Increasing liberty insurances brand awareness in order to bee in the top 5 of non life insurers in vietnam by 2014

TRƯỜNG ĐẠI HỌC MỞ TP.HCM
HO CHI MINH CITY OPEN UNIVERSITY

UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL

MBMM5

LE THUY KIM LOAN

INCREASING LIBERTY INSURANCE’S BRAND
AWARENESS IN ORDER TO BE IN THE TOP 5 OF NONLIFE INSURERS IN VIETNAM BY 2014

MASTER PROJECT
MASTER IN BUSINESS & MARKETING MANAGEMENT

Tutor’s Name: Dr. Le Thanh Long

Ho Chi Minh City
2012


1

COMMITMENT
I commit that I researched, collected materials, synthesized, analyzed and wrote this
dissertation by myself under directive professors’ help. All information and figures
which are used in this dissertation originate from clear, honest and publishable sources.


2

ACKNOWLEDGEMENTS
Firstly, I would like to express heartfelt thanks to Doctor Le Thanh Long who
encouraged and directed me with all his heart on the way of this project, and helped me
to finish this dissertation
I would like to express my deep acknowledge to Mr. Pham Truong Khanh - Marketing
Director of Liberty Insurance Company. With valuable advices, relevant information and
recommendations, he support me a lot during this study
I would also like to express my deep gratitude to Professors, Coordinators in Open
University for their guide
I would also like to thank to friends and colleagues in insurance companies and
universities, who provided me with abundant relevant information for this dissertation.
My special thanks go to my family and relatives, who have continuously given me the
inspiration to complete this dissertation.
Thank you very much!


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TABLE OF CONTENTS
COMMITMENT .................................................................................................... 1
ACKNOWLEDGMENTS ...................................................................................... 2
LISTS OF TABLES AND FIGURES..................................................................... 5
APPENDIX 1 LIBERTY BRAND AWARENESS RESEARCH ........................... 42
APPENDIX 2 NON-LIFE INSURERS IN THE MARKET IN 2011 ......................43
APPENDIX 3 BRAND AWARENESS OF NON- LIFE INSURERS IN 2011 .......46
APPENDIX 4 ADVERTISING PICTURES ........................................................... 47
REFERENCES ...................................................................................................... 56
CHAPTER 1: INTRODUCTION
1.1 Background of project ...................................................................................... 6

1.2 Objectives of project ........................................................................................ 7
1.3 Scope of the project ......................................................................................... 7
1.4 Methodology .................................................................................................... 7
CHAPTER 2: LITERATURE REVIEW
2.1 Brand awareness .............................................................................................. 8
2.1.1 Definition ...................................................................................................... 8
2.1.2 Brand awareness establishing ....................................................................... 8
2.1.3 Brand awareness components ....................................................................... 8
2.1.4 Brand awareness building steps .................................................................... 8
2.2 Brand awareness through audience tool of communication ............................. 9
CHAPTER 3: OVERVIEW OF NON-LIFE INSURANCE INDUSTRY


4

3.1 Overview of non- life insurance industry .........................................................11
3.1.1 The concept of non-life insurance .................................................................11
3.1.2 Insurance purpose ......................................................................................... 11
3.1.3 Non-life insurance market in 2011 ................................................................12
3.2 Overview of Liberty insurance company .........................................................15
3.2.1 Introduction of Liberty insurance company ...................................................15
3.2.2 Brand awareness of Liberty insurance company...........................................18
3.2.3 Brand strategy of Liberty insurance company...............................................19
3.3 Overview of competitors in non-life insurance market in Vietnam .................20
3.3.1 Major competitors in the market ...................................................................20
3.3.2 Brand awareness of competitors ................................................................... 21
3.3.3 Brand strategies of competitors..................................................................... 22
CHAPTER 4: SOLUTION AND IMPLEMENTATION
4.1 Brand awareness analysis ................................................................................ 28
4.2 Solution ............................................................................................................ 28

4.2.1 Stage 1 plan......................................................................................................33
4.2.2 Stage 2 plan......................................................................................................36

