Increasing liberty insurances brand awareness in order to bee in the top 5 of non life insurers in vietnam by 2014

TRƯỜNG ĐẠI HỌC MỞ TP.HCM HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL MBMM5 LE THUY KIM LOAN INCREASING LIBERTY INSURANCE’S BRAND AWARENESS IN ORDER TO BE IN THE TOP OF NONLIFE INSURERS IN VIETNAM BY 2014 MASTER PROJECT MASTER IN BUSINESS & MARKETING MANAGEMENT Tutor’s Name: Dr Le Thanh Long Ho Chi Minh City 2012 COMMITMENT I commit that I researched, collected materials, synthesized, analyzed and wrote this dissertation by myself under directive professors’ help All information and figures which are used in this dissertation originate from clear, honest and publishable sources ACKNOWLEDGEMENTS Firstly, I would like to express heartfelt thanks to Doctor Le Thanh Long who encouraged and directed me with all his heart on the way of this project, and helped me to finish this dissertation I would like to express my deep acknowledge to Mr Pham Truong Khanh - Marketing Director of Liberty Insurance Company With valuable advices, relevant information and recommendations, he support me a lot during this study I would also like to express my deep gratitude to Professors, Coordinators in Open University for their guide I would also like to thank to friends and colleagues in insurance companies and universities, who provided me with abundant relevant information for this dissertation My special thanks go to my family and relatives, who have continuously given me the inspiration to complete this dissertation Thank you very much! TABLE OF CONTENTS COMMITMENT ACKNOWLEDGMENTS LISTS OF TABLES AND FIGURES APPENDIX LIBERTY BRAND AWARENESS RESEARCH 42 APPENDIX NON-LIFE INSURERS IN THE MARKET IN 2011 43 APPENDIX BRAND AWARENESS OF NON- LIFE INSURERS IN 2011 .46 APPENDIX ADVERTISING PICTURES 47 REFERENCES 56 CHAPTER 1: INTRODUCTION 1.1 Background of project 1.2 Objectives of project 1.3 Scope of the project 1.4 Methodology CHAPTER 2: LITERATURE REVIEW 2.1 Brand awareness 2.1.1 Definition 2.1.2 Brand awareness establishing 2.1.3 Brand awareness components 2.1.4 Brand awareness building steps 2.2 Brand awareness through audience tool of communication CHAPTER 3: OVERVIEW OF NON-LIFE INSURANCE INDUSTRY 3.1 Overview of non- life insurance industry 11 3.1.1 The concept of non-life insurance 11 3.1.2 Insurance purpose 11 3.1.3 Non-life insurance market in 2011 12 3.2 Overview of Liberty insurance company 15 3.2.1 Introduction of Liberty insurance company 15 3.2.2 Brand awareness of Liberty insurance company 18 3.2.3 Brand strategy of Liberty insurance company .19 3.3 Overview of competitors in non-life insurance market in Vietnam 20 3.3.1 Major competitors in the market 20 3.3.2 Brand awareness of competitors 21 3.3.3 Brand strategies of competitors 22 CHAPTER 4: SOLUTION AND IMPLEMENTATION 4.1 Brand awareness analysis 28 4.2 Solution 28 4.2.1 Stage plan 33 4.2.2 Stage plan 36 CHAPTER 5: CONCLUSIONS 5.1 Conclusion 40 5.2 Limitations of the projects .40 5.3 Recommendation 41 LIST OF TABLES & FIGURES Number Page Table Gross Written Premium 13 Table Top companies in awareness 21 Table Budget on communication plan 37 Table Communication plan schedule 37 Figure Gross Written Premium 14 Figure Top 15 insurers on gross written premium .15 Figure Product classification 17 Figure Brand Awareness of Liberty in 2008, 2009, 2010, 2011 .18 Figure Brand awareness of competitors 21 10 Figure Buyer readiness stages 29 11 Figure Audience response in communication 30 12 Figure The Liberty logo 30 13 Figure Audience tool for building brand awareness 32 CHAPTER 1: INTRODUCTION 1 BACKGROUND OF PROJECT In the competitive situation as today, the brand becomes extremely important factor for businesses Vietnam enterprises in recent years have been aware of the brand strength to survive and find a place on durable market, so there have been an active investor for the construction and brand development Liberty is the insurance company 100% owned by the U.S enter the Vietnam market in 2007, after years of Liberty has achieved a certain success and is considered the company with fast growth quickly in the market for non-life insurance Of the 28 companies for non-life insurance, the Liberty is ranked 13th in revenue premium (over 175 billion USD), up levels compared to 2010 and the objectives of Liberty is beyond the top in 2014 Compared