main points: - Theories of PR and the role of PR to the company. - Analyzing, evaluating PR activities of Piaggio, the company image in consumers’ mind. - Providing some PR proposals for the company to attract more customers. 3. Research questions 4 Đỗ Tuấn Anh 7C The report will focus on these following questions: a. What is Public Relation and the role of PR to the company? b. How are PR activities conducted at the company? c. What are the specific PR proposals for the company? 4. Methodology In this report, most information was collected and extracted English books, newspapers, and websites. In addition, a survey of 100 consumers on sirvina (http://www.sirvina.com/WebSurvey/129488127685300000/63406F.aspx .com) is carried out to serve the analysis of the report. The analysis of report will base on general reports, research results of company. With these materials, the author has applied a number of research methods including statistical, synthetical, and analytical and comparative methods to highlight the discussed issues. 5. Scope of the study PR is a new and broad concept. However , in this report the author will focus on real situation of Piaggio PR activities, consumers’ awareness of the company and then give some PR proposals . CHAPTER I: THEORETICAL BACKGROUND 5 Đỗ Tuấn Anh 7C 1.1. Definition of PR There are many ways to define PR, but in the scope of this report, the author just focus on some that is popular and easy to understand. According to Wikipedia, “Public relations (PR) is a field concerned with maintaining a public image for businesses, non-profit organizations or high-profile people, such as celebrities and politicians Public relations is used to build rapport with employees, customers, investors, general public and provides an organization or individual exposure to their audiences through using topics of public interest and news items” The International Public Relations Association defines Public Relations as “Public Relations is the art and social science of analyzing trends, predicting their consequences, counseling organization leaders and implementing planned programmers of action which will serve both the organization’s and the public interest.” However, some people suppose that PR is the practice of managing communication between an organization and its publics. Another definition from the website http://www.prca.org.uk is that “Public relation is all about reputation. It's the result of what you do, what you say, and what others say about you. It is used to gain trust and understanding between an organization and its various publics - whether that's employees, customers, investors, the local community - or all of those stakeholder groups”. Another definition from Philip Kotler in the book “principle of marketing” published in 1996, public relation means “building good relations with the company’s various publics by obtaining favorable publicity, building up a good “corporate image”, and handling or heading off unfavorable rumors, stories, and events”. In short, PR aims to influence public opinion to create a positive image for company, organization, corporation through all media (press, newspaper, newsletters, photographs, internet ) This fragment clearly describes the essence of 6 Đỗ Tuấn Anh 7C PR, which is an effort to change, modify, or influence public attitude and thought that will turn into behaviors and actions 1.2. PR process According to John Marston, a PR professor, PR process includes 4 steps called RACE in the textbook “Nature of Public Relations” published in 1963. This word is the abbreviation of PR process: - Research - Action plan - Communication tactics - Evaluation (Source: online - pr.com) So what is research? Research is the systematic gathering of information to understand: client organization, problem/opportunity; issues/environment, key Publics. Research is carried out by using secondary documents such as: library 7 Đỗ Tuấn Anh 7C books & periodicals, other published research, newspaper, magazines…and primary source like surveys, interviews, or researches by walking around. In the stage of step- action plan and communication tactics, we must develop a strategy that involves in setting objectives, key publics, and time line, budget for PR activities. Finally, it is the evaluation stage. In this stage, research methods will be used to consider whether PR activities get success or not. The success of program will be measured by the numbers of exposure in media, the increase in consumers’ awareness before and after the program. Surveys are necessary for the company to measure the effectiveness of its PR activities. In conclusion, Public relation is a two way process. On the one hand, it seeks to interpret an organization to society while on the other it keeps the organization informed about the expectation of the society. Fundamentally public relation is a means by which an organization improves its operating environment. 