USING BRAND AS AN EFFECTIVE WEAPON TO COMPETE IN THE MARKET:
A CASE STUDY OF NHAT LINH COMPANY
by
Duong Manh Cuong
A research study submitted in partial fulfillment of the requirements for the degree of Master of
Business Administration.
Examination Committee Dr. Truong Quang (Chairman)
Dr. Hans Stoessel
Dr. Clemens Bechter
Nationality Vietnamese
Previous Degree: Bachelor of Engineering
Hanoi University of Transport & Communications
Hanoi, Vietnam
Scholarship Donor The Government of Switzerland/Swiss Development
Cooperation (SAV)
Asian Institute of Technology
School of Management
Bangkok, Thailand
April 2001
ACKNOWLEDGEMENTS
I wish to express my profound gratitude and great appreciation to my advisor Dr. Truong Quang for
his valuable guidance, advice and encouragement throughout the research study.
Special thanks are extended to the other members of the Examination Committee, Dr. Hans
Stoessel and Dr. Clemens Bechter for taking interest and giving valuable suggestions to improve
the content of this study.
Deep appreciation and thanks are also extended to Mr. Nguyen Van Dong Assistant Manager, Mr.
Nguyen Van Bien, Deputy Manager, and Ms. Nguyen Thu Phuong of Nhat Linh Co. Ltd. for
providing me the needed information and data to complete this research study.
Last but not least, I would like to thank the government of Switzerland for providing me a full
scholarship to study at SAV in HCMC, Vietnam and at School of Management in Bangkok,
Thailand.

1.6 Structure of the Research Report..............................................3
Chapter 2--------------------------------------------------------------------------------------------------------4
Literature Review----------------------------------------------------------------------------------------------4
2.1 Introduction.............................................................................4
2.2 What is a Brand?......................................................................4
2.3 The Importance of Brand Name................................................5
2.3.1 The main contribution of brands...................................................5
2.3.2 A brand is more than a product....................................................6
2.4 The Brand Equity.......................................................................7
2.5 Brand Identity...........................................................................7
2.5.1 Definition ...................................................................................7
2.5.2 The brand position trap................................................................8
2.5.3 Four brand identity perspectives...................................................8
2.5.4 The identity structure...................................................................9
2.6 Value Proposition......................................................................9
2.7 Strategic Brand Management..................................................10
2.8 Brand position.........................................................................12
2.9 Communication Program.........................................................13
2.10 Brand Leverage.....................................................................13
2.11 Important Factors For Building Strong Brands.....................14
Chapter 3-------------------------------------------------------------------------------------------------------15
ANALYSIS OF THE COMPANY CURRENT SITUATION------------------------------------------15
3.1 External Environment Analysis................................................15
3.1.1 Macro Environment..............................................................15
3.1.2 The Industry Environment..........................................................17
3.2 Internal Analysis..................................................................... 20
3.2.1 Company Overview....................................................................20
3.2.2 Company Performance...............................................................21
3.2.3 Strategic intent..........................................................................22
3.2.4 Company Structure....................................................................24

5.3.8 LiOA advertisement contents......................................................42
5.3.9 LiOA promotion program............................................................43
5.4 Conclusion..............................................................................43
Chapter 6-------------------------------------------------------------------------------------------------------45
Developing a Branding strategy for LiOA-----------------------------------------------------------------45
6.1 Developing LiOA Brand Identity..............................................45
6.1.1 The brand as a product..............................................................45
6.1.2 The Brand-as-organization..........................................................46
6.1.3 The Brand-as-person: Brand personality......................................46
6.1.4 Band as a symbol.......................................................................46
6.2 Brand Value Proposition..........................................................46
6.2.1 Functional benefits.....................................................................46
6.2.2 Emotional benefits.....................................................................47
6.2.3 Self-expressive benefits..............................................................47
6.3 Brand Anatomy of LiOA ..........................................................47
6.4 LiOA Brand Position.................................................................48
6.5 Branding activities in line with its intention strategies..........48
6.5.1 Consolidate LiOA brand name in the North..................................48
6.5.2 Expand its market share and brand awareness in the South.........50
6.5.3 LiOA expansion to other foreign markets.....................................51
6.5.4 LiOA CABLE branding ................................................................51
Chapter 7-------------------------------------------------------------------------------------------------------52
Conclusion and recommendations--------------------------------------------------------------------------52
7.1 Conclusions............................................................................. 52
7.2 Recommendations...................................................................53
References-----------------------------------------------------------------------------------------------------55
APPENDIX-----------------------------------------------------------------------------------------------------1
LIST OF TABLES
Table 2.1 The Brand Position Trap--------------------------------------------------------------------------8
Table 3.1: Vietnam’s Economic Indicators----------------------------------------------------------------15