to the veteran company operating for over 15 years as Bao Vietnam, Bao Minh, PVI is a foreign company operating a new years is not easy To this, the Liberty need a lot of efforts, from increased service quality, product improvement process to invest heavily in the sales team, expanding markets, distribution channels… Besides the rival companies are moving, constantly for increased market share should rise to the need to lead Liberty to increase the level of effort to identify the highest possible brand, which has increased market share The main reason that the level of brand awareness is considered key objectives to be achieved to contribute to the success of the company In that situation, I choose this project to study the state of the communication activities of the company brand in the transition period this analysis of brand communication activities that are conducting business from which to apply marketing knowledge learned indicate the business has done well and not well Since then, proposed a few minor recommendations subjective opinion to help businesses better able to conduct activities of their brand communications 1.2 OBJECTIVES OF PROJECT This project has three major objectives: (1) Analyze and assess brand awareness situation in non-life insurance market in Viet Nam (2) Build plan for Liberty to improve awareness as top in the market 1.3 SCOPE OF THE PROJECT This project has been limited to studying on marketing strategy of Liberty and five competitors in the industry based on secondary data which are mostly collected in Ho Chi Minh and Ha Noi 1.4 METHODOLOGY The project is developed on the basis of the real concerns of Liberty on the non-life insurance industry in which Liberty has a lot of advantage: the third global company in property and casualty insurer During literature review, we see that Philip Kotler (Principal of Marketing 2008, page 376) has proposed an effective way to build brand awareness We first analyze and assess the brand awareness of Liberty then we use Philip Kotler process to build brand awareness CHAPTER 2: LITERATURE REVIEW 2.1 BRAND AWARENESS 2.1.1 DEFINITION First, accordingly to Cornell Maple (Bulletin 105, 2007) brand awareness refers to how aware customers and potential customers are of our business and its products 2.1.2 BRAND AWARENESS ESTABLISH “The more a customer experiences the brand by seeing it, hearing it, or thinking about it, the more likely he or she is to strongly register the brand in memory Thus anything that causes consumers to experience a brand name, symbol, logo, character, packaging, or slogan – including advertising and promotion, sponsorship, and event marketing, publicity and public relations, and outdoor advertising – can increase brand awareness of that brand elements Keller (Strategic Brand Management, 2008) 2.1.3 BRAND AWARENESS COMPONENTS Brand awareness consists of brand recognition and brand recall performance Brand recognition is consumers’ ability to confirm prior to exposure to the brand when given the brand as a cue Brand recall is consumers’ ability to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase or usage situation as a cue Keller (Strategic Brand Management, 2008) 2.1.4 BRAND AWARENESS BUILDING STEPS Philip Kilter (Principle of Marketing 2007) proposed these steps to build plan to maximize brand awareness: Identifying the target audience Determining the communication objective Designing the message Choosing the Media Collecting feedback 2.2 BRANDWARENESS THROUGH AUDIENCE TOOL OF COMMUNICATION As we know from brand awareness above, “the more a customer experience the brand by seeing it, hearing it, or thinking about it, the more likely he or she is to strongly register the brand in memory” Through George E Belch and Michael A Belch in “Advertising and Promotion, p 24”, we know that the various promotional mix elements are the major tools that marketers use to communicate with current and/or prospective customers as well as others relevant audience The integrated marketing communication management involves the process of planning, executing, evaluating, and controlling the use of various promotion mix elements to effectively communicate with target audience Brand awareness building tools include:  Broadcast media (TV/radio)  Print media (newspaper, magazines  Public relationships  Internet  Direct marketing  Sales promotion 42 APPENDIX 1: LIBERTY BRAND AWARENESS RESEARCH When you think of non-life insurance company, what brand comes of your mind:  ·  Ha Noi: 41 % saying about Liberty Ho Chi Minh: 49% saying about Liberty Average of Ha Noi, HCM is about 45% If you see the tagline “freedom to move”, what non-life insurance you link?  