Your SlideShare is downloading. ×
Brand strategy for Hoa Loc Mangoes - A case of SOHAFARM Hoa Loc Mangoes
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Brand strategy for Hoa Loc Mangoes - A case of SOHAFARM Hoa Loc Mangoes

2,275
views

Published on

This research proposes how to apply branding framework to Hoa Loc Mangoes-a famous of Vietnam mangoes. It was be fulfilled to submitted CFVG MBA.

This research proposes how to apply branding framework to Hoa Loc Mangoes-a famous of Vietnam mangoes. It was be fulfilled to submitted CFVG MBA.

Published in: Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
2,275
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ACKNOWLEDGEMENTS We would like to express our heartfelt gratitude to Dr. BUI THI LAN HUONG for her patient guidance and expert supervision. From the beginning of this dissertation, Dr. LAN HUONG has given to continue the encouragement to make this dissertation become possibility, sharp studying and successfully finishing. Greatly and sincerely thanks are given to SOHAFARM and CEO Mrs. TRAN NGOC SUONG, my advisor in VietnamMarcom, CABP and other professors, lecturers at CFVG and Board of Examining who have excellent and professional knowledge and advices supporting me during post-graduate program and have spared their precious time to read through and given comments on this dissertation. Outstanding acknowledgements are conveyed to the Government of France for providing the partly scholarship that enable us to attend the MBA course and archive precious knowledge to perform this report. I also specially thanks to my colleagues, classmates and others who help me … information, questionnaire development, contribution ideas and others. Hoping that all of you are more and more healthful and successful in your life. With all the appreciation Huynh Phuoc Nghia CFVG 14th Intake -1-
  • 2. WARNING "The French-Vietnamese Centre for Management Training is not responsible for any arguments, data, or statements contained in this thesis. These are only binding upon their author". -2-
  • 3. TABLE OF CONTENTS LIST OF FIGURES LIST OF ABBREVIATIONS INTRODUCTION 6 8 9 1. Background of fruit industry and Hoa Loc mangoes................................................9 2. Problem statements....................................................................................................11 3. Rationale of the research ...........................................................................................11 4. The scope and limitation of research.........................................................................12 a./ The field studied in the topic................................................................................12 b./ Including and does not including.........................................................................12 5. The position of research.............................................................................................13 6. Research methodology ...............................................................................................13 7. Thesis structure..........................................................................................................14 CHAPTER 1: BRAND STRATEGY FRAMEWORK 15 1. Definition of brand name strategy .............................................................................15 2. Who will involve in brand building............................................................................16 3. Brand strategy and business strategy ........................................................................16 4. Brand vision and mission...........................................................................................17 5. Brand positioning.......................................................................................................18 6. Brand strategy development ......................................................................................19 7. Brand planning ..........................................................................................................22 i. Product .........................................................................................................22 ii. Price .........................................................................................................22 iii. Distribution .........................................................................................................23 iv. Brand communication .........................................................................................23 8. Brand Equity Management ........................................................................................25 CHAPTER 2: HOA LOC SWEET-MANGOES’ PROBLEMS 28 1. Hoa Loc mangoes’ problems .....................................................................................28 -3-
  • 4. a./ Vietnamese fruit industry overview...............................................................28 b./ Economic value of Hoa Loc sweet mangoes..................................................30 2. Customer of Hoa Loc mangoes..................................................................................32 3. Markets of Hoa Loc mangoes ....................................................................................32 4. Competitors................................................................................................................34 5. Branding of Hoa Loc mangoes ..................................................................................34 6. The SWOT analysis ....................................................................................................35 7. SOHAFARM backgrounds .........................................................................................38 8. Planting Project of SOHAFARM’s Hoa Loc mangoes .............................................39 9. Conclusion ................................................................................................................39 CHAPTER 3: BRAND STRATEGY ANALYSIS 40 1. Research methodology .....................................................................................................40 1.1. Advantages and disadvantages ............................................................................40 1.2. Source of information ..........................................................................................42 1.3. Sample size...........................................................................................................42 1.4. Sampling method..................................................................................................42 1.5. Data processing ...................................................................................................43 1.6. Evaluation ............................................................................................................43 2. Questionnaire development .............................................................................................43 2.1. Questionnaire organization .................................................................................43 2.2. Objective of questionnaire ...................................................................................44 2.3. Solutions of interviewing .....................................................................................44 3. Interviewees’ profile ........................................................................................................44 4. Results obtained of survey ...............................................................................................45 4.1. Customer behaviours ...........................................................................................45 4.2. Brand vision and mission.....................................................................................48 4.3. Brand positioning.................................................................................................50 4.4. Brand strategy......................................................................................................51 -4-
  • 5. 4.5. Brand planning ....................................................................................................54 4.5.1.Product..............................................................................................................54 4.5.2.Price ..................................................................................................................55 4.5.3.Distribution .......................................................................................................56 4.5.4.Brand communication.......................................................................................58 4.6. Brand equity management ..................................................................................59 4.7. Summary ..............................................................................................................63 4.8. Limitation and further research...........................................................................64 RECOMMENDATION 66 1. Business aspects (SOHAFARM) ................................................................................66 2. Government aspects ..................................................................................................69 3. Customer aspects .......................................................................................................70 CONCLUSION APPENDIXES 72 74 1. Questionnaire design .................................................................................................74 2. Hoa Loc mangoes brand identity...............................................................................79 REFERENCES 80 -5-
  • 6. LIST OF FIGURES Figure 1: Brand name strategy process.........................................................................17 Figure 2: Brand key model ............................................................................................19 Figure 3: Brand architecture .........................................................................................20 Figure 4: Brand relationship .........................................................................................20 Figure 5: Brand Identity system.....................................................................................22 Figure 6: Philip Kotler/ Principle Marketing/Ninth edition..........................................23 Figure 7: Brand Communication (Integrated Marketing Communication) ..................24 Figure 8: The comparableness of fruits export through 3 years ...................................29 Figure 9: The output of Hoa Loc mangoes and forecasting in 2010 .............................31 Figure 10: The percentage of utilization of mangoes ......................................................32 Figure 11: The level of Hoa Loc mangoes and international markets ............................33 Figure 12: The process of preservation of Hoa Loc mangoes.........................................37 Figure13: Buying behaviours on harvest and out-of-harvest .........................................45 Figure14: Mangoes's eating habits of consumers ..........................................................46 Figure15: Price acceptability .........................................................................................47 Figure 16: Mango's quantity buying each time ...............................................................48 Figure 17: Brand awareness............................................................................................48 Figure 18: Brand switching behaviours ..........................................................................49 Figure 19: Brand attributes of Hoa Loc mangoes ...........................................................50 Figure 20: Brand attributes comparison .........................................................................51 Figure 21: Mangoes food processing ..............................................................................52 Figure 21: Mangoes’ food processing .............................................................................53 Figure 22: Hoa Loc brand structure................................................................................53 Figure 23: Hoa Loc brand identity ..................................................................................54 Figure 24: Values chain of Can Tho’s Fruits ..................................................................56 Figure 25: The place of consumer’s buying mangoes .....................................................57 Figure 26: The new distribution channels of Hoa Loc mangoes ....................................58 Figure 27: Brand awareness of Hoa Loc and Other mangoes ........................................60 Figure 28: Brand perceived quality of Hoa Loc .............................................................61 -6-
  • 7. Figure 29: Brand images of Hoa Loc mangoes ...............................................................61 Figure 30: Brand images of Hoa Loc mangoes ...............................................................62 Figure 31: Brand loyalty of Hoa Loc mangoes ...............................................................62 Figure 32: Brand priority of Hoa Loc mangoes ..............................................................63 LIST OF TABLES Table 1: Vietnamese fruits exported turnover during last 5 years ........................................28 Table 2: The status-quo of Vietnam’s Vegetables and Fruits export (1000 USD).............................30 Table 3: SOHAFARM product current and planning for 2010 .............................................38 -7-
  • 8. LIST OF ABBREVIATIONS AFTA ASEAN free-trade agreement SOHAFARM Song Hau Farm BTA Bilateral Trade Agreement HCMC Ho Chi Minh City HVP High Value Product MARD Ministry of Agriculture & Rural Development MOST Ministry of Science & Technology MOT Ministry of Trade MPDF Mekong Private Sector Development Facility OECD Organization for Economic Cooperation and Development R&D Research and Development SME Small-medium sized enterprise SWOT Strengths, Weaknesses, Opportunities, and Threats US United States USAID U.S. Agency for International Development USD U.S. dollar VNCI Vietnam Competitiveness Initiative VND Vietnam Dong WTO World Trade Organization VINAFRUIT Vietnamese Fruits Association ATL Above- The-Line BTL Below-The-Line TVC Television commercial films (advertising films) POSm Point-of-sales material U&A Usages and Attitudes surveys CBAP Club of Branding For Agricultural Product FDA US Food and Drug Administration SOFRI Southern fruits research institute Ads Advertisement -8-
  • 9. INTRODUCTION 1. Background of fruit industry and Hoa Loc mangoes Starting with the status-quo of Vietnamese fruit industry, a report of Vietnamese fruit industry made by VINAFRUIT (Vietnamese Fruit Association) in 2006 showed the slow growing of fruits exporting. In 2001, the export turnover of Vietnamese fruits was around 330 million USD; we exported to over 46 countries (China, Korea and Japan are almost importing countries of Vietnamese fruits), and the further ambitious of Vietnamese fruits is to exporting to US and EU market. But in 2006, the export turnover of Vietnamese fruits just attained approximately 230 million USD and its importing market reduced from 46 to 34 countries. Looking at this, we may not recognize that is going down in fruit exporting, and if we try to compare with the rate of total Vietnamese exports we will see the relative reducing; Vietnam increased double of the export turnover from 2001 to 20061, meanwhile the fruit turnover did not increase as the rate of total exports. That means fruit export did not develop within the past 5 years. Moreover according to the MARD (Ministry of Agricultural and Rural) objectives progresses to 2010, Vietnam must attain 700 million USD of export turn-over, and the output of fruits is around 12 million tons, the areas of cultivation are approximately 1 million hectare 2 , and looking back the results of the past five years we can see that objectives were overloaded, and we do not believe in those objectives can reach the expectations of Vietnamese fruit industry. So, the picture of fruit sector in Vietnam does not promise long term development at least in the next 3 or 4 years. We now explain the reasons of Vietnamese fruit's disadvantages, and those disadvantages were analyzed by many agricultural experts before accessing WTO. Firstly the long-term strategy programmings for fruit sector were not planned before and the evident outcome was not key fruits may combat in local market. Secondly those experts also pointed out the lack investing on technology, most of agricultural science studies investing in rice sector. Meanwhile Vietnamese fruits also have advantages in production and exporting. The third reason is operation management in agricultural sector. We still meet unsophisticated post-harvest technology, poor 1 2 MOT report in 2006/website: www.mot.gov.vn http://www.trade.hochiminhcity.gov.vn/data/news/2004/4/2223/PhanvienCNTP.htm -9-