1.3. Measures to evaluate the effectiveness of PR activities Evaluation is a measurement activity in order to systematically compare the effectiveness of PR programs before & after implementing the program. To evaluate whether a PR campaign is effective or not, there should specific evaluating criteria. Series of evaluating criteria are divided into two types. The first is the quantitative evaluating criterion which includes number of people attending the event, number of people who know the event and number of news, articles posted on the means of mass communication, the level of conveying the message to consumers, as well as coverage of the message. The second is qualitative criterion like the public's attitude, whether PR programs leave unforgettable impression in consumers’ mind or not and how the program affects consumers. 8 Đỗ Tuấn Anh 7C In a Pr program, evaluation of the effectiveness of a PR program means evaluating the impact of perception, attitude or behavior of consumers. Measuring the public perception means investigating the public's attention to the message, understanding the messages, their memory of messages Measuring the public attitude means finding out public opinions before, during and after the a PR campaign or program or specific event. Measuring public behavior is to know whether these programs influence consumers’ behavior or not. If yes, this will lead to the increase in the company’s profit (vietnambranding.com). In this report , a survey of 100 consumers questioned is to consider whether specific Piaggio PR activities are effective or not. 1.4. The significance of public relations to Piaggio Company. Public relation plays a key role in helping business create strong relationships with customers. Public relations involve supervising and assessing public attitudes, and maintaining mutual relations and understanding between an organization and its public. The function of public relations is to improve channels of communication and to institute new ways of setting up a two-way flow of information and understanding. Public relations are effective in helping: * Corporations convey information about their products or services to potential customers * corporations craft their public image as well as confirm their brand’s position by raising funds, holding events or charity programs for poor people… For Piaggio, PR activities help the company build consumers’ belief and confirm an initial brand of vehicles in consumer’s mind when there are lots of strong competitors in Vietnam motorbike market like Honda, Yamaha, and SYM Moreover, that effective PR activities bring corporate image to every people will 9 Đỗ Tuấn Anh 7C appeal to talented staff to the company. Because everyone would like to work in large organizations with professional working environment and he/she has lots of opportunities to get promotion. Besides, PR activities consists of community programs like charity, support program for the poor, the handicapped, the blind… will gain not only the truth but also good feeling from customers. For example, typical PR activities like “Tiep Suc Mua Thi” of Thien Long corporation, “ Uom Mam Tai Nang” of Vinamilk Co, “ Ao Trang Ngoi Sang Tuong Lai” of Omo company. It is clear that apart from real value taken to society , these PR programs play an important role in “ finding a stable position in customers’ mind”. Meanwhile, Piaggio company hardly set up many these like community programs. Finally, Piaggio established a new manufacturing factory in Vinh Phuc, Viet Nam in 2009. This is a really starting point of Piaggio Vietnam. This is important time to broadcast corporate image and its products to consumers. PR activities are the best solutions because they produce positive effects, convey the message “ Italian legend in Vietnam” of Piaggio VN. In addition, PR activities also help consumers clearly know about its new products. In conclusion, effective PR activities gain the confidence and good feeling from consumers about corporate image that advertising is difficult to bring to the company. Because for PR activities, other people talks about the company while for advertising, the company itself talks about it. Moreover, nowadays there are so lots of advertising programs that make consumers get headache. Therefore, the image, the message percept by consumers will be more objective and reliable than interior information. In fact, PR is the most effective way but the lowest cost to build good relationship with customers. CHAPTER II: REAL SITUATION OF PR ACTIVITIES OF PIAGGIO 2.1. Specific Piaggio’s PR activities 10 [...]