Ha Noi: 21% link to Liberty  Ho Chi Minh: 15% link to Liberty  Average of Ha Noi, HCM is about 18% The brand awareness total: 32% Samples size: 100 people in Ha Noi; 100 people in HCM Sources: Liberty Marketing Department, Research done in May 2011   43 APPENDIX 2: NON-LIFE INSURERS IN THE MARKET IN 2011 Short Insurance Company name Establishment Type BIDV Insurance Company BIC 2005 Joint-stock Phu Hung Assurance Corporation PAC 2006 Joint-stock Bao Long Insurance Company Bảo Long 1995 Joint-stock Bao Viet Insurance Corporation Bảo Việt 1965 State-owned Insurance Company VNI 2008 Joint-stock Petrolimex Insurance Company PJICO 1995 Joint-stock Vietnam National Samsung Vina Joint Aviation Venture Joint- Insurance Company SVI 1996 ventures AAA Assurance Corporation AAA 2005 Joint-stock ABIC 2006 Joint-stock Joint Stock Insurance Company PTI 1998 Joint-stock Bao Minh Insurance Corporation Bảo Minh 1994 Joint-stock Agriculture Bank Insurance JointStock Corporation Posts and United Vietnam Telecommunications Insurance Company of JointUIC 1997 ventures 44 Global Insurance Company SHB – Vinacomin GIC 2006 Insurance Joint-stock Joint- Company SVIC 2008 ventures Viendong Assurance Company VASS 2003 Joint-stock Foreign- Chartis Insurance Company Chartis 2006 owned Vietinbank Insurance Company Bao Ngan 2002 Joint-stock Foreign- Fubon Insurance Company Fubon 2008 owned Hung King Insurance Company BHV 2008 Joint-stock Joint- MSIG Insurance Company MSIG 1997 ventures Baoviet Baoviet Tokio Marine Insurance Tokio Joint Venture Company Marine Joint1996 ACE ventures Foreign- ACE Insurance Company Insurance 2006 owned Military Insurance Company MIC 2007 Joint-stock PVI Insurance Corporation PVI 1996 Joint-stock Xuân Thành 2009 Joint-stock Xuan Thanh Insurance Joint Stock Corporation ForeignGroupama Insurance Company Groupama 2001 owned Foreign- QBE Insurance Company QBE 2005 owned Cathay Insurance Company Cathay 2009 Foreign- 45 owned Source: Associations of Vietnamese Insurers 2011 46 APPENDIX 3: BRAND AWARENESS OF NON- LIFE INSURERS IN 2011 Xuan Thanh 17% VNI 37% VASS 45% UIC 48% SVIC 9% SVI 53% QBE 11% PVI 67% PTI 51% PJICO 56% PAC 8% MSIG 36% MIC 52% Liberty 32% Groupama 25% GIC 53% Fubon 16% Chartis 30% Cathay 19% BIC 59% BHV 13% Baoviet Tokio Marine 46% Bao Viet 81% Bao Ngan 34% Bao Minh 73% Bao Long 56% ACE Insurance 43% ABIC 46% AAA 57% 0% 10% 20% Source: research from Liberty in May 2011 30% 40% 50% 60% 70% 80% 90% 47 APPENDIX 4: ADVERTISING PICTURES Billboard – Mẫu Billboard – Mẫu 48 49 50 51 52 53 54 55 56 REFERENCES Keller, K L (1998) “Strategic brand management, building, measuring, and managing brand equity” Upper Saddle River: Prentice-Hall Philip, K.L (2008) “Principles of Marketing” Pearson Education, Inc., Upper Saddle River, New Jersey William A Cohen (2006) “The Marketing Plan” John Wiley & Sons, Inc Brand awareness reported Oct 2010 research done by Liberty Brand survey summary research done by Liberty The Vietnam insurance market review done by Liberty Anne T Coughlan Marketing Channels Prentice Hall, 2006 Levy, Weitz Retailing Managment McGraw Hill, 2009 Donald R Cooper, Pamela S Schindler Marketing Research McGraw Hill, 2006 David W Cravens, Nigel F Piercy Strategic Marketing McGraw Hill, 2006 Philip Kotler, Kevin Lane Marketing Management Prentice Hall, 2006 Other website: http://vnexpress.net/ http://www.vietnamnet.vn/ http://www.otosaigon.com/forum/ http://www.otofun.net/ http://avi.org.vn/ ... 3.3.1 MAJOR COMPETITORS IN THE MARKET Liberty want to improve brand awareness as top so that we study top competitors: 21 Table 2: Top companies in awareness Insurance Company BIDV Insurance Company... situation in non-life insurance market in Viet Nam (2) Build plan for Liberty to improve awareness as top in the market 1.3 SCOPE OF THE PROJECT This project has been limited to studying on marketing... materials in brand image, as well as with customers to explain the meaning of the brand image of the logo, colors, logo B BRAND STRATEGIES OF BAO MINH Do Market research, advice the Executive Board to