  • 10. cooperation among the production elements such as the low quality product; poor infrastructure supporting, high production costs, and the lack of management skills and other factors have been identified as hindering sustainable growth of the industry. Those reasons explained why all of fruits were just sold like material goods. Besides joining WTO and complying with the organization regulations, fruits were not the field in protectionism. Even in the AFTA, Vietnam must comply with the road of tariff reduction. Fruit tariff reductions must set in the scope from 0% to 5% in ASEAN. At that time, Thailand emerged as the driver in fruit industry and dominated various tropical fruits. Those threats have harmed the Vietnamese fruit industry, it forces us to act as quickly as possible, and the long term strategy in investment and marketing is urgently. Now having the same problems with all fruits, Vietnamese mango field is facing the puzzled development of long-term orientations. The total areas of mango cultivation are around 42,0003 ha while Hoa Loc mango's areas are 16,000 hectare, and turn-over of Hoa Loc mango is approximately 22,000 ton per year. Those regions of west Vietnam plant are Hòa Hưng, An Hữu, Tân Hưng, Tân Thanh, An Thái Trung, An Thái Đông (Cái Bè District), Cẩm Sơn (Cai Lậy) and SOHAFARM. In the good condition (not poor crop) every kilogram of Hoa loc mango gains around 5000 VND to 7000 VND4 of profit. In fact, Hoa Loc mango is sold like commodity goods because of price and the wasting of its famous brand name5 (does not use to endorse for marketing policies). In conclusion why we need building brand for Hoa Loc mangoes? As the fostering way of economic values through brand name, Hoa Loc mangoes should need the long-term brand and marketing strategy, using effects of the long-time history development and Hoa Loc mango awareness are higher than other ones in Vietnam. Moreover building brand name is indispensable to make the competitive advantages, gain more economic values (through pricing policies) and export advantage to international markets. 3 www.cuctrongtrot.gov.vn/ and www.rauhoaquavietnam.vn 4 SOHAFARM/2004 According to the law of Vietnam intellectual property, Hoa Loc is the brand name of Local Authority, it may known as public property. So that if a firm or an organization want to use Hoa Loc mango's brand name doing business, it must combine the group of word Hoa Loc Mango with company name to become the new brand name. Example, SOHAFARM registers the trade mark of Hoa Loc mango. It must combine the group of word “Hoa Loc Mango” with SOHAFARM to become Hoa Loc Mango SOHAFARM. 5 - 10 -
  • 11. 2. Problem statement The first problem is the mango labeling when selling or exporting to the market 6 . Labeling is very important because it helps to identify the product and expose the differentiation from competitors. Currently almost Hoa Loc Mangoes are sold without label. Consumers usually recognize the “true” Hoa Loc mangoes by their experience or the sellers’ introduction. This is too risk for consumers because if they don’t meet the real Hoa Loc mango they will have the bad impression or deceived feeling. Thus labeling brings the benefit for both companies and consumers. The second issue is business operation, there are no more firms or co-operatives setting up long-term investment; firms and traders just buy mangoes from farmers and cooperatives then distribute to markets or export to other countries. There is no business strategy and no close relationship between planters and traders, so Hoa Loc mangoes brand name is not paid attention to marketing activities, and no one is responsible for building brand for Hoa Loc mangoes. After all, brand communication is very important. It determines how brand can identify in consumer’s top-of-mind. Brand communication includes brand identity and brand media plan. This research will begin with brand identity (logo, packaging, POS, Print advertising, Website…). Furthermore we must prepare the international communication plan through outlets, trade fairs participant in local and international market. 3. Rationale of the research. At present Hoa Loc mangoes face the problems about planting process (planting technique, preservation, unsophisticated post-harvest technology) 7 . Hoa Loc mangoes have just been kept fresh after two weeks from picking. Otherwise Hoa Loc mango trees have also had many diseases. But every tree with 7 or 8 growth years harvests about 7080 kg per crop, and if price is around 20,000 VND to 25,000 VND, the farmers can get profits about 5,000 to 7000 VND/1 kg8. So, Hoa Loc mangoes have good opportunity to develop. 7 Currently SOHAFARM and Department of Can Tho Agricultural and Fruit Institute of South of Vietnam have co-operated to research the method that can improve the period of Hoa Loc preservation from 2 weeks to 4 weeks. It is now successful but it just applies for SOHAFARM. 8 www.sohafarm.com.vn/index.php?nv=News&at=article&sid=2 - 30k -, date 15 Jan, 2007. Club of Branding For Agricultural Product - 11 -
  • 12. There are a lot of economic researches in mangoes and other Vietnamese fruits, but the results always point out the vicious circle, good crops bring about down price. If Hoa Loc mangoes can sell by brand, the fluctuations of prices will not affect Hoa Loc mangoes. To farmers, they need the agricultural products have good economics value investing, profits impulse farmer to invest long-term. About benefits of Hoa Loc mangoes, they have many advantages like sweet, soft-pulp, skin yellow-color and thin skin...v.v. Part of useful pulp per one fruit is 80 % (it excludes seed and skin)9. But why they could not compare with Thailand mangoes? The solving of planting technique has been carried out by scientific. The remainder of solutions is that we must invest more in marketing and branding, this way helps to brand Hoa Loc mangoes, and of course, gain more economic values by selling brand. 4. The scope and limitation of research a./ The topic scope approaching This thesis focuses on branding and marketing of Hoa Loc mangoes, we ignore research of agricultural technique. We also know that breeding, planting process, taking care mangoes trees are very important to produce the good mangoes, and that information was collected from other organizations as secondary data. We assume the condition of mango research based on good quality (mango fruit), and the good crop. b./ Including and does not including This research explains the status of Hoa Loc mango’s branding concerned to SOHAFARM; this state farm is held by Government of Can Tho City because SOHAFARM invested 150,000 mango trees. They can get around 8000 tons per year in five or six years later. In the recommendation part, we suggest details after doing analysis. The research methodology may apply for other Vietnamese fruits. We try to reach this research in branding strategy. Hence we do not consider about HR strategy, financial strategy and accounting. The research will be supported by the Club of Agricultural Product Branding, some of information combines from these operations. 9 GTZ Reporting of Vietnam - 12 -
  • 13. 5. The position of research Vietnam’s agricultural industry invests more in rice production and exporting. Thus there are no Businesses, Government, and Science to pay attention in studying marketing for fruit industry. Until 2004, the Club of Branding for Agricultural Product (CBAP) was found on 30 July 2004. The CBAP’s mission helps firm in fruit industry to build brand. But in fact they just help to design brand identity for SOHAFARM’s mangoes. There are many experts publishing a lot of articles on newspapers and magazines when CBAP was introduced10. But those articles just mentioned some difficulties and analyzed some advantages of Vietnamese’s fruits. Actually Vietnamese fruits need the realsolution, and how to apply it in Vietnamese fruit status-quo. The seminar of Committee of Foreign Affair (national assembly) was organized on 30 May 2004. They reported about Geographic in Branding and The solution for fruit brand name. Otherwise, the seminar was organized co-operation between CBAP, VNCI and GTZ. They discussed about Agricultural Product Branding. However there have not had any implementations until now. In short, the meaning of this research is important. There is not any research like this in branding of agricultural products or fruits industry. The research ambition wants to propose the overall mangoes’ brand strategy (Brand vision and mission, brand positioning, brand communication and brand identity), we will explain why branding are very important. Besides we also analyze the roles of Government, Famer, Business/firm and agricultural co-operatives in Vietnamese fruits’ branding. 6. Research methodology First of all, we develop the brand strategy theory. This is the new concept, but we base on the reality of Hoa Loc mangoes, we will narrow these related issue. Secondly that is the process of information collective. In this aspect, we do both primary data and secondary data, the research method is questionnaires. Third is data processing and problem finding. After all, these are the recommendations and suggestions for the Hoa Loc mangoes brand strategy. - Secondary data: we collect information from already reports of CBAP, Sai Gon Economic Time, Vietnam Economic Time, Fruits Institute of South Of Vietnam (Market 10 Website: www.thuonghieunongsan.org.vn - 13 -
  • 14. Department), Ministry of Agricultural and Rural Development, UNDP, SOHAFARM and other related information. - Primary data: we do the research by questionnaires with consumers, and collect all information related Hoa Loc mangoes. We may collect the suggestions from experts in VietnamMarcom and other related organizations. - About quantitative research: we use face-to-face interview. We do the research with consumers that have used mangoes. They are around 25- 35 years old living in Ho Chi Minh City. Number of samples is around 120. We use quota way to divide number of interviewees by district. They are district 1, 3, 5 and Tan Binh. Moreover we interview at traditional markets and super markets. About qualitative research: we interview five experts in fruit branding and mango branding. Those point-of-views are the suggestion, which drive general direction of thesis research. Otherwise those suggestions contribute for the authentic brand strategy. 7. Thesis structure The thesis research is structured according to 5 parts; three chapters and 2 sections, first part introduces the reason why we must research this field, and the way approaches to find out the core problem statements. In chapter 1 building the brand strategy frameworks is the hard work; there are a lot of branding concepts given by many authors, experts, and practitioners. But, the selection of corresponding theories is chosen carefully in this part. Next part of this thesis (chapter 2) analyzes various Hoa Loc mango problems and some aspect opportunities, especially we evaluate why the mangoes have already economic values. This important part of thesis focus on the methodology research; questionnaire design, choosing samples, setting interviewee targets and the method to get information. Moreover chapter 3 analyzes the results of research for both qualitative and quantitative method. The last part are recommendations and conclusions, it suggests the solution strategy for SOHAFARM doing business in mango and Hoa Loc brand name. Besides that, the far-sighted strategy for Government should consider Hoa Loc mango and fruit industry. - 14 -
  • 15. CHAPTER 1: BRAND STRATEGY FRAMEWORK 1. Definition of brand name strategy The word "brand", when used as a noun, can refer to a company name, a product name, or a unique identifier such as a logo or trademark. Today's modern concept of branding grows out of the consumers packaged goods industry and the process of branding has come to include much, much more than just creating a way to identify a product or company. Therefore, we can say that branding today is used to create emotional attachment for products and companies. Branding efforts create a feeling of involvement, a sense of higher quality, and an aura of intangible qualities that surround the brand name, mark, or symbol. So what exactly is the definition of "brand"? Let us cover some definitions first before we get too far into the branding process. According Mr. Keller11, he defined that brand strategy is a product, but one that added other dimensions that differentiate it in some ways from other products designed to satisfy the same need. We may know that there are two parts: tangible brand part is what we can see, touch, smell, taste and intangible brand part is just what we can feel. Now we can move to other brand strategy approaching, Mr. Denzil Mayers’s definition12, brand strategy includes brand image, brand identity, brand promise, employer brand, brand equity, brand naming, brand vision, brand mission, brand value, brand attribute, brand personality, brand relationship, brand living and brand experiences. Mayers’s approaching supported by many experts13, this point of view is easy application in reality. Nowadays building brand is separated by many aspects and this separation implicates all of people concerning to responsibility’s brand building. So that building brand strategy is the process that set up a lot of activities relevance. We should discriminate that there are two kinds of brand: Corporate brand and Product brand14 . Corporate brand is brand of company or group of company (normally, it is called mother 11 The book’s author of “strategic brand management”/second edition/Pearson education international The book’s author of “beyond branding”/ Nicholas Inc/2003 13 Read more in book reference. But this point of view is applied various corporation, and it also makes branding become details and be less abstract. 14 In this case, the corporate brand is also the brand, it was built before. The roles of corporate brand endorse to other brand that it creates. 12 - 15 -
  • 16. brand). It is like Unilever or P&G. Corporate brand may create many product brands, and corporate brand drives the total strategy supporting resource for product brand. Product brand is sub-brand, it may be the same with corporate brand (different category) or not. 2. Who will involve in brand building Now we introduce who will be involved in brand building. We know that branding is the business process of managing your trademark portfolio to maximize the value of the experiences associated with it, to the benefit of your key stakeholders, especially current and prospective. Therefore, the key stakeholders are: Employees, customers, stock/share holders, suppliers, intermediaries, opinion leaders, local communities, purchasers and licensees. 3. Brand strategy and business strategy The objective of business strategy is a sustainable competitive advantage, which may come from some parts of the organization’s operation. The market is the judge of this advantage. Brand strategy is the process whereby the offer is positioned in the consumer’s mind to produce a perception of advantage. So there is the connection between business and brand strategy, business strategy keeps the main driving, and brand strategy transfers to market position. In the ’80s by Michael Porter in his classic text, he defined Competitive Strategy (1980)15 that business was acknowledged as a competitive battle in which strategy was essential to winning. Competitive advantage could be achieved by either low cost or differentiation. That only one brand can be the cheapest and physical product attributes are easily copied, it follows that differentiation is the key to competing in today marketplace. Brand strategy therefore is a course of action to differentiate an organization or a product in stakeholders’ minds. In Michael Porter’s point-of-view, a brand’s longevity and strength have to be built less on price and more on differentiation. In markets cluttered with messages, and where customers expect a certain level of quality of product and/or service, brand owners have to find ever-new ways to foster loyalty. Therefore, the differentiation will be the key strategy for any brand. 15 Michael Porter/competitive strategy/havard business review/1980 - 16 -
  • 17. We may know that planning process develop or improve sustainable competitive advantage. The strategic planning for a brand starts with an understanding of an organization’s business strategy. So the firm must build the long-term planning in building brand. This model which exposes below does not purely academy or practice. But it is the combination from theory and experiences from many experts. This model is following those steps as follow: Figure 1: Brand name strategy process16 Source: VietnamMarcom17 All of this process’s elements will explain detail below. 4. Brand vision and mission Brand vision is a part of corporate vision. It is a short, succinct, and inspiring statement of what the organization intends to become and to achieve at some points in the future, often stated in competitive terms. Vision refers to the category of intentions that are broaden, all intrusive and forward thinking. It is the image that a business must have its goals before it sets out to reach them. It describes aspirations for the future, without specifying the means that will be used to achieve those desired ends. The brand success depends on the vision articulated by the chief executive or the top brand management. For a vision to have any impact of the employees of an organization, it has to be conveyed in a dramatic and enduring way. The most effective visions are 16 This model is proposed by author, it is used to apply by working in practice. This model can help to analyze for the brand development. The explanation of element will be detailed in next section. 17 This process was adjusted by VietnamMarcom. This adjustment aims to simplify, and easy to apply in VietnamMarcom. - 17 -
  • 18. those that inspire, usually asking employees for the best, the most or the greatest. To make sure firm keep stretch in its vision, communicate constantly and keep linking the events of today to its vision, underscore the relationship between the two. A brand mission statement is a brand's vision translated into written form. It concretes the leader's view of the direction and purposes of the organization. For many corporate brand leaders, it is a vital element in any attempt to motivate employees and give them a sense of priorities. A brand mission statement should be a short and concise statement of goals and priorities. In turn, goals are specific objectives that related to specific time and stated in terms of facts. The primary goal of any brand is to increase stakeholder value. The most important stakeholders are shareholders who own the business of brand, employees who work for the business and clients or customers who purchase brands and/or service from the brand. 5. Brand positioning Brand positioning is an important strategy for achieving differential advantage. Positioning reflects the "place" a product occupies in a market or segment. A successful position has characteristics that are both differentiating and important to consumers. Every brand has some sort of positioning — whether intended or not. Positioning is based upon consumer’s perceptions, which may or may not reflect reality. The positioning is effectively built by communicating a consistent message to consumers about the product and where it fits into the market — through advertising, brand name, packaging and other brand activations. Positioning is inextricably linked with market segmentation. We can’t define a good position until firm have divided the market into unique segments and selected your target segments. Consumers make brands famous for many reasons, of which the most important is that they come to trust brands as friends. That is why deciding on the brandpositioning strategy is such an important part of brand strategy. However, there are ways in which the brand may be presented differently to various target audiences. - 18 -
