This report is the result of research and writing process during the first quarters of 2010. To accomplish this report, I would like to give my sincere thanks to many people for their useful helps, contributions, and recommendations during my writing process. First of all, I am very grateful to my supervisor, Mrs. Ha Thi Kim Anh for her clear guidance, encouragement, and significant advice throughout my study. Secondly, I would like to give my thanks to AMICA Corporation and Mr. Trinh Dinh Long, General Director of AMICA for his comment and helpful instruction. Thirdly, I am thankful to all of my teachers at National Economics University for providing me with knowledge and experience during my fouryear study. Lastly, I should also express my profound gratitude to all members in my family and my dear friends for their support and encouragement during my study.
1 ACKNOWLEDGEMENT This report is the result of research and writing process during the first quarters of 2010 To accomplish this report, I would like to give my sincere thanks to many people for their useful helps, contributions, and recommendations during my writing process First of all, I am very grateful to my supervisor, Mrs Ha Thi Kim Anh for her clear guidance, encouragement, and significant advice throughout my study Secondly, I would like to give my thanks to AMICA Corporation and Mr Trinh Dinh Long, General Director of AMICA for his comment and helpful instruction Thirdly, I am thankful to all of my teachers at National Economics University for providing me with knowledge and experience during my four-year study Lastly, I should also express my profound gratitude to all members in my family and my dear friends for their support and encouragement during my study Ha Noi, May 2010 Student: Man Thi Lua TABLE OF CONTENTS ACKNOWLEDGEMENT TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION Rationales…………………………………………………………………………….1 Research questions………………………………………………………………… Methodology…………………………………………………………………………2 CHAPTER 1: Introduction of AMICA Corporation with its problems Introduction to AMICA Corporation……………………………………………… 1.1 Process of formulation and development………………………………… 1.2 Functions and duties……………………………………………………… 1.3 Fields of business………………………………………………………… 1.3.1 Strategic consulting……………………………………………….5 1.3.2 Management training…………………………………………… 1.3.3 Electronic commerce…………………………………………… Objectives……………………………………………………………………………6 Research questions………………………………………………………………… Methodology…………………………………………………………………………7 Key term definitions…………………………………………………………………8 Scope of the report………………………………………………………………… CHAPTER 2: Theoretical framework…………………………………………… 10 CHAPER 3: Analyzing the state of developing the brand of AMICA General assessment…………………………………………………………………14 Analyzing the state of developing the brand of AMICA………………………… 15 2.1 Brand design……………………………………………………………….15 2.1.1 Brand name………………………………………………………15 2.1.2 Logo…………………………………………………………… 15 2.1.3 Slogan…………………………………………………………….16 2.2 Brand promotion………………………………………………………… 16 2.3 Brand development strategy…………………………………………… 18 Difficulties in the process of developing the brand of AMICA…………………….18 3.1 Difficulties arisen fron the inside of the company……………………… 18 3.2 Difficulties arisen fron the outside of the company………………… .20 3.3 Difficulties arisen from policy mechanism and process of law enforcement of the State…………………………………………………………………21 CHAPTER 4: Recommendations Recommendations for AMICA Corp……………………………………………….23 1.1 Raising its awareness of the brand…………………………………………23 1.2 Completing brand development strategy………………………………….24 1.3 Having appropriate measures to brand protection……………………… 25 1.3.1 Ensuring coherent information to consumers……………………26 1.3.2 Creating barriers against brand infringement…………………….26 1.3.3 Maintaining and enhancing the quality of goods and services… 27 1.4 Diversifying forms of brand promotion………………………………… 27 Recommendations for the State…………………………………………………… 30 2.1 Building a synchronous law system……………………………………….30 2.2 Providing businesses with effective channels of information ………… 31 2.3 Helping enterprises with trade promotion…………………………………31 CONCLUSION……………………………………………………………………….33 APPENDIX………………………………………………………………………… 34 BIBLIOGRAPHY……………………………………………………………………36 EXECUTIVE SUMMARY This report responses to analysis and findings on facts collected through months of the internship at AMICA Corp located in 41A, Tran Quang Dieu Street, Dong Da Distric, Hanoi It consists of four main chapers: CHAPTER 1: Introduction This chapter introduces about AMICA Corporation including process of formulation and development, functions and duties, and fields of business It also draws upon objectives, research questions, methodology, key term definition, and scope of the research CHAPTER 2: Theoretical framework This chapter gives theories which are used in the report CHAPTER 3: Analyzing the state of developing the brand of AMICA This chapter assesses achievements that the company has gained in the past two years from 2007 to 2009 It also analyzes the state of developing the brand of AMICA In addition, this chapter points out difficulties which the company has encountered in developing its brand CHAPTER 4: Recommendations This chapter proposes recommendations for both AMICA and the State based on these difficulties INTRODUCTION Rationales Brand is one of the important factors contributing to maintaining, expanding, and developing markets for both domestic and foreign enterprises Also, it improves trade civilization, and contributes to anti-unfair competition In the context of international economic integration of our country, businesses are standing in front of fierce competition, especially as many foreign goods have penetrated into Vietnamese market Therefore, Vietnamese businesses have to promote improvements in technology, products quality, and build for themselves a strong brand AMICA Corporation is a company major in providing