CHAPTER 5: CONCLUSIONS
5.1 Conclusion ....................................................................................................... 40
5.2 Limitations of the projects ...............................................................................40
5.3 Recommendation ............................................................................................. 41


5

LIST OF TABLES & FIGURES
Number

Page

1. Table 1 Gross Written Premium .................................................................. 13
2. Table 2 Top 5 companies in awareness ....................................................... 21
3. Table 3 Budget on communication plan ...................................................... 37
4. Table 4 Communication plan schedule ....................................................... 37
5. Figure 1 Gross Written Premium................................................................. 14
6. Figure 2 Top 15 insurers on gross written premium .....................................15
7. Figure 3 Product classification ....................................................................17
8. Figure 4 Brand Awareness of Liberty in 2008, 2009, 2010, 2011.................18
9. Figure 5 Brand awareness of competitors ................................................... 21
10. Figure 6 Buyer readiness stages.................................................................. 29
11. Figure 7 Audience response in communication ........................................... 30
12. Figure 8 The Liberty logo ........................................................................... 30
13. Figure 9 Audience tool for building brand awareness.................................. 32

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CHAPTER 1: INTRODUCTION
1. 1 BACKGROUND OF PROJECT
In the competitive situation as today, the brand becomes extremely important factor for
businesses. Vietnam enterprises in recent years have been aware of the brand strength
to survive and find a place on durable market, so there have been an active investor for
the construction and brand development
Liberty is the insurance company 100% owned by the U.S. enter the Vietnam market in
2007, after 4 years of Liberty has achieved a certain success and is considered the
company with fast growth quickly in the market for non-life insurance. Of the 28
companies for non-life insurance, the Liberty is ranked 13th in revenue premium (over
175 billion USD), up 2 levels compared to 2010 and the objectives of Liberty is beyond
the top 5 in 2014. Compared to the veteran company operating for over 15 years as Bao
Vietnam, Bao Minh, PVI is a foreign company operating a new 4 years is not easy. To
do this, the Liberty need a lot of efforts, from increased service quality, product
improvement process to invest heavily in the sales team, expanding markets, distribution
channels…
Besides the rival companies are moving, constantly for increased market share should
rise to the need to lead Liberty to increase the level of effort to identify the highest
possible brand, which has increased market share. The main reason that the level of
brand awareness is considered key objectives to be achieved to contribute to the success
of the company.
In that situation, I choose this project to study the state of the communication activities of
the company brand in the transition period this analysis of brand communication


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activities that are conducting business from which to apply marketing knowledge learned
indicate the business has done well and not well. Since then, proposed a few minor
recommendations subjective opinion to help businesses better able to conduct activities
of their brand communications.
1.2 OBJECTIVES OF PROJECT
This project has three major objectives:
(1) Analyze and assess brand awareness situation in non-life insurance market in
Viet Nam.
(2) Build plan for Liberty to improve awareness as top 5 in the market.
1.3 SCOPE OF THE PROJECT
This project has been limited to studying on marketing strategy of Liberty and five
competitors in the industry based on secondary data which are mostly collected in Ho
Chi Minh and Ha Noi.
1.4 METHODOLOGY
The project is developed on the basis of the real concerns of Liberty on the non-life
insurance industry in which Liberty has a lot of advantage: the third global company in
property and casualty insurer.
During literature review, we see that Philip Kotler (Principal of Marketing 2008, page
376) has proposed an effective way to build brand awareness.
We first analyze and assess the brand awareness of Liberty then we use Philip Kotler
process to build brand awareness.


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CHAPTER 2: LITERATURE REVIEW
2.1 BRAND AWARENESS
2.1.1 DEFINITION
First, accordingly to Cornell Maple (Bulletin 105, 2007) brand awareness refers to how
aware customers and potential customers are of our business and its products.

