Đỗ Tuấn Anh 7C
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.
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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
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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
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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
1. Introduction of the research topic
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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 .
2. 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.
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- Analyzing, evaluating PR activities of Piaggio, the company
image in consumers’ mind.
- Providing some PR proposals for the company to attract more
customers.
3. Research questions
The report will focus on these following questions:
a. What is Public Relation and the role of PR to the
company?
b. How are PR activities conducted at the company?
c. What are the specific PR proposals for the company?
4. Methodology
In this report, most information was collected and extracted
English books, newspapers, and websites. In addition, a survey
of
100
consumers
on
sirvina
(http://www.sirvina.com/WebSurvey/129488127685300000/634
06F.aspx.com) 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,
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and analytical and comparative methods to highlight the
discussed issues.
5. 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
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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 http://www.prca.org.uk 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”.
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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
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Dynamic
Model
9
Research
Action plan
Evaluation
Communication Tactics
(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
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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.
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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
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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
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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
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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
Center in Lam Dong
said:
create events for the cultural
meet
of Tourism
Cultural Festival
"The Center organized this festival to
development
the needs of vespaers
around
of local tourism and
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
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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
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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
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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
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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.
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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.
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