ubir.bolton.ac.ukubir.bolton.ac.uk/895/1/Thanh, Hoang dissertation.doc · Web viewIn this report, the author has applied the research method of survey by questionnaire; semi-structured

TITLE OF THE DISSERTATION

PR AND BUILDING BRAND NAME IN VIETNAM’S FMCG INDUSTRY:

CASE STUDY: COMPARING PR CAMPAIGN BETWEEN VINAMILK AND NESTLE

HOANG THI PHUONG THANH

Student ID: 0905244

Submitted in partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

BOLTON BUSINESS SCHOOL

Date: May, 7th, 2011

Dissertation – May, 2010 MBA 8

ABSTRACT

This research is conducted in the light of high fluctuation in Vietnam dairy market. With

focusing on two big FMCG companies, Vinamilk and Nestle, this report will give the

overview about the PR practices in building brands in the market.

In this report, the author has applied the research method of survey by questionnaire;

semi-structured interview and some market report to analyze the PR activities of two

companies under meeting three research objectives. The survey is conducted among the

consumers at 2 supermarkets. The target interviewees are the PR agency staff and internal

marketing team of Vinamilk and Nestle. Moreover, this research also uses primary date

from Vinamilk Annual PR Report and Nestle Annual Promotion Report to collect the

information about PR activities of two these companies.

The findings of research have pointed out the strength as well as weakness in PR strategy

of Vinamilk and Nestle in improving their position in the milk market. Both of

companies are lack of concentration on crisis management which is very important in the

light of many fluctuations in price and concerns about quality of products from

consumers. Moreover, both of them should focus on the online PR channel, which is very

effective to promote brand with advance technique and tools.

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CONTENT

ABSTRACT...................................................................................................................................................2

CONTENT.....................................................................................................................................................3

ACKNOWLEDGEMENT.................................................................................................................................5

I. INTRODUCTION......................................................................................................................................6

1.1 Overview about diary industry in Vietnam.....................................................................................6

1.2 Vinamilk and Nestle.........................................................................................................................7

1.3 PR industry in Vietnam....................................................................................................................8

1.4 Research objectives and structure.................................................................................................10

II. INTRODUCTION....................................................................................................................................11

1.1 Advertising.....................................................................................................................................11

1.1.1 Definition.................................................................................................................................11

1.1.2 The function of advertising.......................................................................................................13

1.1.3 Forms of advertising.................................................................................................................15

1.2 Public Relations(PR).......................................................................................................................18

1.2.1 Definition.................................................................................................................................18

1.2.2 The tools of PR.........................................................................................................................20

1.2.3 Activities in PR..........................................................................................................................22

1.3 Advertising and PR........................................................................................................................25

1.3.1 Comparison between PR and advertising.................................................................................25

1.3.2 The role of advertising and PR in positioning brand.................................................................26

III. METHODOLOGY...................................................................................................................................30

3.1 Research philosophy.......................................................................................................................30

3.1 Research philosophy.......................................................................................................................31

3.2 Research approach..........................................................................................................................33

3.3. Research Objectives (RO)...............................................................................................................36

3.4 Research strategy...........................................................................................................................38

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IV. RESEARCH ANALYSIS AND FINDINGS...................................................................................................46

4.1 Objectives 1: To identify and assess the PR resources and ability development in these two companies.............................................................................................................................................46

4.1.1 Resources.................................................................................................................................46

4.1.2 Core competence.....................................................................................................................48

4.2 Objective 2: To assess the PR impact on customers’ brand recognition and buying behavior... .49

4.2.1 The approach method..............................................................................................................49

4.2.2 Key characteristic of product....................................................................................................51

4.2.3 Community relation.................................................................................................................55

4.2.4 Community relation.................................................................................................................56

4.2.5 Promotional materials.............................................................................................................59

4.2.5 Social events.............................................................................................................................61

4.3 Objective 3: To measure and compare the required development and investment into PR campaign of Vinamilk and Nestle’ to expand the market share and penetration..............................65

4.3.1 The rate of public appearance..................................................................................................65

4.3.2 Human Resource......................................................................................................................66

V. RECOMMENDATION AND CONCLUSION.............................................................................................67

5.1 General commendation.................................................................................................................69

5.2 Crisis management........................................................................................................................69

5.3 The online PR.................................................................................................................................73

APPENDIX..................................................................................................................................................75

REFERENCE................................................................................................................................................83

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ACKNOWLEDGEMENT

I am grateful for our teachers and tutors of Bolton University who are very enthusiasm in

instructing the theory at mastering level in the course. Thanks to your support, I have

completed all my modules successfully.

Also, I would like to thank my classmates in helping to explain and share the knowledge

so that I can understand clearly the lessons in text books and materials

I am very thankful for encouragement from my family to finish my course without any

interruption

Finally, I’m pleased to send my great thank to CIC who has tried to support all MBA 8

members in learning and doing dissertation.

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I. INTRODUCTION

I.1 Overview about diary industry in Vietnam

The Vietnam dairy market is considered as the consuming goods to achieve the rapid

growth as well as have the marked fluctuation in recent years. According to report about

dairy product in Vietnam of Euromonitor International (EMI) in 2009, the sales volume

of dairy products in Vietnam went up to 12%, which is regarded as the highest growth

rate ever seen in last 6 years due to the increasing high demand of dairy products both in

the urban and rural areas. As statistic number in Dairy Report conducted by HabuBank,

the considerable growth of domestic fast-moving consuming goods (FMCG) and the

strong approach of foreign dairy brand names simultaneously create the huge potential as

well as the fierce competition to have the biggest piece of this cake.

Figure 1.1: The growth rate of Vietnam dairy market from 1990 to 2010

(Source: Jaccar Equity Research – Vietnam)

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With advantage of plentiful natural resources, the potential of increasing dairy industry in

Vietnam is totally possible. The huge dairy companies have built their own farm to feed

and harvest the raw materials and transfer to factory to process. This progress has

reduced the producing cost and increased the quality of product, which satisfies the

concerns of consumers.

I.2 Vinamilk and Nestle

Vinamilk and Nestle is the giant in dairy industry in Vietnam, who is the first choice of most housewives

for their family’s nutrition. By conducting the PR strategy and social campaign, Vinamilk and Nestle have

built their prestige and reputation in the market. Apart from the economic contribution, these two

companies also bring the opportunities for children especially the poor and ethnic ones to go to school

and improve the health care through the donation campaign and social responsibility.

2004 2005 2006 2007 2008

Abbott Vietnam 23.1 23.8 23.4 23 23.1

Vinamilk 11.2 14.4 15.6 16.4 17

Mead Johnson 14.3 13.9 14.9 15.1 14.7

Dutch Lady 10.8 12 12.4 13.2 13.8

Nestle 8.9 10.1 9.3 8.6 8.5

Meiji 2.9 2.1 1.8 1.6 1.5

Others 28.8 23.7 2.,6 22.1 21.4

Total 100 100 100 100 100

Table 1.1: The market share in Vietnam dairy milk from 2004 to 2008

(Source: EMI, 2009)

Vinamilk has a wide range of products which can provide multiple choices for customers

while Nestle focuses on its key product cereals for kids. Each of companies has their

competitive advantage to increase the market share in Vietnam dairy market.

I.3 PR industry in Vietnam

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The concept of Public Relation (PR) appeared firstly in Vietnam in 1990s, which is

originated from the foreign FMCG companies’ promotion campaigns to build brand

name and expand market share. PR was recognized as the decisive factor in positioning

image, obtaining consumers’ loyalty and increasing sales volume. Hence, a new trend in

promotion and communications created the burst of PR agencies in Vietnam, which

created a new trend in promotion and communication of the companies. Along with that,

there is increase in cooperation with outsource PR partners to draw up and conduct the

strategic communications campaign rather than developing an internal PR team. With the

advantage of deep knowledge about the Vietnamese culture and policies, Vietnam PR

agencies seem to be the better choices for companies rather than the foreigners.

Figure 1.2: PR Agencies’ Customers rate

(Source: AJC-PR Khaosat 7/07 Survey, adapted from Dinh (2010))

PR, now, is not only important to companies but also to governance organizations.

According to the survey of AJC-PR7/07 carried out by Bachelor of Public Relation and

Advertising, Academy of Journalism and Communication, the enterprises are the biggest

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customers of PR agencies at 64 % while the governance organization occupies 6% (see

Figure 1.2). Also, there is a small difference of PR involvement among sectors in which

the business, production, entertainment and telecom involve in PR activities at highest

level (see Figure 1.3).

Figure 1.3: The PR involvement rate of economic sectors

(Source: AJC-PR Khaosat 7/07 Survey, adapted from Dinh (2010))

However, there are shortcomings in PR activities in Vietnam. The PR staff in Vietnam is

lack of professional knowledge due to the limited academic training. A PR specialist

must master in various skills from policy formulation, consultation, crisis management,

and lobby to event and press conference organization (Dinh, 2010). Furthermore, the

information used for PR campaigns is lack of credibility. In aim to enhance the reputation

of one company or one person, PR makers make up the information to get the customers’

trust. The cases of PR abuse have increased in Vietnam, especially in entertainment

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industry. The third limitation of PR in Vietnam is lack of legal framework. More and

more companies originating from difference products and services provide PR service

with the poor knowledge and skill. This fact weakens the quality of PR service in

Vietnam.

I.4 Research objectives and structure

This piece of paper focuses on building brand name by PR tools of Vinamilk and Nestle

in Vietnam market. These two big companies have obtained the certain position and

market share in different segment of dairy product. This research’s purpose is to analyze

the PR campaign and investment of these two companies as well the effectiveness of this

cost in regards of customers’ recognition and sales growth.