2.1.2 BRAND AWARENESS ESTABLISH
“The more a customer experiences the brand by seeing it, hearing it, or thinking about
it, the more likely he or she is to strongly register the brand in memory. Thus anything
that causes consumers to experience a brand name, symbol, logo, character, packaging,
or slogan – including advertising and promotion, sponsorship, and event marketing,
publicity and public relations, and outdoor advertising – can increase brand awareness of
that brand elements. Keller (Strategic Brand Management, 2008)
2.1.3 BRAND AWARENESS COMPONENTS
Brand awareness consists of brand recognition and brand recall performance. Brand
recognition is consumers’ ability to confirm prior to exposure to the brand when given
the brand as a cue. Brand recall is consumers’ ability to retrieve the brand from memory
when given the product category, the needs fulfilled by the category, or a purchase or
usage situation as a cue. Keller (Strategic Brand Management, 2008)
2.1.4 BRAND AWARENESS BUILDING STEPS
Philip Kilter (Principle of Marketing 2007) proposed these steps to build plan to
maximize brand awareness:


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1. Identifying the target audience
2. Determining the communication objective
3. Designing the message
4. Choosing the Media
5. Collecting feedback
2.2 BRANDWARENESS THROUGH AUDIENCE TOOL OF COMMUNICATION
As we know from brand awareness above, “the more a customer experience the brand
by seeing it, hearing it, or thinking about it, the more likely he or she is to strongly
register the brand in memory”
Through George E. Belch and Michael A. Belch in “Advertising and Promotion, p. 24”,

we know that the various promotional mix elements are the major tools that marketers
use to communicate with current and/or prospective customers as well as others relevant
audience.
The integrated marketing communication management involves the process of planning,
executing, evaluating, and controlling the use of various promotion mix elements to
effectively communicate with target audience.
Brand awareness building tools include:


Broadcast media (TV/radio)



Print media (newspaper, magazines



Public relationships



Internet



Direct marketing



Sales promotion

10



Product placement



Events and sponsorships



Word of mouth



Point of purchase



Personal selling



Out of home media


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CHAPTER 3: OVERVIEW OF INSURANCE INDUSTRY
3.1 OVERVIEW OF NON- LIFE INSURANCE INDUSTRY
3.1.1 THE CONCEPT OF NON-LIFE INSURANCE
Non-life insurance is still used as a general concept of meaning which contain all of the
damage for insurance (property insurance, liability insurance) and human insurance not
belonging to life insurance (accident insurance, sickness insurance, etc.).
According to the Insurance Business Law Vietnam, the term non-life insurance is
explained: "Non-life insurance is property insurance, civil liability insurance and others
not contained in life insurance.”
3.1.2 INSURANCE PURPOSE
In general, non-life insurance in particular is known as the method of effective damage
transfer, an insurance buyer pays amount of money as insurance fee for an insurance
company instead of facing damages that they may encounter. On the other hand, the
insurance company has to be responsible for damages that their customers have
transferred to them. One more meaning is that customers who buy life insurance want to
transfer the big damages that they cannot suffer to the insurance company. Therefore,
non-life insurance has been and will never serve the need of enrichment, making profit
from people’s idle cash. In technical insurance, principles of compensation and
subrogation; the method of determining the limits of liability insurance, insurance
compensation; share measures of liability for the insurance duplication are valued and
done thoroughly. All of these issues also largely preserve the meaning: to help the
insured to overcome the consequences of material and financial risk – insured event.


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Besides, because of some very special reasons, more many the non-life insurance
contracts are signed: this thing is to meet the regulations on compulsory insurance law,
the practices, the conditions required for production and business activities, professional

activities and international practice. To form non-life insurance up to promote his role,
as well as provide benefits to the community, the law has some quite diverse
requirements for this service, but never applies to the type of life insurance. Thus, the
purpose of non-life insurance is also considered as a very particular characteristic of the
insurance field.
3.1.3 NON-LIFE INSURANCE MARKET IN 2011
In 2011, the market is potentially more objective factors of the economic - political
situation of the world and Vietnam. It is inclined positively that monetary policy has
been operating more flexible to facilitate economic development. It brings about
increased demand for insurance, especially for retail insurance products and technical
property.
This year, the market has changed quite positive, although the status of non-technical
competition has not improved much, but in terms of competition, insurers have paid more
attention to the work of raising quality after-sales service, ensuring operational safety
and variety of products to tap new market segments, reducing competitive pressure of
traditional products. In particular, online insurance sales channels have been interested
and will be the new trend of insurance companies to make channels diverse and make it
convenient for customers and cost savings.
In 2011, revenue growth of the market in general and insurance companies in particular
was moderate; this year appeared more new products, particularly products for
individuals. These companies will focus on researching and developing new products
such as human health insurance, liability insurance, etc. Financial insurance products are
attended to exploit due to the growth of finance – bank markets. In addition, there will


