Vo Thanh Tai Report

I INTRODUCTION: Looking out into the daily life today, before you want to buy a product, enjoy a service, for example, a bottle of milk or simply just a bowl of beef noodle soup in the market It is difficult to deny that you will not think of a company, a brand or just a common name of sellers such as Mrs Eight beef noodle soup, grocery store of Ms Seven, or a product of Vinamilk, Thtruemilk, Vixumilk or a product of a foreign brand that you like to buy most From the facts mentioned, we can easily recognize that branding is one of the most important aspects though the business is big, small, retail or wholesale Simply, a good brand or a good image is a promise to customers It tells them what they are looking for from products or services, and a good brand differentiates the image of a company from other competitors Building and managing a successful brand is one of the main aspects for businessman In addition, the essential element to build a successful company is not only in branding but also in understanding the influence, importance of branding to the company and the local culture Branding as well as brand of a company is not only an exciting topic but also an actual finding that I have chosen to learn more As we know today, with the existence of thousands of companies around Vietnam and millions of companies from large to small scale around the world, there are numerous brands have been created with fierce competition Therefore, brand is considered the most valuable asset to the business A name cannot make everything, however, when it becomes a powerful brand, the result will be different In this report, I focus entirely on importance of branding to the company and in Vietnam culture II THE IMPORTANCE OF BRANDING According to the website named EAU ROUGE (1), we can understand easily what branding is: • Branding is the building of trust with employees, customers and • stakeholders In marketing terms, the definition of branding is the sum total of a company’s value, including products, services, people, advertising, • positioning and culture Brands give potential clients a firm idea of what they are buying before • • they buy it, making the purchasing decision easier Customers trust strong brands because they know what to expect Branding puts you in touch with customers who know your business and your product before they even step inside your place of business, or buy your product off the shelf They know about you because of your brand, and the value that goes with it We can understand easily that brand may be a service, a product, an image or even a company name from strange or common words An effective brand name with a well-known image normally allows a company to charge more for its products and increase benefit A valuable brand reflects how the name of a product, or company name is perceived by the market The objective in branding is to give consumers a visual image of the company Building brand is very important to a business because it allows the customers to identify the company name As we can see from the above definitions, it can be said with certainty that branding plays a crucial role in the growth of the business as well as belief of customers The brand is the core of the business; it presents everything what a company is to customers It strengthens all of business activities, how strong or weak a company is There are millions of brands all over the world, one is newly created and one is disappeared day after day When a brand is implemented successfully, the business can be received advantageous position in the market, and easily lead to increase profit Moreover, branding builds the value of brand, attracts new customers, and makes the business stand stably in competition with other brands To look into the importance of branding more specifically, I will divide it into two parts: • • The importance of branding to the company The importance of branding in the Vietnam culture The importance of branding to the company: The existence of a company relates closely to its brand A strong brand is the same meaning with a lot of advantages for the business It helps the company in developing as well as maintaining the business It is really difficult to disagree that branding is important to every business from small to big scale, because it transfers information about the business and product to consumers The importance of branding may begin with creating a simple name, a memorable slogan or just an image or symbols for a company and customers can remember it easily Therefore, it is essential that the brand can be associated with a right value, position or characteristic The reason is that the consumers identify the products or services by the logo, which draws the value, vision and the target of the business A prestigious and strong brand not only brings the products to the buyers well but also differentiates the business with other competitors Therefore, it plays an important role in business To have a specific look, branding helps companies to achieve the following: a Differentiating the business As we can see from reality, the owner of any companies will always has competitors Branding helps companies to emphasize differences of their products or services from other competitors