A case study of brand develop strategy for VIDA beer

Dang An Hai A CASE STUDY OF BRAND DEVELOP STRATEGY FOR VIDA BEER master of business administration thesis 2007 * master of business administration thesis * Dang An Hai avietnam national university, HANOI school of business Hanoi - 2007 MBA Thesis Dang An Hai A CASE STUDY OF BRAND DEVELOP STRATEGY FOR VIDA BEER Major: Business Administration Code: 60 34 05 Master of business administration thesis * master of business administration thesis * Dang An Hai vietnam national university, HANOI school of business 2007 Supervisor: Dr.NGUYEn VIET ANh Hanoi – 2007 Pages 2/88 MBA Thesis TABLES OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT: A CASE STUDY BRAND BUILDING STRATEGY FOR VIDA TÓM TẮT: NGHIÊN CỨU CHIẾN LƯỢC PHÁT TRIỂN THƯƠNG HIỆU VIDA BEER TẠI CÔNG TY CP BIA SÀI GÕN NGHỆ TĨNH INTRODUCTION BACKGROUND OF THE TOPIC RESEARCH OBJECTIVE RESEARCH METHOD 10 SIGNIFICANCE OF THE PROJECT 10 SCOPE OF THE STUDY 10 CHAPTER 11 LITERATURE REVIEW 11 1.0 BRAND 11 1.1.1 BRAND DEFINES – WHAT IS BRAND? 11 1.1.2 COMPONENTS OF A BRAND 13 1.1.3 TYPES OF BRAND 13 1.1.4 THE FUNCTIONS OF THE BRAND FOR THE CONSUMER 13 1.2 BRANDING 15 1.2.1 DEFINE BRANDING 15 1.2.2 Elements of branding 17 1.2.3 Benefit of branding 18 1.2.4 Importance of branding 19 1.2.5 What factors are important in building brand value? 19 1.2.6 Brand strategy 21 1.2.9 Brand Orientation 33 1.2.10 Brand Hexagon 33 1.2.11 Corporate Branding 34 Pages 7/88 MBA Thesis 1.2.12 Brand identity 37 1.2.13 Other concepts 38 CHAPTER 45 2.1 VIETNAM BEER MARKET OVERVIEW 45 2.2 NGHE AN BEER MARKET 48 2.2.1 Nghe An beer market overview 48 2.2.2 Market Segmentation 50 2.2.3 Customer Behavior 51 2.2.4 Market Potential 52 2.2.5 Consumer trends 53 2.3 SAIGON- NGHE TINH BEER JOINT STOCK COMPANY 53  RESEARCH CONTEXT - RESEARCH PROBLEM 59  RESEARCH OBJECTIVE 59  RESEARCH METHOD 60  QUESTIONNAIRE STRUCTURE 60  SAMPLE SELECTION & DATA COLLECTION 61  PILOT TEST OF IMPROVED QUESTIONNAIRE 61  DATA ANALYSIS 62  LIMITATION OF THE RESEARCH 62  THE RESULT OF CUSTOMER SURVEY ON VIDA BRAND 63  SUMMARY 71 CHAPTER 72 3.1 CONCLUSION: 72 3.2 RECOMMENDATION FOR VIDA 73 3.2.1 Recommendations for VIDA 73 3.2.2 Building and developing strong VIDA beer brand 74 3.2.2.1 Branding decision 74 3.2.2.2 VIDA Positioning and Target Consumers 75 3.2.2.3 Redefine some factor relate to VIDA brand 77 6.2.2.4 Branding tools and Marketing Activities 79 PHIẾU THĂM DÕ Ý KIẾN KHÁCH HÀNG 85 QUESTIONNAIRES 87 Pages 8/88 MBA Thesis INTRODUCTION Background of the topic There is a strong link between the growth of market share and the profitability of a company with the power of its brand Like other emerging economies, in Vietnam, the domestic companies have been facing tough competition brought about by multinational corporations (MNCs) with their well-established brands from all over the world The branding concept of building an organization around the profitable satisfaction customer need help firm to achieve success in high growth, moderately competitive markets However to be successful in markets in with economic growth has leveled and which there exits many competitors who follow the branding concept, a well developed branding strategy is required Such strategy considers portfolio of products and takes into account the anticipated moves of competitors in the market Because of above reasons, Branding Strategy plays an important and integrated role in any organizations As many other organization, VIDA also need a good Branding Strategy and the research was carried out because of this To illustrate the issue, I will examine the case of VIDA Interviews with managers and a consumer survey are carried out to investigate the competitor‟s reaction and consumers‟ perception toward this brand At the end, some recommendations are proposed for VIDA to develop brand However, Brand building Strategy is very wide concept and it is not easy to cover all So, this research will be focused on one part of VIDA„s Branding Strategy on one kind of product: „draught beer‟ Research Objective For the purpose is to provide the VIDA Company an overview of the awareness for beer as well as customer‟s perception on the VIDA beer brand in NgheAn The research is carried out Addition, this research also analysis the consumer purchasing decision beer and the competitive strings of VIDA beer in NgheAn It provides an overview of marketing strategy of VIDA and shows the strength and Pages 9/88 MBA Thesis weakness of VIDA in implementing the branding strategy Final, the research gives some recommendations on branding strategy for