This report contents six sections including Introduction, Literature Review, Research

Methodology, Research Analysis, Recommendation and Conclusion. The first section

gives the brief introduction about the dairy and PR industry coupled with the overview

about Vinamilk and Nestle. Then, Literature Review focuses on the concept of PR in

comparison with traditional advertising as well as their role in branding product. The

following part, the research methodology, demonstrated the methods which are applied to

get the information and opinions about the topic mentioned whilst Research Analysis

provides the result of practicing PR conducted by Vinamilk and Nestle companies in

Vietnam retail market. The author also offers some recommendations on PR activities in

building brand name more efficiently in following section. The Conclusion gives the

general idea about all findings in the whole report to sum up the research results.

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II. INTRODUCTION

Advertising and public relations are the key concepts in scope of Integrated Marketing

Communications (IMC) (see Figure 1.1). In this section, their definition, characteristics

and roles in marketing mix will be demonstrated in detail.

Figure 2.1: 4Ps in marketing mix

(Source: adapted from Wilson & Gilligan, 2005)

1.1 Advertising

1.1.1 Definition

There is concern about when the advertising appeared. Some scholars claimed advertising

had been original earlier from paintings in the ancient caves (Tungate, 2007). On the

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other hands, it is argued that from the very early history, the former form of advertising

has begun which is trademarked by the archaeologist from Mediterranean Sea using signs

on the land to inform events and offers, Romans painting on the wall to announce fights

or Phoenicians painting their goods on big rocks (Kotler et al, 2005). Altogether,

advertising was discovered differently in various countries around the world. Typically,

Renaudot from Paris launched the first personal advertising on the notice board about the

recruitment and seek-job announcement when he was the official too young to practice

with the bachelor of doctor at 20 years old. After becoming the official doctor of Louis

XIII, he established the first newspaper in French called La Gazette, in which contents all

kinds of announcements from looking for and recruiting jobs, promoting goods to other

public events. Meanwhile, in the UK, William Tayler who was considered as the first

advertising agent began his career in London in 1786. Different to Renaudot’s purpose,

Tayler founded his firm, Tayler & Newton to be “an advertising sales representative” for

printers in aim to promote their business through publishing newspapers (Tungate,

2007:11). Generally, it can say that invention and development of advertising attached

with industry revolution creating the tough competition and burn of mass media. There is

no concern that advertising plays an important role in branding the companies’ product

and affecting consumers’ mind and buying behavior whatever forms of presentation and

developments (Wilson & Gilligan, 2005).

Advertising is regarded as one of the most effective communication tools of to position

the product in the market and increase the sales volume. It is very easy for the consumers

to find out advertising activities on such mass communications channels as television,

press, poster, banners, etc. Companies utilize advertising to communicate with their

target market segment and seize their brand name in customers’ mind. Consumers,

through channels of advertising, seek the suppliers to meet their demand. It is argued

many people obviously confused advertising to present all the activities of “P” promotion

in marketing mix rather than work together with other ones, even thinks about it firstly

regarding to marketing issues (Pickton & Broderick, 2005 ; Adcock et al, 2001).

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According to Lancaster & Massingham (2011:245), it was partly right to have that idea

from many people because among all elements of marketing mix, advertising is “one of

the most controversial” one. Therefore, it is very difficult to give an exact definition of

advertising. Pickton & Broderick (2005:593) defined advertising as “the use of paid mass

media, by an identified sponsor, to deliver marketing communications to target

audiences”. Similarity, Kolter et al. (1999:793) used the term of companies’ expenditure

for any agency on “non – personal presentation” and “promotion of ideas, goods or

services” to describe advertising activity. Particularly, Crosier (1999:266) defined

advertising as the mutual communication channel in which “an unmodified message” is

transmitted by public advertisement in an advertising stage to target consumers during a

negotiated place and time. Therefore, we can say that the advertising, in general, is the

agreement between the firms and mass media in which the firms have to pay a specific

fee for the communication channels to public the new brand of products or services to

oriented audience in turn.

1.1.2 The function of advertising

Advertising performs an important role in implementing strategic marketing strategy.

Some scholars pointed out that advertising is the effective promotion tool to foster the

sales volume of products. Kotler (2000) recognized the function of advertising as

branding extension for launching products. So, what, generally, are the advertising’s

functions? It is suggested by Yeshin (1998) that advertising fulfils 3 main functions in

marketing activities: Inform Persuade and Sell. These three functions are described in

detail as following:

Inform: Performing the function of informing, advertising just acts as the

announcer a specific content, for instance, the product information,

announcements to public. There are many organizations using adverting as the

informing tool. Say, companies utilize advertising to inform new product

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launch to the customers. Government use advertising to inform the public

announcement.

Persuade: In some instances, advertising functions as the persuader to change

the customers’ mind. Companies can use advertising to persuade the

customers to buy their new products or change the previous negative thinking

about their products. This function is very appropriate in political issue when

the candidates would like to persuade the electors voting for them in election.

Sell: Almost advertising is created to promote the sales volume of products or

services. Therefore advertising content must display the requirements of

customers and orient them to the promoted products to meet their demands. In

other words, advertising in some circumstances plays as the combination

between the supply and demands.

Similarity, Kotler et al. 92005) also described some main functions for advertising under

each category of informative, persuasive and reminder advertising (see Table 1.1).

Lanscaster & Massingham (2011: 246) provided a precise definition of three advertising

categories as below:

Informative advertising occurred in the purpose of informing the new product,

instructing the new ways of using product or announcing the changes of

products

Persuasive advertising is related to positioning the new brand or convincing

clients to change their buying behavior, or making the positive impact on

customers’ dissatisfying thinking about product.

Reminder advertising is used to enhance the loyalty of customers as well as

exploring the number of previous customers.

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Pickton & Broderick (2005:597) argued that it is wrong to think that advertising was just

used in the angle of consuming promotion. It also showed its functions in “industrial and

B-2-B products and industrial classified advertisements”.

Informative advertising

Telling the market about a new product

Suggesting new uses for a product

Informing the market of a price change

Explaining how the products works

Describing available services

Correcting false impressions

Reducing customers’ fears

Building a company image

Persuasive advertising

Building brand preference

Encouraging switching to your brand

Changing customer perceptions of

product attributes

Persuading customers to purchase

now

Persuading customer to receive a

sales call

Reminder advertising

o Reminding customers that the product

may be needed in the near future

o Reminding customers where to buy the

product

o Keeping the product in customers’

mind during off-seasons

o Maintaining top-of-mind product

awareness

Table 2.1: The functions of advertising(Source: adapted from Kotler et al., 2005)

1.1.3 Forms of advertising

As we have discussed about the roles as well as functions of advertising, it is essential to

wrestle into the displaying forms of advertising, or we call advertising media. From the

point of view Adcock et al. (2001), advertising media is the channel through which

advertising can interpret the promoted content to target audience. There are a variety of

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advertising media from television to newspapers and door-to door form which will be

explained more clearly as following and in Table1.2

Commercial television: This channel is very popular and effective to publish

widely the advertising to customers. Brown (2006) considered advertising by

commercial television with the combination of pictures, image, and sounds as the

fastest way to inform the product to the consumers.

Press (magazines, newspaper): The advertising on newspapers, or also called

advertisement, is usually divided into many categories in terms of contents such as

real estate, consuming goods, cars, etc. The customers will ease to find out the

category for their needs, in turn, the companies can approach the right target

segment. Moreover, the advertisements are very flexible in color, size, design and

appearance under the specific requirements (Tungate, 2007).

Figure 2.2: The advertising media and their underlying messages

(Source: adapted from Adcock et al., 2001)

Radio: Radio is regarded as the “major communication media for some more

‘captive’ audiences, reaching car drivers as well as factory audio systems, while

they are often just turned o as background sound in the home” (Adcock et al.,

2001). It is obvious that advertising on radio is costing less than others advertising

16


media due to the lack of visual display. However, the advertising message through

radio just lasts short-term and does not interpret efficiently to customers.

Cinema: Coupled with the increasing movie viewers, some entertainment firms explore this

advertising media to introduce their products or services. It is clear that this way’s disadvantages

lie at the limited audience and advertising contents.

Medium Advantages Limitations

Newspapers

Flexibility; timeliness; local

market coverage; broad

acceptance; high believability

Short life; poor reproduction

quality; small pass-along audience

Television

Good mass-market coverage; low

cost per exposure; combines sight;

sound and motion; appealing to

the senses

High absolute costs; high clutter;

fleeting exposure; less audience

selectivity

Radio

Good local acceptance; high

geographic and demographic

selectivity; low cost

Audio presentation only; low

attention (the ‘half-heard’

medium)’ fleeting exposure;

fragmented audience

Magazines

High audience selectivity;

flexibility; no ad competition

within the same medium; allows

personalization

Long ad purchase lead time; high

cost; some waste circulation; no

guarantee of position

Direct mail

High audience selectivity;

flexibility’ no ad competition

within the same medium; allows

personalization

Relatively high cost per exposure;

‘junk mail’ image

Outdoor Flexibility; high repeat exposure;

low cost; low message

competition; good positional

No audience selectivity; creative

limitations

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selectivity

Internet

High selectivity; low cost;

immediacy; interactive

capabilities

Small, demographically skewed

audience; relatively low impact;

audience controls exposure

Table 2.2: The advantage and disadvantage of advertising forms(Source: Kotler et al., 2005)

1.2 Public Relations(PR)

1.2.1 Definition

As introduced at the beginning of this chapter, PR is also a key element in marketing mix

belonging to ‘P” promotion long with mass media advertising, direct promotion, personal

selling, and sales promotion. So what is the PR? Similarity to advertising, PR owns

many definitions to describe its meanings and roles in marketing. Here are some

definitions for PR:

PR is the planned and sustained effort to establish and maintain goodwill and mutual

understanding between an organization and its public

(Institute of Public Relations cited in Pickton & Broderick, 2005: 547)

PR is the action of building good relations with the company’s various publics by

obtaining favorable publicity, building up a good ’corporate image’ and handling or

heading off unfavorable rumors, stories and events.