  • 19. In this thesis research, we will apply the BrandKey18 model (copyright by Unilever INC). It includes eight elements are: a. Market definition: The product and service areas in which the brand wants to operate. b. Consumer target: person the brand must excite and Figure 2: BrandKey model involve. Who are the buyers? c. Consumer insight: Human truth that opens door to opportunity for brand to improve everyday life. d. Key benefits: the key motivations for buying brand. e. Differentiations: What the brand offers, and why it is better than alternatives. Source: Taylor, D. (2002) The Brand Gym. London, John Wiley & Sons f. Brand personality: human characteristics guiding tone, feel and style g. Brand values: Guiding principle and beliefs. h. Brand essence: Shorthand distillation of the brand’s reason exit. Source: Unilever INC 6. Brand strategy development To view branding as naming, design or advertising is too myopic and will shorten the brand’s life expectancy.... To take full advantage of brands as strategic devices, a considerable amount of marketing analysis and brand planning is required. However, many companies are too embroiled in tactical issues and so fail to gain the best possible returns for their brands. Brand strategy development must involve all levels of marketing management However, all those tactical aspects have to be carefully managed because if any element breaks down, the brand can be damaged and its strength comes under attack. Branding goes well beyond names and symbols. Strong branding is the result of successful business strategy. Nevertheless, we may deduce the brand strategy following: 18 This model shows elements of building brand positioning. It was applied various Unilever’s successful brand. When we develop this process, we must do in succession (step to step), and it requires a lot of market information, business and competitive information. Its usefulness is especially in brand communication, and brand activation. - 19 -
  • 20. A. Brand structure (brand architecture): Brand architecture is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. The architecture must defines the different leagues of branding within the organization; how the corporate brand and sub-brands relate to and support each other; and how the sub-brands reflect or reinforce the core purpose of the corporate brand to which they belong. The following model, proposed by Aaker, maps out the different elements of brand architecture. Figure 3: Brand architecture Brand portfolio PRODUCT-MARKET CONTEXT ROLES • • • • • • • Endorser/sub brand Benefit brand Co-brands Brand Architecture PRODUCT-MARKET CONTEXT ROLES • • • Powerful brand Brand groupings Brand hierarchy trees Brand range Optimal allocation of brand-building resources Synergy in creating • • • Visibility Association Efficiently PORTFOLIO ROLES Strategic brand Linchpin brand Silver bullets Cash cow brands PORTFOLIO GRAPHICS • • Clarity of offering logo Brand identities/Visual Leveraged brand assets Platform for future growth options Figure 4: Brand relationship Brand Relationship spectrum Branded House Same Identity Different Identity Endorsed Brand Sub-Brand Master brand as driver Codriver Strong endorse ment Linked name House of Brand Token endorse ment Shadow endorser Not connected Source: David Aaker and Joachimsthaler, E. 2001, brand leadership book, / London, the free press - 20 -
  • 21. B. Brand personality: Aaker defined personality as being ‘the set of human characteristics associated with a brand’. This definition comes directly from practitioners. Brand personality attributions are based on: - Person-related associations: Perceived personality traits of people associated with a brand come to describe the brand’s personality (e.g., typical user/ user imagery, testimonials, employees of company, CEO, etc.) - Product-related associations and inferences: Personal or others´ experiences while using the brand, product category associations and associations induced by the brand name, symbol or logo, the advertising style, the price, and the distribution channel. According David Aaker, his point of views in brand personality are 5 dimensions19: - Sincerity: brand personality is down-to-earth, honest, wholesome, cheerful - Excitement: Brand personality is daring, spirited, imaginative, up-to-date - Competence: Brand personality is reliable, intelligent, successful - Sophistication: Brand personality is upper-class, charming - Ruggedness: Brand personality is outdoorsy, tough C. Brand identity system: Brand identity is a set of associations that the brand aspires to create or maintain. It is the planned expression of the brand values, the input perspective. The way brand identity is perceived by consumers and other stakeholders constitutes the brand image – the output perspective. Brand image, then, is the sum of intended brand identity and any other signs the brand gives to consumers, including its relative positioning against competitors. The development of brand identity relies on a thorough understanding of the firm’s customers (and other stakeholders), competitors and its own business strategy. The stakeholder analysis must not only uncover target market characteristics, but also their motivations and unmet needs. Studying competitor’s positioning strategies is a key to developing a differentiated brand identity. At the same time, brand identity needs to 19 Aaker’s brand personality scale and the psychological five factors model - 21 -
  • 22. reflect the business strategy of the firm, its values and the ability to deliver them consistently. Brand essence Core Extende • • • • Brand as product Product scope Product attribute Quality/value User/group Brand as person • Personality • Customer • Brand relationship Brand as symbol • Logo/icon • Visual image • Brand heritage Brand as organization • Organization attribute • Local versus global • Country of origin Figure 5: Brand Identity system (Source: David Aaker and Joachimsthaler (2000), p 44) 7. Brand planning - Product: Product Planning refers to the systematic decision making related to all aspects of the development and management of a firms products including brand naming and packaging. A product is a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers and is received in exchange for money or some other units of value. Goods are tangible, we can see them, feel them, and touch But, services are intangible, the result of human or mechanical efforts to people or objects. If an organization is marketing more than one products it has a products mix. To compete effectively and achieve goals of an organization, the organization must be able to adjust its products mix. Need to understand competition and customer attitudes and preferences. Product is fundamental of brand positioning. - Price: Price is the value placed on what is exchanged. Something of value is exchanged for satisfaction and utility, includes tangible (functional) and intangible (prestige) factors, can be barter. Buyers must determine if the utility gained from the exchange is worth the buying power that must be sacrificed. Price represents the value of a good/service among potential purchases and for ensuring competition among sellers in an open market economy. The pricing and brand is related closely, pricing show the - 22 -
  • 23. management and financial strategy, and it is showing brand image, and brand association. Besides that, this is the way to position the brand in the market. - Distribution: Distribution-activities that make products available to customers when and where they need them. A channel of distribution or marketing channel is a group of individuals and organizations that directs the flow of products from producers and customers. The types of Channels of Distribution: - Business to consumer (B2C) channel: Producer Consumer Producer Retailer Consumer Producer Wholesaler Retailer Producer Agent Wholesaler - Consumer Retailer Consumer Business to Business (B2B) channel: Producer Buyer Producer Distributor Buyer Producer Agent Buyer Producer Agent Distributer Buyer Figure 6: Philip Kotler/ Principle Marketing/Ninth edition - Brand communication is the art of bridging the gap between our target audiences and the organization (or product or service) we are promoting. It is the ethereal connection between the physical entity, and the audiences we believe are best suited to its purchase or promotion. It can therefore be argued that a brand only exists when this link has been made i.e. a brand is only a brand when it is communicated effectively. A brand that remains hidden is only an experiential brand - that is to say, it is only our existing customers who know the brand. Good brand management demands proactive brand communication to ensure we are managing our reputations as positively as possible. - 23 -
  • 24. Figure 7: Brand Communication (Integrated Marketing Communication) PACKAGING DESIGN SALES PROMOTION DIRECT RESPONSE DIRECT MARKETING BRAND MEDIA ADVERTISING POINT-OFSALE PUBLICITY PR EVENT MARKETING Source: Macrae, (1996) The Brand Chartering Handbook. Essex, Addison Wesley, p. 377. Central to modern marketing management is the concept of ‘integrated marketing communications’; the planning and execution of all types of communication to meet a common set of objectives for the brand. The aim is to support a single positioning through advertising, PR, or co-branding. A holistic view of the brand should be pursued. This is not to say that there must be one rigid, omnipotent message, rather it suggests that the messages conveyed by different media need to interconnect. They all need to tell broadly the same story. There is nothing to be gained from promising one thing in your advertising and not being able to deliver at the point of sale. The elements of brand communication are below: or Sales promotion: Materials that act as a direct inducement, offering added value, incentive for the product, to resellers, sales persons or consumers. Sales promotion is the marketing tools designed for immediate (short-term) increase in product sale. - Direct marketing: This marketing tool uses proactive programs to communicate to customer, and promote sales. Those tools are Direct Mailing, Product sampling, Door-todoor sales, Toll-free sales. - 24 -
  • 25. - Packaging and design: This tool is designs product, label, logo and other brand identity systems. Sometime we must re-design some related brand’s elements. - Point-of-sales: The physical location at which goods are sold to customers. It includes leaflet, shop design, sticker, bag, gift… - Event marketing: Sponsorship and other brand communication activities: sport events, Music events, others social event… - Publicity and PR: This tool is through independent media station to endorse for brand image. Those activities are Press relations Activities, Socialized Activities, Hospitality… - Media advertising: Using mass media channel communicates to customer. It includes print, Television, Billboard, other outdoor (highway)… - Direct response: A type of advertisement that allows recipients to respond directly to the sender to order a product/service or get more information. Common methods of response include mail, telephone and email. Nowadays, this tool is very important for any brand, because there are many messages from many brand to communicate to customer, and every brand must applies new technology to contact direct customer. Otherwise, trade marketing is the important marketing tool, and we must pay attention more. This tool includes trade promotion, trade fair, trade conference, trade partner activities, and trade letter. 8. Brand Equity Management - In Managing Brand Equity, brand equity was defined as the brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or service. These assets can be grouped into four dimensions: brand awareness, perceived quality, brand associations, and brand loyalty. - Brand awareness is an often-undervalued asset; however, awareness has been shown to affect perceptions and even taste. People like the familiar and are prepared to ascribe all sorts of good attitudes to items that are familiar to them. The Intel Inside campaign has dramatically transferred awareness into perceptions of technological superiority and market acceptance. - 25 -
  • 26. - Perceived quality is a special type of association, partly because it influences brand associations in many contexts and partly because it has been empirically shown to affect profitability (as measured by both ROI and stock return). - Brand associations can be anything that connects the customer to the brand. It can include user imagery, product attributes, use situations, organizational associations, brand personality and symbols. Much of brand management involves determining what associations to develop and then creating programs that will link the associations to the brand. - Brand loyalty is at the heart of any brand’s value. The concept is to strengthen the size and intensity of each loyalty segment. A brand with a small but intensely loyal customer base can have significant equity. Determining the best way to protect your investment in any type of innovation is an important issue for many entrepreneurs. Unique techniques, products, trademarks, brands and packaging are all types of intellectual property. The government offers a level of protection to inventors through patent and copyright legislation. Trademarks, brands and packaging also are offered some type of legal exclusivity. Trade secrets are innovations that a firm or individual possesses that for one reason or another the firm or individual either cannot or chooses not to patent. Trade secrets are also protected by legislation Trademarks and Brands: A trademark is any word, name, symbol or device, or any combination thereof used to identify and distinguish good or products from those manufactured or sold by others and to indicate the source of the goods. A service mark is the same as a trademark except that a service mark applies to a provider of services as opposed to a maker of goods. A trade name usually refers to a corporation partnership or other name of a business. Trademarks are an important way to convey information to consumers in a cost effective manner. Choosing and defending a trademark is often a very important part of a firm’s marketing strategy. Trademark law and regulations also apply to packaging, certification (USDA organic for example), and to identify by organization. Trademarks can come in a variety of forms including words, logos, symbols, shapes, fonts and letters, slogans, sounds, and colors. As is the case with patents, a firm interested in creating a trademark should undertake a trademark search with the government and - 26 -
  • 27. obtain and federal registration of that mark20. A firm may also file for an international trademark. This is a useful strategy for a firm considering selling a product overseas or who wants to protect the value of its trademark. The cost of obtaining the international right of a trademark is not prohibitive. Vietnam firms usually use Madrid’s convention to apply the proposal of trademark registration. 20 Volpe and Koenig, P.C. Protecting Your Innovations: Obtaining, Maintaining and Sustaining Intellectual Property Rights in Your Brand, Products and Processes, Prepared for the Institute of Food Technologists Annual Meeting and Food Expo, 2006 - 27 -
  • 28. CHAPTER 2: HOA LOC SWEET-MANGOES’ PROBLEMS 1. Hoa Loc mangoes’ problems a./ Vietnamese fruits industry overview Firstly, we will look over the report of The Economic Impact and Potential of Michigan’s Agri-Food 21 System, it forecasts the demand for vegetables and fruits in the global market will increase annually 3.6 per cent (from now to 2010), while production will rise only 2.8 per cent. Besides that, trades policies are openness from developed countries, so those advantages encourage production, exporting of fruits and vegetables to developed countries. In particular of Vietnam, the table 1 below showed the rate of fruits and vegetables turnover are not worth considering in past 6 years, according Vietnam’s MOT reported that export turnover of fruits have slowly increased from US$330 million in 2001 to $187 million in 2002; it continued downward to $150 million in 2003, and in 2006 is not better than before, but it is just approximately 230 million USD. This signal of Vietnamese fruits and vegetables industry are slowly development. Table 1: Vietnamese fruits and vegetables exported turnover during last 5 years Years Turnover (Million USD) 2000 213,1 2001 344,3 2002 221,2 2003 151,5 2004 178,8 2005 235,0 2006 230,5 Source: MOT reports The slowly increasing was explained by many reasons; first, some experts think that is too depending on China market. Currently, the Chinese market imported around 45 to 50 per cent of total fruits and vegetables exports22, because Vietnam and China have trade relationship by history, geographic. Now China market requires high quality of fruits, and they buy form other countries. The next challenge comes from Thailand’s industry fruits and vegetables. Currently, this country is the foremost exporter of fruits, producing 16 21 22 The Strategic Marketing Institute/ Michigan’s Agri-Food/ Rapid Opportunity Assessment: Fruit Sector http://vietnamnews.vnanet.vn/2004-10/29/Stories/13.htm - 28 -