VIDA on their beer product Research method By setting set of questionnaires and sent out to more than 82 respondents and the data was colleted by face to face interview, from annual report, company publication and industry publication were obtained to analyze organization performance In order to analysis data the spreadsheet software, Microsoft Excel was used Final, PILOT test were carried out to make sure that all respondents were able to answer all the questions Significance of the project The research project gives a more detail the perception of consumers on the VIDA beer brand in NgheAn as well as their suggestion on the Brand developing areas for the VIDA Company It helps VIDA to realize consumer„s perception on the scheme of what is consumers needs the most and what marketing areas that VIDA are strong and weak at and what marketing areas that consumers would like to see Addition, it helps the VIDA a lot in satisfying the customers and increasing the reputation in the customer‟s mind Further more, it is hope that the research will present an objective evaluation of VIDA present position in the beer industry with respect to other manufacturers VIDA„s multi faceted marketing strategy in globalization will make a good model for other to follow and learn from The future success of VIDA and these companies going regional will seem to be a good reflection of their abilities to become fully market with flexibility in adopting initiatives to meet changing market needs Scope of the Study This study looks into the customers‟ perception on beer brand as well as VIDA brand to a limited number of people whom the researcher met in restaurant This study covers people who has drink beer outside As it is confined to a small sample size will be difficult to make a concrete generalization The result of this survey is just a pointer which will be useful for an in-depth study Pages 10/88 MBA Thesis Chapter LITERATURE REVIEW “Branding adds spirit and a soul to what would otherwise be a robotic, automated, generic price-value proposition If branding is ultimately about the creation of human meaning, it follows logically that it is the humans who must ultimately provide it” - David Aaker - 1.0 BRAND 1.1.1 Brand defines – What is brand? There are many definitions relate to brand Each author define in different way base on their point  A traditional definition: A brand is the name, associated with one or more items in the product line, that is used to identify the source of character of the item  The American Marketing Association (AMA) definition of a brand is “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors”  David Aaker, defined in Building strong Brands that A brand is a trusted promise of quality, service and value, established over time and proven by the test of operated use and satisfaction; and a brand is the proprietary visual, emotional, rational and cultural image that you associate with a company ore a product  A brand is a distinguishing name or symbol designed to:  Identify to origins of a good or service of a manufacturer  Differentiate those goods or services from those of the competition  Protect the consumer and producer from competitors who would attempt to provide products that appear to be identical According to Philip Kotler, a brand is a complex symbol that can convey us to six lever of meaning: Pages 11/88 MBA Thesis - Attributes: a brand brings to mind certain attributes Mercedes suggests expensive, well-built, and well-engineered, durable, high prestige automobiles - Benefits: Attributes us be translated into functional and emotional benefits The attribute “durable could translate in to functional benefit “I won‟t have to buy another car for several yeas” the attribute “expensive translates in to the emotional benefits “the care makes me feel important and admired” - Values: The brand also says some thing about the producer‟s vales Mercedes stands for high performance, safety, and prestige - Culture: the brand may represent a certain culture The Mercedes represents Germen culture: high organized, efficient, high quality - Personality: The brand can project a certain personality Mercedes may suggest a no-nonsense boss (person), a reigning lion (animal), an austere palace (object) - User: the brand suggests the kind of customer who buys or uses the product We would expect to se a 55-year-old top executive behind the wheel of a Mercedes, but a 20-year-old secretary Companies need o research the position their brand occupies in the customers‟ mind According to Kevin Keller, “What distinguishes a brand from its unbranded