Luận văn tăng cường giá trị thương hiệu tập đoàn VNPT

BRAND THEORY AND ENHANCE BRAND STRENGTHBrand strength and the process of building a strong brand nameSTATUS QUO ON STRENGTHENING VNPT BRAND Overview about VNPT brand and actual situation of brand strength of VNPTPROPOSING SOLUTIONS TO STRENGTHENING VNPT TRADEMARK Solutions related to reinforcing and maintaining, developing VNPT brand

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Strengthen brand value of Vietnam Post and Telecom Group (VNPT) Luận văn Tăng cường giá trị thương hiệu tập đoàn VNPT

TABLE OF CONTENTS INTRODUCTION CHAPTER I BRAND THEORY AND ENHANCE BRAND STRENGTH

1 General view of brand

2 Brand strength and the process of building a strong brand name

2.1 Brand strength

2.2 The process of building a strong brand name

CHAPTER II STATUS QUO ON STRENGTHENING VNPT BRAND

I Introduction about VNPT and VNPT brand

1.1 Introduction about VNPT

1.2 Overview about VNPT brand and actual situation of brand strength of VNPT

II Real situation of activities to strengthen VNPT trademark

2.1 For reinforcement, keeping and development of VNPT trademarks

2.2 For protecting VNPT’s trademarks:

2.3 For promoting and forwarding trademark

CHAPTER 3

PROPOSING SOLUTIONS

TO STRENGTHENING VNPT TRADEMARK

I Great orientations for strengthening VNPT trademark

II Specific solutions for strengthening VNPT brand

1 Solutions related to reinforcing and maintaining, developing VNPT brand

1.1 Enhancing the family relation of the brand

1.2 Further expanding the limits of using the trade marks

2 Solutions related to protecting and strengthening VNPT brand

3 Support solutions and macro proposals for empowering VNPT brand

CONCLUSIONS REFERENCES APPENDIXS

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INTRODUCTION

1 The background, the rationale and the meaning of research project

Brand has become a topic receiving special attention from enterprises, regulators, commercial associations There has been many materials, newspapers, magazines, research papers and workshops on product labels, corporate brands, local brands and country brands So what is brand? How important is it? Why do enterprises have to

build a strong brand? How to strengthen an enterprises’ brand?

Enterprises over the world know that brand is very big invisible asset An enterprise has strong brand is valued as a lot more than invisible asset Brand is a instrument to

recognize and differenciate products, is a mean to protect legally the advantage and specific function of product Through brand, producers confirm the quality level to customers, bring products deep in to customers’ memory and therefore it provide the stability and the development of market share, increase competitive advantages, create reputation and profit for enterprises No enterprises pay no hardwork and money to build and develop its brand They preserve, maintain and develop their brand by all wits, talent and sweat of many generations in order to build globally famous brand and these brand are valued billions of dollars (Coca Cola 69.6 billion USD, Microsoft 64 billion USD, IBM 51 billion USD…)

So every enterprises want to have a brand and more than that, a strong brand They always want to build and strengthen their brand

Creating a brand is difficult, creating a strong brand is more difficult Sure it is a long processwith a right strategy, start with creating value for customers to best sastify their need Therefore, in principle, this process has to include three continuous period, in particular: (1) Creating value for customer through producing and providing particular services and products; (2) Design, build various components of brand in order to attach

to products and services manufactured and (3) Strengthen for brand that is built and designed

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For period (1) and (2), VNPT has many solutions to perform well However to become

a strong brand in Vietnam and over the world, VNPT has to specialy push for period (3) In this big problem, group 4 – Strategic management, class will base on realistic analysis to propose some solutions in order to “Strengthen brand value of Vietnam Post and Telecom Group (VNPT)”

2 Research objectives

 Systemize principle theory of brand and strengthen brand value

 Evaluate the sistuation of brand development and brand value of VNPT

 Propose solutions to increase brand value of VNPT

3 Target and research scope

 Target: Theory and reality of increasing brand value

 Scope: Limit of brand research at mother company of the Group (VNPT brand)

