OPEN UNIVERSITY MALAYSIA RESEARCH PROJECT (BMBRS103) i1028 | THE IMPACT OF CORPORATE BRAND EQUITY ON | PRODUCT BRAND EQUITY | THE CASE OF SYM MOTORBIKE COMPANY IN VIET NAM STUDENT’S FULL NAME : NGUYEN THỊ THANH TAM STUĐENT ID : 2451972 INTAKE : SEPTEMBER 2012 | ADVISOR’S NAME & TITLE : PHAN THI GIAC TAM, PH.D HUTECH LIBRARY 4-6125 December 2013 Advisor’s assessment =eeeodhkdakdrtankofE,. eseesesesteseseessanesues soon eee hte pattie ¬. HH HH HH Hy re, Tha cuc. tmnt Aata ah.
eden _—— take set le.đosk tars iB Advisor’s signature Acknowledgement I would like to thank to Ph.D Phan Thi Giac Tam for advising, supporting, and encouraging me to finish the research. I honestly thank to members of my team and all my classmates for suggestions to improve the research. Finally, especially, thank to my parents and my dearest friend who always believe in my effort and help me to get over all obstacles. Yours sincerely! Nguyen Thi Thanh Tam NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 245972 Executive Summary In today’s competitive market, brand building is crucial.
Strong brand can create options of growth, command market share, barrier of entry for competitors and consumer loyalty. Moreover, strong brand enhances positive evaluations of a product’s quality, maintains a high level of product awareness, and provides a consistent image or brand personality. In order to keep up with fierce competition, companies may seek to transform their business due to changing business directions or branching out business units. This change is mandatory for anyone who wants to survive.
Vietnam is one of countries using motorbikes highest in the world. Therefore, this is not only a big and attractive market but also a high competition one with motorbike manufactures. However, what is strategy to positioning and surviving our brand name among such market. Honda has the biggest segment as the first pioneer in motorbikes market.
This brand always is a “top of mind” of customer in this market. After Honda is Yamaha, SYM, Suzuki,.has high competition with Honda to catch up this attractive segment. Korean manufactures is market-followers. They follow strategy of their competitors such as marketing, price, product instead of attack.
Chinese manufactures will fill in the rest segment of the market. Looking at this market. we can see that those motorbike manufactures separate their own segment and their positioning but still remaining high competition inside them. It requires manufactures must self-review to give out right strategy to survive in this competitive market.
Assessing and measure the relationship between corporate branding and product branding to utilize their strength for building motorbike’s branding. This proposal research will study about “The Impact of Corporate Brand Equity on Product Brand Equity: the case of SYM motorbike company in Vietnam.” NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 Tables of figures Figure 1: Brand equity Figure 2: Difference between Corporate branding and product branding NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 Contents AcknowledeImeni(.044040 1 Executive SUINTWA1YY. 0 HE TH 0007-4110 TAST0101 0.71 01nE1ri 2 ) Tê. 5525 sHSeHHU HH HHHH.1 Research probÌleim.-- - <5c-< ss se x13 8 384 4H nh T208 0004 02s rssre 6 1.2 The objectives of the studly.4 Scope of the SỈUdy,.5 The sfructure of the th€SÌS.
non nee teen 0116 9 CHAPTER 2: LITERATURE REVIEẨẬW. Brand and brand equity. Element of brand equity. Definition and features.
Role of corporate branding. Differences between Corporate branding and Product branding. Relationship between Product Brand Equity and Corporate Brand Equity. « cx co ch H0100014 1017000170010.
Corporate brand knowledge. Corporate brand identity. ---< s5 c<SnnHg HH 1130081121001snx ve 24 3. Corporate brand perceived quaÌity.
Corporate brand posifioning.nrrarnsrarkrasrae 25 4 NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 3. Sampling and data colletingy. Measuremen( of brand equÏfy. Measurement of Corporate brand equÏfy.
Corporate brand Knowledge. Corporate brand perceived qualÌify. Corporate brand positioning. The Cronbach’s alpha coefficient.
Explore factor analysis (EFA). 38 QQuesfi0nnn3ÌÏF€. -s << HH HH TH HT 90. 42 5 NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 CHAPTER 1: INTRODUCTION 1.1 Research problem Background Brand definition was appeared long time ago in the world.
It has become widely important and valued not only by customers. but also in the environment of corporations and their audiences, including shareholders, suppliers and governments (Olins 2000, 60). According to Wong and Merrilees (2005), the brand should be the basis of the corporate strategy. This may lead to a sustainable edge over competitors and may help to gain growth and expansion for the organisation.
Brands can be seen as key factors of anorganisation (Louro & Cunha 2001), or even as critical elements for the success of an organisation (Wood 2000). Many organisations are aiming to build strong brands for the benefits that may follow (Hoeffler & Keller 2002). With branding organisations may for example increase the financial value of the organisation (Kotler & Keller 2006, 274). Brands are also the key elements for differentiating an organisation or a product from another (Kotler & Keller 2006, 275).
Olins (2000, 51) argues that brands are the only intangible assets which organisations do not have to share with others. For the organisation and its actors to be able to utilise the benefits of branding, it is important to know the elements from which brands constitute of and which parts of the branding especially bring value to the organisation. In Vietnam this is still very new and people did not take much attention. However, foreign invested enterprises, especially big Corporations; they pay much attention on building their brand at beginning when they come to Vietnam.