(Kotler et al., 2005:793)

It is statistic that there are more than 400 definitions of PR from many scholars, which

shows the high attention on this concept as well as this effectiveness in marketing

strategy coupled with other promotional tools. The definition offered by Institute of

Public Relations is used most commonly and officially until now. Nowadays, the term PR

has mentioned much more in everywhere, at every time. Whether how many definitions

18


of PR, all of them tend to describes the aim and objectives of PR activities, which help

the companies grasping their target consumers deeply and in turn, spreading the

companies’ image to public. The wide appearance of PR in almost business industries has

made people getting used to this concept even though not all of them can understand

deeply and clearly about its roles and objectives.

Theaker (2004) disagrees with the idea which considered PR as just about the promoting

the reputation of one company rather than emphasizing the role of “public” in PR.

L’Etang (2005) defined ‘publics’ word as the group of people who the companies wish to

approach, or target audience. According to Adcock et al. (2001), publics can be ranged

into many groups with typical characteristics from “general public to formal

representatives of the public and parties with particular interests, which is illustrated in

Figure 1.3.

Figure 2.3: The possible publics of company(Source: adapted from Adcock et al., 2005:326)

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1.2.2 The tools of PR

It is argued that one PR activity was considered to be successful if that activity had to

achieve the long-established objectives which are switching the negative perceptions of

consumer about one firm into positive tendency (Robinson, 2006). To get this, it is

necessary to have the effective PR tools. Lancaster & Massingham (2011give some

examples of PR tools to implement PR activities:

Press release: Press release is one kind of news contenting the planned message

which is issued in “objective and journalistic form”. McElreath (1996) described a

good press release as the written news with deep knowledge of media practices

and interpreting the planned message to publics.

Press conference: Press conference is a meeting which is organized to announce

one information or event and invites the guests including reports or journalists for

asking questions.

Press receptions: Press reception is usually the important event of one compant

(e.g. the launch of luxury car) with the VIP guests whose names is attached in

invitations. This media event is held in the top branding locations with

professional hospitality.

Facility visits: Facility visits are the site visits of guests including the media

representatives to experience some parts of company operation at its location.

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Figure 2.4: The PR tools

(Source: adapted from Adcock et al., 2001)

A media relation is the relationship with media to “take news to the editors, take

editors to the news, create relevant news stories and manage the new” (Adcock et

al., 2001: 330).

Through these PR tools, the PR activities will be implemented to achieve the objectives.

Figure1.5 shows the process of conducting PR activities by media tools. The detail of

these PR activities will be discussed more in the next section.

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Figure 2.5: The process of implementing PR activities by PR tools(Source: adapted from Robinson, 2006)

1.2.3 Activities in PR

The close process of PR activities will create a PR campaign for a company. Therefore, it

is essential to understand totally about the PR activities to build a good PR strategy. It is

very difficult to call all the name of PR activities, so Pickton & Broderick (2005:557)

have categorized all the activities into 11 areas:

Marketing Public Relations (MPR) planning and management: including all

activities related to the management, organization, planning and control of MPR

Media relations

PR activity Explanation Examples

Internal communications Communicating with

employee

In-house newsletter, suggestion

boxes

Corporate PR Communicating on behalf of

whole organization, not

goods, or services

Annual reports, conference,

ethnical statements, visual

identity, images

Media relations Communicating with Press releases, photocalls,

22


journalists, specialists,

editors from local, national,

international and trade

media, including newspaper,

magazines, radio, TV and

web-bases communication

video news releases, off-the-

record briefings, press events

Business to Business Communicating with other

organization, e.g. suppliers,

retailers

Exhibitions, trade events,

newsletters

Public affairs Communicating with opinion

formers, e.g. local/national

politicians, monitoring

political environment

Presentations, briefings, private

meetings, public speeches

Community

relations/corporate social

responsibility

Communicating with local

community, elected

representatives, head

teachers, etc.

Exhibitions, presentations,

letters, meetings, sports

activities and other sponsorship

Investor relations Communicating with

financial

organizations/individuals

Newsletter, briefing, events

Strategic communication ID and analysis of situation,

problem and solutions to

further organizational goals

Researching, planning and

executing a campaign to

improve ethnic reputation of

organization

Issues management Monitoring political, social,

economic and technological

environment

Considering effect of US

economy and presidential

campaign on UK organization

Copywriting Writing for different

audiences to high standards

Press releases, newsletters, web

23


of literacy pages, annual reports

Publications

management

Overseeing print/media

processes, often using new

technology

Leaflets, internal magazines,

websites

Events management,

exhibitions

Organization of complex

events, exhibitions

Annual conference, press

launch, trade shows

Table 2.5: The description of PR activities

(Source: adapted from Theaker, 2006:7)

Publicity. Adcock et al. (2001:328) defined publicity as “any publication or news

coverage about an organization, issue or product that us independently provided

by the media.”

Publications can be the annual report, financial statements, and employee stories

in form of text, audio and video.

Corporate communications are responsible for all internal communications within

organization, e.g. communicating with stakeholders, employees, corporate

advertising, etc.

Public affairs and community relations: establishing and retaining the

communications with government, local community, etc

Lobbying: an action “associated with public affairs and media relations to build

and maintain positive relations with, e.g. group leaders, legislators, and officials”

Sponsorship/donations

Events management is involved in managing special events such as one-off

events , conferences from preparing to hosting the events.

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Crisis management: “crisis management is the process of dealing with unforeseen

negative events and circumstances that can range in degree of impact on an

organization from local concerns to full-scale disasters.”

Research and analysis is the action to process the collected data to support in

management.

1.3 Advertising and PR

1.3.1 Comparison between PR and advertising

There is always concern whether advertising or PR is the most effective tool in marketing

strategy. Sutherland (2008) proved his idea about the huge impact of advertising on

customers’ choices by typical characteristics of advertising affecting on customers’

‘choosing the products such as evaluating the alternatives, repetition, imaged advertising,

etc. On the other hands, Robinson (2006) argued that the out-of-date technique in

advertising would cost time and money in approaching the target audience. Based on

some criteria offered by Pickton & Broderick (2005), there is a comparison between the

advertising and public relations.

Primary goals: It is obvious to have the difference in objectives of advertising and

PR. As mentioned above, advertising aims to inform and persuade the customers

while PR is used to create the positive attitude to companies and enhance the

understanding of all aspects of organizations

Credibility of message: PR achieves the higher credibility of messages than

advertising because PR itself is the transferring channel to directly customers.

Cost: It is argued that cost of advertising is always higher than those PR because

in some instances, PR is free (Parson, 2008).

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Control of message content: According L’Etang (2005), the message of PR is

controlled strictly by an agency before deciding to publish on mass media whereas

the message of advertising is directly spread on media.

Reach to audience: PR is claimed to “appeal simultaneously to at least two audiences” while

advertising aims to communicate directly with target audience.

Advertising Public RelationsPrimary goal - Inform

- Persuade- Build goodwill- Create positive attitude and understanding of organization’s products or services

Credibility of message low highCost higher lowerControl of message content

uncontrolled Strick

Reaching to audience Desired target Approach at least 2 audienceTable 2.6: The comparison of advertising and PR

(Source: adapted from Yeshin, 1998; Pickton & Broderick, 2005)

1.3.2 The role of advertising and PR in positioning brand

Although advertising and PR have many different characteristics, both of them also play

the key role in positioning brand of product. Firstly, it is essential to skim the definition

of brand and branding.

Brand is the totality of what the consumer takes into consideration before making a

purchase decision.

Pickton & Broderick (2005: p.242)

Branding is designed to enable customers to identify products or services which promise

specific benefits

(Wilson et al., 1995)

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In generally, branding aims to create the loyalty of customers for one brand which is on

the way to position in the market. Ries & Ries (2004:197) claimed that “a brand is born

with capability of creating new”. To obtain this objective, it needs the supportive factors

to draw up, implement and control the branding strategy. Amongst, we just focus on 2

element of marketing mix: advertising and PR.

Figure 2.6: The influencers of brand positioning(Source: Wilson & Gilligan, 2005: 354)

Regarding to the role of advertising in positioning brand, Yeshin (1998) argued that

advertising obviously has huge impact on this process because its effect on customers’

mind and behavior. George and Michael Belch (1993) developed a model of influent

factors on customers’ decision of choosing a brand (described in Figure 2.6). Through the

message of advertising, the customers’ mind will record the advertisement to analyze. At

this phase, it is the duty of advertiser to use special and typical images on advertisements

to enhance the brand in consumers’ mind. Coupled with the effect of other supportive

media, the credibility of advertising will increase, which will stimulate the brand choice

of customer.

27


Figure 2.7: Interacting factors on choosing a brand of customers

(Source: adapted from Belch & Belch, 1993)

However, Ries & Ries (2004) declined of advertising’s brand – building role. They also

confirmed that this role belongs to PR and advertising maintains the brand loyalty. Their

argument emphasized the creativity of PR to create the differentiation in positioning

brand and then, advertising is the following step to enhance PR ideas. In the other hand,

Awareness-Interest-Desire-Action (AIDA) model developed by Elmo Lewis about

hierarchy of effects show the contrastive thing. In this model, the emotional states of

consumers will change step by step due to the impact of media tools. Figure 2.8 describes

the AIAD model in which advertising performs the exploring the state of customers by

advertisements. PR will be the next influencer to make the customers feel interested in

brand, which is vice versa with what Ries & Ries argued.

Figure 2.8: The A.I.D.A model

(Source: adapted from Pickton & Broderick, 2005)

28


It is very difficult to say which is right or wrong. However, there is one right thing that

advertising and PR always support effectively for each other in implementing marketing

strategy. The marketing strategy can’t be successful without one these two elements.

