Why are Vietnamese bank brands not great?- 123docz.net

CHAPTER 2: RESEARCH METHODOLOGY & EMPIRICAL FINDINGS

2.7 Why are Vietnamese banking brands not great?

2.7.3. Why are Vietnamese bank brands not great?

To understand more about developing brand of ABBank, we need to have a

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Vietnam began economic reform in 1986 in 20th century. To do that we know the factors characterizing banking brands in the Vietnam, which are succeeding rather than thriving. The approach here is to study through from a grounded theory perspective, forums and information from channels, internet, papers or magazines or statements of banks‘ CEO in Vietnam and in the world, which organizations have influence on financial market. Brand which had not achieved ‗greatness‘ tend to be rooted the past. Place emphasis upon financial performance rather than brand success indicators have inadequate leadership support for the brand, be poorly differentiated, exhibit a lack of understanding and confusion about branding issues, have service quality concerns, demonstrate HR activities which could be more fully

‗on brand‘, and have a culture and values which are not clearly and consistently reinforcing the brand. To answer the question “Why are all financial services brands not great”? We will consider causes make bank brands in Vietnam are not great.

As we know, banks have done a load of things that have significantly undermined the brand but people do not really know what the brand is and they think it‘s some sort of badge, if I talk about the brand they think I want to talk about what name or something like that. They demonstrate some of the factors characterizing banking brands, which have failed to achieve brand success. In this study, we examine the reasons why not all brands are great, considering data from study and take reference form other information channels who are members at banks. Although they are a major component of wealth creation, there are few successful banking brands in the Vietnam. In 2004, just 28% of the Thuong hieu Viet top 100 strongest national brands were services, and merely 9% banking brands (Thuong hieu Viet, 2004). This paper seeks to explore some of the reasons behind the relative scarcity of successful financial services brands by investigating the factors when have been driving less successful brands. The value of the paper is that it should help financial services organization grow brands by providing them with the

insight to not follow particular strategies, which are associated with less successful brands.

In view of the limited literature in this domain, the paper is couched within grounded theory. Following this tradition, it starts by explaining the methodology and research perspective. The main issues emerging as common to brands, which had not achieved ‗greatness‘ were a tendency. This was firmly rooted in the past, to place emphasis upon financial performance rather than other brand success indicators. To have inadequate leadership support for the brand, to be poorly differentiated, to exhibit a lack of understanding and confusion about branding issues, to have service quality concerns, to demonstrate HR activities which could be more fully ‗on brand‘, and to have a culture and values which are not clearly and consistently reinforcing the brand. In the latter part of this paper, we finally discuss the conclusions and implications of this study for both academics and managers.

As we identify patterns emerging from the data and seek to identify a theoretical framework from these, rather than forming hypotheses from existing theory and then testing these using the findings. Identifying a sample for this study proved a significant challenge. Due to the multi-facetted nature of brand success, these organizations were selected by triangulating a range of available measures. It was felt that this facilitated a more holistic assessment. A review was conducted of the existing literature, including that on brand equity. A range of brand success measures were identified leading to the conclusion that there is currently no one comprehensive, methodology to measure the relative success of brands. To understand less successful brands, we need consider the opposite antecedents of brand success.

a. Service quality of bank is poor

As mentioned in the above part, we know that the number of service in banks in Vietnam is limited. Not only limited about number service but service quality of banks are also actually not good as customers expected as well as when compare to foreign banks‘. If anyone of us have chance to go to banks and use service of the

bank, we can find that, although banks have improvements in service quality but they are needed improve much if banks want to compete with foreign competitors.

Base on research, we realize one thing that if customers have good perceptions of the employee‘s behavior that mean they have good perception about brand. Most of customers when I interview and survey them, they have common point of view when comment about a bank brand. Moreover, the advantages of high service quality are the main factor to make impression in customer‘s mind and maintain a good brand image in the market. For example, in retail financial services institutions, found a variety of financial performance measures were all positively correlated with service quality. And to make sure the idea that service quality is a component of brand success, this study found service quality left something to be desired.

b. Human resource policies and practices to support the bank brand As all of us know that, the human resource (HR) function plays an important role in services branding and banking branding not only in this period but also this happen to bank in a long time since competitive pressure become fiercely to domestic banks in the end of 1990s and in the first years of 21st century.

At this time, human resource is one of the hottest topics to banks not only domestic banks but also to foreign banks, most banks are lacking of human resource. In addition, HR actually has special importance to building brand in banking. HR has extremely influence on daily operation of banks. In particular, HR activities help transmit brand values to employees and encourage their ‗buy in‘. As values influence behavior, the HR function has the power to significantly improve a brand‘s chances of success through staff. The recruitment process can be harnessed to increase the probability of new recruits having values congruent with the brand.

A variety of HR processes, including induction, training, performance management plus promotion and rewards form part of employee socialization, the process by which employees absorb brand values. In addition to helping employees appreciate the brand‘s values, the HR function may also have utility in improving service

quality. Losing a corporate memory of the brand through cutting back on experienced staff can lead to the problem that causes many problems to banks in a short time. A need for better training of employees and managers, and perhaps more considered recruitment criteria was also expressed by a respondent within another of the organizations studies.

c. Lack of differentiation in services

Services in baking are easy copied and militated, and with claim that offerings in the banking sector are relatively homogenous. When compare services among banks, we can see that clearly, most banks have the same services such as savings to time deposit or demand deposit or house loan or car loan. Therefore, to expand market and attract customers, banks must have a strong brand name, but how to make a strong brand name is a very difficult question to leaders of banks. It is necessary for banks in making Brand differentiation if they want to attract more customers. Brands with a differentiated positioning are more likely to be successful.

The basis for differentiation must be unique, genuinely relevant and welcomed by consumers. However, not all bank brands manage to achieve differentiation. In fact, most banks in Vietnam until now do not make a differentiation in service yet and customers are embarrassed when have to chose banks to trading.

d. Need more focus upon and understanding of branding

There are many authors remarked that, a successful brand is interpreted as every element experienced by the consumer. Successful bank brands adopt a

‗sophisticated‘ branding approach whereby the brand is more than just a logo or an advertising campaign. This is fitting, the focus has traditionally been upon advertising, packaging and point of sale, in services additional intangible factors such as employee behavior during the services encounter became importantly, possibly more so. Less successful bank brands are more likely to adopt a simplistic, brand as logo approach or to see the brand as primarily just one element.

e. Lack of strong corporate culture in bank

In Vietnam today, there are not many companies concern about corporate culture. Actually they don not understand the importance of corporate culture to existence, development and prosperity of company in the future. They are not aware that corporate culture is the factor to cohere and encourage employees in company to strive to work and create in work as well as help them understand that the existence and development of company is also their future and their family.

f. Importance of brand values

Brand is the most important asset to any organization, especially to banks which product and services are invisible products. Therefore, it is very important to let everyone in bank to know the importance of brand values. A brand is essentially a cluster of values, both emotional and functional, that promise a unique and welcomed experience for stakeholders. Within the services paradigm, the perceived brand values are dependent upon the behavior of employees, attracting or repelling stakeholders. As values drive behavior, it is essential that the desired brand values are successfully communicated to and internalized by employees. This ensures appropriate brand supporting behavior perspective from the individual to the group.

Why are Vietnamese bank brands not great?

Yin and Yang Model to Branding

History and development process of ABBank