Vietnam has gradually opened its market economy towards foreign investors and businesses in recent years, climaxing in the accession to the World Trade Organization (WTO) at the beginning of 2007. With limited choice during years of centrally planned economy, Vietnamese consumers these days face growing market liberalisation and personal wealth and hence must learn how to successfully navigate the new abundance of products and brands. Having one of the highest economic growth rates in Asia, the country is evolving rapidly and in the centre of attraction of foreign producers and retailers all over the world.
Confronted with the challenge of gaining foothold, as well as increasing and defending market share, foreign and indigenous consumer goods companies are beginning to realize the absolute essentiality of doing promotion successfully in this potential market. Meanwhile, more and more promotion agencies develop to provide support in an increasingly competitive environment. Thus, it is more important than ever to understand the Vietnamese way of thinking and lifestyle and gain deep insights of promotion within the context of Vietnam’s culture.
This thesis attempts to provide in-depth information about various aspects of promotion in Vietnam. Based on primary data gained in 30 face-to-face interviews with experts of consumer goods companies (Coca-Cola Southeast Asia, Nestle, Unilever, Beiersdorf, P&G, etc.) and promotion agencies (Ogilvy & Mather, BBDO, Saatchi & Saatchi, JWT, etc.) as well as five focus groups with Vietnamese students and observation during a three-month field research in Vietnam, it will describe Vietnamese consumers and culture and draw implications for designing a sound message, promotion mix and media mix. Furthermore, it will present current consumer trends. Only those marketers who are able to tailor their promotional efforts to fit the culture and lifestyle of Vietnamese consumers stand to reap the benefits.
Table of Contents
1. INTRODUCTION
1.1 Background
1.2 Problem Formulation
1.3 Purpose
1.4 Research Questions
1.5 Structure
2. THEORETICAL FOUNDATIONS
2.1 Disambiguation
2.1.1 Promotion
2.1.2 Consumers and Consumer Goods
2.1.3 Culture
2.2 Introduction to Promotion Theory
2.2.1 Role of Promotion
2.2.1.1 Overview
2.2.1.2 Impacts on other Marketing Mix Elements
2.2.1.3 Impacts on Marketing Strategies
2.2.2 Communication Process
2.2.3 Promotion Mix
2.2.4 Integrated Marketing Communications
3. COUNTRY OVERVIEW
3.1 Key Data
3.1.1 History
3.1.1.1 Overview
3.1.1.2 Pre-colonial and Colonial History
3.1.1.3 Development of the Socialist Republic of Vietnam
3.1.1.4 Doi Moi Policy and Recent Milestones
3.1.2 Geography and Climate
3.2 Promotion Environment
3.2.1 Overview
3.2.2 Politics and Administration
3.2.3 Economy
3.2.3.1 Key Economic Ratios
3.2.3.2 Economic Structure
3.2.4 Legal Environment
3.3 Selected Industries
3.3.1 Consumer Goods Producing Industry
3.3.2 Promotion Industry
3.3.3 Retail Industry
3.3.3.1 Overview
3.3.3.2 Traditional Retail
3.3.3.3 Modern Retail
3.3.3.4 Other Formats
4. CONSUMERS
4.1 Population and Employment
4.2 Living Conditions
4.2.1 Overview
4.2.2 Income
4.2.3 Working Conditions
4.2.4 Housing Conditions
4.2.5 Health Care
4.2.6 Other Factors
4.3 Shopping Behaviour
4.3.1 Influences on Outlet Selection
4.3.2 Characteristics of Traditional and Modern Trade
4.4 Female population
4.5 North South Differences
5. CULTURE
5.1 Cultural Influences
5.2 Categorizing Vietnam’s Culture
5.2.1 Core Cultural Dimension Models
5.2.2 Hofstede’s Five Dimensions of Culture
5.2.2.1 Overview
5.2.2.2 Power Distance
5.2.2.3 Individualism
5.2.2.4 Masculinity
5.2.2.5 Uncertainty Avoidance
5.2.2.6 Long-Term Orientation
5.2.3 Lewis Three Culture Categories
5.3 Elements of Culture