They will interact with their tools and media to affecting the consumers’ buying behavior

and loyalty.

29


III. METHODOLOGY

This piece of writing analyses the PR strategy to brand of two dairy companies: Vinamilk

and Nestle – how they conduct the PR campaigns in the market and how effective these

activities are. Therefore, it is essential to carry out a research to grasp their PR activities

and effectiveness. Based on the drawn research objectives, this section will focus on a

research methodology to apply the most suitable method. Brown (2006:12) described

research methodology as the “philosophical framework” or the basic foundation of

research project.

30

Data collection and data analysis

Cross - sectional

Longitudinal

Mono method

Experiment

Multi-method

Case study

Survey

Grounded theory

Ethnography

Archival research

Deductive

Action research

Realism

Positivism

Inductive

Interpretivism

Objectivism

Functionalist

Interpretive

Radical humanist

Pragmatism

Subjectivism

Radical structuralist

Mixed methods

Time horizon

Techniques and procedures

Choices

Strategies

Approaches

Philosophies

Figure 3.1: The research methodology (research ‘onion’)(Source: adapted from Saunders et al., 2007)


3.1 Research philosophy

According to Saunders et al (2007), the research philosophy can be distinguished in 3 different ways:

epistemology, ontology and axiology (see Table 3.1). It is difficult to define which is better because each

of them has the typical characteristics affecting on the method to carry out the research. Moreover, it

also depends on the research questions and objectives which need to be found out.

Philosophy Epistemology Ontology Axiology

Types - Positivism

- Realism

- Interpretivism

- Objectivism

- Subjectivism

- Pragmatism

Typical

characteristics

Concerned with what

constitutes acceptable

knowledge in a field of

study

Concerned with the

nature of reality

Concerned

about value

judgments

Table 3.1: The philosophy of research

(Source: adapted from Saunders et al, 2007 )

Epistemology focuses on the “knowledge” what “can be observed and counted” to realize

the “limits and validity” (Brown, 2006:15). This research is based on the collected data

to make the analysis on the facts about PR strategy of Vinamilk and Nestlé in Vietnamese

market, which relies on epistemology philosophy. As mentioned in Table, stance of

epistemology contents positivism, realism and interpretivism which are explained more

clearly as following:

Positivism: Positivism demonstrates the hypotheses based on current theories the

examination on these theories by collected result of reality observation (Saunders

et al, 2007; Bell, 2006). Remenyi et al. (1998:32) argued that positivist approach

tended to “work with an observable social reality and that the end product of such

research can be law-like generalizations similar to those produced by the natural

scientists”. Saunders et al. (2007) gave another key element of approach is the

conducting method of “value-free”. The researchers play as the external role in

31


collecting and processing the data to analyze. It means that the researchers can’t

change or have impact on the collected resources.

Realism: This approach shows us what reality is. Similarity to positivism, the

researched objects are independent with researchers’ mind and feeling and used to

test the knowledge (Veal, 2006). There are two kinds of realism: direct realism and

critical realism. According to Saunders et al. (2007:105), direct realism means that

“what you see is what you get” whereas the critical realism considered what we

see is just the “sensations” rather than the things themselves directly.

Interpretivism: Interpretivism which is different from two mentioned

epistemologies emphasizes the role of human in “social actors” (Gray, 2004). It

makes sense that we change and interpret the meaning of our routine roles so that

the others can understand what we are doing and the behind meaning.

Figure 3.2: The process of doing research project from epistemology to research methods

(Source: adapted from Crotty, 1998)

32


3.2 Research approach

According to Figure 3.1, it is necessary to choose the suitable method approach to the

theory to lead to the final result of the research. Normally, there are two main approach

methods: induction and deduction. Dewey (1933) pointed out that deduction developed a

new hypothesis first and used the collected data to test this hypothesis, while induction

went from the details to conclude a general situation. Besides, one mixed method

between induction and deduction is also applied to interpret into the findings of research.

Figure 3.3: The process of deductive approach(Source: adapted from Robson, 2002, cited in Saunders et al., 2007)

As explained earlier, deductive approach begins with proposing a new theory and

examining it by the fact to give the final conclusion. Gray (2004:6) explained deduction

as the approach to “moves towards hypothesis testing, after which the principle is

confirmed, refuted or modified”. Moreover, according to Fisher (2010), the deductive

approach follows the logic process so it is independent with the observation of the

researchers. In case applying this research method, it is important for the resource

researcher to pay attention to its key points. Firstly, the deductive approach can provide

33


the explanation about “relationship between variables”. This characteristic allows the

resource researcher to test all assumed hypotheses to find out the final out-comings.

Secondly, this approach emphasized the independent role of researcher in observation to

collect data to follow the “principle of scientific rigor”. Additionally, in deduction

approach, the concepts need to be “operationalized” so that the facts are “measured

quantitatively”. The last key point of deduction is the “generalization” in choosing the

sample to get the general social attitude and response rather than in specific group

(Saunders, et al., 2007, 118).

Figure 3.4: The process of inductive approachSource: adapted from Veal, 2006)

In contrast, the process of inductive approach undertakes with collecting data first, then

using these data to analyze and find out the interaction between variables (Gray, 2004).

The conclusion of research, through inductive approach, is based on the experimentation

or a “posteriori” as illustrated in Figure 3.4, beginning with observation and finally

making the explanation what to be observed by analyzing the gathered data (Fisher, 2010;

Brown, 2006). Importantly, the practitioner researcher must conceive clearly about the

existing theory role in inductive process. This approach can’t be conducted to build up a

new theory without any perception from existing theory rather than playing supportive

role to explain the concepts and their lying meanings. Other concern of the inductive

followers is the “concept” of place they conduct the observation to gather the data.

Therefore, it is more appropriate for inductive researchers to carry out the research on a

small group of sample than in a large one similar to deductive approach (Quinton &

Smallbone, 2006).

34


Figure 3.5: The mixed method between deductive and inductive approach(Source: adapted from Gray, 2004)

The third research approach is combination between two mentioned approaches before.

Due to the limits as well as the advantages of both above approaches, it is possible for

researcher to combine them to use as the research approach method. According to Figure

3.5, the mixed approach to deploy the argument more logically. A brief comparison

between inductive and deductive approach is described in Table 3.2 to help the

researchers to find out the best appropriate approach for their research which will depend

on their research topics and purposes. Creswell (1994) suggested some criteria to choose

the way of approaching based on the topic of research project. For instance, if the

researchers can develop a conceptual framework and suppose a hypothesis from their

topic, it is better to apply the deduction. On the other hands, the induction is more

suitable for the topic which is quite new and posses little literature. However, it is not

necessary for researchers to apply strictly upon scholars’ suggestions. The practitioner

researchers can choose flexibly one of them or combine them to develop the research

objectives.

In this research, the main approach applied is induction with s little mixed approach in

some argument to achieve the research objectives. The reason for this choose is that the

research topic is about public relations, which may develop significantly in the Western,

but this concept has just appeared in Vietnam for a couple of years. Nevertheless, PR

35


strategy of Vinamilk may not be based on the existing theoretical framework and

literature. In this context, the induction approach to analyze the PR activities of Vinamilk

is more proper. Meanwhile, Nestle is the huge multi-national group, which must have the

strategic PR campaign to spread their brand in located countries and Vietnam may not be

exception. As a result, it is totally possible to apply the mixed approach to wrestle into

Nestlé’s PR strategy in Vietnam

Table 3.2: The comparison between induction and deduction(Source: adapted from Saunders, et al., 2007)

3.3. Research Objectives (RO)

It is very important to identify the objectives of research in the process of conducting

research (see Figure 3.6). Research objectives are considered as the central guideline for

what the researcher should do with their research project and answer the research

questions (Brown, 2006; Veal, 2006). The RO is the decisive factor in designing and

choosing the research strategies with supportive research tools. Quinton & Smallbone

(2006:49) offer a list of typical objective for research in business:

Relating to one specific industry (goods or services) in certain country

36


Relating to one academic matter

Relating to the new concept in specific industry

Proposing a new perception of one issue in regards with the theory and practice.

This research includes 3 ROs to develop the selected topic.

RO1: “To identify and assess the PR resources and ability development in

Vinamilk and Nestle.” This objective aims to search about the PR strategies which

have been implemented in two those companies through their resources and plans

for this activity.

RO2: “To assess the PR impact on customers’ brand recognition and buying

behavior.” As clearly stated in the statement, this objective focus on the impact of

PR on consumers’ loyalty with two companies in Vietnam diary industry.

RO3: “To measure and compare the required development and investment into PR

campaign of Vinamilk and Nestle’.” This RO’s purpose to measure the level of

investment into PR activity currently and in the future of Vinamilk and Nestle in

Vietnam market.

37

Figure 3.6: The brief research processSource: adapted from Gill & Johnson, 1997)


3.4 Research strategy

If comparing the research objectives as the guideline of research process, research

strategy is tools which support the researchers to build their project. Saunders et al.

(2007) stated that the decision of choosing research strategy depends on many factors

such as research objectives, your timeline, approach method of data resources, etc. There

are many kinds of research strategy mentioned later for researchers to find out the best

appropriate one for their projects:

Experiment: Experiment is defined as the “situation in which the independent

variable (also known as the exposure, the intervention, the experimental or

predictor variable) is carefully manipulated by the investigator under known,

tightly defined and controlled conditions, or by natural occurrence” (Bowling,

2002, p.216). The experimental method is also considered as the scientific method

because it is much related to natural sciences regarding to the process of proposing

theory and testing by argument and data (Blexter at al., 2006; Saunders et al.,

2007).

38


Survey: Survey is one of the most common strategies in carrying out the research

in variety of sectors. Survey is the form of research strategy using the question

who, what, where, how much and how many to ask a group of people to gather the

necessary information (Saunders, et al., 2007). Veal (2006) claimed that the

accuracy of collected information by survey will depend on the design of

questionnaires, selected samples, their honest and the researchers’ relook.