 Limit the research in the period: from 2006 to 2010

4 Research methods

 Data collecting method: Use of ancillary data from published materials; market research result on VNPT brand and on magazines, on the internet

 Analising method: Analysis, synthesis, comparison

5 Structure of the excercise

Besides the beginning, conclusion and reference material, assignment content is tructured into three chapters:

Chapter 1: Brand theory and increasing brand strength

Chapter 2: Actual situation to increase VNPT brand strength

Chapter 3: Propose solution to increase VNPT brand strength

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CHAPTER I BRAND THEORY AND ENHANCE BRAND STRENGTH

I General view of brand

1.1 Brand definition

According to Richard Moore (2007) the term “Brand” nowadays is known and used casually not only in Vietnam but also over the world

Over the world, nowadays there are two main opinions on brand definition:

a Traditional view: This is the view of American Marketing Association, according to

Phillip Kotler: “Brand is a name, word, sign, symbol, image … or a collection of above features, to specify and differenciate products, services of one or a group of sellers with products, services of competing sellers” With this view, brand is considered as a

part of product and the main features of brand is to differenciate its products with competing products Although is critized is leaning too much on products, however this view is still used widely in brand materials in long period of time along with the development of marketing field

b Modern and broad view: Until the 20th century, the meaning of brand has changed Many researchers think that the traditional view could not explain brand’s role in the trend of global economy changing to globalization and more severe competition Many recognize that any features of product creating effect on people’s sence could be considered as a part of brand Therefore the modern and broad view consider that, brand is not just a name or a symbol but more complicated According to Ambler &

Styles definition: “Brand is a collection of features providing values from features’ benefits and psychology of products and services for target customers of enterprises”

Therefore, with this view, products is a part of brand, mainly providing features’ benefit to customers Psychology benefit has to create from many other factors, specially marketing media Two above views are compared in the diagram below:

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Diagram 1:A comparison of two views on brand

In the opinion this brand of two parts: the purpose of providing benefits to the brand name for target customers and that is the product, it includes the attribute function as the product, the additional features, quality Section emotions including elements of the icon to make target customers the psychological benefits These factors may be a brand personality, symbols, philosophy sale, brand position

Point products are considered part of the brand have been many research and accepted practice The reason is that consumers have two needs: the demand of the functions and needs psychological Products provide them the benefit function is the brand to provide them both

c In Vietnam: At present in all legal documents of Vietnam is no definition of the brand The term "brand" being used only as a term on the commercial marketing angles and many different understandings

- The first point: According to Dang Dinh Dao: "Brand is the other's trademarks, brand names are trademarks after the trade."

- The second point: According to project construction and development of national brand name in 2010 by Vietnam: "The brand name (trade mark) is a term for them to objects

Products

Brand

Brand

Products

Thus, the concept of brand is usually means trademarks, but in fact this concept is much broader To distinguish the difference between these concepts, we can refer to the attached Appendix 01: a comparison between the trademark and brand name In the current conditions in Vietnam, although there are no unified definition of a brand name but it’s recommended to use the brand definition by modern and expanded view

In this article, group 4 define brand according to the modern and expanded view of John Murphy - President of the Interbrand and international Ambler & Styles consultancy company (above) The elements of brand will include:

1.2 Brand and product

Brand includes products, so the brand is the relationship between the products and its public, is the total harmony of feelings, perceptions, beliefs and experiences of the public, is a promise of product to the public

According to Philip Kotler "Products are anything can be offered on the market to attract attention, purchase, use or consumption to satisfy a need or a desire." Products

can be a physical goods, services, people, places, or even an idea

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Products can be divided into 3 levels as follows: (1) Core benefit level of the product (product ideas) (2) Specific benefit level of the product (product reality) (3) Increased benefit level of the product (including the benefit attributes when consuming products and can be used to distinguish products with competitors’) Today, competition is mainly found in the increased levels of products Products with attributes and characteristics to match and meet the maximum demand of a group of target customers Brand plays an important role in the highlights and differentiations of the characteristics of the product compared with competitors By Richard Moore [18], a brand wants to become successful must have a successful product and feelings of respect (of 5 conditions: price, quality, delivery time, sense of appropriate, sense of respect)