In a fierce competition environment, companies must compete with each other in terms of price,
quality, services, technology, innovation, and brand name, etc. To differentiate their products
from other competitors, companies often create brand names for their products or their
corporate. Consumers are made aware of the products by their brand names with unique,
distinctive and particular characteristics. In this case, the choice of a customer for a product,
then, is a result of brand recognition for quality or uniqueness of the company’s offer.
Therefore, branding has become an essential means for companies to compete with other
competitors. In case of wide product portfolio, “branding” even replaces “marketing” activities.
Many companies recognize that branding is the most effective weapon to win consumers’
purchasing decision. Indeed, attracting consumers becomes a very difficult task for any
company in a highly competitive market.
Although a company gets many benefits from its brand name, it is not easy to create and
maintain a strong brand. To understand more how a company builds and manages its brand to
get the full benefit from that, a study into the case of LiOA brand at Nhat Linh Co. Ltd., an auto
voltage stabilizer (AVS)manufacturer is carried out.
1.2 Problem Statement
To compete with other competitors in automatic voltage stabilizer market, Nhat Linh Company
has to build its own brand name and manage it well. This study will see how the Company
manages its brand as an effective weapon to compete with other competitors.
1.3 Objectives of the Research
This study focuses on analyzing brand management of the Company. Its specific objectives are:
• To analyze the external market environment of the auto voltage stabilizer industry and the
Company situation.
• To analyze the current Company branding management process .
• To survey customer’ attitudes towards the Company’s brand/products.
• To recommend a brand strategy and marketing communication program for the Company.
1.4 Research Methodology
The conceptual framework of the study can be illustrated by the Figure 1.1
1
Figure 1.1: Research Framework

Though the Company’s products are available throughout the country, the customer survey was
done in Hanoi and its vicinity only, as Hanoi represents one of the two main markets of the
AVS products.
The research have some limitations due to following reasons: (i) Relevant data collected from
different sources may be inconsistent. (ii) It is difficult to get some sensitive information from
the Company’s managers. (iii) It is difficult to get an overall picture of the attitude of
consumers throughout the country towards the Company products when the customer survey is
only conducted in Hanoi.
1.6 Structure of the Research Report
The research report will be organized as follows:
Chapter 1: A general introduction, comprising rationale, identification of the problem,
objectives, methodology of the research study and its scope and limitations.
Chapter 2: Literature review.
Chapter 3: Analysis of the external environment and the Company’s strengths and weaknesses.
Chapter 4: The Company’s current branding situation.
Chapter 5: Findings of the survey on customer’s attitude towards the Company’s product.
Chapter 6: Developing a branding strategy for the Company.
Chapter 7: Conclusion and recommendations.
3
Chapter 2
LITERATURE REVIEW
2.1 Introduction
An increasing number of the world’s most influential companies have recognized the enormous
value of their brands. Well-developed bands have become an effective strategic weapon to win
consumer’s heart and mind. This applies for all companies, big and small alike.
Branding has become much more important recently because of the proliferation of choice that
is made available to consumers. To have competitive advantage within the whole industry, the
successful corporation should have not only good quality of products, services above other
competitors but also good image in the consumers' mind. That is brand name. Brand name
makes the company’s product distinctive from those of competitors.

As stated earlier, many companies have recognized brands as a powerful strategic weapon.
Power brands can provide their owners with considerable rewards if handled correctly and
managed sensibly. They can ensure a growth in market share and corporate profitability.
Stobart (1994) points out three reasons why brands play an important role to their owners:
• To serve as a focus for consumer loyalty. Thus, they can be developed into assets that
generate steady and reliable streams of cash flow. They help to guard against competitive
encroachment.
• To capture the promotional investment put into it. Enormously valuable brands like Coca,
Kodak, Pepsi and Marlboro are still benefiting massively from the past huge advertising.
This ability to capture promotional investment is in direct contrast to what happens with
generic goods or commodities, which have no brand name or image.
• To be of critical strategic importance to their owners. In fact, brands enable manufacturers
to communicate directly with consumers regardless of the actions of the middleman. This
communication gives their producers power toward retailers.
Temporal (2000) indicates the benefits of power brands towards companies and consumers
as bellows:
The market power of brands: Here are some ways in which strong brands can transform
ordinary businesses into elite ones
• Survival in adverse condition
• Longevity
• Transportability across national cultures
• Greater distribution power
• Crossing market boundaries
• Staff motivation, recruitment and loyalty
• Moving away from commodity status
The financial rewards of brands: Powerful brands provide long-term security and growth,
higher sustainable profits, and increased asset value because they achieve:
• Competitive differentiation
• Premium prices
• Higher sales volumes

