Some PR proposals for Piaggio in Viet Nam to attract more customers

ACKNOWLEDGEMENT My report is completed not only thanks to my efforts but also with many people to whom I would like to express my deep and sincere gratitude Firstly, I would like to express my warm and sincere thanks to my supervisor , Ms Van Anh, teacher of English , Foreign Trade University for her continuous support of my study and research, her great efforts to explain things clearly and simply, for her corrections, comments, criticism, suggestions during the process of report. Her guidance helped me very much in all the time of research and writing of this report. Lastly, and most importantly, I would like to thank my parents, my friends for supporting and encouraging me throughout the process of doing this graduation report. TABLE OF CONTENTS EXECUTIVE SUMMARY……………………………………………………....1 INTRODUCTION 2 1. Introduction of the research topic………………………………………………..2 2. Rationales………………………………………………………………………..3 3. Research questions………………………………………………………………4 4. Scope of the research……………………………………………………………4 5. Methodology…………………………………………………………………….5 CHAPETR I: THEORETICAL BACKGROUND 6 1.1. Definition of public relation 7 1.2. The significance of public relation to Piaggio 7 CHAPTER II: REAL SITUATION OF PR ACTIVITIES OF PIAGGIO 8 2.1. Specific PR activities of Piaggio in previous years 9 2.1.1. Vespa festivals 10 2.1.2. Sponsoring for fashion shows 11 2.1.3. Inauguration of manufacturing factory in 2009 12 2.1.4. Other activities 13 2.2. Evaluation of PR activities of Piaggio 15 CHAPTER III: PERCEPTION IMAGE OF PIAGGIO IN CONSUMERS’ MIND AND CONSUMER HABIT OF USING MEDIA 3.1. Perception image of piaggio in consumers mind 17 3.2. Consumer habit of using media 19 CHAPTER IV: PR PROPOSALS FOR PIAGGIO 4.1. General objectives 21 4.2. Proposed PR activities for the Piaggio company 23 4.3. Proposed PR activities for its products.............................................................25 CONCLUSION APPENDIX REFERENCES EXECUTIVE SUMMARY My report aims to suggest some PR proposals for Piaggio in VN to attract more consumers. Nowadays, PR becomes more and more important for businesses to confirm the brand’s position in consumers mind as well as to raise the companies’ profit, sales . However , PR activities play an important role in helping the company reconfirm its brand position as well as launch its new products like Piaggio VN to consumers. This report aims to give some PR proposals for piaggio VietNam to attract more cusotmers as well as raise brand’s position in consumers mind. The report are devided into four main chapters. The first chapter is about Public relation . Readers will know more clearly about PR concept and its process. Moreover , the role of PR to businesses in general and for Piaggio company in particular will be specificly clarified . The second chapter is about specific Piaggio PR activities. Also, in this chapter, PR activities of the company are pointed out and evaluated on the basic theory of the first chapter and the result of survey. So, PR activities of Piaggio has gained lots of achievements as well as has its own problems. The awareness of Piaggio brand’s position as well as its new products are not very high. In other word, PR activities of this company are not successful in raising the knowledge of brand’s position in consumers’ mind. In third chapter, readers will know about perception image of piaggio in consumers’ mind and consumers’ habit of using media. Again, the company don’t really leave impressive image in consumers’ mind. Besides, readers will have more understanding of consumers’ using habit of media. The second , third chapter will be the basis of suggestions in the last chapter for PR activities in the company. The suggestions aim to reconfirm its famous brand and launch its new products to consumers more effectively. These are conveyed on the most favorite information channels. These are famous magazines like heritage, gold…or popular websites such as dantri.vn, vnexpress.com, vietnamnet.vn … (according to the result of survey conducted on sirvina.com). INTRODUCTION Introduction of the research topic Nowadays, PR activities in Viet Nam has a lot of shortcomings. Piaggio VietNam is not an exceptional one. Entered Viet Nam from the beginning of 20th century, piaggio is not very successful in ancient motorbike line. Recently , a manufacturing factory of Piaggio is established in Vinh Phuc in 2009 with investment capital thirty millions USD. In addition, a factory will be inaugurated in 2012 with investment capital up to 40 millions USD. Apparently, the company puts their big hope in Viet Nam motorbike market. Therefore, PR activities will be very helpful to Piaggio in this time. On the other hand, they will help to launch its new products to consumers and help to the company to reconfirm its brand position. Because of these , the report “some PR proposals for Piaggio in Viet Nam to attract more customers” is complemented . Rationals The report aims to measure, evaluate the effectiveness of Piaggio PR activities. The report also give readers the consumers’ understanding, perception about the company . Then, some PR propsals will be brought out to help the company develop more and attract more consumers. To do this, it is neccessary to have thorough understanding about PR activities , the role of PR to the company and perception image of company in consumers’ mind. So the report focuses on three main points: Theories of PR and the role of PR to the company. Analyzing, evaluating PR activities of Piaggio, the company image in consumers’ mind. Providing some PR proposals for the company to attract more customers. Research questions The report will focus on these following questions: What is Public Relation and the role of PR to the company? How are PR activities conducted at the company? What are the specific PR proposals for the company? Methodology In this report, most information was collected and extracted English books, newspapers, and websites. In addition, a survey of 100 consumers on sirvina ( is carried out to serve the analysis of the report. The analysis of report will base on general reports, research results of company. With these materials, the author has applied a number of research methods including statistical, synthetical, and analytical and comparative methods to highlight the discussed issues. Scope of the study PR is a new and broad concept. However , in this report the author will focus on real situation of Piaggio PR activities, consumers’ awareness of the company and then give some PR proposals . CHAPTER I: THEORETICAL BACKGROUND 1.1. Definition of PR There are many ways to define PR, but in the scope of this report, the author just focus on some that is popular and easy to understand. According to Wikipedia, “Public relations (PR) is a field concerned with maintaining a public image for businesses, non-profit organizations or high-profile people, such as celebrities and politicians Public relations is used to build rapport with employees, customers, investors, general public and provides an organization or individual exposure to their audiences through using topics of public interest and news items” The International Public Relations Association defines Public Relations as “Public Relations is the art and social science of analyzing trends, predicting their consequences, counseling organization leaders and implementing planned programmers of action which will serve both the organization’s and the public interest.” However, some people suppose that PR is the practice of managing communication between an organization and its publics. Another definition from the website is that “Public relation is all about reputation. It's the result of what you do, what you say, and what others say about you. It is used to gain trust and understanding between an organization and its various publics - whether that's employees, customers, investors, the local community - or all of those stakeholder groups”. Another definition from Philip Kotler in the book “principle of marketing” published in 1996, public relation means “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”. In short, PR aims to influence public opinion to create a positive image for company, organization, corporation through all media (press, newspaper, newsletters, photographs, internet...) This fragment clearly describes the essence of PR, which is an effort to change, modify, or influence public attitude and thought that will turn into behaviors and actions 1.2. PR process According to John Marston, a PR professor, PR process includes 4 steps called RACE in the textbook “Nature of Public Relations” published in 1963. This word is the abbreviation of PR process: Research Action plan Communication tactics Evaluation
(Source: online - pr.com) So what is research? Research is the systematic gathering of information to understand: client organization, problem/opportunity; issues/environment, key Publics. Research is carried out by using secondary documents such as: library books & periodicals, other published research, newspaper, magazines…and primary source like surveys, interviews, or researches by walking around. In the stage of step- action plan and communication tactics, we must develop a strategy that involves in setting objectives, key publics, and time line, budget for PR activities. Finally, it is the evaluation stage. In this stage, research methods will be used to consider whether PR activities get success or not. The success of program will be measured by the numbers of exposure in media, the increase in consumers’ awareness before and after the program. Surveys are necessary for the company to measure the effectiveness of its PR activities. In conclusion, Public relation is a two way process.  