commodity counterparts is the consumer‟s perception and feelings about the product‟s attributes and how the perform Ultimately, a brand resides in the minds of consumer.” There are three commonly used research approaches to get a brand meaning: - Word association: People can be asked what a word comes to mind when they hear the brand‟s name In the case of Mc Donald‟s, they probably would mention hamburgers, fast food, friendly services, fun, and children They may mention some negative word such as high calories and fatty food McDonald‟s would try to emphasize the positive and unique words and would try to reduce the causes giving rise to the negative words - Personifying the brand: People can be asked to describe what kid of person or animal they think of when the brand is mentioned The brand personal Pages 12/88 MBA Thesis delivers a picture of the more human qualities to the brand - Ladder up to find the brand essence: Brand Essence relate to the deeper, more abstract goals consumer are trying to satisfy with the brand Ask why some wants to buy a Nokia cellular phone “They look well-built” (attribute) “Why is it important that the phone be well built?” “It suggests that the Nokia is reliable” (functional benefit) “Why the reliability important?” “Because my colleagues family can be sure to reach me” (an emotional benefit) “Why must you be available to them at all times?” “I can help them if they are in trouble” (brand essence) The brand makes this person feel kike a Good Samaritan, ready to help other 1.1.2 Components of a brand  Brand name – that part of a brand that can be spoken  Brand mark- the element of a brand not made up a words  Brand identity – how the company sees itself and the product  Brand image- how outsiders see the organization and its product  Brand message- the message that the organization wishes to communication to the customers about the qualities of its product 1.1.3 Types of brand  Individual product brand: each product has its own brand  Family brand: cover a range of products  House brand/ own brand: branded with the retailers name or brand  Company name brand: branded with the name of the company  Generic brand: economy goods without a brand name  Sub-brand: individual product brands within a retailer‟s range 1.1.4 The Functions of the Brand for the Consumer Before the 1990‟s, there was a different approach towards brands “Companies wished to buy a producer of beer After 1990, they wanted to buy a specific product like Heineken or Vida This distinction is very important; in the first case firms wish Pages 13/88 MBA Thesis to buy production capacity and in the second they want to buy a place in the mind of the consumer” In other words, the shift in focus towards brands began when it was understood that they were something more than mere identifiers Brands, according to Kapferer serve eight functions shown in Table 1: the first two are mechanical and concern the essence of the brand: “to function as a recognized symbol in order to facilitate choice and to gain time”; the next three are for reducing the perceived risk; and the final three concern the pleasure side of a brand He adds that brands perform an economic function in the mind of the consumer, “the value of the brand comes from its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of consumers” Therefore branding and brand building should focus on developing brand value Table 1: the functions of the brand for the consumer Kapferer‟s view of brand value is monetary, and includes intangible assets “Brands fail to achieve their value-creating potential where managers pursue strategies that are not orientated to maximizing the shareholder value” Four factors combine in the mind of the consumer to determine the perceived value of the brand: brand awareness; the level of perceived quality compared to competitors; the level of confidence, of significance, of empathy, of liking; and the richness and attractiveness of the images conjured up by the brand Pages 14/88 ... Because of above reasons, Branding Strategy plays an important and integrated role in any organizations As many other organization, VIDA also need a good Branding Strategy and the research was carried... The brand makes this person feel kike a Good Samaritan, ready to help other 1.1.2 Components of a brand  Brand name – that part of a brand that can be spoken  Brand mark- the element of a brand. ..MBA Thesis Dang An Hai A CASE STUDY OF BRAND DEVELOP STRATEGY FOR VIDA BEER Major: Business Administration Code: 60 34 05 Master of business administration thesis * master of business administration