solutions to the problems that enterprises are encountering The company has officially started its business operation for three years With the characteristic of so new young company, AMICA will surely have difficulties in attracting consumers in comparison with other companies which are operating in the same field My recent survey with fifty randomized people showed that most of them (98 %) didn’t know about the brand of AMICA (Appendix 7) On the contrary, just 2% knew, however, they didn’t know about fields of business operation of the company (Appendix 8) Through this result, I saw that the brand of AMICA has not really come to customers mind The question is how consumers know its brand as a strong brand? To this, AMICA Corp has to focus its efforts on developing the brand For above reasons, I have chosen topic “ How to make the brand of AMICA more popular ” for my internship report in order to propose some recommendations which may make the brand of AMICA more popular with consumers Research questions The report tackles six main questions which are asked for the Manager of AMICA including: 2.1 What are objectives that the company decide to build a brand strategy for itself? 2.2 What are outstanding features of its website? 2.3 What are development targets of the company at the present and in the future? 2.4 What are difficulties of the company when developing its brand? 2.5 What are brand development strategies, which the company did, is doing, and will do? (in long term and short term) 2.6 What are brand promotion strategies of the company? Besides, other research questions with fifty randomized people to measure their awareness of the brand of AMICA are also solved in the report Methodology The report draws upon information from both primary and secondary sources Primary information is selected by qualitative research method through directly collecting the information from the company and related internal documents As well as the manager Trinh Dinh Long will be interviewed for objectives that the company decides to build a brand strategy (Appendix 1), outstanding features of its website (Appendix 2), development targets (Appendix 3), difficulties when developing its brand (Appendix 4), brand development strategies (Appendix 5), brand promotion strategies (Appendix 6) Secondary sources are made by quantitative research method Fifty randomized people are interviewed to measure their awareness of the brand of AMICA The amount of people who didn’t know about the brand of AMICA were very high (98%) (Appendix 7), while only 2% knew, however, they didn’t know that fields of business operation of the company were what? (Appendix 8) Besides, other information collecting from the internet, newspapers, books are taken into account in the report CHAPTER INTRODUCTION OF AMICA CORPORATION WITH ITS PROBLEMS Introduction to AMICA Corporation 1.1 Process of formulation and development AMICA Corporation ( abbreviated name is AMICA Corp ) registered for business on January 5, 2007, but officially started its business operation on January 10, 2007 with business registration license No 0103015211 Locating in No 42A, Tran Quang Dieu Street, Dong Da Distric, Hanoi, AMICA Corp is a small and medium company with the scale from 25 to 99 staff But the address which the company registers for tax is at No 3, Alley 28, Ngo si Lien Street The company is major in providing solutions to problems that enterprises are encountering AMICA stands for Accomplishments of Management by Intelligence, Creation & Aspiration The company was founded and has been managed by creators who has administered at multinational companies; researchers and Vietnamese leading trainers who have been educated at developed countries The Board of Directors of AMICA Corp consists of experts in many fields, qualified doctoral and masters which are trained in countries with market economy, experienced research and practice AMICA Corp cooperates closely with experts in research institutes and universities, senior administrators are operating business in order to update new knowledge and practical experience 1.2 Functions and duties AMICA Corp provides enterprises with solutions to business development, particularly focuses support on firms in the period of formulation and development of business scale with the motto “We provide solutions for small and medium enterprises to compete with the rest” AMICA Corp provides enterprises with development solutions based on research and deep understanding of operation field as well as the business’s specific condition AMICA Corp examines enterprises in the overall scope from business strategies to detailed implementation actions, then proposes appropriate solutions within the overall strategy, ensures high performance for businesses and uniformity of solutions as well, and thus brings the most effective performance for businesses 1.3 Fields of business AMICA is an organization operating under the corporate model of coordinating indepth activities array aimed at providing businesses with comprehensive development solutions including: - Strategic consulting - Management training - E-commerce development 1.3.1 Strategic consulting 10 AMICA Corp gives consultation to enterprises Its consultation includes business foundation, business plan building, and business strategies 1.3.2 Management training AMICA has a contingent of teachers holding Master’s degree or Doctorate They involve in different activities such as teaching, company managing, consultation giving The training criteria of AMICA Corp is “practical application” The training programs are based on researching the need of students in order to ensure them to meet the need of specific tasks set by enterprises The company offers central training programs including: - Training of modern management knowledge - Specialized training in marketing - Sales and customer care 1.3.3 E-commerce development AMICA Corp supports customers to brand promotion