Scope
Attributes
Quality
Uses
Brand
Personality
Organizational
Associations
Country of Origin
Self-Expressive
Benefit
Emotional
benefit
Brand-Customer
Relationships
Symbol
User Imagery
BRAND
BRAND
2.4 The Brand Equity
Upshaw (1995) defines “the brand equity is the total accumulated value or worth of a brand; the
tangible and intangible assets that the brand contributes to its corporate parent both financially
and in terms of selling leverage.”
Brand equity can be defined as the added value provided to a product or company by its brand
identity. It is the set of associations and behaviors that increase or decrease the value of the
brand compared to its financial value alone (Pettis, 1995).
It is pointed out that brand equity does not just happen; it is a combination of quality product,
advertising, marketing programs, point-of-sale programs - a bundle of consumer experiences
that create the ultimate brand image. It requires a long sophisticated process of the brand
building and maintaining.

brand-as-product, brand-as-organization, brand-as-person, and brand-as-symbol.
• Brand identity structure includes a core, extended and proposition identity. A brand identity
is to brand strategy what “strategic intent” is to a business strategy. Strategy intent involves
an obsession with winning real innovation, stretching the current strategy and a forward-
locking dynamic perspective.
2.5.2 The brand position trap
A brand position has been defined as “the part of the brand identity and value proposition that is
to be actively communicated to the target audience and that demonstrates an advantage over
competing brands”.
Thus, the brand position guides the current communication programs and is distinct from the
more general brand identity construct. There is a distinction between three related constructs as
illustrated in the Table 2.1.
The brand position trap occurs when the research for a brand identity becomes a search for a
brand position, stimulated by a practical need to provide objectives to those developing the
communication programs. The goal becomes an advertising tag line rather than a brand identity.
Table 2.1 The Brand Position Trap
Brand Image Brand Identity Brand Position
How the brand is
now received
How strategists want the
brand to be perceived
The part of the brand identity and
value proposition to be actively
communicated to a target audience
Source: Aaker (1996)
2.5.3 Four brand identity perspectives
Aaker (1996) classifies brand identity into 4 categories:
(1) The brand-as-product
Although strategists should avoid the product-related associations, they remain to be an
important part of a brand identity as they are directly linked to brand choice decisions and the

that are most likely to remain constant as the brand enters to new markets and products classes.
In addition, the core identity for a strong brand should be more resistant to change than
elements of the extended identity. Ultimately, the core identity follows from the answers to
some tough, introspective questions, such as:
• What is the soul of the brand?
• What are the fundamental beliefs and values that drive the brand?
• What are the competencies of the organization behind the brand?
• What does the organization behind the brand stand for?
(2) Extended Identity
The extended brand identity includes elements that provide texture and completeness. It fills in
the picture, adding details that help portray what the brand stands for. Important elements of the
brand’s marketing program that have become or should become visible associations can be
included. A brand personality does not often become a part of the core identity. However, it can
be exactly the right vehicle to add needed texture and completeness by being part of the
extended identity (Aaker, 1996).
The extended brand identity may include product scope, retail experience, slogan, logo,
personality, and relationship.
2.6 Value Proposition
Aaker (1996) stated that “a brand’s value proposition is a statement of the functional, emotional
and self-expressive benefits delivered by the brand that provide value to customer. An effective
value proposition should lead to a brand-customer relationship and derive purchase decision.”
9
Propositioning is a description of an appeal of a brand to its consumers. It offers the reason why
a consumer might prefer the brand. There are three types of benefit, which brand name
product/service can bring to consumers:
• Functional benefit: The benefit based on a product attribute that provides functional utility
to the consumer. Such a benefit will usually relate directly to the functions performed by the
product or service for the customer. The functional benefits have limitation of failure to
differentiate, easy to copy. Other benefits attributes can overcome those limitations.
• Emotional benefit: When the purchase or use of a particular brand gives the customer a

Brand situation analysis should produce:
• An in-depth understanding of the brand personality and values;
• A picture of the brand anatomy, and how its attributes are contributing to its overall
position;
• The same information for competitors brands.
Step 3: Targeting future position
The strategy formulation phase should produce:
• A view on the future character of the market;
• A strategy outlining the future targeted brand position;
• Benefits offered;
• Brand personality development;
• Scope of brand;
• Target segment.
11
Market Analysis
Market definition
Market segmentation
Competitor positions
Trends
Market Analysis
Market definition
Market segmentation
Competitor positions
Trends
Market Analysis
Brand personality/
Individual
Market Analysis
Brand personality/
Individual