Therefore, a strong brand is also an essential element for any companies that stand stably with others It is not easy for customers to remember exactly the brand from many products of other companies Difference is also based on belief of customers and reputation of the brand When buyers think of a product they want to use, it means that they immediately think of a brand The typical features such as color, logo, image, taste or quality of product or even the service style can remind people think of the company, product or service All of them make the differences for the business from other competitors b Building belief for customers Consumers are always willing to buy products they know and trust A strong brand has competitive advantages in marketing Branding is one way to attract new customers Customers will choose products or services that they have heard about reputation of the brands Building brand makes people interested in the brand When customers have a good impression with a brand, they tend to choose their favorite brand than others and will become loyal to it over time Furthermore, a believable brand can easily use its impression in order to spread widely from region to region, from country to country and still attract its loyalty customers or receive satisfaction from new customers It will be simpler for consumers when they go to supermarket and focus on the popular brands for the products they need A believable brand creates good impression that will stay with consumers when they purchase because they tend to choose the brands they like, trust and need Once the company has a good identity as well as belief for products or services, it will be easier and easier to attract customers For example, when you use a smart phone from Apple brand, it is difficult to refuse that even if you buy an old, used Iphone or sell the Iphone in old series, it will always be at extremely high prices in comparison to other smart phones from other brands With great customer satisfaction in high quality products, good customer care service, all make Apple brand become one of the most believable and valuable brand all over the world Therefore, the belief of customers in a strong brand is not arguable (See picture 1) c Saving marketing expense To make a brand become strong as well as famous in the market, or to maintain a range of products from a big brand, companies and groups tent to spend a lot of money investing in advertising or marketing I will not mention how well or bad companies, groups spend money investing I only focus on one of the most important of branding to a company is saving marketing expense It can be understood simply that a well-known brand may not require a costly marketing strategy as it already has been repeated many time It is also easier for a strong brand to introduce new products or services without lunching a campaigns or spend so much money advertising products For instance, when a product appears on television advertisement monthly, viewers get used to seeing it repeatedly day by day and it means that the expense, time for marketing is not necessary Once the brand is recognized by customers, the marketing costs will be minimized and it does not need to launch a new product or service if it is redundant d Increasing product value A prestigious and recognizable brand will have its distinctive features The company can receive the profit from loyal customers who are willing to pay a high price for its products rather than spend money for products sold by the competitors It is tremendously crucial to present the brand to customers to ensure that high quality products are reviewed as well as ranked by reliable experts, magazines, newspaper or website involved When products are believably used and the brand has a determined position in range of high quality products or super luxury products for high-income people and then the business will certainly take a dominant market position Therefore, the core of successful brands in business also relates to its value For instance, there are some super luxury mobile phone brands but one of the most famous brands is Vertu Every Vertu phone is handmade by skilled craftsman and use the most exceptional materials, such as ruby, sapphire and titanium, each carefully selected not just for their stunning appearance but for their exceptional strength Therefore, price of Vertu products is only suitable for the rich and high-income customers With a price at hundreds of thousands of dollars, we may imagine that nobody will buy it, however, Vertu has its loyalty customers and stable stand in super luxury product market In short, there will be no one easily agree to pay highly for a product, service which is not produced or served by a prestigious, reliable brand (See picture 2) The importance of branding in Vietnam culture: Building a successful brand plays an important role in any culture and Vietnam has no exception With a population of 92.5 million and two regions: Southern and Northern Vietnam presents an attractive market not only for multinational companies but also for local companies Understanding the importance of building brand in Vietnam culture is also an essential factor for all business A successful brand firstly must have ability to adopt the business