and business development through marketing activities on the Internet The company also consults and develops websites for customers consistent with their business and brand strategies Objectives The purpose of the study is to introduce about AMICA Corp, at the same time 28 Second, AMICA Corp must study how to register for trademark in both domestic and foreign market Regulation research of other countries will make AMICA Corp more favorable in registering its trademark as well as may appeal trademark violations Third, AMICA Corp needs regularly to monitor information about trademark registration to be able to handle any trademark abuse early Fourth, AMICA Corp needs to foster, and improve knowledge of policies and measures to develop the brand for its staff which are responsible for this activity so that they can build a brand strategy consistent with the specific terms of the company AMICA Corp needs a special department responsible for developing the brand with certain skills that ensures the brand deisgn more professional and outstanding from others In accordance with the financial condition and the size of the company as well as the variety of goods that AMICA Corp can build for itself a team of brand management according to the different models Fifth, AMICA Corp needs to raise awareness of the whole staff in the company of the brand Being aware of the role of the brand will help workers make the brand construction and development policy of the company more effective, even they can contribute to initiatives to improve this policy Raising the company’s awareness of the brand is a leading urgent matter of AMICA Corp However, an issue no less important is that AMICA Corp must be aware how to put into practical actions through an investment strategy for its brand 1.2 Completing brand development strategy 29 To develop the brand, first AMICA Corp needs to build a reasonable brand strategy consistent with the scope of business and the specific condition of the company on finance, human resources, and market Since then, completing the overall brand strategy Building the brand strategy should be based on the following grounds: - Fields of business of the company - Actual human resources and finance - Analysis experience about the successes and failures of rivals in the same field Completing the brand development strategy plays a very important role in its success (Tom-Sandra, 1997) Building an unreasonable brand strategy far from the practice can lead to fairlures for the company The ultimate goal of the brand is to make the brand come to consumers so that they will accept and love that brand Therefore, the brand strategy must focus on resolving any relating issues to achieve that goal, such as market research, product development, plans for market access and brand image promotion, fianancial strategy From the characteristic that AMICA Corp is a small and medium company with limited finance and human resources, the brand strategy should pay attention to exploiting market as well as means of promotion with low costs such as promotion on newspapers, magazines, the internet, and through public relation activites From the characteristic of management cost and low brand maintenance, the brand development strategy is considered as appropriate when AMICA Corp does not have the condition to expand the scope of business and types of products 1.3 Having appropriate measures to brand protection 30 To protect the brand for itself, the first requirement for AMICA Corp is to register for its brand so that it is protected legally, also the company needs to have effective measures to protect itself 1.3.1 Ensuring coherent information to consumers During this period, AMICA Corp needs to have strategies, measures to control, prevent, and treat disadvantagous risks for the brand All information transmitting to consumers must assure no misleading information about its awareness of the brand (Linda Kevin, 1998) Lack of interests in controlling and monitoring the brand usage will lead to adverse effects Beside the focus on the outside of the company, to get a strong brand the company must pay attention to the issues raising in its as staff awareness of the brand 1.3.2 Creating barriers against brand infringement AMICA Corp has to focus on measures to create barriers against brand infringement All operational measures and proactive actions must be launched from the company to limit or hinder the subjects which are accidental of deliberate brand Brand protection is not merely how to register for protecting brand elements, but AMICA Corp must also find effective ways to prevent all external infringement as well as the internal decline There are many technical measures to restrict brand infringement These measures are often made or set right away from brand development strategy However, in brand management process, AMICA Corp can make and maintain a number of additional 31 measures to cope and adapt promptly with the situation of brand development Depending on the characteristics of business activities and the real market condition as well, AMICA Corp can offer different barriers consistent with the company finance 1.3.3 Maintaining and enhancing the quality of goods and services A strong brand will not be protected if it doesn’t confirm itself through the quality of goods and services (Alina David, 1995) Consumers will be willing to find another brand if the familiar brand does not make them satisfied with the quality of goods, services, or the expected value Therefore, improving the quality of goods and services as well as service quality is extremely important for the company to retain customers and attract new clients 1.4 Diversifying forms of brand promotion A brand will not develop if it is not promoted Through promotion for a brand, consumers have the opportunity to identify the brand and since then come to accept and love that brand Thus, promotion plays an extremely important role in