... create the best impression in consumers’ mind 3.2 The consumers’ habit of using media About 95% people said that they access to internet frequently, more than one times / a day And internet is also the most means of media they use Đỗ Tuấn Anh 7C 17 The following table expresses the level of the most means of media among 100 consumers questioned in the survey Internet 70% Magazines, newspaper 15% Television... OF USING MEDIA 3.1 Perception image of Piaggio in consumers’ mind According to the result of survey, about 95 % people said that they have ever heard of Piaggio brand 60 % of these people know about this company through internet 35 % said that their knowledge of the company is through friends, relatives The rest is due to other information channels like radio, newspaper, magazines Piaggio is one of. .. magazines, newspapers, this is a relatively large circulation But they lack of regularity as well as large scale among lots of newspapers, magazines, websites… Therefore, these activities cannot give widespread effect, raise high increase in the knowledge of consumers about Piaggio brand Đỗ Tuấn Anh 7C 15 Đỗ Tuấn Anh 7C 16 CHAPTER III: PERCEPTION IMAGE OF PIAGGIO IN CONSUMERS MIND AND CONSUMERS HABIT OF. .. contribute the increase in knowledge about Piaggio brand as well as confirm its position 2.1.3 Inauguration of a manufacturing factory in 2009 In 2009, Piaggio organized successfully the event “Inauguration of the first factory in Viet Nam” with investment capital up to 30 million USD In 4 /2011, Piaggio held Ground-breaking ceremony of the second factory in Vinh Phuc with the cost of 40 millions USD... for economic information Đỗ Tuấn Anh 7C 18 CHAPTER IV: SOME PR PROPOSALS FOR PIAGGIO 4.1 General objectives According to the assessment of PR activities in Piaggio and perception image in consumers mind, proposed PR activities will be divided into two following directions: proposed PR activities for Piaggio brand & for its products For piaggio brand, PR activities focus on the increase in knowledge,... Assistant’s attitude of selling If you have intention of buying a motorbike, what brand will you choose? Piaggio Honda Yamaha Suzuki Sym other Please show your level of using means of media , rank from 1- 4 with 1- the most favorite means of media, 4- the least favorite means of media Reading Đỗ Tuấn Anh 7C newspapers, magazines listening to radio Watch tv access to internet Every day , what information channels... improve its image in consumers’ mind as well as launch its new products more successfully The proposals aim to let the company know how to increase the consumers’ awareness of its new products, its famous brand through the most favorite information channels So, the report has supplied readers know more about consumers’ using habit of media However, due to the limitation of capability of author, limited... brand has lots of community programs: charity, sponsoring programs for the poor, the handicapped, the blind… In summary, Piaggio is a famous brand not only in the world but also in Viet Nam In general, the consumers in Viet Nam highly appreciate Piaggio brand (according to the result of survey) However, piaggio brand has not yet caught good feeling from consumers because the company is weak at customer... (Source: The result of survey of 100 consumers on sirvina.com 70% said that internet is the most favorite means of media they use to search information, read news Online newspaper is means of media that consumers would like to receive news about Piaggio most Also according to the result of survey, the most favorite information channels are news.zing.com, dantri.vn, vnexpress.com, vietnamnet.vn Information... current PR groups A professional PR group on forums will be very help to deal with rumors, bad news or even complaints from consumers They will know how to relieve these kinds of news and help to improve company’s image in consumers’ mind For instance, there are some complaints Đỗ Tuấn Anh 7C 19 about Piaggio motorbike’s quality, this PR group will find ways to make it a normal thing and let the topic . mind. In third chapter, readers will know about perception image of piaggio in consumers’ mind and consumers’ habit of using media. Again, the company don’t really leave impressive image in consumers’. about Piaggio brand. 14 Đỗ Tuấn Anh 7C 15 Đỗ Tuấn Anh 7C CHAPTER III: PERCEPTION IMAGE OF PIAGGIO IN CONSUMERS MIND AND CONSUMERS HABIT OF USING MEDIA 3.1. Perception image of Piaggio in consumers’. CONSUMERS’ MIND AND CONSUMER HABIT OF USING MEDIA 3.1. Perception image of piaggio in consumers mind 17 3.2. Consumer habit of using media 19 CHAPTER IV: PR PROPOSALS FOR PIAGGIO 4.1. General objectives