with cultural changes from region to region, country to country The importance of building brand in Vietnam culture is also understood simply as finding out Vietnamese consumer needs and consumer behaviour Once the business understands clearly what the trend of Vietnamese consumer is, how consumer behaviour changes, or how high the consume power is When getting it specifically, the business will meet the advantages in marketplace Looking out into the reality of Vietnamese brands before 1945s, it is not difficult to restate that Vietnam brands are as popular as foreign brands at that time However, success in business is not only in ensuring the sale of products but also in maintaining and developing the brand For example, people who live in Saigon before 1975 will familiar with Hynos toothpaste It used to be on prominent display at Saigon Central Market It featured a black man, smiling, showing his white teeth (See picture 3) The owner of Hynos toothpaste, Mr Vuong Dao Nghia, spent so much money advertising his toothpaste product The image of a black men with a white teethsmile day by day was acquainted with consumer at that time (See picture 4) The other famous toothpaste brand of Vietnam is Da Lan It was a very favorite brand which once held 70 percent of the domestic toothpaste market in 1993-1994 (See picture 5) It will be not enough if I not mention one of Saigon’s most recognizable local brand names, Co Ba soap was the crowning achievement of Mr Truong Van Ben Co Ba soap brand is one of the most featured examples for Vietnam brands Co Ba soap was also exported to Laos, Cambodia, Hong Kong and even several African countries From three featured brands above, we can see that the Vietnam brands have a dominant position However, looking into reality today, we difficultly find it in market or grocery stores And by the time, the natural result is disappearance of that brands After a long period of absence, the strong brands like Da Lan toothpaste, or Co Ba soap has reappeared before the public But it is not easy to return the golden age of that brands It is really hard to get the warm hearts of Vietnamese consumers again to use it believably Therefore, understanding the importance of branding in the local culture plays a requisite part in business It helps the business adapting changes to Vietnam culture that includes the trend, behavior, habit, or custom of Vietnamese consumer Culture affects consumer behavior by influencing behavioral and consumption decisions, hence creating desires and driving the consumers to choose products or brands that satisfy their specific need When the business is in the line with Vietnam culture, companies will easily adapt to every condition to get more welcome from consumers Therefore, building brand and widely spreading brand will be easier and easier III MY PERSONAL OPINION ABOUT BRANDS There are thousands of brands from food, fashion to household appliance In this part, I present my point of views on food brands I like and not like List of brands I like: a Oolong Tea Plus: (See picture 7) Tea Plus has a curious advertisement on television with the sentence:” Oolong Tea Plus enables you to feel light both on the inside and on the outside” With an impressed advertisement, I have chosen this tea product to drink whenever I feel thirsty, especially after a hard studying day According to the information printed on the bottle Oolong Tea Plus has two useful points: The first is the naturally occurring OTPP (Oolong Tea Polymerized Polyphenols) which are extracted from Oolong tea, and help to reduce fat absorption from food The second is its delicious taste that is completely unique to Oolong and sets you up for a great day ahead With the information mentioned above, as a tea addict I believe in using this refreshing tea product b Birdy Robusta Coffee: (See picture 8) There are many coffee brands in the market but Birdy is the coffee brand I like most Especially, canned coffee product is a modern style beverage, I choose Birdy and like it because it is made from 100% premium Vietnamese Robusta coffee beans According to the advertisement on Ajinomoto website (2) : “Birdy coffee brings you a new coffee taste with more flavorful, more inspired, and is closer to Vietnamese coffee style” I may not believe in the advertisement but after drinking Birdy canned coffee, it is difficult for me to give up it As a student, I am busy with studying in school and part-time job Therefore, I can use Birdy canned coffee anytime, anywhere and it does not take time to prepare c Hao Hao Instant Noodle: (See picture 9) There will be no students who not know instant noodle and I will be a liar if I say that I not know Hao Hao instant noodle brand It is the famous brand in Vietnam Its advertisement appears day after day on television with a bowl of attractive noodle that is acquainted to every family Hao Hao instant noodle is my breakfast whenever I am busy and lack of money to eat rice With simple steps I can have a good breakfast as well as lunch Putting noodles and soup powder into a bowl, adding boiled water, waiting for three minutes and I have a simple and delicious meal It is really convenient for me In addition, Hao Hao has many flavors that I like the sour-hot shrimp flavor most, the noodles