Brand is a product, but is a product with added other factors to distinguish it Differences can be easily seem and visible (in terms of consumption status by product

of the brand name) or the image, emotional and invisible (in terms of exhibitions of the brand name) So, which distinguishs a product brand with a product identical without a brand is the assessment and perceived by consumers on the attributes of the product and exhibitions of attributes represented by a brand and the company associated with the brand name

The question for company leaders is to decide how much resources should focus on brand products and how much on the company brand The following lists and divides level of influence (+) of company brands and brand products for the activities and business factors:

Second, signs are which shown outside of the images to make them easier to identify,

to differentiate with other products and services in the same category, the signs are also

a legal basis to protect the legitimate rights of the company (if the signs have been protected) Sign is formed by two parts:

- Speech: company name, brand names, product names, slogans, featured music and

other pronunciation factors

- Speechless: are factors can not be read but can feel with visual as drawings, symbols,

colors, design, packaging and other identify factors

The use of the brand is very diverse, depending on the brand strategy that the company applies A brand can use include all elements or only a few factors The basic factors:

- Brand name: This is a key and most important factor of a brand name and is a central element of connection between the products, services and customers Brand name is a short, simple communication tool but is the most effective, helping customers identify and remember to mind quickly

- Logo or featured icon: is the graphics element playing an important role in the

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formation of the brand value, enhance brand recognition, to create a strong impression to identify Logos and featured icon may be abstract, not related to a company, the logo does not have words illustration often called icons

- Characterized color: is a factor often used as a factor creating the brand awareness Advantage of the color can create customers’ attraction from long-distance, while they have not seen the icons

- Slogan: A short paragraphs contain and transmit information describing and convincing about the brand The slogan help customers understand how quickly a brand and what is it different from other brands

- Music: The elements of the brand is reflected in music The music often can be alluring to attract people to listen, making ads become more attractive and lively Music can be a short track or a short song repeated the brand name

However, according to the concept of brand has been described above, the above factors are the only substantial factor of the brand, in other words the factors to help customers identify the brand More important factor is standing behind the outward signs of them - the nature of the brand

1.4 The nature of brand

1.4.1 The meaning levels of brand

By Philip Koler, the meaning of the brand is reflected in the level as characters, interests, values, culture, personality and users

- Attributes: Generally, a brand must speak all the attributes related to the product

itself (such as durability, quality design and quality to meet the design, size, weight ) and the attributes related to other factors not the product yourself (pricing, packaging, customer service …)

- Benefits: Customers do not buy products but the benefit of products That is, if

derived from customers’ demand, the brand must have attributes relating to benefits that the product can bring to customers Or brand name must show the benefits of

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the product

- Value: Customers buy the benefits the product delivers Value in the quantization of

the benefits of that brand name However, when it comes to value we are referring

to the value perceived by customers, not the value of products according to the company

- Culture: With the successful brand name, it does not simply show the product, but

also bring the elements of the culture of a country

- Personality: Brand name is "humanized" into an image Customers tend to like the

brand image of the personality having lifestyle similar to themselves

- Target customers: Brand image through the target customers has an important

meaning to companies in the highly competitive environment and more difficult in product differentiation (eg the image of a bold and courage men of Tiger beer)

- According to Le Anh Cuong, "Brand Identity" is translated as the "characteristics of the brand": is a collection of unique attributes associated with the brand strategy expected to create and maintain It can be said that these are identifiable characteristics, help us distinguish different brands

According to the VNPT: "Brand Identity" (system recognized brand) includes all elements may be received and can be impressive image and name to identify a brand name It includes: the brand identity, brand architecture, brand manual

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1.5 Brand Positioning

- By Brad Vanauken, to be successful in the market, brand must commit to customers the different, appropriate and attractive benefits These benefits are reflected through the brand positioning

- Brand positioning is the answers to: “Which market segmentation the brand is looking to and which is its outstanding difference?”

