branding in vietnam - cmo conference marketing

Left Brain Connectors isLeft Brain Connectors is a leading strategy leda leading strategy led design company in g p yVietnam and SE Asia

Our clients

Nestle VietnamPepsiR

QD TekArt GlassB bil hRomano

EnchanteurEversoftGervenneH ikid

Bavapen mobile phoneBoca GlassDKSH (Diethem)Prudential financeS i S bHapikids

Dr. menV-PhanoNew York SchoolH d f d

Saigon SunbayNuti foodVinataba (lion king)Sapphire scooterI t f d ( d f )Home made food

BIM GroupGomex noodleTan Hiep PhatDQ Gl

Interfood (wonderfarm)KAOPoca (snack)Disney (consumer products)

DQ Glass …

Proudly present theProudly present the latest outstanding work on Dr. Thanh herbal tea projectherbal tea project

Brand identityBrand identityPackaging solutionOOHPOSM design

Launching skinz expert

Brand positioning / naming strategy - Brand architecture - Packaging design - Brand campaign

Branding in VietnamBranding in VietnamKey learning and insight

Prepared by left brain connectors, Dec 2009

Vietnam

What you see most

mess traffic problem mess traffic problem

What you hear most

horn happy presser horn happy presser not by choicesnot by choicesnot by choicesnot by choices

What you taste most

nuocnuoc mammam(fish sauce)(fish sauce)

What you feel most

energeticoptimistic most happiest countrymost happiest country(voted by international magazine)

Where you go most

ShSh thth t tt tShop onShop on--thethe--streetstreet

Vietnam doesn’t need any superVietnam doesn’t need any super--hyperhyper--mart mart coz it already has one...coz it already has one...

Life on the streetLife on the street –– shop onshop on--thethe--streetstreetLife on the street Life on the street shop onshop on thethe streetstreet

“before” “after”

Marketing is Vietnam is all about “properties”

Location. Location. Location Location. Location. Location

BEAUTY CARE

77% Vietnamese women aged from 15-45 is more health consciousaged from 15 45 is more health conscious

increased number of women taking vitaminor health supplements from 61% in 2006to 81% in 2008 of 18-26 y.o

Branding to elderlyti ll h ld b li k d t kidemotionally should be linked to kids

live longerlive happier

ith kidwith kids

You can’t imagine how life will be without a motorbike !

To most youngster it isTo most youngster, it is more than just a transportation

mean, it is;

a friendsign of status

freedom USD 8,000 (in cash)USD 8,000 (in cash)US 8,000 ( cas )US 8,000 ( cas )

High efficient of distribution vehicleHigh efficient of distribution vehiclebest fit to small roadbest fit to small road

to residential areasto residential areas

CONVENIENCE !CONVENIENCE !Cost effecti enessCost effecti enessCost effectivenessCost effectiveness

Fast Fast

For those who do business in Mekong delta ignore this.For those who do business in Mekong delta ignore this.

Learn to use the “subLearn to use the “sub--way”way”

The fastest route is more important than the shortest routeThe fastest route is more important than the shortest route

What you surprise most

MENNormal practice (more traditional type)

Life after work. Mostly everyday café.A 2 d k B t “ ”Average 2 days a week . Beers at “quan”Friends. Socializing. Even,

Business transaction

Whil t “ ” h ’ hWhile men at “quan”, she’s happyat café with friends/colleagues

What you upset most

slow administrative processmost of the time coz delay brand campaignmost of the time coz delay brand campaign …

You'll need a good local partner (“You'll need a good local partner (“thổthổ địađịa”) to help. ”) to help.

Vietnam is still attractive to foreign investors to some reasons…Vietnam is still attractive to foreign investors to some reasons…

Political stability.y

One of the youngest economies of South East Asia.

82 Mil of population to date.p p

65% under 45 of age.

Only slow down growth ratio during global recessiony g g g

For local brands, still facing some big challenges at home. Hence, this is opportunity for long term oriented international marketers

Tough challenge:Tough challenge:

Major challenge is the lack of home grown Vietnamese brands, which could stand their ground against the global giants and add flavors/choices in the market.

Only a handful of Vietnamese brands are in the market such as the national flag carrier Vietnam Airline, the homegrown coffee retail-chain Trung Nguyen Coffee, just to name a few.

Suffered from lack of strong financial foundation of the business, large scale business management experiences.