brand development (Mogan Roll, 2006) To brand promotion is effective, AMICA Corp should pay attention to the following issues: - Having to build a promotional strategy suitable for each market and each stage of product lifecycle Generally, in its development strategy, AMICA Corp has positioned for each brand relative to each market segment and private client group Therefore, making promotion for brand image will also require separate strategies Promotional strategy should be pointed out the specific schedule for each promotional period with the corresponding financial costs (Nguyen Thuy Hien, 2005) Due to the financial 32 capacity is still limited, AMICA Corp should prepare detailed finance plans for each period Building brand promotion strategy also needs to calculate the effect of each campaign in relation to the time and spending cost - Selecting means of advertising consistent with each market at different times in the brand strategy ( including market entry phase, the total force to promote the brand, overwhelm competitors, brand image maintenance ) There are different means to reach the brand Using diverse means of brand access in order to create the best awareness of the brand is the most important objective of brand promotion The means to reach and recognize the brand may be television, radio, newspapers, outdoor signals, outlets, panels in public places, or packages, etc Each different means of advertising will have different advantages and disadvantages and will fit with the company’s specific condition TV ads is considered as a highly effective mean due to the delicate combination between the image and the sound; vivid image Moreover, the message is transmitted to an enormous amount of customers However, with limited financial capacity today, AMICA Corp is difficult to apply this mean because the cost is too high Therefore, AMICA Corp should use other means with lower cost but high effect like advertising over radio Beside radio, AMICA Corp can also advertise through newspapers, magazines, and the internet because the cost is not large and can select the objectives who receive the message Even though AMICA Corp has built a website for itself, when conducting online advertising the company needs to invest to hire advertising space and place its logo on other popular websites like Yahoo, FPT, Google creating links to its website 33 Along with ads on different media, AMICA Corp should also pay attention to public relations ( PR ) activities PR plays a strategy role in brand development and is a trend in the world (Mack Scott, 2008) It is an effective tool to strengthen the brand in the heart of consumers PR tools include event marketing and sponsorship, community activities, assistance at exhibition fair, and publications Event marketing and sponsorship is an important tool that AMICA Corp should consider AMICA Corp can participate in events with different roles such as sponsor, organizer of additional activities, or directy take part in events with its specific activities Through these activities, the company will create a good opportunity to dialogue friendly with consumers, especially when participating in important events, the company will attract the attention of crowded populations For example, Trung Nguyen Coffee has participated in organizing contest “Start a business” Community activities: AMICA Corp can provide products as well as finance for events Funding for this community activities will ensure that the company can maintain a beautiful image in the eyes of the observers For example, the brand of Dutch Lady Milk has coordinated with Red Riding Hood Newspaper organizing program of “ Light of fireflies ” with the desire to help poor students who have tried to achieve many accomplishments in their study When buying different products of Dutch Lady, customers have contributed from VND 10 to 50 in the program of “Light of fireflies” Assistance at exhibition fair: AMICA Corp can display and introduce its products, contact and dialogue directly with customers, explore and learn more about customers opinion, research competitors, promote brand image 34 Publications: Through publications within the company as the envelope, titled paper writing, correct document, AMICA Corp can refer members, products, policies and efforts of the company Besides, outside publications like categories and posters are effective ways that the company should apply Recommendations for the State 2.1 Building a synchronous law system Vietnam has made decisions on the legal aspect to identify intangible value of businesses, but these decisions had many shortcomings making it difficult for enterprises to brand development Therefore, the Government and the related Ministries need to research and make more regulations suitable for current business practice, specifically: - Legal documents should admit brand term because it is being used very wide in Vietnam Under the Civil Code and the Decree 63/ NP-CP, brand term and trademark term had narrower meaning than in Trade Agreement Vietnam-The United State The Government should supplement, adjust, and recognize brand term on legal documents - Currently, the Government has allowed businesses to spend money on brand promotion activity up to 10% from sales (Ministry of planning and investment, 2003) It is considered as the business cost However, this level still limits brand development ability of enterprises The experience of several countries pointed out that the State should not control this cost - Strengthening the State management on the protection of intellectual property in 35 general and the brand in particular Specialized agencies should suggest the Government to consider and raise the penalty of brand infringement much higher ( acts of brand imitation can be fine the minimum to VND 100 million ) and process if the violation is serious Intellectual Property Department should further enhance cooperation with foreign colleagues to help businesses