- Brand image: By Brad Vanauken, brand image is a combination of the customer's awareness of the brand According to Scott Davis, brand image includes: the image that customers have about the brand, brand personality, and brand awareness by customers of the brand

- The role of brand: To target customers: Brand name helps customers determine the origin of the product; attach responsibility to producers; reduce the comsuming risk; save searching cost; confirm the value of itself, is a sign of quality

- For manufacturers: Brand name is a tool to identify products; a mean to protect the legal advantages and characteristics of products; help to affirm quality to customers; help products ingrained in customers’ mind; is a source of competitive advantage, is the source of profits

1.6 Functions of brand:

- Market segmentation

- Makes the difference during the development of the product

- Put products into customers' mind

- Create the meaning and direction for products

- A commitment between a manufacturer with customers

II Brand strength and the process of building a strong brand name

2.1 Brand strength:

Defining the evaluation criteria of strong brand is a new and difficult problem, it’s possible to say there is no theoritical systems, no methods which is considered as

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conventional, group 4 will summarize 8 different methods is used by domestic and foreign consulting companies, by strong brand name voting programs in reality Some opinions and methods evaluating brand strength

> Method 1: Use the "CoreBrand Power"

- By James R Gregory - Founder and CEO of CoreBrand has introduced the term

"CoreBrand Power" to point out brand name strength CoreBrand Power is a simple, logic program As the most simple form, it is the familiarity with the brand, plus the favorability of the brand

Familiarity + Favorability = CoreBrand Power

CoreBrand Power: is sorted from 0-100 points, higher scores reflect more powerful brand Ranking the familiarity based on 5 levels from "Not known" to “Very clear" The rating of the favorability based on four levels, by three attributes: Overall reputation, perception of management, potential in investment

Results of using only this index will indicate 4 types of brand: (1) Top brands with both high familiarity and favorability (2) The promising brands (3) The nonamed brands (4) The challenged brands

Applications: This method has not been used in Vietnam

 Method 2: Use the "brand value" criteria

Brand name value is formed by 5 components as follows: (1) Identification of the brand, (2) Loyalty to the brand, (3) Perceived quality, (4) Links of brand image, (5) Customers’ satisfaction using the product or the exclusive right to use the brand under protection laws

Application in Vietnam: VNPT has applied some criterias as the market research basis

to assess the condition of VNPT brand from customers

 Method 3: Use the "ranking of brand value" criteria

A strong brand name is the top brand compared to other brands, this ranking is based

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on the brand value, or by voting

There are different awards ranking brand value to make the Top 10, Top 20 or Top 100 list of most powerful brands, some outstanding award are: The "Business Week" report announced Top 100 brand value; "Brandz" report by Millward Research on Best World brand 2007; annual Vietnam excellent brand award

Applications: In the world determination the value of brand assets (in cash) has been implemented, in Vietnam only quanlity criterias are used, not quantified into money The level of accuracy is limited

 Method 4: Usage 7 criteria pillars building a strong brand name

(Appendix 04: Method to evaluate 7 detailed criterias)

 Method 5: Use “six identifying signs of strong brand" by Brand Week

It is (1) The basic difference compared to the brands of competitors: this distinction is clear, easy to recognize, the more easily described the more strong brand it is; (2) stock price for the listed brand The ratios: turnover, profitability rate, net profit or accrued profit in financial statements with the unlisted brand; (3) Information about tasks, vision, value of brand name must be very short, easy to remember, easy customer experience, (4) Brand name has special symbol, easy to identify; (5) Brand is bought

by consumers even when companies have problems, crisis, risk and (6) Brand has good future

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Applications: is only reference for Vietnam

 Method 6: "Measuring brand power" application of the LANTABRAND:

Simulation program "Measuring brand power" of LANTABRAND can provide businessmen and home users with general information about the current market share and potential of your brand, improvement method

Applications: in Vietnam, this approach has been designed for some type of different products (as Mobiphone and Personal Care )

 Method 7: "Brand Measurement" model by Interbrand

This model offers the main points a company should focus on to understand what is the strength of their brand and then building and developing brand, detail:

(1) Market: 10% of brand strength

(2) Stability: 15% brand strength

(3) Protection: 25% of brand strength

(4) Trend of profit: 10% of brand strength Interbrand consider that brand has a tendency to be profitable in the long term will have more power than other brands by maintaining stability and closer to consumer

