Responding to the readers of the Saigon Entrepreneur Magazine, Mr. David Tan Nguyen – Chairman of BrainGroup, Chief Strategy Officer of BrainMark shared lots of things about the way how to make a brand with a limited budget of the business.

In the current difficult period, in order to save cost, a lot of businesses have minimized (even cut off) their budgets for brand development. What’s your point of view about this matter?

Firstly, it is important to understand that branding is not just about advertising or marketing, so sometimes when limited budget or the time for cutting the marketing budget is still necessary to make a brand without spending much budget investment. For example, when an enterprize trains employees do well in customer care, be professional in contact with customers, etc. It is not necessary to have money to do it, employees training is already invested in branding.

Secondly, many businesses have the same point of view that when facing difficulties, it is necessary to cut costs, the biggest choice need to cut is marketing. This thing needs to be reviewed to establish its rationality, if the business needs to sell, need to contact with customers, need to capture customers needs. At this time, cutting off the marketing budget, it will not possible and we need to review. It is possible to cut advertising budgets in marketing, while other budgets must be considered carefully whether to invest or not.

There are two points of view of businesses when facing difficulties which they need to reduce costs: (1) It is necessary to minimize costs; (2) It is necessary to consider carefully about the investment. I prefer the second way of thinking, because as we know that in normal market situations brands are built up which require more budget during tough times. While many businesses cut the costs, minimize as much as possible do not have a lot of big promotion activities, our small activity will be more impressive even with the same or lower budgets.

Common mistakes while brand development?

In a limited budget condition, branding needs to be done in depth, avoiding long stretches of ostentation. To build a brand should avoid the following:

1. Brand owner haven’t had a branding mindset to build and develop

2. Assimilate between brand building and product advertising.

3. There is no consistent identification system which suitable with the development strategy

4. Not pay attention to human factors for development strategy

5. Many businesses are in a hurry to build and develop brands and forget to invest in products (services).

6. Lack of dialogue strategy for the brand, communication messages are not prepared carefully.

7. Lack of clear location for the brand, show up the brand which carry too many things with one, lack of sacrifice in the brand.

8. Unreasonable brand tree structure reduces efficiency or hurts already successful brands.

Could you give a few illustrative examples of brand development with a limited budget?

We already have many forums on brand topic, but it is flawed if we do not clarify the definition of the brand, the brand is all consumer’s feeling or target customers about the products or businesses. Thus, consumers feel good and right with the desired position of the business is a meticulous investment process of the business. But it’s not that we build a brand that mean we have a strong brand in the mind of customers, a brand exists when and only when it is confirmed by the consumers.

“So where does branding start?” I suggest Business Leaders should understand that branding starts with our desires and dreams (brand owners). An entrepreneur who has a big ambition, dream of owning a strong brand, a brand with a global stature is the first step for success in the branding process. Do not think that branding is the duty of the Brand Director or a Specialized Employee in the business, must be everyone in which the Business Leadership plays a decisive role.”

Many entrepreneurs are often afraid, or still worry that when we have little money, it is difficult to have a good brand which is a misconception. There is a fact that all big businesses in the world start from very small scale. Especially in the past time, we have seen many Vietnamese enterprises which has small budgets, still have good brands in the minds of consumers, when they are take care of their brands and create differences. Y Lan Sand Painting brand is known as through unique position and creative branding. With creative products and marketing of “Vietnamese culture” proposed by Y Lan Sand Painting approved by the APEC Organizing Committee 2006, so the portraits of Leaders of APEC Economies are shown uniquely Vietnamese products. When this thing was implemented, it was also the time when a series of media talked about Y Lan Sand Painting, etc. Many domestic and foreign consumers knew about Y Lan Sand Painting, Y Lan Sand Painting brand was spread by word of mouth widely.

The first thing has to do for Brand is Location Work. Depending on the strengths, resources of each business and we have a different Location Way. The basis of Location is Difference. Businesses need to find difference, and the Business Leader must be wise to choose business’s position in the minds of consumers to competitive units. Because in the process of Location, the brand owner has to sacrifice, not carrying too many things with one, consistency and loyalty.  It cannot be like this today, it will change quickly in such a short time. The sacrifice is shown through when we choose this position, we have to give up another position. A high-class image cannot be spent for medium-class the and vice versa.

Thus, branding is not only advertising or big promotions, but also making the brand’s reach points well to the target customers. A brand’s reach system to target customers can be understood including two parts which are hardware and software. Hardware is the identity system which we design to communicate the consistently and professionally from brand colors to brand messages (from name cards to office documents, products advertising, sales, signboard, etc). The hardware like a brand’s outer shirt, a beautiful shirt, with a different element will create good recognition. In contrast, brands still do not have a place in the minds of consumers if we lack software investment that is the smile of the saleswoman, the customer service programs, the behavior of the business. In a word, it is the human factor.