Brand Building in Startups:The case study of Qua Ha

Noi XuaTrinh Tuan Anh

QH-2009-E Business Administration

University of Economics and Business

Vietnam National University Hanoi

Under the guidance of Dr. Pham Thi Lien

2

OutlineIntroduction

Literature Review

Brand Building in Startups

Qua Ha Noi Xua – Brand Proposal

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Part I: IntroductionProblem Statement

Methodology

Introduction 4

1. Problem Statement

Vietnam Start-up Scene

Introduction 5

1. Problem Statement

In fact, in 2012:

65,000 new startups

55,000 bankruptcies(Ministry of Planning and Investment)

Most startups do not last longer than 2 years in the market.

Introduction 6

The reasons are:- Lack of funding- Lack of planning- Lack of differentiation

How do startups differentiate? The answer is brand building.

1. Problem Statement

Introduction 9

2. Methodology

Qualitative methodologies ‐ Literature review‐ Experts interview with Branding strategists ‐ Case studies

Why?‐ New research topic + Exploratory focus‐ In line with branding researches‐ Lack of data

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Part II: Literature ReviewThe brand

Brand identity

Literature Review 11

1. The Brand

The brand is not just a name, a logo, or design of a product. The brand is not just an identifier.

“A brand is your gut feeling about a product, service or company.”

Martin Neumeier, The Brand Gap

A brand can navigate, assure and engage customers.

Literature Review 12

2. The Brand Identity

The brand identity is a set of elements that is both tangible and appealing to the senses, taking disparate elements and unifies them into whole systems.

Wheeler, Designing Brand Identity

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Part III: Brand building in Startups

The necessity of brand building in startups

Startup brand building guideline

Brand building in startups 14

1. The necessity of brand building in startupsWhy most startups don’t build brands?- Focus on survival- Marketing-as-cost mentality- Lack of know-howShould startups build brands? ‐ Startups can use the brand to define who they are. ‐ Startups can use brand to differentiate. ‐ Startups can use a visual identity to communicate brand

values.

YES, definitely

Brand building in startups 15

2. Financial benefits of a strong brand

Differentiated brand identity

Price premium

Perceived quality

Values

Perceived quality is the single most-important contributor to a company’s return on investment (ROI).

Aaker, 1995

Brand building in startups 17

3. Guideline for brand building in startups

Phase 1: Branding strategy

Phase 2: Building Brand

Identity

Brand building in startups 19

Phase 1: Branding StrategyLe

vel of

bra

nd

ori

en

tati

on

Scope of Marketing and Branding Activities + Brand Distinctiveness + Brand-marketing performance

Minimalist

Embryonic

Integrated

Adapted from Wong & Merrilees, 2005

Brand building in startups 20

Phase 2: Designing brand identity

The Universal Brand Identity Process (Wheeler, 2009)

5. Managing assets

4. Creating touchpoi

nts

3. Designing identity

2. Clarifying Strategy

1. Conducti

ng Research

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Part IV: Qua Ha Noi Xua - Brand Proposal

Introduction

Branding Strategy

Designing Brand Identity

Brand Proposal 22

1. Qua Ha Noi Xua – Introduction

Founded: September 2012

Product: traditional Hanoian snack food

Goal: to preserve and promote Hanoian culture

Strengths: uniqueness, authenticity, nostalgic atmosphere

Issues: low awareness and popularity, low revenues

Brand orientation: Minimalist Brand Orientation Startup

Brand Proposal 24

2. Market ResearchBusiness sector:

Traditional Snack food

Target market: - Lovers of Hanoian culture- Foreigners visiting or living in

Hanoi

Market Structure:- Street food cluster- Family brand cluster- High-end cluster

Positioning:- Medium to high-end eating

experience- Medium price- High variety

Brand Proposal 25

3. Brand brief

The Big Idea

The True Hanoian ExperienceVision

To become the number one go-to destination for traditional snack-food and Hanoian culture in the world.

MissionTo bring to every one of our customers a slice of Hanoian

culture through the truest and most authentic eating experience. To preserve Hanoian traditions and introduce

them to people worldwide

Brand Proposal 26

3. Brand brief

The Big Idea

The True Hanoian ExperienceAttributes

Traditional, Authentic, Serene, Caring, Nostalgic

Value propositionWe offer an authentic Hanoian eating experience that

you can’t find anywhere else. We provide an environment for everyone who cares about Hanoian culture looking for like-minded people to share their

passion.

Brand Proposal 27

Introducing the new Brand Identity

Hanoi Fragrance(Hương Hà Nội)

Brand Proposal 28

4. Designing Brand Identity - Logo

Brand Proposal 29

4. Designing Brand Identity – Typography and Color paletteTypography

Title font: UVN_ThanhphoContent font: UVN_Huongque

Brand color palette

R230 G213 B187 R43 G24 B18

Brand Proposal 30

5. Brand Identity – Brand touchpoints

Brand Proposal 31

5. Brand touchpoint –Signage

Exterior Signage

Brand Proposal 32

5. Brand touchpoint – Business card

Brand Proposal 33

5. Brand touchpoint - Digital

Brand Proposal 34

5. Brand touchpoint - Standee

Standee Art Option A Standee Art Option B

Brand Proposal 35

5. Brand touchpoint – Sample menu

A taste of Hanoi (Food menu)

Hanoi’s Fragrances (Drink menu)

Brand Proposal 36

5. Brand touchpoint – Sample menu

Menu Cover Menu mock up

Brand Proposal 37

5. Brand touchpoint - Packaging

Packaging Option A Packaging Option B

Brand Proposal 38

5. Brand touchpoint - Ephemera

Postcard Design

Brand Proposal 39

6. Managing Assets

Effectively managing a brand requires significant investment in time, human resources, and money.

Suggestions for Hanoi Fragrance- Promote re-launch event on social media- Utilize online tools (e.g. MailChimp to send newsletter,

Weebly for website design, etc.)- Utilize product placement, catering events to improve

brand awareness

Brand Proposal 40

7. Budgeting Hanoi Fragrance Rebranding and Advertising Budget

Task 1: Market Research Total: VND 1,500,000

Research compensation VND 500,000

Sample products VND 1,000,000

Task 2: Brand Identity Design Total: VND 8,000,000

Designer fee (Logo, banner, standee, signage, etc.) VND 4,000,000

Designer fee (Website, using existing template) VND 4,000,000

Task 3: Changing Brand Identity Total: VND 5,880,000

Main exterior signage (aluminum frame with hi-flex canvas) VND 750,000

Standing standee (frame) VND 450,000

Standing standee (one time printing cost) VND 180,000

Printed materials (brochure, menu, brand book, etc.) VND 2,000,000

Packaging VND 2,000,000

Ephemera (printing costs) VND 500,000

Task 4: Managing assets Total: VND

34,400,000

Website hosting (for 1 year) VND 12,000,000

Promotion online articles on Vietnamese news site (= VND 5,000,000 *

4 articles)

VND 20,000,000

MailChimp account to manage newsletter (for 1 year) VND 2,400,000

TOTAL VND 49,780,000

Brand Proposal 41

Conclusion

1) Branding can be an useful tool for startups to differentiate and improve their bottom line.

2) To start building brand, startups need to define their level of brand orientation: minimalist, embryonic or integrated. Each level requires different approach to brand building.

3) To build new brand identity, startups can apply the simple 5-step Universal Brand Identity Process.

Brand Proposal 42

Managerial Implications

1) Entrepreneurs should obtain a fuller understanding of the role of branding in startups, and to implement steps toward better brand performance.

2) The paper also suggests the need for startups to take an “investment” approach to branding.