(5) Support: 10% of brand strength

(6) Geographic limit: 25% of brand strength

(7) Protection: 5% brand strength

Applications: this model is widely used in Vietnam

 Method 8: "Brand check" tool of FTA professionals market research company

"Brand check" is a tool to help the marketer and brand manager in the measurement and diagnosis of brand health (compared with major competitors) using the set of the ABS brand strength index(Average Brand Strength) "Brand Check" includes 7 modules providing the necessary information and strategic direction in building brand: (1) Measuring brand health by the ABS index (ABS)

(2) The appropriateness of positioning

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(3) The effect of media messages

(4) Rating the efficiency of marketing activities

(5) Distribution and company policies

(6) Market potential

(7) Tracking changes in the market

Applications: in Vietnam this new model has been recently announced, not used widely

2.2 The process of building a strong brand name

2.2.1 Ten benefits of a company having a strong brand name

(1) Compared with the product and service of the same sectors, the same quality, strong brand name is usually higher priced and is always chosen to buy

(2) On the stock market strong brand name helps the stock is purchased at higher price and at higher rate than other companies in the same sector

(3) In merger or acquisition, the transfer price of the company is several times higher than actual cost in accounting books

(4) Strong brand names can help companies achieve a leading position in its field The more famous the brand is, the more alluring the customers are, leading to a more growing market share In addition, the owner of the strong brand also can determine the price, regulate distribution channels and limit competitors’ penetration Having

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customers trust and choose to buy first when required Having customers want to buy products even when not required

(5) Strong brand name can offer long life cycles for products

(6) Strong brand name can exceed from country boundary

(7) Strong brand name can exceed from market border

(8) Strong brand name can distribute widely and quickly

(9) Strong brand name will motivate staff to work more actively, to attract talent and retain good employees

(10) Finally, a strong brand name can bring the product invisible value exceeding from the normal value of goods that any companies can have

2.2.2 The process of building a strong brand name

The study of theoretical overview of the brand has seen, the construction and development of brand names which bring benefits to every business Many leaders of multinational corporations have said that to them the most precious asset of the business is brand name, if having only one coin left they will invest it to develop brand name (Bill Gates) That is why businesses do not regret money for investment to build

a brand and strive to become a strong brand name However, this is a very difficult job The process of building and developing a brand and a strong brand name must be a process of total resources, with a long-term strategic vision that originated from, is to create value for customers to best meet their demands This process includes 3 stages are:

(1) Creating value for customers: is the beginning This is the base platform for a strong brand, value for customers is considered to be content, essence and soul of a brand, the more growing the value for customers is, the more diverse structure, the more powerful the brand is

(2) Create (design) different parts of brand and collaborate them together to create a complete brand nam: This brand name must reflect the full, accurate and impressive,

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convinced of the value for the customers the company has generated

(3) Increase brand strength: this is the final task of the process Company must make the right decision to consolidate, develop brand and then to conduct promotion, brand advertisement to make it a strong brand name

2.2.3 The basic activities to enhance brand power

> Maintain and strengthen the brand

By Richard Moore, there are 3 requirements set out in maintaining a good brand identity:

(1) The brand characteristics must suit both the company and market the company looks to

(2) Create brand statistics for future usage through guidance documents to avoid the risk of brand fading along with time

(3) Management brand closely: it’s important to build a brand management mechanism responsible for maintaining the brand identity and building a company culture

On the above (1) and (2) requirements: companies often hire professional consultants

to create through brand strategy, a brand recognized system, brand brochure Requirement (3) is a daily task of the company To fulfil this requirement a company must make following decisions:

- Decision on brand relationship (architecture tree brand); (Brand Architecture): Brand architecture is a structure to organize brands in a category for the purpose of determining the role of each brand and the relationship between them on the market Brand architecture is a tool used to create a force, a transparent distinction among specific brands, and create a momentum to lift up the brand