On the one hand, it seeks to interpret an organization to society while on the other it keeps the organization informed about the expectation of the society.  Fundamentally public relation is a means by which an organization improves its operating environment. 1.3. Measures to evaluate the effectiveness of PR activities Evaluation is a measurement activity in order to systematically compare the effectiveness of PR programs before & after implementing the program. To evaluate whether a PR campaign is effective or not, there should specific evaluating criteria. Series of evaluating criteria are divided into two types.   The first is the quantitative evaluating criterion which includes number of people attending the event, number of people who know the event and number of news, articles posted on the means of mass communication, the level of conveying the message to consumers, as well as coverage of the message. The second is qualitative criterion like the public's attitude, whether PR programs leave unforgettable impression in consumers’ mind or not and how the program affects consumers. In a Pr program, evaluation of the effectiveness of a PR program means evaluating the impact of perception, attitude or behavior of consumers. Measuring the public perception means investigating the public's attention to the message, understanding the messages, their memory of messages ... Measuring the public attitude means finding out public opinions before, during and after the a PR campaign or program or specific event. Measuring public behavior is to know whether these programs influence consumers’ behavior or not. If yes, this will lead to the increase in the company’s profit (vietnambranding.com). In this report , a survey of 100 consumers questioned is to consider whether specific Piaggio PR activities are effective or not. 1.4. The significance of public relations to Piaggio Company. Public relation plays a key role in helping business create strong relationships with customers. Public relations involve supervising and assessing public attitudes, and maintaining mutual relations and understanding between an organization and its public. The function of public relations is to improve channels of communication and to institute new ways of setting up a two-way flow of information and understanding. Public relations are effective in helping: * Corporations convey information about their products or services to potential customers * corporations craft their public image as well as confirm their brand’s position by raising funds, holding events or charity programs for poor people… For Piaggio, PR activities help the company build consumers’ belief and confirm an initial brand of vehicles in consumer’s mind when there are lots of strong competitors in Vietnam motorbike market like Honda, Yamaha, and SYM... Moreover, that effective PR activities bring corporate image to every people will appeal to talented staff to the company. Because everyone would like to work in large organizations with professional working environment and he/she has lots of opportunities to get promotion. Besides, PR activities consists of community programs like charity, support program for the poor, the handicapped, the blind…will gain not only the truth but also good feeling from customers. For example, typical PR activities like “Tiep Suc Mua Thi” of Thien Long corporation, “ Uom Mam Tai Nang” of Vinamilk Co, “ Ao Trang Ngoi Sang Tuong Lai” of Omo company. It is clear that apart from real value taken to society , these PR programs play an important role in “ finding a stable position in customers’ mind”. Meanwhile, Piaggio company hardly set up many these like community programs. Finally, Piaggio established a new manufacturing factory in Vinh Phuc, Viet Nam in 2009. This is a really starting point of Piaggio Vietnam. This is important time to broadcast corporate image and its products to consumers. PR activities are the best solutions because they produce positive effects, convey the message “ Italian legend in Vietnam” of Piaggio VN. In addition, PR activities also help consumers clearly know about its new products. In conclusion, effective PR activities gain the confidence and good feeling from consumers about corporate image that advertising is difficult to bring to the company. Because for PR activities, other people talks about the company while for advertising, the company itself talks about it. Moreover, nowadays there are so lots of advertising programs that make consumers get headache. Therefore, the image, the message percept by consumers will be more objective and reliable than interior information. In fact, PR is the most effective way but the lowest cost to build good relationship with customers. CHAPTER II: REAL SITUATION OF PR ACTIVITIES OF PIAGGIO 2.1. Specific Piaggio’s PR activities 2.1.1. Vespa festivals every year Certainly, Vespa lovers have