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be more products for small and medium enterprises - increased potential customers in
the economy.
Application of Insurance Business Law’s change creates a fair business environment and

more pressure on insurance companies which have to reform and go on to compete in
quality. In addition, the business performance of enterprises will be improved when they
focus on risk management, cost savings, enabling enterprises to mobilize capital as well
as increase profit from financial investments.
Table 1: Gross Written Premium

Auto Insurance
Property Insurance
Health Insurance and Presonal Accident
Hull and P&I Insurance
Cargo Insurance
Explosion and Property All Risk Insurance
Aviation Insurance
Public Liability
Business Interruption Insurance
Credit & Financial Risk Insurance
Agricultural Insurance
Base on that we have the chart:

1H2011
3,099,802
2,679,933
1,314,355
1,055,012
839,022
618,294
316,019
242,852
34,674
14,229

2,959

1H2010
2,516,882
2,038,281
931,299
972,580
576,010
725,350
249,877
204,271
17,322
8,532
958


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3,500,000 
3,000,000 
2,500,000 
2,000,000 
1,500,000 
1,000,000 
500,000 
‐

1H2011
1H2010

Figure 1: Gross Written Premium
Source: Associations of Vietnamese Insurers, 2010 – 2011
In six months of 2011, the total premium of the whole non-life insurance market
increased 23.97% over the same period in 2010.


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Bao Long
SVIC
Liberty
GIC
Samsung Vina
MIC
ABIC
AAA
BIC
Aviation
PTI
PJICO
Bao Minh
Bao Viet
PVI
0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Figure 2: Top 15 insurers on gross written premium
Source: Associations of Vietnamese Insurers, 2010 – 2011
3.2 OVERVIEW OF LIBERTY INSURANCE COMPANY
3.2.1 INTRODUCTION OF LIBERTY INSURANCE COMPANY
Liberty Insurance is a 100% U.S. - owned general insurer and a member of Liberty
Mutual Group.
"Helping people live safer, more secure lives" since 1912, Boston-based Liberty Mutual
Group is a diversified global insurer and third largest property and casualty insurer in the
U.S. based on A.M. Best Company’s report of 2010 net written premium. The Company
ranks 82th on the Fortune 100 list of largest corporations in the U.S. based on 2010
revenue. As of December 31, 2010, Liberty Mutual Group had $112.4 billion in
consolidated assets, and $33.2 billion in annual consolidated revenue.


16

Liberty Mutual Group offers a wide range of insurance products and services, including
automobile, homeowners, workers compensation, commercial multiple peril, general
liability, global specialty, group disability, and reinsurance. Liberty Mutual Group
(www.Libertymutualgroup.com) employs over 45,000 people in more than 900 offices
throughout the world.
Liberty has had a presence in Vietnam since 2003 when Liberty Mutual Group opened
its first representative office in Hanoi, and was awarded the investment license in

November 2006.
Liberty is operating a 24/7 multi-functional call center

(free) to

address all clients’ specific needs and inquiries, from supplying information on products
and services to receiving, guiding and following up claims requests in both Vietnamese
and English languages. Especially, customers using the company website can
communicate with Liberty using various interactive options such as voice call, live chat,
call-me-back service and email exchange.
Liberty has been trusted by more and more customers because they are provided with
superior products and services, and the company has also received wholehearted
cooperation from its partners because of its professional business processes and
advanced technological infrastructure.


