3:26:37 PM | 7/8/2005
Advertising and marketing companies have announced that for the first time two locally owned companies were among the top ten firms for advertising spending in 2004.
According to one advertising consultant, the firms with the highest advertising budgets were still mostly major foreign-owned companies such as Unilever, Procter & Gamble, Vietnam Beer, Dutch Lady, and Pepsi.
However, for the first time two Vietnamese companies, Tan Hiep Phat and the Vietnam Dairy Products Company (Vinamilk), came in at fifth and eighth, spending US$4.9 million and US$3.8 million, respectively.
Tan Hiep Phat product, Laser beer, was among the top ten advertised products in 2004. The firm spent US$2.7 million on the Laser beer campaign, ranking sixth after brands plugged by multinationals in the year.
However, some uncertainty exists over the means to measure advertising efficacy. Doan Dinh Hoang, Managing Director of the Masso Consulting Group, spoke of Vinamilk’s international branding campaign during a recent trademark forum. “It is still unclear about the effect of this campaign, but in Mid-February, Vinamilk shares drew high interest from investors,” Mr Hoang said.
Industry experts are hesitant in assessing Tan Hiep Phat’s plugging of Laser beer. Time is needed to build the prestige of a trademark, and the Laser brand was only launched in early 2004, according to Masso Group General Director.
Ly Truong Chien, Marketing Manager of a multinational company, said that Vietnamese companies often have short-term vision when developing their brand names. They want to see immediate benefits without bothering to research consumer bases or track the market and trademark position.
Many executives still believe that product quality is first and foremost in the natural attraction of a customer base. Multinational companies often invest more than 15 per cent of turnover in upping brand name recognition, designing distribution strategies and hiring consultants for distribution and advertising.
Vietnamese companies have only plugged a handful of brand names in the domestic market, such as Kinh Do and Vinamilk, under pressure from competition from multinational companies.
However, Christopher S. Moeller, Managing Director of S.C Johnson & Son Vietnam said that foreign companies have not cornered every market. "Several months ago I visited some provinces and saw many big opportunities for Vietnamese brand names".
Vietnamese