Case study: Case study is defined as “the strategy for doing research which involves an empirical

investigation of a particular contemporary phenomenon within its real life context sing multiple

sources of evidence” (Robson, 2002:178). Fisher (2010:69) highlighted the role of case study in

research as the explanation about the “interrelationships between the factors such as people,

groups, policies and technology that makes up the case studies”.

39


Research Method Advantage Disadvantage

Experiment - Minimizing risk level in extraneous

variables

- Controlling over the introduction and

variation of the ‘predictor’ variables

- Controlling the time-related threats to

validity

- More flexible, efficient and powerful

statistical manipulation

- Enable to yield casual relationships

- Difficult to design experiments about a

specific population

- Difficult to choose one control variable to

exclude other confounding variables

- High number of uncontrolled and

extraneous variables

- Unable to contrive the desired ‘natural

setting

- Contenting a variety of different roles in

unnatural social situation.

- Unable to capture the diversity of goals,

objectives and service inputs.

Survey - Good at providing generalized results

- Easy to administer without requiring any

fieldwork

- Enable to be reused for comparing

between different goals

- Providing a wide source of data quickly

- Omitting the link with wider theories and

issues

- Lack of focusing on the underlying

processes and changes

- Poor initial examination in understanding

of respondents with design questions

- Just suitable for small-scale research

40


project

Case study - High credibility

- Give overview about one issue from

specific case

- Displaying the complexity of society

- Providing ‘rich’ and potential data

resource

- Linking to action and contributing to

change practice

- More persuasive and accessible to

people

(Source: adapted from Cohen et al, 2000: 184)

- Very difficult to make analysis with

complicated cases.

- Difficult to grasp where the context of

cases begins and ends

Table 3.3: Comparison of research methods

(Source: adapted from Blexter et al., 2006)

41


Action research: Greenwood & Levin (1998:50) cited in Blexter et al. (2006)

pointed out, “action research is a complex, dynamic activity involving the best

efforts of both members of communities or organizations and professional

researchers. It simultaneously involves the co-generation of new information and

analysis together with actions aimed at transforming the situation in democratic

direction”. The action research is different from other types of research thanks to

its action-oriented characteristic, which is associated with using how question

(Saunders et al., 2007:141). Gray (2004) argued that when writing up an action

research, the researcher can formulate, conduct and assess the change progress to

solve the research topic. :

Grounded theory: This concept is developed by Barney Glaster and Anselm

Strauss in 1967, which “is concerned with the generation of theory from research,

as opposed to research that tests existing theory” (Veal, 2006:197). Grounded

theory is considered as the good method to building- hypothesis methodology

because the data in grounded theory which is collected by observation rather than

based on any basic theory will result in a primary prediction and examined by the

further observation to arrive at the final conclusion (Saunders et al., 2007; Bell,

2006).

Relied on the topic and objectives of this research, it is suitable to apply the multiple methods to

implement the data generations for critical analysis. The multiple methods are the combination of

quantitative and qualitative study and technique to gather and process the data from data collecting

tools. Firstly, let explain the concept of quantitative and qualitative. As described by Saunders et al.

(2007:145), “quantitative is predominantly used as a synonym for any data collection techniques (such

as a questionnaire) or data procedure (such as graphs or statistics) that generates or uses numerical

data. In contrast, quantitative is used predominantly as a synonym for any data collection technique

(such as an interview) or data analysis procedure (such as categorizing data) that generates or uses non-

numerical data”. It can say that qualitative approach would lead to the plentiful of information resource

about a small number of samples whilst quantitative one would result in certain information about large

group of samples (Veal, 2006; Creswell, 2003). The Table 3.3 describes briefly about the comparison of

42


quantitative and qualitative approach in the light of some criteria. Multiple methods, certainly, allow the

researchers to use more than one data analysis technique to collect and analyze the information into

facts.

1. Logic of triangulation. The findings from one type of study can be checked against the

findings deriving from the other type. For example, the results of a qualitative

investigation might be checked against a quantitative study . . .

2. Qualitative research facilitates quantitative research. Qualitative research may: help to

provide background information on context and subjects; act as a source of hypotheses;

and aid scale construction.

3. Quantitative research facilitates qualitative research. Usually, this means quantitative

research helping with the choice of subjects for a qualitative investigation.

4. Quantitative and qualitative research is combined in order to provide a general picture.

Quantitative research may be employed to plug the gaps in a qualitative study that arise

because, for example, the researcher cannot be in more than one place at any one time.

Alternatively, it may be that not all issues are amenable solely to a quantitative

investigation or solely to a qualitative one.

5. Structure and process. Quantitative research is especially efficient at getting at the

‘structural’ features of social life, while qualitative studies are usually stronger in terms

of ‘processual’ aspects . . .

6. Researchers’ and subjects’ perspectives. Quantitative research is usually driven by the

researcher’s concerns, whereas qualitative research takes the subject’s perspective as the

point of departure . . .

7. Problem of generality. The addition of some quantitative evidence may help

(generalizability). . .

8. Qualitative research may facilitate the interpretation of relationships between variables.

Quantitative research readily allows the researcher to establish relationships among

variables, but is often weak when it comes to exploring the reasons for those

relationships. A qualitative study can be used to help explain the factors underlying the

broad relationships . . .

9. Relationship between macro and micro levels. Employing both quantitative and

43


qualitative research may provide a means of bridging the macro–micro gulf.

Quantitative research can often tap large-scale, structural features of social life, while

qualitative research tends to address small-scale behavioral aspects . . .

10. Stage in the research process. Quantitative and qualitative research may be appropriate

to different stages of a longitudinal study.

11. Hybrids. When qualitative research is conducted within a quasi-experimental (i.e.

quantitative) research design

Table 3.3: The brief comparison between quantitative and qualitative approach(Source: adapted from Punch, 2003)

In the context of multiple methods, there are 3 researcher tools chosen to carry out the

research – survey, semi-structured interview and primary database review.

Survey: a survey will be undertaken in a group of consumers at a big

supermarket to get their feedback about the brand name of two companies

Nestle and Vinamilk through communications channels. This survey is in the

form of a self-completion questionnaires including the ‘yes-no’, multiple

choices and open questions. These questionnaires are piloted mainly by the

children who are the targeted customers of two companies and he women

charging of the expenditure and health care for families. (see Index 1)

Semi-structured interview: Semi-structured interview is defined as the “non-

standardized” type of interview in which the researchers can design some

specific questions for certain interviewees in regarding to their position and

function in your research plan rather than just asking the same questions and

recording their response (Saunders, et al., 2007:312). To obtain the research

objectives in this project, a semi-structured is carried out in two focus groups -

the PR agency staff who is in charge of PR strategy for Vinamilk and Nestle,

and the internal marketing staff of these two companies. (See Index 2)

44


Search and review primary database: Along with collecting primary data by

survey and interview, the author also gather the secondary data by reviewing

and analyzing the primary data which are statistic before by other reports.

Based on the Vietnam Dairy Report 2009 and 2010, some factual information

related to two companies’ investment in communication channel to branding

are recorded and interpreted into their effectiveness in PR activities.

In the context of achieving three ROs, these research methods are allocated to support this

purpose as described in Table 3.4:

Objectives Survey InterviewPrimary

data

RO 1: “To identify and assess the

PR resources and ability

development in Vinamilk and

Nestle.”

80% 20%

RO 2: “To assess the PR impact on

customers’ brand recognition and

buying behavior.”

100%

RO 3: “To measure and compare

the required development and

investment into PR campaign of

Vinamilk and Nestle’.”

30% 70%

Table 3.4: The allocation of research methods to obtain ROs

IV. RESEARCH ANALYSIS AND FINDINGS

45


This section will focus on the findings from research tolls mentioned in the previous one.

Moreover, based on these findings, a critical analysis of PR activities of Vinamilk and

Nestle as well as their effectiveness will be performed in this section. Through data

analysis technique, charts and tables, he research findings will illustrate the result of

Survey on consumers’ buying behavior and recognition

Semi-structured interview with PR agencies staff

Semi-structured interview with Vinamilk and Nestle internal marketing team.

IV.1 Objectives 1: To identify and assess the PR resources and ability

development in these two companies

This objective is analyzed by the result of semi-structured interview with Vinamilk and

Nestle marketing team and their PR agency – T&A-Ogilvy and Masso. To illustrate the

PR resources and ability of two these companies, it is essential to apply such models as

Resources and Core Competence.

IV.1.1 Resources

Vinamilk Nestle

Tangible ResourceDiversified range of

products

Finance support from

mother group

Intangible Resource Good reputationHigh recognition of BOD

about PR role

Human Resource

- Skilled internal PR

team

- Talent PR agency

- Good marketing

manager

- Talent PR agency

Table 4.1: The resources of Vinamilk and Nestle(Source: adapted from Grant, 2008)

Resources of company are categorized into “tangible”, “intangible” and “human

resource” which represents the “productive assets” of this company (Grant, 2008). For

46


Nestle, the tangible asset is good financial support of mother group for business activity

in Vietnam. In the interview, the FMCG Account Manager from T&A-Ogilvy, who are in

charge of Nestle’s PR strategy, stated that Nestle has been their retainer client for 3 years

with the monthly fee from 4 to 5 thousands USD. T&A-Ogilvy will be the PR

representative on behalf of Nestle to deal with all PR issues and activities. With regards

to intangible resource, this is the deep attention of the Board of Director in recognizing

the PR role in branding products. In the interview with Marketing Manager of Nestle, he

confirmed that the top managers always pay a special attention to periodic PR activities

of company and request the Marketing Department to make report on their effectiveness.