Forget “what makes us big”, follow the short term interests to “too diversified” strategy and losing the corelosing the core.

Watch out the big friend -ChiChina

Border close to VietnamCheap productSimilar designAcceptable quality

Vi t i tVietnam is not one market

Different market, culture and consumption behaviors

NorthHanoi

CentralHue, Danang, Nhatrang

Highland CentralBan Me Thuat, PleikuDalat South

HCMC

Mekong deltaCantho

“ME” “OTHERS”

Vietnamese isVietnamese is so “protective”so protective when it comewhen it come t t tto taste.

Region Resistance(toward changes)

Taste(in general)

Resistance(toward changes)

Saltynorth Strong Value based

Appearance

T t SpicyTastes central Stronger ConservativeSensitiveness

Sweet south Less-strong OpenNewest

Product Place People Price

Common Characteristic

DiversifiedLess CholesterolFlavorful tasteChopsticksChopsticksMany ingredientsHealthy Goodness

Typical Vietnamese Dish

DIFFERENCE GEOGRAPHYPEOPLE, CHARACTERCULTURE INCOMECONSUMPTION BEHAVIOR

CHALLENGINGFLEXIBILITY WIN

NORTH CENTRAL SOUTH

PHO BUN BO HUE HU TIU

Beverage caseg

Not well successful in 10 consecutive years

It is now reluctantly adapted to suit the taste of local drinker.

A No-choice option for survival for a well-known, conservatively brand controlled strategy around thebrand controlled strategy around the world.

Sales gain quickly after the launch

“strong Vietnamese coffee”g

Quick reaction Reduce competitive pressure immediatelyReduce competitive pressure immediatelySales increase from category that grows

“strong is not enough, best fit taste that matter”

To coke, the biggest enemy is not Pepsi

Number 1 tea products in Vietnam

Evolving of product marketing

Number 1 tea products in VietnamBut not from Coke or neither Pepsi, Nestle, Unilever, Yeo’s …

5 year time

Home made ice tea Lemon ice tea green tea herbal tea

Number 1 tea products in VietnamFrom THP Group, the most successful beverage group in Vietnam and Indochina.

h !however !

Do these products own some U.S.P ?

They may not areThey may not are unique products butunique products but they are first into the ymarket.

Favor the first.

Emerging consumer classEmerging consumer class

Got moneyEasy to brand switchingHigh brand trials, but Less loyalty

KEY TO SUCCESS NOW KEY TO SUCCESS LATER

Being the firstHigh availability

Being uniqueHigh availability

Relevant advertisingUSP (functional benefit)

Creative advertisingEmotional connection

Food case

A loser product of UnileverCay Da tea

“Chè Thái gái Tuyên”Chè Thái, gái Tuyên

the old Vietnamese expression that means great tea from Thai Nguyen and great girl from Tuyen Quang (a province in the highfrom Tuyen Quang (a province in the high

north area of Vietnam)

Prefer the strong authenticity taste of local tea “province

branded”h iThai Nguyen, Lam Dong, Tan

Cuong …

A brand of Unilever

PHU QUOCPHU QUOC

Fish souse

High welcoming of modern food franchising business

(First professional and modernization Pho noodle chain of Vietnam to the world)

Corporate Social Responsibility (CSR)

Culture sensitivityCulture sensitivity

Thousand years of instability

China invasionChina invasionChina invasionChina invasionJapaneseJapaneseFrench warFrench warAmerican warAmerican warCold warCold war –– closing doorclosing doorCold war Cold war closing doorclosing door

look out for the best fit look out for the best fit Brand communications strategyBrand communications strategyBrand communications strategyBrand communications strategy

PR, CSR, events …PR, CSR, events …

A lot of rules and regulation forA lot of rules and regulation forot o u es a d egu at o oot o u es a d egu at o oAdvertising communication programsAdvertising communication programs

How you give is more important than what you give”

Marketing - Don’t forget the influential “buyer”

“I love its design – the Asus, but I need to seek further advices from my men”

“I like the innova. However I still need my wife’s opinion about it. It’s better to take her with me to showroom next time”

A “responsible” men.

For “technical” aspects women ask men for advices.

But mostly she control the “buying” decision.

she’s traditional housewife, and even modern Vietnamese women

she’s powerful.

(insight: men love her to do so too)

Let’s “go branding” for Vietnam!Let s go branding for Vietnam!

Th kThank you