register for brand protection in foreign countries as guiding, providing information and handling violations 2.2 Providing businesses with effective channels of information The State should provide enterprises with information, and business consultation about developing and promoting the brand For many enterprises, the brand is still so new, they don’t understand deeply the meaning and the role of the brand in the competition, so they don’t know where to start, how to professionize the brand development Businesses don’t need the State make for themselves but the State should provide with information and advice to support to them In addition, promoting dissemination of knowledge about the brand in the business community makes the brand become a part in the business culture In detail, the State should hold seminars to disseminate the experience of other businesses which have succeeded in developing and registering for the brand, and improving ways to enhance the competitiveness of the products 2.3 Helping businesses with trade promotion Most enterprises are small and medium ones with limited capital, so they have not yet exposed to meet information means of the global network For that reason, the State should help businesses integrate successfulllly into the world economy 36 Common form which Vietnamese businesses apply to promote their brand is participation in trade fairs abroad by the program of Department of Trade Promotion Businesses have been supported by 50% the cost of booth, but the amount that enterprises have to spend for participating in the fair is still very high Therefore, proposing that the Government should offer the fund of trade promotion support and brand development This fund will help enterprises take part in promoting brand image in foreign countries on the different means To help and support firms to promote their image abroad, the State needs to identify key groups of goods for each period of two years Besides, setting up new showrooms and Vietnamese products launch to foreign countries The State should also intensify business activities and form the information center to help enterprises search information A very important issue now is to clearly define the purpose of national brand program which is to help and create conditions for enterprises to enhance brand awareness and brand development capacity, promote Vietnamese brand image overseas and associate logo “ Vietnam Value Inside ” for the products involved in the program (Ministry of Commerce, 1996) In other words, national brand program needs to create a breakthrough in promoting Vietnam’s image in the world market Building national brand should immediatedly However, to develop and protect the brand requires the efforts from both the State and enterprises that national brand really promotes its role in creating images for Vietnamese products, improving the competitive position of Vietnamese product on the international market 37 CONCLUSION In the process of international economic integration, the brand is considered as a valuable asset of businesses like many other assets which enterprises possess (AllenMartin, 2007) Thereby, developing and protecting the brand is one of the urgent tasks vital for Vietnamese enterprises, especially for AMICA Corporation Through the contents are presented in the report, I can draw the following conclusions: - Developing the brand is indispensable requirement for businesses in the context of competition and deeper integration today To survive and develop, businesses need to invest more interests in developing the brand, also require the leaders to have a comprehensive look, understand the market and consumers further - To brand development process is made successfully, enterprises should pay special attention to the work of developing brand image, emotions and trusts of consumers Defining means of brand promotion also is an issue that has to focus on research - The analysis of the state of developing the brand of AMICA showed achievements as well as difficulties in the process of developing its brand, then showed there was urgent to adjust and invest again scientifically in brand development to make its brand more popular with consumers - Developing the brand is a long process requiring more time, efforts, and money so that brand image can only go deep into customers mind From achievements and difficulties in brand development of AMICA, the report proposes some recommendations to orient the work of developing the brand of AMICA more sustainable in the future 38 APPENDIX Tiếng Việt: Các câu hỏi vấn tới ơng Trịnh Đình Long, tổng giám đốc công ty AMICA, bao gồm: Các mục đích mà cơng ty định xây dựng cho chiến lược thương hiệu gì? Các đặc điểm trội trang web công ty gì? Các mục tiêu phát triển cơng ty tương lai Những khó khăn cơng ty phát triển thương hiệu gì? Các chiến lược phát triển thương hiệu mà công ty làm, làm, làm gì? Các chiến lược quảng bá thương hiệu cơng ty gì? Các câu hỏi vấn tới 50 người ngẫu nhiên mức độ nhận biết thương hiệu họ công ty AMICA, bao gồm: Anh/chị có biết thương hiệu công ty AMICA không? Nếu biết, anh/chị có biết lĩnh vực hoạt động kinh doanh cơng ty khơng? English: Interview questions: to Mr Trinh Dinh Long, general director of AMICA: What are objectives that the company decide to build a brand strategy for itself? What are outstanding features of its website? 39 What are development targets of the company at the present and in the future? What are difficulties of the company when developing its brand? What are brand development strategies, which the company did, is doing, and will do? (in long term and short term) What are brand promotion strategies of the company? Interview questions to fifty randomized people about their awareness of the brand of AMICA, including: Do you know what the brand of AMICA is? 8.If yes, you know what fields of business operation of this company are? 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