Base on the actual situation of the market and their competitor, each company set up their own strategy for their brand name. NGUYEN THI THANH TAM - MBAOUMO0912 3D- 2451972 Problem statement People always think about Honda when talking about motorbike even they use “Honda” term for all kinds of motorbikes. We see Honda had created the effect of their brand. End of 90 decade, many motorbikes were imported from Korea and Chinese made the market disordered and competitive.
Many low quality motorbikes were produced and victims of this were our customers. So they return to use high quality products with certified brand name even high price. This made local and low quality company closed, only remaining big and foreign invested company which specific strategy can survive such as Honda, SYM, Yamaha, Suzuki,. Nobody deny that Honda is very famous not only in Vietnam but also in South East Asia.
Honda brand is on “top of mind” of customer and the first choice when they want to buy motorbike. Therefore, to change customer mind is not easy in Vietnam market with strong competitor like Honda. However, SYM try to improve quality and develop rapidly to catch up a certain segment market. SYM has achieved first succeed and get customer's trust in Vietnam after few years operated.
In motorbikes market, brand equiy is affected by many Corporate brand elements of that product. It's easy to find through Honda products such as Wave, Lead, Air Blade,.always welcome because they are products of Honda corporation. To review the relationship between corporate equity and product equity is very essential to improve product equity and competitive advantages with competitors for motorbike manufactures. Base on foregoing situation.
author chooses the topic “Relationship of corporate brand and product brand: the case of SYM Company in Vietnam. Author studied NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 and base on the result to recommend some solution for Motorbike Company can improve their brand name in the market. The research will assess the strong and weak point to help enterprise building their brand name and get more succeed in future.2 The objectives of the study As author mentioned above, corporate brand and brand equity is still very new in Vietnam, purpose of the research is deeply investigation about corporate brand help businessman can choose right strategy to develop their brand name suitable with current market. Thus, the research will focus on below matters: Study about corporate brand element and product brand of motorbike manufactures.
Examine theory framework of the relationship between corporate brand and product brand of motorbike manufactures. Base on the result, author will give some recommendations and solution which manufactures can be applied to improve their brand equity.3 Significance The result of the research has the reality meaning in developing progress of motorbike manufactures through below items: Provide scientific information for businessman to set up strategy to develop their motorbike brand in Vietnam. Provide information about elements of corporate brand. Examine the relationship between corporate brand equity and product brand equity and indentify the most important element to help enterprise adjust their strategy of developing their own brand name.
NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 Research is a reference documents in measuring value of brand name in Vietnam for further research.4 Scope of the study There are many products of SYM in market but this thesis is only focus on product Attlila which seen as the most succeed of SYM in recent years. The research is deducted in Ho Chi Minh area where most people using motorbike in Vietnam. It is divided into two steps: (1) Qualitative research is stated as an approach in which numerical data is yielded to produce the generalized results. (2) Quantitative research analyzes collected data, examine the theory.5 The structure of the thesis The thesis is started with the introduction part, following by four chapters.
Chapter 1 is briefly state reason to choose research topic, objectives, scope of works and significance of the research. Then it continues with chapter 2 that provides an overview of brand, brand equity, corporate brand equity, product brand equity and some research about corporate brand, theoretical framework of the thesis. To illustrate for the theory in chapter 2, the research enter more detail with chapter 3 that state and explain research methodology, the way to collect reality data for research questions. Finally, the research summarizes the main content of the research and recommend as the basic data for further research with Conclusion part.
NGUYEN THỊ THANH TAM - MBAOUM0912 3D- 2451972 CHAPTER 2: LITERATURE REVIEW 2. Brand and brand equity 2.1 Brand definition Brands have arguably existed for thousands of years (Moore and Reid 2008), but the modern idea of brands commences in the late 19" century with the introduction of trademarks and attractive packaging (Fullerton 1988; McCrum 2000), which were developed as ‘a guarantee of authenticity’ (Feldwick 1991, p21). The origins of branding were reflected in the American Marketing Association (AMA) 1960 definition of the brand, which focused on tangible brand attributes as points of differentiation: “A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of the competitors” (Cited in Wood 2000 p664). The problem with this early definition was that, whilst being relatively straightforward, it failed to account for the introduction of consideration of intangible brand attributes into brand theory (e.
Gardner and Levy 1955). A more recent AMA definition (1995) adds ‘any other feature’ to the attributes that might differentiate, reflecting the developments in brand theory. The open- endedness of this definition reflects increasingly varied perspectives and definitions of brand, leading Stern (2006, p216) to discuss “semantic confusion” and the “instability and idiosyncratic usage” of the word brand. Likewise, de Chernatony (1989) discusses problems with the interpretation of the term brand, Wood (2000, p664) proposes that there are “diverse approaches to brand definition”, and Kapferer (2004, p9) suggests that that each “expert comes up with his or her own definition, or nuance to the definition.” One interesting approach to brand definition is illustrated by de Chernatony and Dall’Olmo Riley 10 NGUYEN THI THANH TAM - MBAOUM0912 3D- 2451972 (1998), who consider brands as constituted by their components.
However, even this approach presents the problem of what components might be included.