5.3.1 Overview
5.3.2 Education
5.3.3 Communication and Language
5.3.4 Social Organizations
5.3.5 Religion
5.3.6 Values and Attitudes
5.3.7 Aesthetics
5.3.8 Other Cultural Elements
6. RESEARCH DESIGN
6.1 Overview
6.2 Secondary Research
6.3 Primary Research
6.3.1 Overview
6.3.2 Expert Interviews
6.3.3 Focus Groups
6.3.4 Observation
6.4 Research Constraints
7. DISCUSSION OF FINDINGS
7.1 Target Consumer Groups
7.2 Promotion Mix
7.2.1 Advertising
7.2.1.1 Overview
7.2.1.2 Role of Advertising in Vietnam
7.2.2 Sales Promotion
7.2.2.1 Overview
7.2.2.2 Role of Sales Promotion in Vietnam
7.2.3 Public Relations
7.2.3.1 Overview
7.2.3.2 Role of Public Relations in Vietnam
7.2.4 Personal Selling
7.2.4.1 Overview
7.2.4.2 Role of Personal Selling in Vietnam
7.3 Message
7.3.1 Message Content
7.3.2 Message Execution
7.4 Media
7.4.1 Overview
7.4.2 Television
7.4.3 Print
7.4.4 Outdoor
7.4.5 Internet
7.4.6 Radio
7.4.7 Others
7.5 Taboos
7.6 Outlook
7.6.1 Consumer Trends
7.6.1.1 Overview
7.6.1.2 Health Consciousness
7.6.1.3 Brand Consciousness
7.6.1.4 Confidence and Sophistication
7.6.1.5 Personal Appearance
7.6.1.6 Changing Shopping Preferences
7.6.1.7 Cultural Influences
7.6.1.8 Convenience
7.6.1.9 Scepticism towards Promotion
7.6.1.10 Other Consumer Trends
7.6.2 Future Challenges and Opportunities
7.6.2.1 Overview
7.6.2.2 Challenges
7.6.2.3 Opportunities
8. IMPLICATIONS
9. CONCLUSIONS
9.1 Addressing the Research Questions
9.2 Limitations
9.3 Further Research
Research Objectives and Thematic Focus
This thesis investigates the promotional landscape in Vietnam for consumer goods companies, aiming to identify success factors by analyzing the cultural context and consumer behavior. The primary research questions explore the psychographic and socio-demographic traits of Vietnamese consumers, the categorization of Vietnamese culture and its impact on consumer decision-making, and the determination of effective promotional tools and media strategies in a market heavily influenced by traditional values and rapid economic development.
- Analysis of the Vietnamese consumer goods market and retail environment.
- Exploration of cultural dimensions and their influence on marketing communications.
- Evaluation of the promotion mix (Advertising, Public Relations, Sales Promotion, Personal Selling) in Vietnam.
- Assessment of current consumer trends such as brand consciousness, health awareness, and convenience seeking.
- Development of strategic implications for marketers operating in the Vietnamese market.
Excerpt from the Book
2.1.3 Culture
Culture is a very complex concept. It is pervading almost everything and dominantly affects all relationships, behaviours and interactions, in short, virtually every part of life. Considering marketing and promotion in particular, the paramount importance of culture is beyond dispute. Culture impacts communication appeals that are appropriate, the offers and attributes consumers value, their wants and needs, product usage and the decision process.
The concept of culture has been researched extensively and several hundred definitions exist. Probably one of the most popular ones was introduced by Gert Hofstede that culture is “the collective programming of the mind that distinguishes the members of one group or category of people from others”. This definition emphasizes that culture is learned rather than biologically inherited. Additional characteristics are that culture is interrelated (consists of various elements interacting and influencing each other) and is shared among members of a group. Culture comes in different layers consisting of visible parts, e.g. body language or clothing which are manifestations of underlying invisible values and assumptions, e.g. family values or national identity.