  • 29. per cent of the global vegetables and fruits’ output. The third reason that is the safety requirement form USA, EU, and Japan, all of Vietnamese fruits could not get safety certificate to export those markets, currently, Vietnamese fruits and vegetables just export to USA, EU, and Japan markets through traders come from China, Taiwan and others. Now, we will analysis the fruits sector of Vietnam, in the figure 8 below showed the compatibilities of Vietnamese fruits in 3 year, this comparison monitors by month, in 2006; the rising of turnover is around 10%. Moreover, the special finding out in this figure indicates from March to June of each year, the export amounts increases nearly higher 25% than other month within the year. To explanation, this period is on harvest (on crop) for almost of Vietnamese fruits (tropical fruits), and traders also try to buy for reserving and food processing. Furthermore, the fruits strategy of Vietnam does not pay attention in out-of-harvest (out of crop), fruits plant out of harvest to meet problem in technology, quality control, so, planters does not take risk when invest on out-of-season fruits. Figure 8: The comparableness of fruits and vegetables export through 3 years. (1000 USD) Source: MOT reports We leave Vietnamese fruits production issues, we try to evaluate top 5 Vietnamese fruits markets, this will helps to forecasting where is the market are going down, and where is the opportunities market. We choose five big markets are China, Japan, USA, Russia, and Taiwan, those markets currently affect nearly all turnovers. First, the going down in China and Japan markets, reasons are the higher requirement quality from China, and Japan issued the JAS law23 to makes barriers of Vietnamese fruits. However, USA and Russia is increasing as the potential markets, when the Vietnam-US trade agreement signed by both countries, the turnover rate is around 30% in 2006, and 39% in 2006. Meanwhile, Russia markets are opening for fruits and fruits processing. 23 The law requires exporter registering trademark and origin of product. - 29 -
  • 30. Table 2: The status-quo of Vietnam’s Vegetables and Fruits export (1000 USD) 12/2006 Markets 11/2006 24 12/2005 2006 2005 (%) (USD) (%) (USD) (%) China 2.367.719 7,72 -40,58 24.614.107 -29,56 Japan 2.248.131 -6,51 15,39 27.572.623 -4,89 USA 1.984.159 3,81 30,91 18.400.506 39,87 Russia 1.732.790 12,29 -10,88 22.070.119 23,81 Taiwan 1.592.824 -13,78 -21,56 27.156.778 1,07 Source: MOT reports According the MARD’s objectives towards 2010, we must attain 700 million USD of export turn-over, and the output of fruits and vegetables is approximately 12 million tons, the area of cultivation is around 1 million hectare. But, for achievements those objectives, the MARD proposes some solutions are: First, government should focus on softinfrastructure as credit policies in production, marketing, import-export policies, encouraging FDI’s firm invest on agricultural, importing new technology and equipments. The second is planning for fruits specialized-area; Vietnam will choose key fruits to planting in this specialized-area in 2010. The next solution that promotes Vietnamese fruits to expand to the international market. Government shall sponsors farmers or cooperatives join trade fair, training course. The fourth thing should do immediately that register trade mark and get safety certificates. After all, that is building the program of fruits quality control. Conclusion, the fruits prospect will be bright if MARD’s suggestions will deploy as Government’s commitments. Private firms or co-operatives now just invest on some fruits can gain profits as quickly as possible. Meanwhile, Government must invest on long-term strategy in agricultural like technology, breed, education, science research and infrastructures for agricultural. At that time, fruits sector will find out the strong development. b./ Economic value of Hoa Loc sweet mangoes As analysis above, Vietnam fruits sector met some difficulties in macro and micro environment. In Hoa Loc sweet mangoes particular problems, it is also affected by the same Vietnamese fruits condition. Being the famous of Vietnam’s mangoes, but the total out-put per year is low (25,000 tons), otherwise, it is easy disease, fluctuation price high 24 The annual growth rate compares with previous year. - 30 -
  • 31. (between on harvest and out of harvest) to makes Hoa Loc mangoes does not invest to planting and developing. According the statistics of Vinafruit was presented in figure 9. Most of Hoa Loc mangoes plants in Mekong Delta-river and some provinces like Binh Duong, Dong Nai, Binh Phuoc, and Vung Tau, Tien Giang, Dong Thap and Can Tho. In Tien Giang province, the areas of cultivation are around 1000 ha, and the capacities of production are around 15,000 tons per year. Dong Thap province is approximately 2000 ha which provides 18,000 ton per year25. Can Tho is around 20,000 tons per year. Moreover, the forecasting from Vinafruits guesses the capacities of total Hoa Loc mangoes reach around 100,000 tons per year in 2010. Thus, in next several years, Hoa Loc mangoes promise the rising capacities out-put to exporting. Figure 9: The output of Hoa Loc mangoes and forecasting in 2010 Source: Forecasting from Vinafruit, Seminar 2004 in Saigon Economic Time and CBAP In addition, the nutritive values of Hoa Loc mangoes are better than other mangoes.26. In the tenth figure showed a one Hoa Loc mangoes fruits include 80% of pulp, 3% of cover, 13% of seed and 1 % of other (do not using). According the oriental medicine, Hoa Loc mangoes is gentle-nutritive. In fact, there is a lot of medical research showed that is the good nutritive for health. Mangoes are rich glucozits; the substance helps to preclude cancer, and it is also to help reducing cholesterol, preventing cardiovascular disease. The pulp of mangoes is hoarse preventing, constipation, and stomach pain. Hoa Loc mangoes also have a lot of vitamin C, A; this vitamins are good for strengthen brain. Hoa Loc mangoes’ cover could help to stop the bleeding, dermatitis. Hoa Loc mangoes can use for making foods; candy, jam, juice fruit, cake, industry flavoring. 25 26 www.rauquavietnam.com/vinafruit 2002 report Report form vnexpres.net/health and life column. - 31 -
  • 32. Figure 10: The percentage of utilization of mangoes Source: Ministry of Agriculture & Rural Development/the centre of fruits After all, according the point of view of agricultural economist, mangoes trees are longtime industrial crops. In every Hoa Loc mangoes garden, planters always insert with short-time industry crops, this inserting makes save on labor, fertilizer, taking time for planters. About economic values, every mangoes tree are around 4 or 5 year olds, it can crops 70 to 80 kg per year, and if the price are approximately 25,000 VND to 35,000 VND, every kilogram of mangoes can get profits around 5000 VND to 7000 VND. Conclusion, Hoa Loc mangoes could gains profits for planters, and this mangoes merit to investing for long-term to gain the diametrically benefits. 2. Customers of Hoa Loc mangoes Up to this time, Hoa Loc mangoes are eaten ripeness, because it Hoa Loc mangoes are very sourness when it is un-ripeness, even mangoes could eat both ripeness and unripeness. Consumers does not buy Hoa Loc mangoes un-ripeness, comparison with mangoes are specially for un-ripeness eating, Hoa Loc mangoes are sourness than others, the pulp is friability and Hoa Loc could not use to process food. Consumers of Hoa Loc mangoes are very large, everyone can eat; someone eats fresh, someone likes to eat food processing, juice drinking, because mangoes are the common fruits. According the SOHAFARM’s research in 2004, choosing interviewees are woman who lives in urban, 25 and 35 year olds, used to buy and eat mangoes. The result of research found out customers of Hoa Loc mangoes usually buy it for eating, party, giving, or worshiping, this research also showed that there are 10% of interviewees recognized - 32 -
  • 33. exactly the “true” Hoa Loc mangoes and there are 40% un-reorganization27. Those results of research help identifying the target of interviewees of thesis. 3. Markets of Hoa Loc mangoes International market: the time from picking to ripeness is around 2 weeks, so if the international markets have longtime transportation (more 2 than weeks), Hoa Loc mangoes could not export to those markets, this is the weakness of Hoa Loc mangoes. Currently, Hoa Loc mangoes just exports to international markets as Japan, China, Taiwan and Asian countries. China market imports nearly 45% of Hoa Loc mangoes and China importers just use in fresh in China’s domestic market. In 2006, Japanese importers buy more than 15 tons of Hoa Loc mangoes from Ho Chi Minh City, HCM city exporters think this sign to open up new opportunities for international of Hoa Loc mangoes markets. In the figure 11, there are 3 levels of Hoa Loc mangoes; this classification is set up by traders (middleman) to pricing mangoes. In addition, this figure showed some international markets of Hoa Loc mangoes, and China market imports nearly 67% of Hoa Loc mangoes. Conclusion, Hoa Loc mangoes export to international markets is approximately 500 tons (5% of capacity28). Figure 11: The level of Hoa Loc mangoes and international markets Source: Forecasting from CBAP, 2004 27 According report from SOHAFARM’s branding proposal, it made by CBAP, they run the mini-research in 2003 which the purpose tests the way to identified real-mango. They give 5 kinds of mangoes, and require the interviewees choose. The ten interviewees were chosen which are eating Hoa Loc mango. They divide two groups, first is the A group eats 5kg per month (on harvest), and other group (B) eats less than 3kg per month. Result show that is 40% of A doesn’t discriminate exactly Hoa Loc mango. Around 10% of B recognizes exactly Hoa Loc mango. 28 This information is forecasted in 2004 by CBAP, until now, there is no any statistical about Hoa Loc mango export volume. The total of Hoa Loc capacity is around 50,000 ton in current year. But, there are three of levels of Hoa Loc mango. First is special one (level 1), and using to export. The second level is selling to urban domestic market, and the third level use to processing foods. - 33 -
  • 34. Domestic market: almost of Hoa Loc mangoes sells in domestic market through middleman (traders). On harvest (crop), Hoa Loc mangoes distributes almost of fruit retails, 70% of product place in urban. In HCM city and Ha Noi holds more than 50% of product. In domestic market, Hoa Loc mangoes sell to middleman, and normally mangoes planters sell pre-harvest 29 . In this case, mangoes planters must have responsibility for the result of crop, take good care of productivity. By the forecasting from SOHAFARM, the demand of domestic market is increasing around 3000 tons to 5000 tons per year, so that, they wants to invest to wait-in-front of Hoa Loc mangoes’ markets. 4. Competitors Direct-competitors are all of mangoes, but main competitor is Chu sweet mangoes and Thailand mangoes. In comparison about functional benefits with Hoa Loc mangoes, Chu is not better than, and in the market, Chu is selling lower 15% of Hoa Loc prices. But, consumers normally choose Chu to supersede for Hoa Loc. About capacity productions, Chu currently planted more than Hoa Loc around 20% of cultivation area, Chu capacity is higher 20 % than Hoa loc30. In the future, farmers and cooperatives tend to choose Chu, because it has more economic values and it has fewer diseases than Hoa Loc. Other fruits are indirect competitors. Thailand mangoes are also big competitors, but they are strong in unripe mangoes and foods processing. 5. Branding of Hoa Loc mangoes Branding is the main issue for the mangoes’ strategic development. Building Hoa Loc mangoes’ brand help to accelerate economic values, gain profits and expand international markets. First of all, that is brand name, 100% of Hoa Loc mangoes are sold without labels. Customers just buy by their experience, or expect guiding by the seller. Labeling is necessary, and it will help traders to identify in the market with other mangoes, responsibility with customer. Labeling is also to take sustainable competitive advantage in the international market, obey international trade regulations. The second is about marketing strategy. Famers could not build the brand, co-operative and traders will have 29 Middleman will guest the capacity, and they negotiate with mangoes planters about quantity, price, and other condition of mango. They will pay at time-price before the harvest. 30 It observes the average of one ha. Source from: http://www.cuctrongtrot.gov.vn - 34 -
  • 35. responsibility for marketing and branding. In fact, there is no one to take responsibility, all of traders or co-operatives are small and medium organizations, and they have not long-term strategy or may not have enough resources to invest on marketing and branding. 6. The SWOT analysis Now, we will talk about the weakness of Hoa Loc mangoes, first of all, it has slim-skin which is easy getting a disease. This is “big problem” of mangoes’ production. The slimskin makes it quick ripening, and it is also quick getting Deanolis Albizonalis disease. Besides that, it also has Scirtothrip dorsalis, Curculionidae, Coleoptera31. Those diseases make it unacceptable requirement of international foods and drugs safety. Because planters use repellent to prevent, that is the reason why all of mangoes’ production is leftover repellents. There are a lot of preventives, but planters may not apply in their production of mangoes. In WTO game, the force of obey international rules will help changing farmer’s planting process. The demands of mangoes are very high in EU, US and Japan market32 , but it meets difficulty in transportation. The transportation time exports to US market around 3 weeks (we guest it time to delivery to retail without meet problem by US FDA). And, it must have 1 week to sell before ripening. But, the time ripening of Hoa Loc mangoes is just 2 week (from picking to ripening), so that, it is exported to neighboring country (China, Japan, Asia countries) which have short time of transportation, or selling domestic market. In 2002, MARD proposed the post-harvest technique applying33 for Hoa Loc mango. But, this process just is applied by big farm or co-operative, and it requires big money investment. 31 http://www.dost-dongnai.gov.vn/phuvinh/ttchitiet.asp?code=3319 /(article: post-harvest and disease of Hoa loc mango) 32 VINAFRUIT 2002 REPORT 33 MARD/2002/KC.06.03.NN - 35 -
  • 36. The table shows SWOT analysis of Hoa Loc mangoes. Hoa Loc mangoes’ SWOT analysis Strengths • High capacity(it counted for one trees per year, and it compared with other mangoes) • Good function benefits • Famous in domestic (brand awareness higher than others mangoes) • Economic value • Easy planting Weakness • Branding and marketing strategy • International market • Short-time preservation • Easy be disease • Quality control(chemical) Opportunities Threats - Demand increasing - Chu, Thailand mangoes - Large market ( when - High price Vietnam join WTO) - Trade barrier - Key fruits of MARD, and - Applying technology Government - Natural environment - Post-harvest technique are researched, and will apply in the near future - Food processing • Speeding up marketing • Investing on technology, and branding activity, and reducing price. especially for international market. • Building up the quality • Expanding international control program, and comarket through co-operate operate with Government, with international partner. Scientist, Farmer and Developing HR resource. Trader (firm). - 36 -
  • 37. Figure 12: The process of preservation of Hoa Loc mangoes (After picking stage) Planting and cultivate the Mango Cropping (After 80-90 days, from green-fruit) Clearing by water The process of decayed prevention Benocnyl method and soaking warm water Packaging (Carton) Preservation or transportation 120 C, Humidity 85%90%. This process keep mango in 30 days un-ripening Making ripening Source: MARD/2002/KC.06.03.NN This process improved by MARD in 2002, it used to produce Hoa Loc mangoes. This process’ purpose keep Hoa Loc mango un-ripening within 30 days. It is from picking to make ripening. This process helps all of firms and co-operatives can export to international market with long-time vehicle. - 37 -
  • 38. 7. SOHAFARM backgrounds SOHAFARM is found by Government of Can Tho province (now it is Can Tho City) on April 1979. At the beginning, it holds 3450 ha (before that it was Quyet Thang farm, and it was divided two farms; Quyet Thang and SOHAFARM. In 1984, according the decision of Can Tho government (No: 47/QĐ-UBT) merged both farms to become SOHAFARM). Now, it holds 6924 hectares lands for business. Before that it was not a good land for cultivation, it was alkaline soil, but the SOHAFARM was improved impoverished soil, built canal and combines with building road, irrigation. SOHAFARM do business various fields of agriculture and sylviculture products. It imports subsidiary products, and exports agriculture products (processing and none processing). Its field is breed (rice, fruits, poultry, seafood products), food processing, planting trees, juice fruits, textile, pottery trading, handicraft, construction (irrigational work), transporting and logistical. The business structure includes 10 factories in food processing, 4 factories in canned agriculture goods, 1 factory in seafood production (fishery), and 1 factory in wood processing. This farm has 252 employees in management, 2,800 households are farm members, and 15,000 peoples are working closely with farm growing. This is one of third big farm in Vietnam. Everyone household income is from 45 million to 60 million VND per year. Two times received the “hero of labor” title from Vietnam government, it gets nearly all certificate in Exporter Agricultural Product from EU, US and Japan34. No 1 2 3 4 5 6 7 8 9 Table 3: SOHAFARM product current and planning for 2010 Product category Unit Current 2010 Per year Export Domestic Totals Rice Ton 200,000 150,000 50,000 200,000 Shrimp Ton 10,000 30,000 1000 31,000 Hoa Loc SweetTon 500 2,000 4,000 6,000 Mangoes Vegetable Ton 7,000 10,000 10,000 20,000 Pork Ton 200 2,000 2,000 Beef Ton 20 500 500 Fresh milk Lit 1,000,000 4,000,000 4,000,000 Wood Cont 50 240 240 Seed tree Mil 500 1,000,000 1,000,000 34 FDA certificate of US, Trademark registered certificate in US, HALAL certificate export Catfish to Mohammedanism nation, HACCP certificate of safe-production, ISO 9001:2000 certificate. - 38 -