• A program of evaluation mechanisms to monitor progress;
• A basis for continuing market analysis.
2.8 Brand position
Brand position is the part of the brand identity and value proposition that is actively
communicated to the target audience and that demonstrates an advantage over competing
brands.
The four salient characteristics of a brand position as reflected by the phrases “part,” “target
audience,” “actively communicated,” and “demonstrates advantage.”
(1) A part of the identity/value proposition
When a brand position exists, the brand identity and value proposition can be developed fully,
with texture and depth. They do not have to be concise statements of what is to be
communicated, because the brand position takes on that role.
Brand position can be changed without changing the identity or value proposition of which it is
a subset. The brand position includes the core identity, points of leverage within the identity
structure, and the value proposition (benefits that drive relationships).
(2) The target audience
The brand position should also target a specific audience, which may be a subset of the brand’s
target segment. There can also be a primary and secondary target audience.
(3) Active communication
That implies that there will be specific communication objectives focused on changing or
strengthening the brand image or brand-customer relationship. These objectives, if feasible,
should be accompanied by measurement.
Brand image reflects current perceptions of a brand. Like brand identity, brand position is more
aspirational, reflecting perceptions that strategists want to have associated with the brand.
Comparison of the identity with image will usually result in one of three different
communication tasks being reflected in brand position statement: augmenting an image,
reinforcing an image or diffusing an image.
(4) Demonstrate an advantage
12
Finally, brand position should demonstrate an advantage over competitors. The bottom line is

Brand Vertically
in existing
Product Class
Brand
Extensions in
different Product
Class
Brand
Extensions in
different Product
Class
Co-Branding
Co-Branding
Line Extensions
in existing
Product Class
Line Extensions
in existing
Product Class
Ad Hoc
Brand
Extensions
Ad Hoc
Brand
Extensions
Creating a
Range Brand
Creating a
Range Brand
Stretching

since 1986. As a result, the country has achieved considerable economic development since
then.
From its low level of GDP growth of 4% in 1987, the annual growth rate increased to 8-9%
since the early 1990s, averaging 7.3 percent annually for the past decade. Due to the Asian
financial crisis, however, the GDP growth fell to 5.8 and 4.7 percent in 1998 and 1999,
respectively. In 2000, the GDP increased to 6.75%, signaling the beginning of a recovery period
(Vietnam Statistics Office, 2000).
Table 3.1: Vietnam’s Economic Indicators
Economic indicators 1993 1994 1995 1996 1997 1998 1999 2000*
GDP growth rate (%) 8.1 8.8 9.0 9.3 8.8 5.8 4.7 6.75
GDP (US$ billion) 16 17.7 19.4 21.2 23.1 24.4 25.5 30.2
Export Growth rate(%) N/A N/A N/A 36.6 26.6 1.9 23.1 20.2
Import Growth rate(%) N/A N/A N/A 33.2 4.0 -0.8 0.9 26.5
Inflation rate (%) 5.2 14.4 12.7 4.5 3.6 8.2 0.1 -0.5
Exchange rate (VND/US$) 10,800 11,000 11,200 11,100 13,000 14,000 14,040 14.560
Source: General Statistic Office, (2000) and (*) Vietnam Venture Group, (2001)
For many years, the inflation rates have been kept under control. From 800% in 1987, the
inflation rate was brought down to a reasonable level (Table 3.1). In 1999, the inflation rate was
further decreased to 0.1% and -0.5% in 2000. That was caused by low purchasing power of
Vietnamese people.
After a booming period from 1988 to 1996, foreign direct investment (FDI) has decreased since
1997 (Figure 3.1). This downturn has affected the economic growth and development in recent
years.
15
Figure 3.1: Changes in Foreign Direct Investment
Source: Data of 1988 to 1997: MPI, 1998; Data of 1998-2000: Nguyen, 2001.
In deed, the Asian financial crisis forced a number of foreign investors in Vietnam to withdraw
or restructure their business. In addition to numerous high risks associated with the Vietnamese
market (e.g. poor infrastructure and a lack of transparency in the legislative system), foreign
investors are generally becoming more prudent in direct investment. The slowdown in FDI

Registered capital (million US$)
The analysis of the economic environment has shown that Vietnam’s economy has slowed
down since 1997. This results in a slow growth of some industries like construction, and of
the purchasing power of Vietnamese consumers. Therefore, this may in turn cause low
demand for electric home appliances as well as AVSs. From 2003 on, private enterprises
will be able to expand their market to other countries, as a result of Vietnam joining AFTA
but to do so they also have to cope with fierce competition from foreign producers.