Human resource is also the key resource of Nestle. The experienced and skilful PR

experts from T&A- Ogilvy have contributed into their successful PR campaign for 3

years and in the future. Moreover, Nestle’s Marketing Manager is very outstanding and

sharp-minded in conducting marketing strategy for company. He has cooperated with PR

agency to draw up the strategic PR programs for Nestle in their development.

In case of Vinamilk, its tangible resource is the wide range of dairy products. Vinamilk

gets a point with multiple choices for consumers to find out the suitable products for

different behaviors (see Figure 4.1). Good and long-established reputation is Vinamilk’s

intangible asset. Originated from state-owned company, Vinamilk has built its firmed

position in Vietnam dairy market. This advantage has increased Vinamilk’s

competitiveness over other rivals to get the huge segment as well as created the

opportunity for its PR activities. Additional core asset of Vinamilk is talent internal PR

team who has made best effort to enhance the brand name of Vinamilk. Coupled with the

internal PR staff, Vinamilk also choose Masso, a giant PR agency, to support in hosting

and managing the significant PR events.

47


Figure 4.1: The range of Vinamilk products(Source: adapted from Vinamilk Annual Report 2010)

IV.1.2 Core competence

Prahalad et al. (1990:82) defined core competence of one company as “…the collective

learning in the organization, especially how to co-ordinate diverse production skills and

integrates multiply of technologies…” In general, core competence is the most

competitive advantage of company over competitors to get more benefit in term of

finance and prestige. The core competence of Nestle lies at the unique nutritious foods

for kids which help Nestle leading in the products of cereal. With variety of nutrition and

flavor, Nestle cereal products are the best choice of Vietnamese mothers for their beloved

kids. This almost monopoly product is the key content in all publicity to stand in

consumers’ mind. Regarding to Vinamilk, the core competence is the underlying support

48


of governance. As mentioned above, Vinamilk is originated from state-owned company

so it is easier for them to get the good relationship with mass media in promoting their

brand name and products.

IV.2 Objective 2: To assess the PR impact on customers’ brand recognition

and buying behavior

This objective is measured and analyzed in the angle of 5 factors in PR campaign to

affect consumer’s behavior – approach method, key product, publication, social events,

and community relationship. This survey has published 140 samples of questionnaire

with 123 responses. Amongst, there are 16 people who don’t use either Vinamilk or

Nestle products.

IV.2.1 The approach method

1. Have you ever used the dairy product of Vinamilk or Nestle?

Figure 4.2: The market share of Vinamilk and Nestle

49


2. How do you know Vinamilk/Nestle products?

Figure 4.3: The way of approach consumer applied by Vinamilk and Nestle

According to Figure 4.2, the segment of Vinamilk and Nestle, in general, occupies the

huge part in Vietnam dairy market in comparison with other brands such as Dutch Lady,

Abbott, Mead Johnson, Meiji, etc, which is highlighted by the 32% of consumers just

choosing dairy products of Vinamilk followed by 27% of Nestle. This point emphasize

that both Vinamilk and Nestle have built the strong foundation in Vietnam consuming

market. Simultaneously, the ways Vinamilk and Nestle invest in most effective to bear in

consumers’ mind are also analyzed. Based on Figure 4.3, Vinamilk has taken advantage

of television’s high publicity to launch and brand their products, which attracts 31%

consumers. Meanwhile, newspapers are the media channel Nestle tends to concentrate to

assess the clients. As the result, 29% of consumers know Nestle products through the

newspapers and magazines.

Among the defined ways, the social activities are sufficiently invested to spread widely

the brand name and reputation of two companies. Therefore, the channel word of mouth,

50


which is considered as the way affecting most on consumers’ buying behavior due to the

good appraisals. Online forums have insufficient attention to explore their huge amount

of members and widespread appearance everywhere.

IV.2.2 Key characteristic of product

3. How long have you used Vinamilk/Nestle product?

Vinamilk

(n=73)

Nestle

(n=67)

No of

response

Percentage No of

response

Percentage

Just use

recently14 19% 27 40%

Less than one

year27 37% 16 24%

More than one

year32 44% 24 36%

N=107

(Note: There are 34 consumers using both of two brands’ products)

Table 4.2: The length of buying behavior regarding to Vinamilk and Nestle products

4. How long have you changed to use Vinamilk/Nestle product?

Vinamilk

(n=73)

Nestle

(n=67)

No of

response

Percentage No of

response

Percentage

Used for a

long time

48 66% 34 51%

51


More than 3

months

15 20% 13 19%

Less than 3

months

10 14% 20 30%

N=107


Table 4.3: The length of changing buying behavior regarding to Vinamilk and Nestle

product

Regarding to customers’ buying behavior, this research emphasizes 2 factors: the period

of changing buying behavior and the customers’ loyalty. For affecting on the customers’

buying taste, Nestle has a higher impact on the customers’ mind, with 30% of customers

deciding to buy Nestle products recently. For Vinamilk, although there are too many

customers tending to buy their products with the rate of 14%, Vinamilk has won the

customers’ loyalty with high number of long-standing customers at 66%. Similarly,

Nestle also have the certain amount of long-time clients occupying at 51%.

5. Why do you choose Vinamilk/Nestle products?

52


Figure 4.4a: The attractive reason of Vinamilk

Figure 4.4b: The attractive reason of Nestle

(Note: The participants can choose multiple choices)

Figure 4.4a describes the reason why Vinamilk owns a huge amount of loyal customers.

Among 6 reasons offered, good reputation rather is the main factor underlying the great

success of Vinamilk in attracting more and more customers to their products, which

makes up for 64% in total. Obviously, Vinamilk is a long-established state-owned group,

which created and deep credibility of clients about their products. Additional key element

affecting customers’ buying behavior is a variety of products ranges highlighted by 41%

of total customers. Vinamilk significantly focuses on the natural milk drinks and yogurts,

which brings a diversified choice for customers to find out nutritional and tasteful for all

members in families.

The way how Nestle to get much more customers along with their high long-standing

ones is explained clearly in Figure 4.4b. The unique product is the key element in

affecting on customers’ taste. Nestle considers the nutritional foods for children from 0-2

53


years old - say, grain food-stuff, nutritional food-stuff- as their center point of attracting

target market. The following factor which also has the high impact on customers’

behavior in choosing Nestle products is competitive price. In the context of fiercely

increasing price of milk products in Vietnam market, Nestle has compromised to remain

the price rather than following the tendency. This action has enhanced Nestle’s image in

customers’ mind.

6. How much do you spend on Vinamilk/Nestle per month?

Family size

Vinamilk

(n=73)

Nestle

(n=67)

<500 500-1,000 >1,000 <500 500-1,000 >1,000

2 members (no

child)51% 36% 13% 74% 17% 9%

2-4 members (with

1-2 children)19% 72% 9% 22% 65% 13%

5- 10 members (with

2-4 children)3% 43% 54% 5% 39% 56%

N=107, Unit = 1000 VND


Table 4.4: The level of expenditure on Vinamilk and Nestle products

7. How much are your average expenditure on consuming goods for family per month?

Family sizeAverage family expenditure per month

< 3 3 - 6 6 - 10 >10

2 members (no child)49% 43% 8% 0%

2-4 members (with 1-2 0% 72% 26% 2%

54


children)

5- 10 members (with 2-4

children)0% 19% 38% 43%

N=107, Unit = million VND


Table 4.5: The average monthly family’s expenditure

According to Table 4.4 and 4.5, it is clear that the rate of expenditure on Nestle and

Vinamilk products occupies almost the high number in total monthly expenditure from

17% to 33%. Especially, with increasing number of children in family, the consumers

have to spend more on dairy products produced by Nestle while the number in Vinamilk

products steadily increased due to the higher number of members in family.

IV.2.3 Community relation

8. Which product of Vinamilk/Nestle do you usually buy?

Figure 4.6: The segment of Vinamilk and Nestle products

55


9. How much money do you spend on children product in total your goods from Vinamilk/Nestle?

The level of expenditure on children products

<10% 10% - 50% 50% - 70% 70% - 100%

Vinamilk

(n= 73)13% 58% 19% 10%

Nestle

(n=67)0% 22% 37% 41%

N=107


Table 4.6: The level of expenditure on children products produced by Vinamilk and

Nestle

The mentioned finding in customers’ expenditure is explained by the Figure 4.5 and

Table 4.6. They describe the level of expenditure on children products made by Vinamilk

and Nestle per month. As mentioned earlier, Nestle attaches a higher attention to the

range of children products. Nevertheless, the amount of money spending for children

products will increase with number of children in family. Similarity, Vinamilk provides a

wide range of products for both children and adult, so there is big difference in increasing

number of spending money for adult and children.

IV.2.4 Community relation

10. Where do you usually buy Vinamilk/Nestle products?

56


Figure 4.6: The distribution channels of Vinamilk and Nestle

Firstly, it is essential to research about the distribution channel of Vinamilk and Nestle.

Based on the result illustrated by Figure 4.6, with the rate of 68%, it is proved that Nestle

focuses on the distribution channel through supermarkets which is allocated usually in

crowded populations. Meanwhile, there is the quite equal allocation in distributing

products of Vinamilk. Besides the supermarket, of course, Vinamilk also pay attention to

retailing stores such as kiosk in market or groceries, which brings the convenience for

clients in buying products and prove strongly the widespread appearance of Vinamilk in

the market.

11. In the supermarkets and retail stores, is there any consultant of Vinamilk/Nestle to present the

products?