  • 39. 10 11 12 13 Pig breeder Beef breeder Fish breeder Shrimp breeder Unit 2,000 Unit 400 Mil 250 Mil Source: SOHAFARM report 10,000 1,000 500 12 10,000 1,000 500 12 Investing more 4 billion VND plants Hoa Loc mangoes that are the courageous strategy, it may risk a lot. But, this project was analyzed carefully by SOHAFARM. They cooperate with Can Tho University, Dept of Science and Technology (Can Tho City), to do a lot of applied research for Hoa Loc mangoes. Especially that is the extending of ripening, from 2 weeks to 4 weeks. This process helps SOHAFARM exporting to strictness market like EU, US or Japan under Hoa Loc’s SOHAFARM brand name. 8. Planting Project of SOHAFARM’s Hoa Loc mangoes SOHAFARM have the good positioning in Agricultural production in Vietnam, and they have ambitions to penetrate international market, especially that is agricultural products. Their resources allow them to gain the opportunity in international market, but they must invest various fields and products which make their competitive advantage. About Hoa Loc mangoes, they were investing a lot of resources. First it is the research applied with Can Tho City, in this research; they try to apply the fruit-hibernation process in Mangoes’ production. This will keep mangoes to lengthen time preservation from 2 weeks to 4 weeks when it is exported. Otherwise, they use fruit-packing processing when mangoes are un-ripeness. This method keeps mangoes to prevent pestilent insects and other diseases. Besides that, the control of insecticides through gets all of quality certificates, and that helps SOHAFARM export easier. So, the project planting 150,000 mango trees is reasonable. SOHAFARM’s forecasting about product capacities is around 8000 tons per year in next five years. 9. Conclusion Vietnam’s fruits industry need to build brand for key fruits, and Hoa Loc mangoes are one of good brand name (at least in domestic market). There are a lot of problems, but it is not to be read as un-opportunities. All efforts of fruits branding will base on the quality control, this issue can solve by science and technology. But, all of above, that is the cooperation for long-term strategy. Government, Farmer (planter), Scientist, and Trader (firm) are the key elements of fruits of economic value chain. However, the private - 39 -
  • 40. investments for Hoa Loc mangoes branding are admirable action and it may be the case for all of Vietnam key fruits. The next part will analyze as brand aspect, and we will find why we must invest on branding for Hoa Loc mangoes. Furthermore, we will suggest some recommendations for long-term branding strategy. - 40 -
  • 41. CHAPTER 3: BRAND STRATEGY ANALYSIS 1. Research methodology 1.1. Advantages and disadvantages The weaknesses of fruits industry have brought about the dead look of Hoa Loc mangoes. Passing many years, Hoa Loc mangoes are famous in domestic market, and there are many experts opinion about long-term solutions. But until now, even the labeling brand name is not to deploy (implementation), let alone long term strategy. The story about high chemical inputs35 is always happening until now. That is the reason why there are no more careful statistics about capacity, planting, distribution, market, exporting, research and technology application or other ingredient in Hoa Loc mangoes’ productions. Those difficulties make the unreliability of economic analysis, forecasting and suggestion strategy. So, the best way in this case is to collect from many sources of information. That incoherent information may appreciate like orientation research. But we must concede that the source is coming from true organization36. We use the MARD’s report in fruits and vegetable like driving-information. The research from GTZ, UNDP, OECD, SOFRI, and VINAFRUIT are the main sources of information. Narrowing down the thesis research, we do not focus on the economic aspects which require more about statistic numbers. We also assume that the high chemical inputs aspect does not consider in this research like the main issues. But we are already some advantages, first it is the research in marketing focusing on market and consumer behaviors, so that, we will use questionnaire like the key sources of information to analysis. Second, Hoa Loc mangoes are famous mangoes (brand awareness), so, we may collect related information easier. After all, that is the meaning of this research, there is 35 Between 1991 and 1998 the value of pesticide active ingredients imported in Vietnam increased by 600%, accounting for US$120 million. Newcomer fruit farmers have no experience in crop management. They aim at high and fast economic returns and hence all of them calendar spray and use excessive amounts of chemical fertilizers to boost yield. These days, in the intensive mandarin, mango and longan mono cropping systems in the Mekong Delta of Vietnam, farmers generally apply more than 10 fungicide and insecticide sprays per year, with some of them reporting up to 40 sprays per year. (Van Mele, P. 2000. Evaluating farmers’ knowledge, perceptions and practices: a case study of pest management by fruit farmers in the Mekong Delta, Vietnam, PhD thesis, Wageningen University, The Netherlands, 225pp. FAO, 2000 36 It means that is related sources and it may use to this research. - 41 -
  • 42. only branding that will create economic values on Hoa Loc mangoes, and at least it also can help to drive domestic branding, and it will be the orientation for building brand in international market. 1.2. Source of information There are two sources of information. First it is secondary data, as we are concerned last part, we will collect from trust related organization. It may be science reports, articles, theses, textbooks, seminar documents and other information. All of this information gets from websites, and hard-copies. The second sources of information are primary data. That information will be done by the survey as quantitative research. We will find out consumer’s perception of Hoa Loc mangoes, those finding are brand awareness, brand attribute, brand association and brand personality. Otherwise, we also find out the price, distribution, product quality and communication which that helps building brand strategy. Besides that, the qualitative research will be done through interviewing experts in branding and marketing. 1.3. Sample size The research conduct is 150 samples for quantitative research, and each questionnaire is setting up 30 questions, but the samples may gathers around 120. For the qualitative, it will be done the 5 to 6 interviewees who are working in CABP, Vinafruits, SOHAFARM, and VietnamMarcom. The way interviews through email, phone and face meeting. 1.4. Sampling method We assume that the main research will focus on urban customers37, so that, the object of study will live in urban. They (customer) are experienced in consuming and intelligent. They pay attention of brand, product quality, and other marketing sensitive activities. We use the sampling method according to quota; the place of research is central district of HCM city, we select 4 districts; district 1, district 3, district 5 and Tan Binh district. Every district will interview 30 samples. 37 This assumption is base on market demand; more than 70% of Hoa Loc mango product is selling in the city or central of province. Other reason, that is for narrow down the period of questionnaire organization. - 42 -
  • 43. These quotas allocate according to place of interview; we choose 50% fruit-shops, 30% super markets and 20 % traditional markets. This ensures that the sample is focus on right customers to interview. 1.5. Data processing We use Microsoft excel to analysis statistical data, and those analysis is just focused on meaningful of data collections. Because of the research on branding reflects consumer’s perception, every questionnaire will show the behavior of consumers. By means of that we will forecast their buying behavior. SPSS (Statistical Package for the Social Sciences)38 will consider like the method to examine relationships among variables if we need to analysis. 1.6. Evaluation Brand theory drives all the aspects of research evaluation. Currently, all of brand theory was built on the practice of consumer goods, and it applies for all of industries. Every industry, it modifies brand theory goes into special objective. Until now, the brand theory applying for agricultural is limited and it just considers like marketing activities (product, price, place and promotion). In this thesis, we consider all aspects like brand name, brand image, brand positioning, brand personality and brand plan…Every aspects, we use data from survey, and drive all information that expose the Hoa Loc mangoes’ brand strategy. The evaluation is also concerned with marketing activities (product, price, place and promotion), but those aspects are just sub-issue in research 39 . In particular case, SOHAFARM just considers like the case of application, so that, we will emphasize in thesis recommendation part. 2. Questionnaire development 2.1. Questionnaire organization Each questionnaire is organized 30 questions, it is quantitative research and the interviewers will ask directly to interviewees. Within 30 questions, they are designed two parts: the first part finds overall of consumers for mangoes’ demands, and if interviewees do not pay attention about mangoes, we will ignore this candidate. The second part will spend for customers who have eaten Hoa Loc mangoes. 38 We have no the observation sample for independent variables, and so that, we will choose this methods to find out the basic relationship in this research. 39 This is author’s point of view, brand strategy include all related marketing activity. - 43 -
  • 44. The time spends for this interviewing about 30 days. We just do the research on Saturday and Sunday (we assume that those days, target consumers spend time in the fruit shops, supermarkets and traditional markets). The time spends for inputting data around 7 days, and we will spend 1 week for analysis data. 2.2. Objective of questionnaire The objectives of research are finding kind of mangoes which consumers pay attention and reason why they use it. Where consumers buy mangoes, when they buy and what they buy for. Otherwise, we ask them how much they will buy and how much they will pay for mangoes per 1kg. We are also asking their spending on-harvest and out-harvest. Besides that, we also find out how they choose the real Hoa Loc mangoes, and do them like the food is processed by mangoes. In addition, when they buy mangoes, what do they anxiety? Similarly, with Hoa Loc mangoes, we will compare with its competitors, and explore the functional benefits. For branding objectives, we also ask about brand image, brand personality and association. After all, that is the brand name and labeling for Hoa Loc mangoes. 2.3. Solutions of interviewing There are four persons that will be responsible for questionnaire development. We will run this research on Saturday and Sunday. The time starts at 8h30 to 12h00. The place we come that is fruit shops, supermarkets (fruit stand area) and traditional markets (fruit stand). We choose the target consumers and take them time when they buy fruits. Every interview takes about 5 minutes and we distribute according the quota research. For the qualitative research, we will call direct and someone will receive by email for the research. 3. Interviewees’ profile We choose women for the interviewing, they are the key of consumers buying, this selection is based on the assumption that they are the directly buying, and they may be affected by their home relations. Otherwise, those consumers have more experiences in buying mangoes. Their age is around 25 to 35, and they got married, earned more 200 USD, and lived in district 1, 3, 5, Tan Binh and Binh Thanh. - 44 -
  • 45. About their expectations, they have knowledge, salary, paying attention to their health, household expenses (intelligent consumers), social relationships and other publicity activities. They go to office from 8 AM to 5 PM for working, and they may spend around 6 houses to take care family. They may need information through TV, Radio, Newspaper and internet. They may go to market after working or on Saturday and Sunday. The rate of working women is around 60 percent 40 , they work for company (private sector, or state sector). Most of them used to eat mangoes on-of-harvest and out-ofharvest. Explaining for this reason, their needs move from commodity to brand, they choose carefully product and brand. So that, their consideration will are helpful for us in data collection and decision making. The remainder of interviewees is housewife and mother. Some of them may be jobless41, someone is working part-time job. 4. Results obtained of survey 4.1. Customer behaviours Figure13: Buying behaviours on harvest and out-of-harvest B uying mangoes behaviors out-of-harvest 4% 0% B uying mangoes behaviors on-harvest 10% 2% oE veryday/1 tim e 4% 6% 14% oE veryday/1 tim e o T days/1 tim wo e oT wo days/1 tim e 19% oT hree days/1 tim e oT hree days/1 tim e 50% o O week/1 tim ne e o O week/1 tim ne e o T days/1 tim en e 25% o T days/1 tim en e 35% 31% oO ther oO ther Source: Author’s results There are 82 percent of interviewees to answer that they like eating mangoes. In figure 13 shows the buying mangoes behaviours. On harvest of mangoes, there are 31% of interviewees to buy one time per three days, and there are 35% of interviewees answered to buy one time per week. Otherwise, consumers does not buy mangoes every day, there are 6% of interviewees answer that they buy mangoes every day. On the other hand, out40 Those target consumer are very important, they may not pay attention of price. Because, they have salary, and paying for high quality brand. Some of them may manage household expensive. They are also selfcontained buying decision. 41 Those women spend all time for their house, taking care children. According the FTA’s research for this target consumer, most of those women have computer (75%), gas cooker (65%), and using Hi-fi stereo (74%), having washing machine (45%). Otherwise, they also have refrigerator, so that, it is the good life41. - 45 -
  • 46. of harvest, there are 50% of interviewees to answer that buying to belong to situation of their demands, and there are 16% of consumers will buy mangoes ten days per one time. From the result of research, we can see the changing in buying behaviours of mangoes demands (in figure 13), the ratio of buying moves from three days to ten days per time, its means that most of consumers buy one time within 3 days, and one time within 10 days on out-of-harvest. In addition, out-of-harvest, consumers tend to buy other fruits. There are some reasons to explain about this changing, first, consumers spends amount fix-budgets for fruits buying, and out-of-harvest, the prices of mangoes increases around 50 percents42. The second reason is mangoes do not be essential demands and sensitive pricing. Asking consumers about reasons why they like eating mangoes, most of consumers answer mangoes have well delicious, some of consumers also say that mangoes is good for their health. Similarly, almost of mangoes are bought to eat (figure 14 shows 113 interviewees agreed), a lot of consumers also buy mangoes to worship (Vietnamese custom), and make a gifts. We also found in the figure 14 the astonishment that there are no consumers buying mangoes to make cakes or candy, and this is the new opportunities for any firms joining mangoes processing. Figure14: Mangoes eating habits of consumers R easons to buy mangoes 21% o Eating 0% 2% oG ift 61% 16% o Juice fruit oM aking cake/candy oW orshiping Source: Author’s results Furthermore, explaining the abilities pay for mangoes in figure 15. Most consumers agree the price per one kilogram from 20,000 VND to 25,000 VND on harvest, and out-ofharvest, consumers agree the price from 26,000 VND to 30,000 VND. The disparity of 42 Dr. VO Mai-President of VINAFRUIT/report 2004 - 46 -
  • 47. mangoes on and out-of-harvest are approximately 10,000 VND per one kg, so the increasing price of out-of-harvest will make consumers changing to other fruits. Figure15: Price acceptability P rice acceptability per one kg/on harvest P rice acceptability per one kg/out-of-harvest 1% 6% 6% 3% 2% 41% oB elow 20,000 VN /kg D 11% o 20,000-25,000 VN /kg D oB elow 20,000 VN /kg D 34% o 20,000-25,000 VN /kg D o 26,000-30,000 VN /kg D o 31,000-35,000 VN /kg D 50% o 26,000-30,000 VN /kg D o 31,000-35,000 VN /kg D o Above 35,000 VN /kg D 46% o Above 35,000 VN /kg D Source: Author’s ressults Moreover, this research is also showing the number of kilogram which consumers buy every time. There are 46% of consumers to buy 1 kg each time, but there are 32% consumers to buy 2 kg each time. The number of consumers shall buy more than 2 kg and lower 1 kg around 7%. We may explain why most of consumers buy like this research’s showing (figure 16). First, buying one or 2 kg will make easy money calculation. The second reason is about the weight of mangoes fruits. Every mangoes fruit is weight approximately from 600 to 750 gram, so if consumers buy 2 kg, we just need around 3 mangoes fruit. In addition, most of consumers buy at 2kg at 25,000 VND per one, so consumers spend around 50,000VND to buy mangoes, this spending also mean a budgets for buying other fruits. Conclusion, the consumers accept to paying for the price disparity, and pricing between on and out-of-harvest is within 10,000 VND, and if the price change over this amount, consumers choose other fruits. Consumers like to eating mangoes, because mangoes are good for health and well-delicious. - 47 -
