Branding BIDV to individual customer segment for sustainable development

TRUONG DAI HOC MO TP. HCM UNIVERSITEÙ LIBRE DE BRUXELLES

HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL

MBMM5

HUYNH MY TRUC

BRANDING BIDV TO INDIVIDUAL

CUSTOMER SEGMENT FOR SUSTAINABLE

DEVELOPMENT

MASTER PROJECT

MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Dr Nguyen Minh Kieu

Ho Chi Minh City

(2011)

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DECLARATION

I declare that this study does not incorporate without acknowledgment any material

previously submitted for a degree or diploma in any university; and that to the best of

knowledge it does not contain any material previously published or written by another

person except where due reference is made in the text.

Huynh My Truc

Master of Business and Marketing Management – Intake 5

ACKNOWLEDGEMENT

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This thesis was completed with great support and encouragement of the author’s

instructors, family and colleges.

First of all, I wish to express deep appreciation to Dr Nguyen Minh Kieu for his

thorough guidance and valuable feedback on the preparation and writing of this final

project.

I would like to thank all Facilitators, Coordinators, Classmates and the numbers of

the Postgraduate Office at Open University HCMC and Solvay Business School for their

encouragement and assistance in completing this project.

I also send deep thanks to the Board, managers of BIDV who were always willing

to provide me the related necessary documents.

Last, but not least, I would like to say thanks to all of my classmates, my family

who have give me much encouragement and support during the time I perform this thesis.

All of these support and encouragement were acknowledged in this thesis as an

indispensable part for its final result.

TUTOR’S COMMENTS

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ABBREVIATION

BIDV : Bank for Investment and Development of Vietnam

WTO : World Trade Organization

APEC : Asia Pacific Economic Cooperation

AFTA : Asean Free Trade Area

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ADB : Asian Development Bank

NIB : Nordic Investment Bank

JBIC : Japan Bank for Internation Cooperation

SOCBs : State-owned Commercial Banks

SOEs : State-owned Enterprises

JSCBs : Joint Stock Commercial Banks

SMEs : Small and Medium Enterprises

SWOT : Strengths – Weaknesses – Opportunities – Threats

SLEPT : Social – Legal – Economic – Political – Technology

ACB : Asia Commercial Bank

Vietinbank : Vietnam Bank for Industry and Trade

ATM : Automated Teller Machine

POS : Point of Sales Terminal

IT : Information technology

ISO : International Organization for Standardization

PR : Public Relations

CRM : Customer Relationship Management

R&D : Research and Development

GDP : Gross Domestic Product

ROA : Return on Assets

ROE : Return on Equity

IPO : Initial Public Offering

LIST OF TABLES/FIGURES/CHARTS

Table1 The rate funding in GDP from 2004 - 2020

Table 2 SWOT analysis

Table 3 BIDV’s sale objectives by type of customer at the end of 2013

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Table 4 Estimated marketing budget 2009 – 2013

Table 5 Marketing communication cost breakdown 2009 – 2013

Table 6

Average deposit and average loan structure by customers of BIDV

from 2005 – 2007

Table 7 Numbers of bank from 1991 to 2011

Table 8 Lending market share of banks from 2000 – 2007

Table 9 Lending market share of banks from 2000 – 2007

Table 10 Comparison about market share of 4 big SOCBs

Figure 1 The sources of brand equity

Figure 2 The Strategic brand management process

Figure 3 The brand value chain

Figure 4 The relation between factors of customer equities

Figure 5 The cooperation model in working process within BIDV

Chart 1 Percentage of individuals using banking services calculated on age and income

Chart 2 Type of banking services which individual customers want to use

Chart 3 Banks which banking individual users want to use

Chart 4 Prior elements in choosing bank

CONTENTS

DECLARATION i

ACKNOWLEGEMENT ii

TUTOR’S COMMENTS iii

vi

ABBREVIATON iv

LIST OF TABLE/FIGURE/CHART v

CONTENTS vi

EXECUTIVE SUMMARY viii

CHAPTER I : INTRODUCTION 1

1. Problem statement 1

2. Objective 2

3. Scope and limitation of research 2

4. Structure of the project 2

5. Research strategy and methodology 3

6. Feasibility and practical of the research 4

CHAPTER II : LITERATURE REVIEW 5

1. Brand & Branding 5

1.1 What is a brand 5

1.2 Brand Equity 5

1.3 What is branding 7

2. Branding process 8

2.1 Identifying and establishing brand positioning and values 9

2.2 Planning and implementing brand marketing programs 10

2.3 Measuring and interpreting performances 11

2.4Growing and sustaining brand equity 13

CHAPTER III: BRANDING BIDV TO DEVELOP INDIVIDUAL

CUSTOMER SEGMENT

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1. Introduction about BIDV 14

2. Market analysis 16

2.1 SLEPT analysis 16

2.2 Competitive analysis 18

2.3 Branding strategy of Vietnam banks analysis 19

3. BIDV brand analysis 20

3.1 Achievements 20

3.2 Drawbacks of BIDV brand 21

3.3 SWOT analysis 22

4. Branding strategy for individual segment 23

4.1 The brand objectives at the end 2013 23