- From business practices, there are 6 development brand architecture strategies: (1) Brand strategy - Product: The objective is determining for each product a unique brand and relevant to the positioning of the product

of brand name and / or group of brand

- The expansion of brand utilization limit: is to utilize the brand power in

expanding product, market This is a risky strategy If failed, the core brand will faces difficulty And conversely, if doing well, expanding the brand will contribute tremendously to the existing brand value asset The brand expansionn should only

be implemented when reaching at least 3 strategic goals: (1) Create a large increase

in brand value (2) Cover the whole market and (3) Create barriers in the market share keeping competitors from penetrating

There are 4 ways to expand brand: (1) Expand products range; (2) Expand the brand; (3) Using multiple brands; (4) Use a new brand name for new product

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- Brand protection

Brand name are very vulnerable to be stolen if not be registered and not be protected

by the law The more famous the brand is, the more it is easily abused, affecting the image of the enterprise In fact, many enterprises have lost their brand name, their trademark is faked, or lose tremendous time and money in dispute to get back their brand, those problems has asserted the need for brand protection For brand protection, enterprises need to use two ways:

(1) Protecting brand legally:

- Sign up for brand protection: Once registered and recognized the brand is protected

by law For business, brand protection includes two parts: the first is the protection

of trademarks and other factors composing the brand, the second is the construction

of a barrier needed to prevent the attack ability of other competing brand

- Use the ownership rights when the brand is violated

- Register your domain on the Internet

- Transfer the brand title

To protect the brand legally, enterprises should understand thoroughly the law on brand protection:

- Vietnam law and regulations: (1) Intellectual Property Law and guidance documents (2) Current civil code (3) Commercial law (4) Criminal law

- International regulations: 1) The International Convention on brand name that Vietnam involved (2) Reagional and bilateral treaties relating to brand name that Vietnam joined

(2) Brand protection economically, technically

Brand protection is not just to register for protection, but to find any way to prevent all infringement

- Create barriers against brand infringement, "barriers" here mean all the measures and activities that enterprise uses to limit or hinder other subjects accidentally or

o Setting up economic, psychological barriers: (1) Expand distribution and retail systems (2) Strengthen the customer relations, create customer-friendly (3) Maintaining and improving the quality of goods and services (4) Search the market to detect fake products

(3) Limit the risks arising in building brand process

Application of measures to limit, fund and control risks as: (1) Use the brand speacialists, established a responsible department for the brand (2) Limit the risks purely through the implementation of labor safety (3) Limit the risk by pre-establishing a provident fund, building relationships with financial institutions, credit institutions and other enterprises to get necessary funding when risks occur (4) Limit dispersible risks: The close link in operation activities with other enterprises, flexibility

in brand transfer are effectively risks mitigation methods

- Promoting and advertising brand

Working stage to increase brand power In principle this is the transmission of brand news to customers This coincides with the third phase of the marketing activities - the transmission of information on the supply number compared with the demand number

to achieve the set out marketing objectives

To transmit information about a product or service to the customers to convince them

to purchase, mostly people do not need to conduct promotion activities, because the goods, services themselves (about the external packaging, colors, price) have told

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many things But to bring the brand into customer’s mind, we must conduct promotion activities This is explained by a number of reasons: (1) A purely brand (the brand itself) is not able to "shine" (2) In today competitive era, there are too many brands developed to meet one need of customers (3) Customer’s mind or memory has been filled with information about other brand (4) If the brand is not in customer's mind, objectives including sales and other goals of building and developing brand will not be made

Promoting and advertising brand to maintain, enhance and create brand value: This objective is the distinction between promoting, advertising brand and promoting, advertising products In general, promoting, advertising products only focus to intended target sales Conversely, promoting, advertising brand in addition to targeting sales also build the "presence", the loyalty, the brand value assets and to continue selling more, getting more profit

Main activities for brand promotion and advertisement

 Sales promotion

- Objective: to encourage customers to try new products or increase the level of using existing products, increase levels of the brand name familiarization with customers, thereby strengthen the ability to identify and recognize the brand and gradually create a customer loyalty with the brand

- All forms of sales promotion: Programs to learn about business, brand name; Discounts or gifts