  • 48. Figure 16: Mangoes quantity buying each time Source: Author’s results 4.2. Brand vision and mission. Dealing with brand building for Hoa Loc mangoes, when the interviewees were asked about sweet mangoes (figure 17), the research shows 85% of interviewees knowing Hoa Loc mangoes. There are 7 % of interviewees knowing about Chu sweet mangoes. Other questions asked interviewees what other mangoes do you know, and the result shows that there are 28% of interviewees to answer Thailand mangoes. Thanh Ca is approximately 18%, Chu is 13% and Thom is around 16%. Brand awareness is strong competitive advantage of Hoa Loc mangoes, in brand building, strong brand awareness could helps Hoa Loc to expand market, make high pricing strategy, and gain more profits. Figure 17: Brand awareness Source: Author’s research Moreover, consumers’ point-of-view gives mark to arranging the best and not best mangoes; their answering (76 % interviewees) choose Hoa Loc mangoes better than other. Comparison with other mangoes, functional benefits of Hoa Loc mangoes is best, and - 48 -
  • 49. most of consumers Hoa Loc are pure-mangoes tastes. Besides that, the research also points out Hoa Loc’s quality are superior to other mangoes. Figure 18: Brand switching behaviours 23% 0% 9% Mangoes brand awareness ranking B rand switching behaviours o Thanh C m a angoes 3 15 21 o Buoi m angoes 2 10 o Do not buy o Find another place 29% o Buy another m angoes o Thailand m angoes 4 39% 21 17 32 29 o C sweet m hu angoes 1 22 16 20 one two 11 8 19 three 6 90 o H Loc sweet m oa angoes o Buy another fruit 13 51 four five 0 20 40 60 80 100 o Don't know Source: Author’s results However, Brand loyalty of Hoa Loc mangoes is low; consumers just eat it on harvest, but out of harvest, Hoa Loc mangoes’ prices rise to makes consumers choosing other fruits. To answering the brand loyalty of Hoa Loc mangoes, this research finds out most of interviewees to answer that if the fruit shops (or other selling mangoes place) do not have Hoa Loc mangoes, and 36% of consumers will choose other mangoes and 31% will chooses others fruits to buying. So, the brand vision of Hoa Loc mangoes may build its brand like premium mangoes brand, its brand is endorsed by competitive advantages like good quality, famous and other functional benefits. Deploying this Hoa Loc mangoes’ brand vision, its mission must build quality control programs, and this program accords to its target’s international market. Besides that, keeping mangoes price changes a little bit is important, through planning input of fruits and production; Hoa Loc mangoes will keep fluctuation of price between on harvest and out-of-harvest. Conclusion, mangoes are easy to switch to other products in consumer’s buying decision, and it is sensitive in pricing. So, the differentiation and identifying are the key success in market. Furthermore, we should focus on building brand for both fresh fruits and food processing. We will discuss more in the next part, but all of above, premium mangoes’ brand drives all marketing and brand activities in market competition. - 49 -
  • 50. 4.3. Brand positioning What is Hoa Loc mangoes’ attributes represented for? How consumers recognize about those attributes. In fact, owning core attributes could makes competitive advantages in the market that it is brand positioning. The core attributes mean that Hoa Loc mangoes already have owned, or Hoa Loc mangoes satisfy consumers’ need better than competitors. Other interpretation about brand positioning finds what the differentiations with competitors are, and those differentiations could satisfy its consumers. Coming back the results of research, when we asked consumers giving mark their perception about Hoa Loc mangoes’ attributes, most of them answered “sweet” (in figure 19 shows 51% of interviewees agreed). There are 23% of consumers to answer sweetsmelling. Consumers’ evaluation about Hoa Loc attributes as sweet, sweet-smelling, thick pulp, slim skin, beautifully, great color and famous shows the mark to rank from 4 to 5 mark (the mark arrange from 1 (bad) to 5 (good)). Figure 19: Brand attributes of Hoa Loc mangoes Source: Author’s results So, sweet and sweet-smelling is the core Hoa Loc mangoes attribute. In addition, listing some dominants of mangoes attributes, we do the question comparison between Hoa Loc and Thailand mangoes, in the figure 20, the results show some interesting. The interviewees thought Hoa Loc mangoes’ nutrition better than Thailand, and contrariwise, Thailand mangoes are skin thicker than Hoa Loc. Both kinds of mangoes have sweet the same, and Hoa Loc sweet-smelling is predomination Thailand. As a whole, Hoa Loc attributes is dominant than Thailand. In reality, thick skin is very important in - 50 -
  • 51. international market, thick skin could make to prevent disease, keep long-time transportation and slow down ripen43. Figure 20: Brand attributes comparison Source: Author’s results Hence, what is brand positioning of Hoa Loc? And what are the core differentiations? Nutition and sweet-smelling are core of brand attributes, and this positioning may drive other communication, we need consistency in long-term. In long-term strategy, we will occupy “core attribute” in consumers’mind, and at that time, the brand positioning of Hoa Loc mangoes are real to “live” in the market compettition. 4.4. Brand strategy Now, we analyze both parts which are combined in the brand: “functional” and “emotional” part. The “functional” of brand is brand structure44 and brand identity, and the “emotional” part is brand personality. Like people, brand is also aspect and soul, aspects are what we can see and touch, and soul is what we can fell. Through marketing activities, brand goes inside its consumers’ mind. We now come back Hoa Loc case with functional of brand. Hoa Loc is always using ripening, and because it is precious mangoes, so that almost of Hoa Loc mangoes were sold in ripening. In fact, there are three level qualities of Hoa Loc mangoes; the first quality level is exporting to international market, and how about the second and third quality level is? 43 We must know that Hoa Loc mangoes are just ripening using, when it is un-ripening, it is not the good mangoes. Hoa Loc mangoes’ un-ripening could not compare with Thailand and Tuong mangoes. 44 In this research, Author uses terminology about brand structure to change for brand architecture. In some books, its author uses brand architecture, especially, which is David Aaker’s books. - 51 -
  • 52. Out of Hoa Loc mangoes exported, rest of mangoes will be sold in domestic market and made juice fruits, candy and jam. In figure 21 below will show the consumers behaviour in mangoes. They are used in mangoes processing or other things related. There are 63% of interviewees answered like mangoes processing, and when were asked what are kind of food processed by mangoes do you like, most of consumers like mangoes in juices fruits and desiccation. Therefore, Hoa Loc mangoes are used to food processing is the big market, but, we must pay attention about costs for production (input), because, Hoa Loc mangoes’ price is higher than other mangoes. Figure 21: Mangoes’ food processing M angoes' food processing 9% 2% 11% 4% oC akes oC andy o F juices ruit o Jam 29% oD esiccation oF lavouring (industry) 38% oO ther 7% Source: Author’s research So, there is interested information found in this part, there are 38% of consumers like to drink mangoes juice, and 29% of consumers like desiccation. That means, food processing helps diversification product with the same Hoa Loc mangoes’ brand, increase frequently to consume brand instead of waiting to harvest (on crop). Producing foods (all of foods can make form mangoes) base on technology can make safety and exclude high chemical inputs. When running the research which asked consumers’ worries about mangoes, the figure 21 showed most of them thought mangoes may be sour (35%) and input more chemical (21%). Those worries make opportunity for firms, and so firms or co-operatives could expand their business categories. Processing food from mangoes can salvage mangoes lower quality, and this field opens larger market than selling ripening mangoes (fresh fruits). - 52 -
  • 53. Figure 21: Mangoes’ food processing Consum ers' worries about m angoes 2% 12% o Easy breaking 21% 10% oU n-soft (pulp) o Foxy cov er 8% o Easy addled pulp o Sour 12% 35% oH igh chem ical inputs oO ther Source: Author’s research Now, we may suggest brand strategy for Hoa Loc mangoes, we concede that Hoa Loc will expand its brand to other category, and new product category will be endorsed by Hoa Loc mangoes’ brand name. The new brand structure may are: Figure 22: Hoa Loc brand structure Hoa Loc mangoes brand Hoa Loc mangoes Juices fruit brand Hoa Loc mangoes Fresh fruit brand Hoa Loc mangoes Desiccation brand Hoa Loc mangoes Flavouring brand Hoa Loc mangoes Cakes brand Source: Author’s results Expanding Hoa Loc mangoes’ brand is one of way to maintain the premium of brand image and besides that we may keep input mangoes price, making the interest of mangoes investments from planters. When asked consumers to finding out Hoa Loc mangoes’ brand personality, customers think this is the traditional mangoes, and it is values because it has long time development. All consumers also think it is famous because the quality and sweet, and when we ask if the Hoa Loc mangoes like a person, what are its personalities. There are 54% of interviewees answering that it is friendly. In - 53 -
  • 54. fact, all of consumer insights feel that Hoa Loc mangoes are like “farmer” personality. According to David Aaker, Hoa Loc mangoes’ brand personality is “Sincerity” kind. It means that the brand holds the personality like down-to-earth, honest, wholesome, and cheerful. Besides that, brand strategy requires the good brand identity (this is called the face of brand). In 2004, CABP helped SOHAFARM to build brand identity (see more in appendix), and it is now step-by-step to apply in SOHAFARM. The Hoa Loc mangoes’ brand identity includes: logo, banner, shop retail design, website style, brochure, letter head, business card, and other POSm in distribution. When consumers were asked about benefits of labeling, there 42 interviewees think that it is easy identifying and some of consumers also think that will take time to buy mangoes. So that, building brand identity becomes important, and it is brand image of Hoa Loc mangoes, it also helps to difference with other mangoes’ competitors. Figure 23: Hoa Loc brand identity B enefits of building brandname Identifying the true H Loc mangoes oa oE asy identified 14% 2% 21% o Self experiences 0% o Avoid confusedness 26% o Seller introduce 1% o Knowing original product 41% 12% o Loking the overall status o D not worry about o price 15% oT ake tim to buy e o Looking the cover o Bottomof the fruit 7% o Sm elling 21% oO ther 15% oO ther 25% Source: Author’s results 4.5. Brand planning 4.5.1. Product Answering for the question how to develop Hoa Loc brand in the international market, Mr. Nguyen Tran Quang45 said that firstly, we must make the good product; secondly, it should control the distribution channel; and after all that is building effectively marketing communication campaign. According to Quang’s point-of-view, he wants to use quality of Hoa Loc mangoes as a key product to attack international market, and so the good 45 CEO of Golden Advertising, expert in branding and an advisor of CBAP - 54 -
  • 55. product must include: good quality control, good packaging and good post-harvest management. As a natural attributes, most of consumers believe on its brand and quality, so Hoa Loc mangoes’ brand name must be endorsed by the good packaging. Besides the labeling is built, the packaging should be made to go with the brand performance on selling. Coming back the reality Hoa Loc mangoes, most of fruits are sold under the simple packaging; the package was made by bamboo, and its function of fruit protection was not good. Conclusion, Hoa Loc mangoes are currently the good product (functional benefits), but the suggestion in this research is building the Hoa Loc mangoes’ packaging (for the fresh fruits category). First is for domestic selling, the packaging was made by carton box, it must be emphasis on protection ability. Outside the package, information requirement must inform like: logo, company, net weight, preservation guilds, time for ripening, and other standard’s international information. Similarly for the exporting packaging, the materials must are plastic or wood. Its packaging must bear for long-time transportation besides the information of packaging is required by international laws. For the food processing, product strategy should focus on the Hoa Loc mangoes juice and others. 4.5.2. Price Currently, the price’s elasticity could not guess on-harvest and out-of-harvest. As an economic principle, even the Hoa Loc mangoes are on harvest, if the poor crop happened, the Hoa Loc price will increase quickly. The research shows the fluctuation of prices was accepted by consumers within 10,000 VND 46(between on and out-of-harvest), and if the changing price between on and out-of-harvest make consumers move to buy other mangoes or fruits. Thus, they will be lack of the loyalty in Hoa Loc mangoes. According to Mrs. Tran Ngoc Suong-CEO of SOHAFARM‘s point of view, the solution in maintaining stable price must keep the supply for the market, and it must base on the market’s quantity forecasting. Again, the quantity of supply drives all the market’s demands and consumers behaviours. But, in the export markets, the un-control supply will lose the market shares, because the partners will choose other suppliers. So that, the suggestion in this case is that we should keep price changing a little bits, the pricing must set up how can get the acceptable from customers to end users or traders. Other meaning, 46 See more in figure 15-price acceptability - 55 -
  • 56. keeping the price unchanging makes the farmers whom plant mangoes can believe on their investment. 4.5.3. Distribution The research in 2005 made by AXIS47 and Can Tho City, this research showed farmers were the partners in the distribution of the products. Traders became the controller, most of fruits sold to traders (75%), and it just was about 15% of fruits selling directly to wholesalers or other buyers. The paradox of distribution was 80% of traders’ fruit sold to wholesalers. Why the farmers must sell to traders without selling directly to wholesalers, or why wholesalers must buy from traders without farmers. The road of mangoes selling will be three levels; first level was sold to trader or wholesaler, the second level was sold from traders to other wholesalers, firm processing, retailer, and the last was sold to end users or export. The reasons are about post-harvest processing, most of farmers (planters) just sell fruit immediately, but if fruits sell to firms (processing) or supermarkets, fruits must pass the selections and cleaning. Most of safety standards are required technology or know-how, so traders will help farmer process before selling to wholesalers or firms processing. A sub-reason is about relationship between farmer and trader, most of trader will collect a little fruit’s quantities from many farmers, and if farmers sell to wholesalers, the quantity of fruits must be larges. And this is the problems of fluctuation of price which farmers could not control. Figure 24: The value chain of Can Tho’s fruits Farmers 75% Product processing Co Ltd 10% Traders 15% 80% Wholesalers 5% 95% 5% Retailer/super markets 95% Consumers 5% 5% 5% 5% Export Source: Axis report 2005/Can Tho City 5% Restaurant/Hotel/ Other 47 AXIS is a research company located in Ha Noi, this project was supported by GTZ (Germany), Metro Vietnam, Ministry of commerce and Can Tho government. The research focus on the Agricultural product in Can Tho, and through the research, it will drive the supporting policies of Can Tho city for Agri-industry. - 56 -
  • 57. In addition, the price controlling, the planters (farmers or co-operatives) must sell their fruits directs to each segmentation. In figure 25 of the thesis research, most of consumers buy mangoes in traditional markets, and there are more than 29% of consumers buy in fruit shops. The rising of fruit shops expose the new trend in buying safety fruits. Distribution control is the weakness of planters (farmers or co-operatives), because they must control their market if they want to improve the dependent on trading. Finding out and controlling fruit markets are the un-reality, most of planters (farmers or cooperatives) meet problem about their business management. Otherwise, the dependent of farmers on trading in mangoes distribution made the barrier of branding. Until now, most of mangoes just have 2 weeks in preservation unripe fruit (after picking). Two weeks have included time for transportation and selling (merchandising system), so that is the big challenge in Hoa Loc mangoes’ distribution, and the short time merchandising will make Hoa Loc mangoes reduce economic values. Therefore, we need the direct of mangoes distribution, it means that we cut down the middle channels in distribution, and the stretching of time merchandising will be made the opportunities in branding of Hoa Loc mangoes. Figure 25: The places of consumer’s buying mangoes the places of consumer's buying mangoes The consumer's habits buying 5, 4% 4% 29, 20% 20% oW hen go to m arket oT raditional m arket 43% o Superm arket o F shop ruit 18, 13% 90, 63% oW hen needed o See casual place oO ther oO ther 33% Source: Author’s results Conclusion, when we invest on branding, the control in distribution will keep the fluctuation of prices, and Hoa Loc mangoes must organize the direct to distribution channels, through that control brand quality and images. So the new channels should organize from the planters (farmers or cooperatives) to supermarkets, fruit shops, traditional markets (retailers), companies (processing). Each channel will comply with its - 57 -