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AUTOCARE
HOMECARE

HEALTHCARE

MEDICARE
PERSONAL LINES
TRAVEL CARE

MOTOR CARE

PRODUCT

TRUCK CARE

PROPERTY
COMMERCIAL LINES

LIABILITY

WORKMEN COMPENSATION

PERSONAL ACCIDENT
DINAMIC BUSINESS 
INSURANCE

Figure 3: Product classification
In Jan- 2010 Insurance Company Liberty from the U.S. has received many awards for
brands such as "Golden Brand 2009", "Trust & Use 2009", and “Golden Dragon 2009"
for his efforts in a years of operation.
As a foreign business, Liberty invested heavily focused on information technology
systems. Especially in recent years, Liberty has successfully developed technology to
support online sales (Collaborator). By connecting to the server system of Liberty, the
insurance agent can print and export contracts to customers after they enter all necessary
information. With this advanced technology, customers save a lot of time and not have to
wait long as before, especially for customers who purchase insurance for automobiles


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through banks and car dealers who are affiliated with Liberty. In 2010, Liberty would
implement stronger applications for the distribution channel as banks; car dealers have

relationships with Liberty nationwide.
Liberty is non-life insurance companies 100% owned by United States and a member of
Liberty Mutual Insurance Group with headquartered in Boston, USA. As one of the 100
largest U.S. corporations with assets worth over 100 billion dollars, Liberty Mutual has
more than 45,000 employees working in over 900 offices worldwide are ready to serve
customers.
3.2.2 BRAND AWARENESS OF LIBERTY INSURANCE COMPANY
Market research shows that Liberty’s brand perception in Vietnam is highly positive
● Liberty’s brand name is associated with freedom, both
− Professionally
− Personally
● In combination with insurance, Liberty represents
− Comfort
− Freedom from worries

Brand awareness
40%

32%

30%
20%

20%

25%

11%

Brand awareness

10%
0%
2008

2009

2010

2011

Figure 4: Brand Awareness of Liberty in 2008, 2009, 2010, 2011


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3.2.3 MARKETING AND BRAND STRATEGY OF LIBERTY INSURANCE
COMPANY
With marketing trends is utilize from media advertising to multiple forms of
communication, from mass media to more specialized (niche) media. Liberty’s
marketing strategies is lower investment in traditional marketing, higher investment in
internet marketing, POS advertising, sales support, and sales promotions, strong
investment in direct distribution
Advertising
Liberty continuous to enhance creative designs, keeping print advertisements at the
minimum, maintaining modest investment in OOH advertising (billboard, frame, LCD),
maintaining office signage rental as needed, email campaigns for cross-selling to
existing customers
Liberty made various types of standees to enhance brand presence at points of sales,
design and contents of product brochures and production of new corporate brochures

including co-branding ones, for direct marketing activities like production and delivery
of electronic X'mas &Tet cards for customers and partners, annual diaries to major
partners.
Memberships & Alliances
Liberty organize a lot of various co-branding events with partners such as car
exhibitions, car test drive, sales seminars, motor show, etc.
Participation in business groups, such as AmCham, AusCham, CanCham, InCham, Euro
Cham, and Cooperation with Toyota Financial Services on product promotion


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Cooperation with Ford Vietnam on customer sales promotion programs
Co-branding activities with Mercedes Benz Vietnam and Toyota Motor Vietnam
Developing relationships with other auto manufacturers and distributors, such as Thaco,
Euro Auto
Public Relation
We maintained regular advertorials & editorials on a wide range of print and online
newspapers with focusing more on editorials to attract readers.
We also use Press release and conference appropriately. We strongly invest in TV
infomercials to enhance creditability. We develop direct relationships with the media in
addition to using a PR agency.
Besides, Liberty is sponsor of many Community Social Responsibility Programs such as
Terry Fox Run, charity activity in Quang Binh, AmCham charity balls, Futsal
tournament, auto forums’ offline meetings, Otofun’s birthday party.
3.3 OVERVIEW OF COMPETITOR IN NON-LIFE INSURANCE MARKET IN
VIETNAM
3.3.1 MAJOR COMPETITORS IN THE MARKET
Liberty want to improve brand awareness as top 5 so that we study top 5 competitors:

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Table 2: Top 5 companies in awareness
Insurance Company
BIDV Insurance Company