- Advantage: Creating the closeness of customers with the brand and business, increase sales or profits in the short term

- Disadvantage: The abuse of sales promotion programs could create a bad habit for customers At that time operating performances depend on whether there are promoting programs or not and do not depend on brand prestige When companies

- Objective: Create awareness, understanding of the brand, convincing customers to

buy the products and maintain loyalty of customers

- Select advertising media: through direct individual sales channel; Advertise on broadcasting media; Advertise directly; Outdoor Advertising, Advertising on gift items; Electronic advertising on the Internet

- Advertising messages: to bring the full meaning of which the brand wants to communicate, to show the full link to connect customer’s memory with the brand When you have selected the message, it’s necessary to conduct testing to avoid failure by not adapting the message to the audience There are two methods of testing: test on the actual environment and test on simulation environment

- Implementation, assessment of the ad: In the process of implementation, it should create a effective respond mechanism to capture the frequent impact of the program Rating an advertising program is evaluating consumers’ awareness of the brand through advertising messages

 Public relation (PR)

- Public Relations: is a system of principles and activities to build an image, an impression, a perception or a trust of something PR is an important tool, very flexible communication in the marketing and brand promotion, to impact directly

on target audience to facilitate the brand dissemination PR is now being widely applied by the organization from non-profit operations to commercial operations

- The role of PR is to help companies convey their message to their customers and important public group PR helps the products to go into customer's awareness

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- Some advantages of PR: a process of two-dimensional information; High objectivity ; Transfer more information than other propaganda, broadcasting media; Often bring specific benefits for customers PR messages are less commercial by using intermediation devices or messages contain diversified, rich information therefore easily draw public attraction and acceptance PR particularly effective in cases of: Launch of new products; Refresh old products; Raise prestige; Limited budget enterprises ; Crisis encountered enterprises

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CHAPTER II STATUS QUO ON STRENGTHENING VNPT BRAND

I Introduction about VNPT and VNPT brand

1.1 Introduction about VNPT

VNPT was established on the basis of innovating, re-organizing Vietnam Post and Telecommunication Corporation and its affiliates On 26 March 2006, VNPT officially proclaimed the decision of the Prime Minister on establishing the Group

At present, VNPT is one of eight core State-owned economic groups operating in the key economic sectors, which were approved by the Prime Minister for the pilot establishment in the year 2006 In 2008, of the largest economic groups in Vietnam, VNPT is ranked the third grade in terms of capital, turnover and graded the second

in the State Budget contribution In addition, with more than 19,000 transaction points and the staff of 93,000 employees in the more than 100 member companies,

it can be said that VNPT is now the second or third largest economic groups in Vietnam

Development model of VNPT

64 provincial and city post offices nationwide have been separated to establish 64 posts companies and 64 telecommunications companies (posts companies keeps the name of provincial post offices) At present, 64 provincial telecommunications companies are under the direct management of the Group

 Affiliate with 100% charter capital owned by VNPT: 5 units

 Affiliate with more than 50% charter capital owned by VNPT: 12 units

 Associated company: 14 units

 Administrative training and education units: 07 units

 Legal form, corporate capacity of VNPT

- VNPT is the State owned corporate, which was invested and established by the State and operates under the legal regulations for State owned enterprise

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- VNPT has the corporate capacity and its own stamp, commercial symbol, account in Vietnamese dong and foreign currency at the State Treasury, domestic banks and foreign banks

- Charter capital of VNPT: VND36,955,000,000,000

 Operational objectives

- Doing profitable business, maintaining and developing equity in VNPT and VNPT’s capital invested in other enterprises and completing other tasks assigned by the owner

- Maximizing operational efficiency of VNPT

- Developing VNPT into a economic group with modern and highly specialized technology and management; doing multi-branch business including telecom and information technology as the main businesses; being the core corporation stimulating Vietnam Telecommunication Industry to rapidly and sustainably develop, effectively compete and integrate into the international economy

 Business lines

VNPT has been assigned to do business in accordance with plans and policies by the State, in which the Group shall directly carry out financial investments, capital trading in domestic and foreign markets, production, business activities or investment in other enterprises in the following sectors and industries:

- Backbone based services;

- Telecommunications - Information technology services;

- Communications services;

- Surveying, consulting, maintaining telecom and information technology works;

- Financial, credit and banking services;

- Advertising services;

- Real estates and office for lease;

- Other business lines in accordance with the laws

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- Social obligations assigned by the State

 Philosophy of business

- Overcoming waterfalls and rapids, becoming stronger: To overcome ups and

downs to continuously develop, further reach and expand VNPT has affirm the pioneer spirit and powerful internal forces

- Reaching far, harmonizing with joy: Like the river with full of alluvial soil,

VNPT transfers messages of joy to everyone nationwide

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- Figure 04: VNPT Philosophy of Business

- Brining confidence, moving toward the open sea: Harmonizing with big waves,

VNPT has been in a steady position in shoulder with other partners all over the world, making dreams come true

Business results of VNPT for past years:

 Limits and shortcomings of VNPT

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- Studying and planning the development of networks, services supply and market forecast has been implemented unsystematically and as a result, the investment fails to catch up with the customer demand The process of promoting the investment is still passive

- In some areas, the organization has not been well conducted to meet demands of customers and the market, customer care, resulting the low competition, limiting achievements The process and procedure for developing services are still prolix, slow, impacting quality of services and prestige of the Group

- Investment in management tools, application of IT have not catch up with requirements on management The system of computing charges and customer care is asynchronous and not centralized

- Studying, testing and deploying services which can possibly bring significant sources of income and slow competition It has still lacked managerial officials with high qualifications in the fields such as research on IT and software development, financial management, analysis and forecast, public relations, etc The above-mentioned limits and shortcomings of VNPT have laid heavy impacts on its trade mark; that is they will cause difficulties for the trade mark of VNP; diversity of products is limited and quality of services has not satisfied the market demand, reducing its competitive advantages compared rivals Quality of services is still low in comparison with the planned targets They have not created a good image of VNPT among customers This weakens strengths of VNPT

On the other hand, the above-mentioned limits and shortcomings are both causes and consequences of branding VNPT for past time or it can be said that the investment and development of VNPT brand have not been proportional to it role and significance In order to overcome such shortcomings, we must resolve the problem of branding VNPT It is imperative to make VNPT brand to be a strong trade mark

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1.2.Overview about VNPT brand and actual situation of brand strength of VNPT

1.2.1 Overview about VNPT brand

Orientations of developing VNPT brand till the year 2012

 Core values:

- Vietnam characterized values: VNPT has developed together with more than 60 years of the national history as the role of a key enterprise It has always undertaken responsibilities of doing business and serving Vietnamese Party, State and people

- Humanitarian values: VNPT commits to proving best services for customers, improving material and spiritual life of staffs; bringing benefits for partners, making contributions for community benefits All are “for people, toward people and along people”

- Connection-characterised value: Thanks to the applications of advanced telecommunications technologies, VNPT closes the distance between people regardless of space and time, enabling them to share Happiness - Success - Knowledge as well as the most valuable memories in life

 Slogan of VNPT:

In Vietnamese: “Cuộc sống đích thực” and in English: “Real life”

 Scope of application: for all subsidiary companies of VNPT

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1.2.1.1 Factors in VNPT brand recognition

- Name of brand: VNPT

- Colours of brand: blue + white

- Characters of brand: caring, sharing, ceaseless moving flexibility, solidity, continuous connecting and close attachment to people, youth

- VNPT logo (02 samples)

- VNPT logo includes two parts:

 Graphic logo: is the stylized moving terrestrial globe, in which the orbit track turns around the globe, drawing the shape V This demonstrates the development in the line of continious development

 VNPT in text is the abbreviation of Vietnam Posts and Telecommunications

- The eyes: symbolize human beings, caring, sharing and humanitarian values of VNPT

- The graphic group VNPT - the stylized wave wing - the eyes: demonstrating that VNPT is always for customers, caring customers

- The eyes always look upward VNPT logo and are designed as the background

of the identity factor, illustrating the long-term strategic vision of VNPT