The representative consultant at the supermarket

Always Usually Sometimes Never

Vinamilk

(n= 73)

0% 12% 88% 0%

Nestle 41% 48% 1% 0%

57


(n=67)

N=107


Table 4.7: The allocation of Vinamilk and Nestle product consultants in the retailing

locations

12. Have you ever been consulted by him/her to buy the products?

The level of using consultant services


Vinamilk

(n= 73)14% 27% 33% 26%

Nestle

(n=67)21% 54% 13% 12%

N=107


Table 4.8: The levels of using consultant services offered by Vinamilk and Nestle

13. How do you think about his/her service?

The quality of consulting services

Excellent Good Normal Poor Very Poor

Vinamilk

(n= 73)17% 25% 51% 7% 0%

Nestle

(n=67)19% 61% 14% 6% 0%

N=107


Table 4.9: The quality of consulting services offered by Vinamilk and Nestle

58


The second element in community relation is the consulting service at retailing places

which is the effective way to get closer with and understand customers’ taste and thinking

as well as the bear the company’s image in their mind. Nestle has emphasized strongly

this point in their PR campaign. With the result in Table 4.7, 41% of customer stating that

there always have the consultants in Nestle’s uniform standing next to milk product area

to explain the concerns about products for customers. It is statistic that more than 85% of

customers always or usually come to these consultants for their advice about the

ingredients and usage of products. More importantly, the rate of customers appraises their

services at the level of good and excellent at 61% and 19% perspectively. In contrast,

this action performs poorly in Vinamilk’s PR strategy. The number 14% of customers

who have been consulted by representative sales of Vinamilk displays their scant

attention. Furthermore, there are not too many appraisals on their services in consulting

customers.

IV.2.5 Promotional materials

14. Does Vinamilk/Nestle usually attach the promotional materials with products?

The level of using promotional materials


Vinamilk

(n= 73)0% 19% 75% 6%

Nestle

(n=67)0% 68% 32% 0%

N=107


Table 4.10: The level of using promotional materials provided by Vinamilk and Nestle

59


15. Are your children interested in these promotional materials?

Figure 4.7a: The behavior of children toward the promotional materials of Vinamilk

Figure 4.7b: The behavior of children toward the promotional materials of Nestle

The promotional materials are also the important activity to attract the customers. 68 %

of consumers usually find the attached gifts in Nestle products in comparison with 19%

60


for Vinamilk. Additionally, the gifts from Nestle get quite good comments on their color

and usages, mainly for the children. This attraction will push the sales volume of products

going up, especially in case of launching new products. Nestle has taken well advantage

of this point. On the other hands, Vinamilk does not recognize this potential strength.

Different from Nestle, Vinamilk usually uses the normal things such as glass, bowl as the

promotional materials. These gifts are not too much attractive to prod the customers

buying their products. Therefore, there is up to 30% of customers who expect to receive

the more exciting gifts from Vinamilk.

4.2.5 Social events

16. Have you ever participated in social program of Vinamilk/Nestle with your

children?

Figure 4.8: The rate of participation in social activities organized by Vinamilk and Nestle

17. How do you think about the number of social activities organized by Vinamilk / Nestle?

The number of social acitivities

61


Need more Sufficient Too much No idea

Vinamilk

(n= 73)27% 44% 15% 14%

Nestle

(n=67)38% 30% 10% 22%

N=107


Table 4.11: The required number of social activities organized by Vinamilk and Nestle

18. Please answer the questions about the social events of Vinamilk/Nestle by

ranking the level as following:

Very

disagreeDisagree

Agree Very agree Totally

agree

Diversified content

VNM 9% 47% 25% 15% 4%

Nestle 4% 12% 42% 23% 19%

Useful lessons

VNM 0% 2% 21% 25% 52%

Nestle 0% 5% 55% 38% 12%

Attract the children’s interest

VNM 0% 11% 47% 38% 4%

Nestle 0% 4% 53% 27% 16%

Children enjoy the program

VNM 2% 14% 39% 26% 19%

Nestle 6% 9% 27% 44% 14%

Children are excited to join coming events

VNM 3% 18% 41% 28% 10%

62


Nestle 1% 15% 47% 19% 18%

Easy to find the program information on mass media

VNM 5% 11% 33% 27% 24%

Nestle 13% 46% 21% 15% 4%

High number of participants

VNM 0% 3% 52% 31% 14%

Nestle 0% 0% 59% 26% 15%

Well-organized

VNM 15% 38% 24% 17% 15%

Nestle 8% 19% 38% 15% 10%

Table 4.12: The assessment of consumers on social programs organized by Vinamilk

and Nestle

19. How often do you keep track of the supportive programs of Vinamilk/Nestle for

consumer?

Figure 4.9: The level of participation in supportive programs developed by

Vinamilk and Nestle

63


The social events play the important role in PR campaign of companies. Nestle and

Vinamilk are not exception. However, they differ from each other in the kind of events

and the method of organization. Regarding to the rate of participants in social activities,

there is no large difference in the number of participants between Nestle and Vinamilk.

The Figure 4.8 shows the amount of participants in social events of Nestle and Vinamilk

in which the number of people joining all activities of Nestle is 43% compared with 35%

for Vinamilk whereas the people who never take part in any event of two companies

occupies the low rate – 7% for Vinamilk and 13% for Nestle. The reason why two these

companies attract so much people to join in their events is that their content orienting to

children. If Vinamilk is famous for the program “Fire-fly Lamp” helping the poor and

ethnic children to have opportunities to go to school, Nestle emphasizes the essential role

of sport activity in the summer by organizing “Milo Cup” for teenagers. There is no

concern about the huge amount of children and parents contributing to enhance the

prestige of two companies. However, while Vinamilk has tendency to enlarge the scale

and length of this event to keep continuously attracting consumers to it, Nestle just plan

Milo Cup as the annual game and no more. Therefore, it is difficult for the customers to

keep track of Nestle’s PR activity, which is highlighted by 31% of consumers who

expects Nestle to organize more social events.

Moreover, Vinamilk and Nestle also organize the supportive program to communicate

with their consumers. Vinamilk sometimes holds the nutrition conference to give the

advice about foods and scientific nutrition program. In the same vein, Nestle develops a

TV program about feeding and educating children in the scientific method through short

family comedies. According to Figure 4.8, there are just 13% of people who always

attend at Vinamilk’s conference while this number for Nestle is 29%. It can be resulted in

the location and time of program. With regarding to Vinamilk’s conference, it will take

much time of clients to participate; and the distance of geography can be the obstacle. In

contrast, almost every family has TV and the consumers can watch all Nestle’s program

wherever they are.

64


IV.3 Objective 3: To measure and compare the required development and investment

into PR campaign of Vinamilk and Nestle’ to expand the market share and

penetration

Based on the data from Nestle Annual Promotion Campaign 2010 (NAPC) and Vinamilk

Public Relations Report (VPRR) 2010, the required development and investment in PR

strategy will be measured. Moreover, some questions in interview with PR agencies and

internal marketing of companies will support to analyze this objective.

IV.3.1 The rate of public appearance

According to Figure 4.10, the rate of appearance on mass media of Vinamilk is more than

Nestle’s one. The reason is that in 2010 Vinamilk has focused on organizing many social

activities for children. Therefore, the rate of news about Vinamilk’s activities is very high

on both online media and prints. On the other hands, although having the strong support

from T&A- Ogilvy, Nestle just invests in issuing the press releases instead of organizing

the event to promote its brand name and attract media’s care.

Figure 4.10: The rate of appearance on mass media of Vinamilk and Nestle in 2010(Source: NAPC & VAPR, 2010)

65


IV.3.2 Human Resource

According to the human resource allocation in PR strategy of two companies, a SWOT is

analyzed to point out the weakness in this resource. Firstly, it is necessary t make clear

about role of Nestle and Vinamilk‘s team in PR strategy. Regarding to Nestle, the human

resource involving in building PR strategy is just Marketing Manager because Nestle

does not have its own PR team. For Vinamilk, Masso is just the PR partner in charge of

organizing the events, other activities are undertaken by Vinamilk’s internal PR team.

Relying on the arguments in Table 4.13, Vinamilk has strength in this allocation that the

internal PR can watch and learn the way of working in managing events from PR agency

as well as saving cost for companies to hire partners. Nestle, although spending much on

PR agency, can have the thorough understanding about Vietnam market. In term of

weakness, Vinamilk can suffer from mismatching in cooperation between PR agency and

internal team, which leads to the ineffective job. For Nestle, the company can’t interfere

in time in urgent case. Moreover, they can grasp fully the process of implementing PR

strategy.

With regards to opportunity, Nestle has chance to create the relationship with press, which will support

efficiently for their future internal PR team. Vinamilk also have opportunity to improve PR skills of

internal team thanks to their co-operations. In the other hands, Vinamilk can suffer from the brain-drain

to their partners while Nestle can’t have proper reactions against the serious issues.

Strength Weakness Opportunity Threat

Vinamilk - Grasping the PR activities of company

- Reducing cost

- Experiencing in planning and implementing PR strategy

- Lead to unfixed style and race of working

- Can develop an internal skillful PR team

- Suffering the brain-drain

Nestle - Have a - Don’t - Learn the - Under

66


professional PR team and excellent PR strategy

- Take advantage of the knowledge about Vietnam market

understand deeply about the PR activities of company

- Out of control in special case

- Not active

PR skills from PR agency

- Establishing the relationship with press

control the key issues

V. Table 4.13: The SWOT analysis on human allocation in PR activities of

Vinamilk and Nestle

67


V. RECOMMENDATION AND CONCLUSION

Figure5. 1: The eight-factor PR integration model

(Source: Oliver, 2007).

68


V.1 General commendation

According to the findings from conducted research, both Vinamilk and Nestle have the

shortcoming in their PR strategy. Vinamilk has to improve the quality of publicity and

promotion to gain the customers’ loyalty. Regarding to Nestle, it need increase in number

of events so that it can creates more chances for organization to interact with their

audience.

More importantly, the author would like to suggest the further improvement in

implementing PR strategy for both companies regarding to crisis management, one key

issue in modern age. Furthermore, Vinamilk and Nestle should pay attention to online PR

to take advantage of the power of this tool in branding.