Short name

Establishment

BIC

2005

Type
Joint-stock
State-

Bao Viet Insurance Corporation

Bao Viet

1965

owned

Bao Minh Insurance Corporation

Bao Minh

1994

Joint-stock

PVI Insurance Corporation

PVI

1996

Joint-stock

AAA Assurance Corporation

AAA

2005

Joint-stock

3.3.2 BRAND AWARENESS OF COMPETITORS
Base on secondary data, we have the chart of top 5 companies in awareness

90%
81%
80%

73%
67%

70%
60%

59%

57%

BIC

AAA

50%
40%
30%
20%
10%
0%
Bao Viet

Bao Minh

PVI

Figure 5: Brand awareness of competitors


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3.3.3 BRAND STRATEGIES OF COMPETITORS

A. BRAND STRATEGIES OF BAO VIET
Advertising
Develop advertising messages on television: The objective of the message is to create
awareness about the brand new Bao Vietnam, transmit to the public for news photo
Vietnamese brand new Security energetic, determined strength and stature to large
enterprises, broadcast to the public in a brief, brief the main business of the corporation
Bao Viet.
The advertising messages are shown on the color of the selected newspapers as
newspapers and Consumer Marketing, Economic Times ... clearly aimed at the image of
brand new colors, shapes and visual effects.
The company promote outdoor advertising in the sales offices, branch offices.... LED
lighting, outdoor logo, banner ... in public places. They placed in the main roads, wide,
with good visibility, no guards, at the crossroads, crossroads ... large, high traffic density,
and time signals long wait. Also can make advertising on vehicles such as buses, taxis...
The company took advantage of the holidays, the anniversary of the nation or other
important events to implement communication activities through funding of propaganda
banner for the event.
Public Relations
The company took advantage of the events of the year to communicate, such as
persistence, "1000 years of Thang Long - Hanoi", 37-year struggle for national salvation,
death anniversary of Hung Kings festival in Phu Tho ...


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They organized events celebrate 45 years of established corporations. These events are
major events, attracting the attention of the public and media, will provide very good
performance.
There were many economic events annually happening in Vietnam. This was a good
opportunity for them to conduct their promoters in the region and to create a good

impression with the world. Bao Vietnam made good use of their relationships with
government and other incentives for domestic enterprises of the Government to be able
to participate in funding for such important events.
Bao Vietnam continued to participate in community activities, but to a wide range of
activities and subjects of these activities more. Business communications made for these
activities better by highlighting the activities, media coverage on television. Necessary
to carry out these activities in time, take advantage of the hot events
Enterprises should make brand communication activities for the very first employees of
the business. Urgent need to build a short-term courses for employees, staff training
consultants work in which the brand is the official notification to employees about the
significance of the logo and brand. .. Encourage employees to use the new logo image as
desktop

wallpaper

of

business

and

personal

computer

or

mobile

phone.

Brand communication was done through direct sales activities of the consultants. This
activity was very effective communication and direct, can calculate the effective
communication. They invested activities through active communication channels
because they recognized that the function of this channel was not just for sales but also
features a channel of communication, especially media brand. The first thing to do is
training, training for counselors the basics about the company’s brand, so they
understand and accurately communicate to the customer and then teach them the basic


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skills to build corporate brand image through their own good – the consultants of the
company – how. Contents of courses to help consultants get the soft skills in behavior,
dress, use the color of the uniform, how to use the tool to support media brands such as
brochures, pens, textbooks and materials in brand image, as well as with customers to
explain the meaning of the brand image of the logo, colors, logo.
B. BRAND STRATEGIES OF BAO MINH
Do Market research, advice the Executive Board to develop and expand markets.
Develop brand strategy, product strategy, pricing strategy, and development strategy and
distribution channels. Develop policies and management development agents, customer
care policy. Depending on the type of product that companies use marketing strategies to
suit individual to raise the most competitive. Monitoring the changes of market analysis
to make the product fit the needs and changes of the integration period held regularly
refer clients consult a basis
Marketing activities
Implement marketing activities associated with the particular characteristics of
individual insurance products to improve business efficiency.
Improve the quality of market research, diversification, and professional services to
customers. Improving the quality of brand such as rrecognizee the important role of

commercial advertising such as
TV, newspapers, websites, it helps businesses reach customers, providing customers with
product information, helping consumers choose for themselves the right product.
Regular implementation of the program: giving gifts, discounts … for the long-term
loyalty.