  • 58. conditions or standards. The benefits of new channels will require the management abilities, but it is one of key success factor in branding for any brand. Selling directly to key channel (level 1) before to end user will help Hoa Loc mangoes manage total brand images like price, packaging, display, selling, customer services and other factors of management. Figure 26: The new distribution channels of Hoa Loc mangoes Farmers/co-operative Product processing Co Ltd Traders Wholesalers Consumers/end users Exports Retailer/super markets Restaurant/Hotel/ Other Source: Author’s reseults 4.5.4. Brand communication Communication makes every brand going inside consumer’s mind, every brand strategy will execute by communication plan. The core of brand communication is brand massages through the brand positioning; every brand will create the massage and using all of media channels to communicate for their consumers. In brand communication management, the budgets for branding always force all brands, and therefore brand owners should think more the balancing of costs management. Cost of communication always is thought like the cost paid without measurements. There are a lot of ways to measures, but its convincingness disagrees by brand owners and measurement service agencies. In fact, most of brands must pay a lot for media like television ads, radio ads, print ads, PR, event (brand activations) brand identities design, POSm, and other marketing activities. In other hand, the amount of brand communication must base on the competitors paid, industry growth, goals of brand, and the methods of selling and marketing. But, Hoa Loc mangoes compete in the less marketing payment of industry, and like any mangoes, there is no one pays more for marketing and other promotion activities. Most of mangoes - 58 -
  • 59. owner use discounts policies48 like the key point in selling to traders, wholesalers and other partners. According to this research, the interviewees think Hoa Loc mangoes should label its brand to endorse consumers buying. But, its label will bring about the other competitors doing their labeling. So that, we will suppose the total brand identity49 like logo, label, packaging, shop design (retail), display design, banner display (showing in trade fair), and website. Those brand identities will make the big differentiation with other competitors, and it will be the reasonable brand communication with mangoes market, at least it is about marketing budgets. The content of brand communication message always affects the result of brand communication campaign. The brand identities design must obey the system designing like color, font style, images, lay-out and size of items. Hoa Loc mangoes will choose the slight-yellow to be the key color, font style is circle, thick and looking like steady. Mangoes seed will insert into the logo and label, but we must stylize to suit with the overall lay-out50. The designs items must are both Vietnamese and English language. Deploying the brand communication of Hoa Loc mangoes is labeling, building packaging systems in which includes retail package (plastic bags) and wholesale package (carton and woods). Besides that, the promotion campaign should deploy into the fruit shops and super markets, the banner should hang on the shop, and seller uniform should wear in the super market. The specific website for Hoa Loc mangoes should establish to communicate with international partners (it is both Vietnamese and English). 4.6. Brand equity management The proverb of “true coral needs no painter's brush” is not true now, most of brand must communicate more and more to consumers which how to gain fast the market share, sales volume and benefits. Supporting from media channels and the rising from technology make brand quickly to develop in the market. Considering about brand awareness of Hoa Loc mangoes, there is no one archives taking about the time Hoa Loc mangoes were born, but Hoa Loc mangoes always are the top of Vietnamese’s mind. Hoa Loc mangoes’ brand awareness is large. According results of 48 Source: Axis report 2005/Can Tho City Seeing more in www.thuonghieunongsan.org.vn 50 Project of SOHAFARM/CABP 49 - 59 -
  • 60. research, most of interviewees are asked about sweet mangoes; they immediately think in their mind that it is Hoa Loc mango (85 percents). The figure 27 also shows the other mangoes’ brand awareness, and besides Hoa Loc mangoes, Thai mangoes are currently to have good brand’s awareness. Figure 27: Brand awareness of Hoa Loc and Other mangoes Other m angoes aw areness Sweet mangoes awarenes s 1% 1% 19% T Lan hai 34% 10% 5% X M N T oai u ha rang T hanh C a Chu mangoes T uong 16% Hoa Loc mangoes T hom Don't know G on 18% 11% Voi 85% Source: Author’s results The endorsing of Hoa Loc mangoes’ brand awareness is perceived qualities, its second brand equity is very important to any brand. Hoa Loc mangoes are known like one of best Vietnam’s mangoes, and because most of consumers said that it is delicious. There are two good qualities which are perceived consumers- sweet and sweet-smelling. Comparison with key competitors, it is also superior to quality, Thailand mangoes are famous for sweet, it could not be like Hoa Loc because the skin is too thick, and so it has not natural sweet-smelling. Now, we will study about brand perceived quality. The next figure (28) shows the evaluation of consumers when asked about Hoa Loc mangoes quality. There are about 55 % of interviewees giving mark from 4 to 5 for those attributes like sweet, sweetsmelling, beautiful, slim-skin, well-color, famous. There are 30% giving mark equal 3, and the rest is 15% giving mark from 1 to 2. In fact, most of brand must prove good quality for its consumers and be better than competitors, like any products, Hoa Loc mangoes must keep its brand images through control the quality of fruit. - 60 -
  • 61. Figure 28: Brand perceived quality of Hoa Loc Brand perceived quality 50 45 40 35 30 25 20 15 10 5 0 o Sw eet o Sw eet-smelling oT hick Pulp o Slim skin o Beautiful o Great color (ripen) o Brand name (famous) 0 1 2 3 4 5 6 Source: Author’s research Starting with the attributes, Hoa Loc mangoes associate its consumers through the sweet and sweet-smelling mangoes (there are 51% of interviewees agreed with). We also know that all of sellers will persuade their consumers about those great Hoa Loc mangoes’ attributes. Similarly, when asked about Hoa Loc mangoes images, most of consumers tell premium (seeing more in figure 30, the giving mark from 3 to 5 are around 80%). Figure 29: Brand images of Hoa Loc mangoes Brand im ages of Hoa Loc m angoes Pr em iu m 5 4 3 2 1 No tp re m iu m 40 30 20 10 0 Source: Author’s research When listed those core attributes of mangoes, and we asked the consumers give their opinions for Hoa Loc and Thailand mangoes, the figure 29 shows most of consumers know Thailand’s mangoes have thick skin, and this reason helps its brand to export to international market. Otherwise, other attributes are held by Hoa Loc mangoes, - 61 -
  • 62. Figure 30: Brand images of Hoa Loc mangoes M angoes attribute com parison T hailand m angoes H Loc m oa angoes Sweet 1 00 Nutrition 80 Sweet smelling 60 40 20 Brand name T hick pulp 0 T hick skin Beautiful Big Source: Author’s research There are some relations between price and brand images, Dr. Vo Tong Xuan 51 , the chairman of CABP said, the premium of Hoa Loc mangoes is the scare quantities out-ofharvest and the rising of price come in the end of harvest. This is the weakness of Hoa Loc, but its weakness helps to build the premium brand, Dr. Xuan said. So, the scare quantities are conflict with exporting objective and food processing, and if we can produce the large quantities what will happen. The price will go down and stabilize, but brand images will be affected by large Hoa Loc mangoes’ production. The figure 39 below explains that when consumers go to buy mangoes at retails channels, there are 62 % consumers chooses Hoa Loc, if it does not, they will choose other one. Figure 31: Brand loyalty of Hoa Loc mangoes Brand loy alty o Priority H Loc m oa angoes o Asking seller introduction oO ther 16% o Choose any one o Depending on real case 2% 6% 14% 62% Source: Author’s research 51 Dr. Xuan is Rector of An Giang University; He became the chairman of CABP from 2005. - 62 -
  • 63. The priority choosing Hoa Loc mangoes is not completely representing for the brand loyalty, and it just shows the way that consumers think in buying behaviors. Fruits are always easily changing, and the price always affects consumers’ choices. When asked if the retails currently do not have Hoa Loc mangoes, what do you do? Consumers want to choose other mangoes to change their demands (figure 33 shows 39 %), and the choosing other retails to buy are around 28%. This figure also shows the demands to buy other fruits is high, and if we think the changing in other mangoes and fruits is not loyalty, it means that the Hoa Loc brand loyalty is approximate 62 % of consumers. Figure 32: Brand priority of Hoa Loc mangoes 2 % 3 0 % 9 % B nd switc ra hing beha iours v o D n bu o ot y o Fin a oth r pla d n e ce 2 % 9 o Bu a oth r m n y n e a goe s o Bu a oth r fru y n e it 3 % 9 o D 't kn on ow Source: Author’s research 4.7. Summary Now, we will point out some key findings that drive all Hoa Loc mangoes branding. First of all, consumers are not loyal to Hoa Loc mangoes, they will choose other fruits or mangoes if at the retails do not present. The lack of brand loyalty will harm the brand strategy. The second finding is price sensitiveness and decision making; consumers just pay the changing price within 10,000 VND (25,000 VND on harvest and maximum is 35,000VND out-of-harvest) for on and out-of-harvest. If the price increases over, consumers will tend to buy other mangoes and fruits. The next third finding is product, Hoa Loc mangoes fruits hold good attribute, but consumers lack of loyalty, so we must build brand basing on two categories; fresh fruits and food processing, and this way will maintain consumers through diversify products. Next, organizing distribution systems is very important, planters (farmers and cooperatives) just sells their product for traders should changes, planters must build its distributions, even this system requires the business management abilities. - 63 -
  • 64. The fifth finding talks about brand equity, according brand equity process, the brand must start with brand awareness, next is brand recognition (love and using frequently) and after all that is brand loyalty. But, Hoa Loc mangoes are just brand awareness, and on going to brand recognition level, so it could not gain its loyalty consumers. Thus, Hoa Loc mangoes could not gain profits from consumer’s loyalty (Pareto rules). The last finding is brand communication, Hoa Loc mangoes should focus on brand identity, and building brand identity suits with domestic and international market, even its brand identity should hires professional designer to makes it. If brand identity does not appropriate pay attention, the brand could not rise from status-quo. 4.8. Limitation and further research There are some limitations of this research; every brand starts with the good business strategy, and in agricultural industry, the investment is always hard to get quickly profits. So, this research did not study more in the industry investments and business investments. In fact, we assume that MARD’s objective wants to develop Hoa Loc mangoes to be the key fruit product, and this assumption may be not right at least this time. In 2003, Vinafruit proposes strategy development for 10 key fruits and Hoa Loc mangoes is in this list, but in reality, it is not any action plan to develop this strategy. The mangoes’ statistics are very limitation, and information’s of research requirements come from many sources, this issue makes some difficulty analysis and accurate appraisals. We knew that is not easy organization by private firm, it must be supported by government and specific organizations (statistics department). This thesis just focuses on finding out these key issues of branding and marketing in Hoa Loc mangoes, so that, those findings must apply creativeness in reality, flexibility, especially in firms or co-operatives. For further research, we need the industry research for mangoes under economic aspects; we need to prove the potential of mangoes planting, and how to develop mangoes like the fruit of economic value for long-term investment. Distribution is the complicated issues, when reality research for this thesis, some cases of farmers and co-operatives tie with middleman and trader through the amount of money borrowed, so that, those planters52 do not obey the safety planting. This un-consistency 52 The planters, that means who plants the mangoes. - 64 -
  • 65. makes mangoes’ quality being lack of competitive advantages in international markets. The weakness supporting from banks through flexible policies’ loan is very imperative changing. The planters will not invest long-term strategy, and they are remaining passive in markets to also make them be obliged in price and selling negotiation. The research in loan policies is very needed for Hoa Loc mangoes. - 65 -
  • 66. RECOMMENDATION 1. Business aspects (SOHAFARM) The creativeness and a little of hazard are always the part of successful business management. In agricultural industry in Vietnam, investments must base on choosing right product, the new breed and agricultural technology which imported from foreign, making the big changing in this industry. High productivity and economic values help farmers and cooperative to quickly gain investment’s profits. The preeminence in planting condition and stable capacities is always the weakness of Vietnam’s agricultural products. SOHAFARM chooses Hoa Loc mangoes to invest and must look overall economic picture in this industry. The mode of reducing Hoa Loc mangoes’ slim-skin weakness must consider in short term investment that is the key problem must be solved immediately for the future success. We come back the brand aspect in this thesis research. The demand in Hoa Loc mangoes exists, and the fluctuation price in past many years talked the scare of product brought in the raising price a lot. The 8000 ton of SOHAFARM forecasting is basing on this market demands, but we know that SOHAFARM must sell like a brand, not a commodity of mangoes, we will not compete against competitors by price, and it should be brand name combat. That means Hoa Loc mangoes of SOHAFARM must build brand strategy for international and domestic market. There are a lot of indispensable things to do; labeling mangoes fruit is the first thing must be already in brand strategy. That means SOHAFARM will register its trademark in Department of intellectual property, and it will base on the endorsement by SOHAFARM. Every Hoa Loc mangoes fruit sell with the label is stuck in the retail or exporting system, and through labeling trademark, it guarantees for consumers about stable quality and other safety in health. Labeling should think in long-term strategy, and - 66 -
  • 67. even there are no competitors in the market to do like that. Because labeling will make raising prices, cost of selling system organization53. Improvement of marketing effectiveness is one of urgent action in overall. The investment in Hoa Loc mangoes planting can control the quality product that is important, but it is not enough for branding. Packaging (international and domestic market) is also pressing of branding. The Hoa Loc mangoes’ packaging designs to show brand images consistency, giving the preventing function of fruit. There is not speaking with exaggeration if packaging is without branding. Another aspect in marketing, the price must be elasticity within consumer’s acceptability. This research showed the price must fluctuate within 10000 VND for in harvest and outof harvest. But in branding, most of brands keep the stable pricing strategy, and specific mangoes case as any other fruits, the price may change a little bit. Changing price too much will harm for brand images and then, consumers will toward to other fruits. We also control the distribution system, and keep the good relationship with traders is currently necessary. Besides that, organizing sales systems to support for branding is also considered in long-term strategy, only sale systems can control total brand images carefully in the retail and exporting. Currently, SOHARFARM just organize sales-rep, and they have not paid attention to after sale of Hoa Loc mangoes yet. Considering for fruit shops and supermarkets for distribution strategy, according to this research, it is showed the rising consumers’ demands in buying in those channels. The reducing of traditional trends will happen in near future, in other hand, when we label brand name, choosing the right distribution to determine how brand could approach right its consumers. Those channels are the potential, and SOHAFARM should consider as soon as possible. 53 Initiative in distribution forces firm must organize selling system, salesman and sales supervisor to manage distribution mangoes, check display and supporting sales promotion campaign… - 67 -