Due to the universalism of the concept, one researcher considered it might prove helpful to ask if there is anything not encompassed by culture and came to the conclusion that culture is everything but nature.
Summary of Chapters
1. INTRODUCTION: Outlines the background of the Vietnamese consumer market, the research problem regarding a lack of specific consumer/cultural insights, and the thesis objectives and structure.
2. THEORETICAL FOUNDATIONS: Defines key marketing terms like promotion and consumer goods and introduces theoretical frameworks for communication and promotion strategy.
3. COUNTRY OVERVIEW: Provides a comprehensive analysis of Vietnam's history, political environment, economic structure, and the status of the consumer goods and retail industries.
4. CONSUMERS: Details the demographic characteristics, living conditions, and evolving shopping behaviors of the Vietnamese population, including gender and regional differences.
5. CULTURE: Examines cultural influences in Vietnam using academic models like Hofstede’s dimensions and explores cultural elements like communication, values, and religion.
6. RESEARCH DESIGN: Explains the exploratory research methodology, detailing the use of secondary research, expert interviews, focus groups, and observation.
7. DISCUSSION OF FINDINGS: Analyzes the empirical data collected in the field, covering consumer groups, the promotion mix, media landscape, consumer trends, and future challenges.
8. IMPLICATIONS: Offers strategic recommendations for companies on how to tailor their marketing communications to the specific cultural and behavioral context of Vietnam.
9. CONCLUSIONS: Reviews the research questions, summarizes the key findings of the study, identifies limitations, and suggests areas for further research.
Keywords
Vietnam, Consumer Goods, Promotion, Marketing Strategy, Culture, Consumer Behaviour, Retail Industry, Advertising, Public Relations, Sales Promotion, Brand Awareness, Cultural Dimensions, Hofstede, Emerging Market, Communication Process
Frequently Asked Questions
What is the core focus of this thesis?
The thesis focuses on the successful promotion of consumer goods in Vietnam by providing an exploratory investigation into Vietnamese consumers and the cultural factors that shape their behavior and decision-making.
What are the primary themes addressed?
The work covers a country overview of Vietnam, theoretical foundations of promotion, an in-depth look at consumer demographics and shopping behavior, cultural categorization, and the evaluation of the promotion mix and media landscape.
What is the main objective of this study?
The primary objective is to provide in-depth information about the promotion environment in Vietnam and to derive success factors for consumer goods companies to tailor their messages, promotion mix, and media strategies effectively.
Which scientific methods were employed?
The author utilized an exploratory research design, combining secondary data analysis with qualitative primary research, which included expert interviews, focus groups, and direct observation during field research in Ho Chi Minh City.
What is covered in the main body of the work?
The main body covers the theoretical foundations of marketing communication, a detailed country and culture profile of Vietnam, and a comprehensive discussion of findings regarding target consumer groups, promotional tools, and consumer trends.
Which keywords best characterize this research?
Key terms include Vietnam, Consumer Goods, Promotion, Marketing Strategy, Culture, Consumer Behaviour, Advertising, Retail Industry, and Brand Awareness.
How does Vietnamese culture specifically influence promotional activities?
The research finds that Vietnamese culture, characterized by collectivism, high power distance, and long-term orientation, makes indirect communication, harmony, and social acceptance vital, requiring marketers to be cautious with aggressive or controversial promotional appeals.
What challenges do marketers face regarding media in Vietnam?
Marketers face government control over media, limited advertising space, media fragmentation as international channels enter the market, and significant bureaucratic hurdles in the booking and approval process for outdoor and other media.
- Quote paper
- Fabian Heymer (Author), 2008, Successful Promotion of Consumer Goods in Vietnam, Munich, GRIN Verlag, https://www.grin.com/document/94370
