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

ther 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). NgheĐọc ngữ âmIn this report , a survey of 100 consumers questioned is to consider whether specific Piaggio PR activities are effective or not. Từ điển 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 for owning a motorbike like this because of its beauty, fashion and luxury. Yet, due to the nature of the show, the guests are the people who are famous, or have status in society. This makes people, especially for many consumers who have average income in Viet Nam feel difficult to access to its products. In another word, consumers feel that these motorbikes are dedicated to rich people. According to the result of survey, 70 % interviewees agree that only rich people can use these motorbike lines. It is not good for Piaggio Viet Nam when this company is in the stage of launch Piaggio Viet Nam motorbike with cheaper price. Thirdly, forums play an important role in advertising, introducing its products as well as supply information of product, product related matters. Furthermore, forums are the place for motorbike users to share, exchange information and hold the meeting. Among forums, ttvnol.vn is considered one of the strongest forums. But some people complain that they don’t often get answer from the admin of products related topics. If yes, it will take them few days to get answers. This makes them lose confidence in these forums. Next, YouTube is the most initial social network nowadays. Thus, a great number of businesses take advantage of this network to broadcast its brand and products. Piaggio is not an exceptional one. The company related videos, clips like Vespa adventures, Vespa –friendly to environment, Vespa- green action of environment… are broadcasted on you tube . But these videos are not carefully prepared, the content & image are too simple, unattractive. This leads to a too small number of viewers. In detail, video “Vespa – friendly to environment” just take about 32 viewers. Or videos of Vespa festivals are also viewed by 340 people (Youtube.com). Whereas, the programs “I love Vietnam” that is sponsored by Honda Vietnam company attracts 5 million watchers (vietbao.vn). So, this is a too big number compared to number of watchers in Piaggio’s programs. Finally, an important event for motorbike market in general and for Piaggio VN in particular is the inauguration of the first Piaggio factory in Vinh Phuc in 2009. The newly set up factory aims to convey the message “Italian legend in Viet Nam”. It means that Piaggio motorbike line with fashion, luxury of Italian style appears in Viet Nam, not in far place. However, this event does not create a big echo to consumers because there are only some print ads, articles about Piaggio Viet Nam. These are famous magazines, webs like Gold, Heritage magazine, nhipcaudautu.vn, Saigon economics time…. Consequently, only 35% interviewees said that they have heard of this event. Meanwhile, this is key stage for Piaggio Viet Nam to launch its new products to all consumers. Every year, there are 50 articles , stories about the company and its products on Heritage magazine, 45 on Gold , some on other newspapers & websites (according to the result of Rich Media ‘s analysis). For these magazines, newspapers, this is a relatively large circulation. But they lack of regularity as well as large scale among lots of newspapers, magazines, websites…. Therefore, these activities cannot give widespread effect, raise high increase in the knowledge of consumers about Piaggio brand. CHAPTER III: PERCEPTION IMAGE OF PIAGGIO IN CONSUMERS MIND AND CONSUMERS HABIT OF USING MEDIA 3.1. Perception image of Piaggio in consumers’ mind According to the result of survey, about 95 % people said that they have ever heard of Piaggio brand. 60 % of these people know about this company through internet. 35 % said that their knowledge of the company is through friends, relatives. The rest is due to other information channels like radio, newspaper, magazines. Piaggio is one of the most initial motorbikes in the world. About 70% interviewees agree that Piaggio is the brand with stylish, fashionable, and expensive motorbikes. Only 60% said that Piaggio is Italian brand . Only 50% agree that they think of Piaggio first when talk about famous motorbike brand. However, a large number up to 75% agree that only rich people can own this motorcycle line . 55% people agree that Piaggio motorbike line brings users the confidence, the pride as well as the admiration from others when riding on these motorbikes. Just 50% people agree that Piaggio motorbikes spend a little gasoline. 49 % people said that Piaggio has good customer service, technical support, or regular check. Only 20 % agree that piaggio is friendly to environment, and close to customers. Just 5% said that Piaggio brand has lots of community programs: charity, sponsoring programs for the poor, the handicapped, the blind…. In summary, Piaggio is a famous brand not only in the world but also in Viet Nam. In general, the consumers in Viet Nam highly appreciate Piaggio brand (according to the result of survey). However, piaggio brand has not yet caught good feeling from consumers because the company is weak at customer service as well as community programs which create the best impression in consumers’ mind. 3.2. The consumers’ habit of using media About 95% people said that they access to internet frequently, more than one times / a day. And internet is also the most means of media they use. The following table expresses the level of the most means of media among 100 consumers questioned in the survey. Internet 70% Magazines, newspaper 15% Television 6% radio 7% Other 2% (Source: The result of survey of 100 consumers on sirvina.com 70% said that internet is the most favorite means of media they use to search information, read news. Online newspaper is means of media that consumers would like to receive news about Piaggio most. Also according to the result of survey, the most favorite information channels are news.zing.com, dantri.vn, vnexpress.com, vietnamnet.vn. Information channels that provide economic news are nhipcaidautu.vn, saga.vn, Saigon economics time, Vietnam economics time, vneconomy.vn. These are the most favorite channels people use to search for economic information. CHAPTER IV: SOME PR PROPOSALS FOR PIAGGIO 4.1. General objectives According to the assessment of PR activities in Piaggio and perception image in consumers mind, proposed PR activities will be divided into two following directions: proposed PR activities for Piaggio brand & for its products. For piaggio brand, PR activities focus on the increase in knowledge, awareness of an initial, famous, fashionable brand with Italian style and gain good feeling from consumers through the improvements of community programs. For its products, PR activities aim to reconfirm dominant characteristics of this motorcycle line: fashionable, durable, little gasoline, modern, stylish. In addition, there are some stories to raise the confidence, pride of users as well as the admiration from other transporters. These messages are conveyed and public through information channels such as famous magazines, newspapers, websites, and social networks …These are information channels which are widely covered, accessed most by consumers according to the result of survey. 