  • 68. Ensuring every mango fruits selling to market always is good quality; SOHAFARM must take care about classifying level mangoes, which kinds will sell to domestic, exporting and processing foods. This classification enables controlling perceived quality of brand. On other hand, mangoes are easy to be damaged after 2 or 3 week, so that, SOHAFARM thinks about mangoes processing for some mangoes can not sell as fresh-fruit. These diversifying products also help the closed-business circle in mangoes, processing food from mangoes must endorsed by Hoa Loc brand name, and this way just is one of out-put circle for Hoa Loc mangoes, the mainstay will sell fresh-fruit to the market. Long-term vision in Hoa Loc mangoes branding belongs to SOHAFARM strategy, we will not ensure for any successfully in the market, but like any product branding, the successful brand accord step-by-step; the good product, good identity and good equity management. Above all other, designing Hoa Loc mangoes’ brand identity SOHAFAM requires the creativeness and needs to hire an agency design for all items of brand identity. The creativeness can not easily measure the effectiveness of brand strategy, but investment on brand identity design undertakes the long-term investment for Hoa Loc mangoes. The professional advertising design will help the brand identity to consistent brand images, association and personality. Attending trade fair in agricultural industry is the way to communicate brand message to Hoa Loc mangoes consumers and extend international partners. Hoa Loc mangoes brand communication could not use mass media like Television, Radio or billboard (outdoor), because those channels are very expensive for the product like mangoes, and most important that its competitors do not use this way to advertise. Through trade fairs and website will be the main channels to suit with SOHARFARM in branding budgets besides the supporting from sales forces and POSm systems. Hoa Loc mangoes own the good brand awareness for long time development. It may look like uniquely mango of Vietnam. What happen if foreign investors develop Hoa Loc mangoes through planting in Vietnam and export to international markets? This question is just the argument for missing opportunities and Thailand has the good mangoes - 68 -
  • 69. exporting to Vietnam market, and we also have the same opportunities like Thailand. And SOHAFARM will be supported by government and consumers if it develops Hoa Loc mangoes to be good brand name in the markets. SOHAFARM should begin the human resources development that can help building brand for both domestic and international markets. Brand management is the new theory in management, and it requires staffs that must have knowledge and experience to apply in agricultural field. Currently, SOHAFARM must establish Marketing department, and assign Brand Manager Title to be responsible for Hoa Loc mango brand. Training is also important at time, training will help staff to improve their ability, information and trends in branding and marketing. 2. Government aspects There are many things to support for agricultural industry and fruits field. We start with the commitment of government for the WTO game that will make Vietnam’s agricultural products bear high risk in the market. As a sensitive industry, Agricultural products are not ready compete with, and it will be big change for Vietnam’s agricultural industry if the tardy supporting from government does not focus on key competitive advantage products. Hoa Loc mangoes are a brand of Vietnamese, the improvement of slim-skin as this research explores like the weakness of international market. The government must sponsor for the research project to ameliorate the Hoa Loc mangoes’ skin, we need making it to be thicker than currently, and improvement the immunizing diseases. The budgets for applied scientific research are just paid by government, and there is no firm could have enough resources to invest for this project, and the result of applied scientific research will encourage farmers or co-operatives to apply in their productivity. SOHAFARM has communicated about their co-operation between Can Tho government and Can Tho University for some projects in applied scientific research, and some results make effectiveness in management, but SOHAFARM is not enough budgets for the big research and requiring long term investment. - 69 -
  • 70. Government should organize the frequent trade fair for Vietnam’s key fruits; these events could help advertising those fruits to the market. Every year, the international trade fairs were organized over the world, and there are no more farmers, firms and co-operatives in agricultural can join these events, because there are a lot of reasons like budgets, effectiveness, information, and others. So that, Vietnam businessman in agricultural is lack of competitive information, trends and the advanced technologies. Through international relationships and sponsorship from international organizations, government should make a contact between trade fair organizers and farmers, cooperatives to join these every year big events in industry. Vietnam needs more farmer and cooperatives (firms) to apprehend knowledge in brand building. In WTO combat game, there are no any opportunities for selling commodity, we must compete together through building brand, and brand makes any products gain economic values for re-investment. The training program in brand building for farmers, cooperatives and firms in agricultural should usually organize to train how they can build their brand and maintain their brand development. Besides that, government may seek to find out the consultant projects in brand building for fruits and Hoa Loc mangoes. Those projects normally are managed by international organizations, so the effectiveness of consultant could stimulate for agricultural products development. But finding out the sponsorship form international is not easy, and some conditions bind to cause for some government be worried by international sponsor. In fact, Vietnam needs this supporting for accessing international combat games. 3. Customer aspects All brands start with representative for consumers need and want, so that Hoa Loc mango is the famous mango brand which is long-term development in Vietnam. But consumers always want Hoa Loc mangoes to be better and better; brand images, brand quality perceived, brand association. They towards buy the brand and requirements of brand must satisfy the trends of their lives. So that, consumer is the key for any brand development through satisfying them. - 70 -
  • 71. Consumers should consider branding which is not commodity in fruit or mango buying. In fact, consumers are not loyalty in fruits and they will change other fruits if the price changes much and the fruits are not present in retails systems. So we should build brand to improve the brand loyalty. In other hand, most of consumers are worried about the quality of products and high chemical inputs in fruit productions and that will be trustworthy reasons for us to believe in our brand building strategy. Through brand name, SOHAFARM can ensure to consumers about its mangoes quality, and this is the trustable signal for consumer choosing. Consumers need the promise about safe fruits. In international market, safety standards are required by any market-importers. So, the brand message must obtain the guarantee in any fruits to sell out. This means that today consumers live with the safety-life and so, the brand strategy should explore the real-needs of consumers. Consumers should believe in domestic brand name, especially in some weakness industry like agricultural products. Consumers must be the intelligent customers, and the priority choosing Hoa Loc mangoes encourages way speeding up agricultural building brand. For international customers, building brand requires time for believing and proves the good brand quality perceived, so that, those consumers will be the big challenges for any brand, and they always are safe by close regulation. For any aspect related to Hoa Loc mangoes brand, this fruit is a famous brand and it owns the opportunity to become the strong brand, and we also know some problems in agricultural productivity, but all of above, doing business in Hoa Loc mangoes’ investments will gain profits and this mangoes can be the case in agricultural product branding for Vietnam. - 71 -
  • 72. CONCLUSION This thesis research in branding try to find out some aspects how to apply brand name theory into the agricultural industry, and we use Hoa Loc mangoes like the case to analyze. Through the consumers’ interviews, collecting data, interview experts and using analysis tools, this research explores about brand vision and mission for long-term and short-term strategy as well as the strategic values of brand vision and mission. Besides that, this research brings out the meaning of brand name through brand strategy driving, and this strategy must base on brand equity like the future goals of branding. After all, how positioning of brand can drive all brand plan (activities) and communication message. Basing on the research results, consumers believe in the fame of long-term development of Hoa Loc mangoes, consumers pay attention to some outstanding about sweet, sweetsmelling and some others. However, the inherent weakness of slim-skin is reason for Hoa Loc mangoes’ international market weakness. We also find out that the fluctuation price is 10000 VND and if the price is higher, consumers tend to buy other fruits. The adjustment of distribution must be flexible and reduced the dependence of traders or middlemen. Hoa Loc mangoes shall be the strong brand if we can manage total brand strategy. Firstly in research showed the strength top-of-mind, but brand-loyalty met problems feature season of Hoa Loc mangoes, thus diversifying product (fresh and processing) is a suitable strategy. Secondly comparing with Thailand mangoes, most of Hoa Loc mangoes’ brand attributes which are better than choosing those attributes are brand positioning, that is the right strategy for brand plan. Hoa Loc mangoes were endorsed by long-time development, and its brand equity is currently to drive the future of branding. But this research also shows that we must build the long term strategy through investing to produce fresh-fruit, labeling all mangoes, registering trade mark, developing brand identity and participating the trade fair event. - 72 -
  • 73. The important contribution for this thesis is labeling and building brand identity. This urgent strategy bases on that most consumers need the signal to choose, and differentiate from other mangoes. Branding will also reduce the buying risk meanwhile decision making of mango buying depends on seller introducing, so that building brand identity ensures the promise of brand to consumers and community. Hiring designer for brand identity is conscious professional, SOHAFARM or other firms should use this service to make the brand identity suit with market competition, consumers’ trends and international development. Focusing on branding aspect, the research could not approach overall Hoa Loc mangoes problems. For the further research, we need to explore the planting and post-harvest of Hoa Loc mangoes, besides that, Hoa Loc mangoes need the solution to innovate in resisting a disease. - 73 -
  • 74. APPENDIXES: 1. Questionnaire Design QUESTIONNARE DESIGN Date of interviewing: Name of interviewees: Area interviewing: Age: Occupation: Address: 1. Do you like to eat mangoes? o Like o Dislike 2. What kind of mango below do you like? o Sweet mangoes (all kinds) o Thanh Ca mangoes o Buoi mangoes o Thom mangoes o Importing mangoes (all kinds) o Other 3. Where do you usually buy mangoes? o Traditional market o Supermarket o Fruit shop o Other 4. What for? o Eating o Gift o Juice fruit o Making cake/candy o Worshiping o Other 5. What are your reasons to eat mangoes? o Good delicious o Health o Habit o Family requirement o Changing other fruit o On harvest (low price) o Entertaining guests o Other - 74 -
  • 75. 6. On harvest, How long do you buy mangoes to eat? o Everyday/1 time o Two days/1 time o Three days/1 time o One week/1 time o Ten days/1 time o Other 7. Out of harvest, How often do you buy mangoes to eat? o Everyday/1 time o Two days/1 time o Three days/1 time o One week/1 time o Ten days/1 time o Other 8. How many kilograms do you buy for one time? o 0.5 kg o 1 kg o 1,5 kg o 2 kg o 3 kg o Other 9. What is your occasion to buy mangoes? o When go to market o When needed o See casual place o Other 10. Please tell us, what are you worried about when buying mangoes? o Easy breaking o Un-soft (pulp) o Foxy cover o Easy addled pulp o Sour o High chemical inputs o Other 11. Do you like food processing from mangoes? o Yes o No 12. According to your opinion, what kinds of mango food processing do you like? o Cakes o Candy o Fruit juices - 75 -
  • 76. o Jam o Desiccation o Flavoring (industry) o Other 13. When you hearing about sweet mangoes, what is kind of your Top-of-mind? (list out) 14. Do you know another kind of mangoes?(list out) 15. When you buying mangoes, how can you differentiate many kinds of your favorite mangoes? 16. Giving mark from 1 to 5, Please give your mark following the arrange 1 (best) to 5 (not best)? o Hoa Loc sweet mangoes o Chu sweet mangoes o Thailand mangoes o Buoi mangoes o Thanh Ca mangoes 17. When you go to buy Hoa Loc sweet mangoes, the selling place is not, you will? o Do not buy o Find another place o Buy another kind of mangoes o Buy another fruit o Don't know 18. If you must choose another to replace Hoa Loc mangoes, what kind you choose? 19. On mango harvest, how much you pay for 1 kg mangoes? o Below 20,000 VND/kg o 20,000-25,000 VND/kg o 26,000-30,000 VND/kg o 31,000-35,000 VND/kg o Above 35,000 VND/kg 20. Out of mangoes harvest, how much you pay for 1 kg mangoes? o Below 20,000 VND/kg o 20,000-25,000 VND/kg o 26,000-30,000 VND/kg o 31,000-35,000 VND/kg o Above 35,000 VND/kg 21. When you buying mangoes, if there are a lot of kinds of mango. You will? o Priority Hoa Loc mangoes o Choose any one o Asking seller introduction o Depending on real case o Other 22. When you think about Hoa Loc sweet mangoes, What are the best attribute you think about? (choose 1) - 76 -
  • 77. o Sweet o Sweet-smelling o Beautiful o Soft o Less fibres o Small seed o More nutrition 23. Please give your mark about those attributes of Hoa Loc sweet mangoes? (arranged from 1 (bad) to 5 (good) o Sweet o Sweet-smelling o Thick Pulp o Slim skin o Beautiful o Great color (ripen) o Brand name (famous) 24. For identifying the real Hoa Loc sweet mangoes, what will you base on? o Self experiences o Seller introduce o Looking the cover o Looking the overall stature o Bottom of the fruit o Smelling o Other 25. If think Hoa Loc sweet mangoes like a person, what is its personality? o Friendly o Open armed o Truthful o Haughty o Dynamic o Other 26. Please give mark about brand image of Hoa Loc sweet mangoes? (arranged from 1 (not premium) to 5 premium) Not premium 1 2 3 4 5 Premium 27. Do you eat Thailand mangoes? o Yes - 77 -
  • 78. o No 28. What do you like about Thailand mango attributes? o Sweet o Sweet smelling o Thick Pulp o Beautiful o Great color (ripen) o Thick skin o Other 29. Please compare those attributes between Hoa Loc sweet mango and Thailand mango (if mark to bland which choose better, and do not choose as not better)? sweet SweetThick Beautiful Big Thick Brand Nutrition smelling pulp skin name Thailand mangoes Hoa Loc mangoes 30. According to your opinion, what is the benefit of building brand name when selling mangoes? o Easily identified o Avoid confusedness o Know original product o Do not worry about price o Take time to buy o Other - 78 -
  • 79. 2. Hoa Loc mangoes brand identity Source: CABP/VietnamMarcom and Sai Gon time economic - 79 -
  • 80. REFERENCES: Text books: - Kotler and Armstrong, 2001, “Principles of marketing”, 12/e, Pearson Education Australia publisher. - Jean-Noel Kapferer, 1992,“Strategic brand management“, Simon & Schuster publisher. - Alina Wheeler, 2003, “Designing brand identity”, John Wiley. - David A. Aaker, 1991, “Managing Brand Equity”, Macmillan Canada. - Micheal W. Lowenstein, 1997, “the customer loyalty pyramid”, Quorum Books. - Jack Trout and Steve Rivkin, 2000, “differentiate or die”, Jonh Wiley & Son publisher. - David A. Aaker and Erich Joachimsthaler, 200, “brand leadership”, Simon & Schuster. - VIM (Vietnam Union of science and technology), 2003, “Brand Management”, Lao Dong publisher. - Program of Vietnam High Quality Product, 2002, 2003, “Thuong Hieu Viet”, Saigon Time Economic publisher. Articles: - MOT and Unsaid, 2004, Project of building Vietnam Commerce Law (adjustment)“Document of workshop on franchising”, MOT published - J. E. Austin Associates Vietnam Representative Office, 2003, “Fruits cluster strategy”, USAID publisher. - Getachew Abate and H. Christopher, 2005, “Rapid Opportunity Assessment: Fruits Sector”, Peterson publisher. - Vu Hoa Binh, 2005, “Preservation and production Vietnamese fruits”, Institute of Ho Chi Minh Foods. - Axis Research Company and Can Tho city, 2005, Can Tho fruits and vegetables report, Can Tho government. - Dang Vy, 2006, “Accessing WTO: the inferior of Vietnamese fruits”, VietnamNet publisher - Minh Nguyễn, 2006, “to wining the domestic market of Vietnam fruits”, Vietnam agriculture magazine. - Mạnh Hùng, 2005, “the fruits of west: learning from winner”, VOV publisher. - 80 -
  • 81. - Ha Vy, 2005, “the unstable distribution of Vietnam fruits”, Vietnamnet publisher. - Vinanet, 2006, “Vietnam fruits are going to 2010”, Ministry of Trade published. - Tuan An, 2006, “one third Vietnam fruits are rotten”, Vinh Long websitse (www.vinhlong.gov.vn). - Quang Tri, 2005, “Developing fruits in the west of Vietnam; solutions and challenges”, VNECONOMY newspaper. - Dr. Nguyễn Minh Châu, 2000, “products of SOFRI”, VNECONOMY newspaper. - Doctor. Đo Van Son, 2003, “the nutritive of mangoes”, Suc Khoe & Doi Song magazine. - Hong Thoan, 2007, “the quality of Vietnam fruits and vegetables to exporting”, VNECONOMIC newspaper. - Dong Nghi, 2006, “WTO-more difficulty for Vietnam’s fruits”, SGGP newspaper. - Van Truong, 2004, “building brand for Mekong-delta fruits; starting from root”, TTCN magazine. - Ho Hung, 2006, “Hoa Loc mangoes of SOHAFARM”, Tia Sang magazine. - Le Thu, 2006, “Developing bear fruits out of crop”, Can Tho newspapers (www.baocantho.gov.vn). - 81 -