to hear of Vespa festivals taken place from 2005 to now. In 2005, the festival was taken place in Da Nang, Hue. In 2007 , the festival was held in flower city – Da Lat. Mr. Nguyen Vu Hoang - Director of Tourism Cultural  Festival Center in Lam Dong said: "The Center organized this festival to create events for the cultural development of local tourism and  meet the needs of vespaers around the country” (camnangdulich.com). The festival lasts 4 days from 29/4 to 1/5. There are about 300 different kinds of ancient Vespa from all over the country. In this festival, vespaers ride decorated vespas around Xuan Huong lake with the attention of a great number of viewers, and have photographs . Besides, “ vespa queen”, “ vespa charm” prizes are also given to the most beautiful lady and vespas. In 2008, Dong Nai is the destination selected of vespaers around the country. In 2010, Ha Noi is selected to hold the meeting of vespa family. This festival last 2 days with the title “ Three areas’ meeting – Vespa friends” in Thien Duong Bao Son park. Again , the festival is the time for Vespaers to meet, exchange with one other. The festival attracted nearly about 1000 Vespaers from all three regions: northern, central & southern region. The program is sponsored by forum vespafriends.com and Ha Noi vespa group. Apart from the aim to create playing yard for vespaers, the program also directs toward “ Great Celebration of 1000 Years of Thang Long, Ha Noi”. 2.1.2. Sponsorship for fashion shows in recent years Besides organizing Vespa festivals, Piaggio focuses on mainly sponsoring for fashion shows in recent years. The program aims to introduce its products to viewers by the appearance of Piaggio’s vehicles with famous models such as Ngo Thanh Van, Ha Anh , Phi Thanh van… These events catch the attention from a large numbers of viewers. In addition, in 2010, Piaggio Viet Nam sponsor the award “ The Beautiful Women Who Audience Select” . The prize is a Vespa lx pink with limited number. This prize belongs to the official prize system of Miss Viet Nam 2010 according to audience‘s selection through mobiphone. this sponsoring program aims to convey the message “ Piaggio always go with the beauty”. These like programs also help to contribute the increase in knowledge about Piaggio brand as well as confirm its position. 2.1.3. Inauguration of a manufacturing factory in 2009 In 2009, Piaggio organized successfully the event “Inauguration of the first factory in Viet Nam” with investment capital up to 30 million USD. In 4 /2011, Piaggio held Ground-breaking ceremony of the second factory in Vinh Phuc with the cost of 40 millions USD. It is scheduled to start in 2012. Its capacity of production is 300.000 motorcycles per year instead of 100.000 ones in 2009. So, Piaggio really puts their big hope in Vietnam market. 2.1.4. Other activities Every year, there are some videos, clips about Piaggio and its products on YouTube channel. These clips like “ Vespa – green action because of environment”, or “ Vespa friendly to environment”. Moreover, the company indirectly creates topics on forums like ttvnol.vn, vespafriends.com, vespafamily.com, webtretho.vn, diendanvespa.com to help customers with technical information, other support service. These forums are the places for every member get experiences, share information mutually about how to use vehicles as well as vehicles related matters. These forums are also the places for them to exchange, hold the meeting among the users of Piaggio motorbike firm. 2.2. Evaluation about the effectiveness of Piaggio’s PR activities To measure how PR activities affect consumers, a survey of 100 people ( people with different age and career ) was conducted on website sirvina.com. firstly , Vespa festivals with long travels attract a large number of users of this motorbike line as well as gain admiration from others. Mr.Hung - a tourist from Da Nang province said that: " This is a wonderful surprise for our family when we travel to Da Lat. Vespas become more and more beautiful when they are decorated with various flowers in Da Lat. This is really our unforgettable experiences ". Ian Kitching , an English teacher in HCM yells “ great” when being questioned about his feeling with this festival (vietbao.vn) . However, the festivals are not organized simultaneously everywhere so they don’t create widespread effect . In fact, the festivals are just taken place in some cities like Ha Noi, HCM, Da Nang, Da Lat, Hue. From the result of survey, only about 30% said that they know about these festivals. Next, the programs go with beauty, fashion like fashion shows that actually convey its message about Piaggio motorcycle. The Piaggio‘s vehicles always shine by famous models in this festival night. Meanwhile, they put some flesh to the attraction of fashionable designs. The appearance of Piaggio’s motorbike in this show actually make viewers thirst