4.2. Proposed PR activities for Piaggio brand According to the evaluation of piaggio PR activities, the company has had lots of PR activities in recent years. However, due to lack of widespread scale, it is not highly effective. These are some specific proposals for PR activities for Piaggio. Firstly, the company should organize Vespa festivals periodically in large scale. Three Vespa festivals are held synchronously every year. This will cause an echo and catch great attention from consumers. Secondly, the company ought to focus more company related forums with current PR groups. A professional PR group on forums will be very help to deal with rumors, bad news or even complaints from consumers. They will know how to relieve these kinds of news and help to improve company’s image in consumers’ mind. For instance, there are some complaints about Piaggio motorbike’s quality, this PR group will find ways to make it a normal thing and let the topic toward direction that is good for the company. In addition, to serve customers better, Dr.Know (a specialist who knows everything about product related matters) will be hired to answer all queries for users and provide useful advice for customers so that they feel safe to use motorcycles. Also, the company will take chance to release positive message to enhance its brand as well as clarify all related rumor. Forums are the places that attract the most number of people. Therefore , for the company related forums like Piaggio.com, diendanvespa.vn , vespafamily.com , a writing contest of the best memory of life that is related to piaggio motorcycle line should be held and the best writer will be awarded. This contest not only gives participants excitement but also leaves unforgettable memories in consumers’ mind about this famous brand. In short, the shared & contributed information, experiences from the forum will be very helpful for writing advertorials, adjusting communication business program and products also. So, apart from the aim to give information, the forum is very ideal to consolidate solidity, connection among Piaggio community. Thirdly in fashion shows that take place per year, the company should hold auctions of VesPa. Money received will be given to the poor, the handicapped… This will be highly appreciated by consumers and get positive thought of the company. Besides, the image of Piaggio motorbike with famous models appeared on newspaper, magazine will prove an initial brand’s position of high class, stylish, fashionable motorbike line. Next, the company should improve its community programs. Only 10% people said that they have ever heard of charity or sponsoring programs . It is the sponsoring program for the prize “The beautiful women who audiences select” in Miss Viet Nam in 2010. It is clear that the company lacks of community programs that are valuable to society and the best way to get good feeling from consumers as well as increase brand ‘s position in customers’ mind. The company can hold fund raising programs in auctions, exhibitions or charity programs for the poor. The company also sponsors for the community programs. The company also follow Some other successful community programs such as “ Uom mam tai nang” of Vinamilk company , “ Ao trang ngoi sang tuong lai” of Omo company… Finally, there should be stories to reconfirm an initial motorbike brand. The stories are about the history and origin of the company that bring the respect, admiration from others. The stories relate to Italian style of romance, love that inspires this motorbike line. These stories should be posted on a large scale of different kinds of newspaper (online report and magazines) to catch great attention from readers. About 90% people said that they often access to the information channels like dantri.vn, vnexpress.com, vietnamnet.vn, news.zing.vn. A large number of 87% said that trade magazine, Vietnam economics time, Saigon times, vneconomy.com, Saigon businessmen are information they often use to seek for economic information. These are proposed headlines to widen consumers’ awareness of Piaggio brand as well as its products posted on the most accessed information channels. No Subject Magazine/ newspaper 1 History of Piaggio brand attached to Italian style Gold Heritage Vietnam economics time Vneconomy.vn 2 Piaggio – high class motorcycle line Consumer Young fashion Trade magazine Dantri.vn News.zing.vn Vnexpress.com Vietnamnet.vn 3 Why choose Piaggio, not another brand? Motorcycle forums Trade magazine Dantri.vn News.zing.vn Vnexpress.com Vietnamnet.vn 4 Piaggio Vietnam - my choice, my love, my life. Business Forum The young News.zing.vn Kenh14.vn Fashion magazine 5 Piaggio – the initial motorbike brand in the world Vneconomy.com Kenhthuonghieu.vn Vnbrand.net Business forums Dantri.vn Vnexpress.com Heritage Gold Figure2. Some proposed headlines to strengthen Piaggio brand’s position on the most accessed information channels (according to the result of survey) 4.3. Proposed Pr activities for Piaggio’s products Piaggio motorcycle line is well known for fashionable, modern but romantic style. The company should make a direct introduction of the standard quality, customer care services as well as indirect performance of Italian elegant style, culture. This motorcycle line’s style will be confirmed by series of stories written on: Normal travelling On successful people Those who have intention and plan to buy a motorbike Besides, the message of love dedicated to this motorcycle line (vespa) will express admiration, personality to the Italian designed motorbike. These stories should be posted on first traffic rank online newspapers to get more customers’ attention. Moreover, many stories of stars, models…will be posted on newspapers having their photos accidentally taken with Piaggio motorcy