V.2 Crisis management

Regarding to the PR strategy implemented by Nestle and Vinamilk, it is impossible to

suggest them changing their strategy based on the findings of research analyzed in

previous section because their strategy also simultaneously develops in the attachment of

their business strategy and mission that can’t be changed. Therefore, to improve the

quality and effectiveness, it is suggested to concentrate on some important areas in PR

strategy that has been omitted.

Figure 5.1 describes the operational model which helps to deliver the equal investment

into both internal and external perspectives by attaching the company business mission to

“external environmental factors over time” (Oliver, 2005:13). In application of this

model, it is critical to recognize that both Vinamilk and Nestle haven’t pay sufficient

attention to crisis management, one important issue in modern age against the possible

matter during operation of organization.

As defined in literate review, crisis management controls over all issues involved in the

business activities of organization. Yeshin (1998:294) agreed that crisis management is

“a further area of corporate communications which is increasingly becoming recognized

69


as a major aspect of the management of corporate identity and image”. It is very

important to recognize the role of crisis management especially in the light of economic

and business environmental changes. Regester & Larkin (2008:164) identified crisis

management in terms of business and product-related issue which categorize in detail as

following:

Environmental pollution

Product defect

Unwanted takeover bid

Sabotage

Death of senior management member

Kidnap of senior management member

Computer breakdown

Industrial dispute

Fraud

A good crisis management can help company to predict all positive coming crises in the

future and have an immediate action in case of occurring. If the organization has no

reaction on risks, they will suffer from a variety of loss in angle of finance and reputation.

Especially, in the light of high concerns about uncontrolled fiercely increasing price of

and the poor quality of milk products, Nestle and Vinamilk have to draw up and conduct

the crisis management plan. Figure 5.2 states the organizational matrix for crisis

management developed by Fill (1995).

70


Figure 5.2: Organizational matrix for crisis management(Source: adapted from Fill, 1995)

Regester & Larkin (2008: 206) suggests a process of managing crisis:

Cataloguing potential crisis situations

Devising policies for their prevention

Formulating strategies and tactics for dealing with each potential crisis

Identifying who will be affected by them

Devising effective communications channels to those affected so as to minimize

damage to the organization’s reputation

Testing everything

The figure 5.3 offers the way to control how to implement crisis management and assess

its performance. The organization has to predict all positive instances and related factors

such as effects on target audience’s behavior, communication plan with internal and

external environment (e.g. with employees, press, stakeholders).

71


Figure 5.3: How to control process of crisis management

(Source: adapted from Regester & Larkin, 2008)

To assess the effectiveness of one crisis management plan, Hoban (1995) offered 4 key

factors:

Speed: The faster the company react to unexpected crisis, the more effective

crisis management plan is

Accuracy: the response against risks must provide the proper facts rather than

compromises

Credibility: The media channel to response the crisis must be very credible and

prestige. Moreover, Yeshin (1998:297) suggested that it was necessary to

undermine the interpretation of quality of response more than subsequent

retractions of information previously delivered as fact”.

Consistency: The public contents must be consistent even though they are made

in different place and time.

72


V.3 The online PR

One weakness in PR strategies of both Nestle and Vinamilk lies at the lack of online PR

which has a huge affect and wide network of users with power of Internet. Chaffey et al.

(2006:385) identified the term online PR as “a tool to maximize favorable mentions of

your company, brands, products or website on third-party websites which are likely to be

visited by your target audience”. Ranchhod et al. (2002) pointed out the differences

between the traditional and online Pr in accordance of 4 elements:

The connection between audience and organization. With traditional PR, the

organization will communicate with their target audience in one direction in which

PR team issues the press release, and then sends them to media to publish.

Meanwhile, online PR can allow the audience connected to the organization by

company websites via internet connections.

The connection among audience: The audience in online PR will discuss with

others by online forums. Moreover, the information of company can spread fast to

community through internet.

Information accessibility of audience: Ranchhod stated that “it takes matter of

minutes to access multiple source of information over the internet. Any statement

made can be dissected, analyzed, discussed and challenged within hours b

interested individuals. In the connected world, information does not exist in a

vacuum.” (Ranchhod et al., 2002: 428)

“Audiences pull information”. It is limited to transfer the information through

channel of television and press but via Internet, it can go everywhere with one

company and internet connection.

The Figure 5.4 gives the overview about how the online PR can communicate with

their audience. It is argued that with the fast development and innovation speed of

73


technology and internet, the organization can communicate with audience through a

variety of online PR tools.

Figure 5.4: Approaching target audience by online PR tools

74


APPENDIX

----------------------------------------------------SURVEY ABOUT CUSTOMER’S BUYING BEHAVIOR FOR VINAMILK AND

NESTLE MILK PRODUCTS

With the aim to complete the course Master of Business Administration on the topic of

PR activities of Vinamilk and Nestle, I would like to get your idea about these two

company’s products as well as your buying behavior for milk product.

This survey includes the self-completing questionnaires contenting Vinamilk and Nestle

product as well as their promotion activities in the market. If you feel any question

confusing, please feel free to let me know. I appreciate your enthusiasm and credibility in

answering these questions, which will help me to get the correct and factual figure

reflecting properly the situation of PR campaign implemented by Vinamilk and Nestle.

I ensure that all your personal information and response in this survey will be confidential

under the regulation of Bolton University in doing dissertation.

Please fill in this questionnaire at your most comfortable state and time.

------------------------------------------------------------------------------------------------------------

Please fill in your personal information before completing the questionnaires:

Name:

Address:

Age:

Occpation:

Please read carefully to make sure you understand the content of all question before

answering:

75


1. Have you ever used the dairy product of Vinamilk or Nestle?

Vinamilk

Nestle

None of them

Both of them

2. How do you know Vinamilk/Nestle products?

Note: you can tick on 2 columns if you are using both products

Vinamilk

TV

Newspaper/magazines

Companies’ social activities

Online forums

Word of mouth

Others

Nestle

TV

Newspaper/magazines

Companies’ social activities

Online forums

Word of mouth

Others

3. How long have you used Vinamilk/Nestle product?

Vinamilk

Just recently

Less than one year

More than one year

Nestle

Just recently

Less than one year

More than one year

76


4. How long have you changed to use Vinamilk/Nestle product?

Vinamilk

Have used for a long time

More than 3 months

Less than 3 months

Nestle

Have used for a long time

More than 3 months

Less than 3 months

5. Why do you choose Vinamilk/Nestle products?

Vinamilk

Competitive prices

Excellent quality

Good flavor

Diversified ranges of product

Unique product

Good reputation

Nestle

Competitive prices

Excellent quality

Good flavor

Diversified ranges of product

Unique product

Good reputation

6. How much do you spend on Vinamilk/Nestle per month?

Family size <500,000 500,000-1,000,000 >1,000,000

2 members (with no

child)

2-4 members (with

1-2 children)

5-10 members (with

2- 4 children)

7. How much are your average expenditure on consuming goods for family per month?

77


Family size < 3,000,000300,000-

6,000,000

6,000,000-

10,000000>10,000,000

2 members

(with no child)

2-4 members

(with 1-2

children)

5-10 members

(with 2- 4

children)

8. Which product of Vinamilk/Nestle do you usually buy?

Vinamilk

Adult

Children

Both of them

Nestle

Adult

Children

Both of them

9. How much money do you spend on children product in total your purchased goods from

Vinamilk/Nestle?

Vinamilk

< 100,000

100,000 – 500,000

>500,000

Nestle

< 100,000

100,000 – 500,000

>500,000

10. Where do you usually buy Vinamilk/Nestle products?

Vinamilk Nestle

78


Supermarket

Market

Grocery

Supermarket

Market

Grocery

11. In the supermarkets and retail stores, is there any consultant of Vinamilk/Nestle to present the

products?

Vinamilk

Always

Usually

Sometimes

Never

Nestle

Always

Usually

Sometimes

Never

12. Have you ever been consulted by him/her to buy the products?

Vinamilk

Always

Usually

Sometimes

Never

Nestle

Always

Usually

Sometimes

Never

13. How do you think about his/her service?

Vinamilk

Excellent

Good

Normal

Poor

Very poor

Nestle

Excellent

Good

Normal

Poor

Very poor

79


14. Does Vinamilk/Nestle usually attach the promotional materials with products?

Vinamilk

Always

Usually

Sometimes

Never

Nestle

Always

Usually

Sometimes

Never

15. Are your children interested in these promotional materials?

Vinamilk

Very excited

Like

Fairly

Dislike

Not interested in

Nestle

Very excited

Like

Fairly

Dislike

Not interested in

16. Have you ever participated in social program of Vinamilk/Nestle with your children?

Vinamilk

Always

Usually

Sometimes

Never

Nestle

Always

Usually

Sometimes

Never

17. How do you think about the number of social activities organized by Vinamilk / Nestle?

Vinamilk Nestle

80


Sufficient

Need more

Too much

Sufficient

Need more

Too much

18. Please answer the questions about the social events of Vinamilk/Nestle by ranking the level as

following:

Very

disagree

Disagree Agree Very agree Totally agree

VNM Nestle VNM Nestle VNM Nestle VNM Nestle VNM Nestle

Diversified

content

Useful

lessons

Attract the

children’s

interest

Children

enjoy the

program

Children

are excited

to join

coming

events

Easy to

find the

program

information

on mass

81


media

High

number of

participants

Well-

organized

19. How often do you keep track of the supportive programs of Vinamilk/Nestle for

consumer?

Vinamilk

Always

Usually

Sometimes

Never

Nestle

Always

Usually

Sometimes

Never

The end

Thank you very much for your participation.

-----------------------------------------------------------------------------------------------

82


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ubir.bolton.ac.ukubir.bolton.ac.uk/895/1/Thanh, Hoang dissertation.doc · Web viewIn this report, the author has applied the research method of survey by questionnaire; semi-structured