are flat, very tasty I just pay 3.500 dong and have a meal Hao Hao is worth for me to buy and enjoy d Strepsils: (See picture 10) Although the advertisement of this product is rarely showed on television and its name may be difficult to pronoun, I believe that many people will recognize this product when they taste it Strepsils is a kind of functional candy with many flavors and I like honey-lemon flavor most With full name in description is “Strepsils Honey & Lemon Lozenges”, it provides effective relief from the discomfort of sore throats A combination of antiseptics to fight the causes of sore throat and mouth infections When my sore is painful I often use Strepsils, it make my sore and pained throat feel much better It also helps suppress my cough as well Overall, I have used this many times and recommend it to my relatives List of brands I not like: a Popeyes- Louisiana Chicken: (See picture 11) POPEYES brand is advertised attractively with many combos and special promotions But employee’s attitude is not good A waitress was getting my order ready and someone she knew that walked in, she stopped, left me standing there and talked to them I wait in a while and so another waitress came and finished my order It is my bad experience and I will not recognize POPERYES as a brand with well service b KFC- Kentucky Fried Chicken: (See picture 12) KFC is a well-known brand It is advertised widely around the world with a prestigious name But sometimes quality of food is not a small problem My friend and I chose the combo pieces for 99.000 dong The combo we ordered that was not as good as expected, chicken meat is too tender and smelly We asked the manager and she was even rude to us c Jollibee Fried Chicken: 10 (See picture 13) Jollibee is advertised as an Asian brand with moderate price, especially for students But cooking skill of employee must be controlled As a student, I like eating chicken rice The taste of fried chicken is good but gravy is too salt, rice is pasty Although its service is good, the taste of food is not good to me Besides service, taste of food is also an important factor to attract more customer d Domino’s Pizza (See picture 14) Domino’s Pizza is advertised widely on internet with fast delivery and discount for credit card payment But It took over hour to get pizza I called after 30 minutes ordering, the woman on the phone was rude: "the driver has left, I don't know when it will be there It's on the way" Her phone manner was dismissive My food arrived an hour later They were freezing cold and hard This was a bad experience to me III CONCLUSION: With the growth of economy and global competition among businesses, building and spreading a brand play a vital role in developing and maintaining business It is crucial to build identity of brand before launching a marketing or advertising strategy for products or services to public successfully Building a strong and recognizable brand offers visible benefits A good brand will make the differences in comparison with other competitors as well as building belief loyally for customers Generally, companies tent to spend a lot of money investing in advertising or marketing to make a brand become strong as well as famous in the market, but once the brand has a good position in the market, expense for marketing or advertising will be minimized 11 In final conclusion it is important to note that cultural impact has a strategic role in developing of company and making a stable stand in business Understanding the importance of building brand in Vietnam culture is an vital factor for all business scale Day after day, everything will change, it can be improved or decreased, but a strategic company will ensure that brand and products remain in line with the needs of variety of consumers REFERENCES Eau Rouge Why is branding so important? http://www.eaurouge.co.uk/index.php/why-is-branding-important, Accessed on November 15, 2014 Ajinomoto Vietnam company Birdy canned coffee http://www.ajinomoto.com.vn/product/index/san-pham-giai-khat/ca-phe-lonbirdy Accessed on November 15, 2014 12 LIST OF PICTURES: Picture 1: table of used Iphone 13 Price Picture 2: Price table of super luxurious Vertu phone Picture 3: Panel of Hynos toothpaste in Ben Thanh Market Picture 4: The image of a black men on Hynos toothpaste product 14 Picture 5: Da Lan advertisement panel Picture 6: Co Ba soap, shampoo products 15 Picture 7: Oolong tea plus product Picture 8: Birdy robusta milk coffee Picture 9: Haohao instant noodle Picture 10: A strepsils product 16 Picture 11: Happy combo of Popeyes 2: Combo 99k of KFC Picture Moderate price of Jollibee 17 13: Picture 14: Discount for online order Picture ... delicious meal It is really convenient for me In addition, Hao Hao has many flavors that I like the sour-hot shrimp flavor most, the noodles are flat, very tasty I just pay 3.500 dong and have a... product when they taste it Strepsils is a kind of functional candy with many flavors and I like honey-lemon flavor most With full name in description is “Strepsils Honey & Lemon Lozenges”, it... interested in the brand When customers have a good impression with a brand, they tend to choose their favorite brand than others and will become loyal to it over time Furthermore, a believable brand can