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Topic:            Setting the Right Position for PR in the
                  Changing Business Environment

• PR industry overall view (estimate market size, growth, types of PR agency,
  changes in the past few years) and Determining PR’s evolving role

• Determining PR’s evolving role and its future opportunities and Forecasting
  PR market outlook in Vietnam for the next 10 years

• Uncovering how the companies in Vietnam respond to the new PR
  challenges

• Assessing the impacts of the changing business environment (globalisation
  progress, WTO-participation, global economic crisis, unstable financial
  market) on the PR function in Vietnam




                                                                                2
PR industry overall view & Determining PR’s
                                  evolving roles
  Forecasting PR market outlook in Vietnam for
                             the next 10 years
     Uncovering how the companies in Vietnam
            respond to the new PR challenges
Assessing the impacts of the changing business
                                  environment




                                            3
PR agencies segmentation




                                                                                                                          Professional
                                          Used to "guiding"
                                          the public for the
                      LOBBYING            purpose of better
                                          in business




                                                                                      Minority
                                     Acts as a brand consultant,
                                     to collaborate closely with
                                     clients right from the
      STRATEGIC PLANING
                                     beginning of brand building




                                                                                                             Integrated
                               Predictions, warnings and help companies
    CRISIS MANAGEMENT          plan to prevent, mitigate to the maximum
                               risk and deliver the solutions needed to
                               overcome the crisis.

                          Creating overwhelmed effect, using the press as
    SERIES ARTICLES       a useful tool to strengthen and build its own brand
                          for the company.




                                                                                      Majority
                                                                                                 Execution
                     Writing and editing articles which are able to transfer the PR
       EDITORIAL     objectives to target consumers.

                   Contacting media channels such as newspapers, magazines, TV
CONTACT MEDIA      commercial, radio to book a good time slot and location for PR
                   campaign  Relationship with channels play a very important role


                                                                                                                                 4
PR’S evolving role & its client types
Client types
required
                                                              •   Its value is to expand the market via
                           Multinational                          lobbying the government. At the same
                                                LOBBYING          time, this function is totally depending on
                                                                  the government’s regulations for PR.

                                                                        •   PR agencies will be the strategic
                                                                            partners of clients once they will
                                           STRATEGIC PLANING                be able to create a long term PR
                                                                            plan for client
                                                                                •   Although this function
               Big local




                                                                                    will help client to resolve
                                           CRISIS MANAGEMENT                        negative issues, PR’s
                                                                                    ethic should be
                                                                                    considered.

                                            SERIES ARTICLES
                                                                                             •   These are
                                                                                                 basis
 Small local




                                                                                                 functions
                                               EDITORIAL                                         that most of
                                                                                                 PR agencies
                                                                                                 in Vietnam
                                            CONTACT MEDIA                                        obtain.



                                                                                                       5
Market values by segments in 2009

                                      Execution
                                     • Person who have PR knowledge and experience
                                       such as freelancers, copywriters.
                                     • Number of agencies: hundreds.



                                                  10%

 Integrated
                                                   15 - 20
• Media and advertising              30%           million
  agencies who also have
                                                    USD      60%    Professional
  PR function.
• Approximately 100
                                                                   • Having PR expertise
  agencies
                                                                   • Less than 10 such PR
                                                                     agencies in Vietnam
                                                                   • Being able to handle strategic
                                                                     PR projects.


        ( Figure: estimated by FTA)
        (Source: in-depth interview PR experts)
                                                                                                 6
Drivers for choosing PR Agency
Apart from the basis requirement for a PR agency such as good objective
understanding and creative PR strategy, the fact that the agency should have a
good relationship with the press and government is driving the client’s choice.
                                                                                      %


                   Good understanding of PR objectives

                        Unique and creative PR strategy

 Having good relationship with the press and government

                 Highly competent and professional staff

                           High ability to solve problems

                                 Punctuality in execution

                    Strategic and crisis controlling ability

             Ability to manage large-scale PR campaign

                                     Responsive to client

                                    Flexible working style

                  Prestigious and recommended agency

                                                 Low price

                                    Professional facilities

                                    Multi-national agency




                                                                                  7
                         ( Source: synthesized by FTA Research & Consultant )
PR agency aided awareness
PR plays an important role towards marketers since it just follows advertising and event & brand
activation. Venus, Galaxy, Golden Event, Max Communication and Biz Tequila are top PR
agencies in terms of marketer’s awareness.

      Marketing services used in 2009                       PR Agencies Aided Awareness




                                                                                                   8
     (Source: synthesized from FTA syndicated report)
Growth of PR industry

                                       Reasons for dramatically
                                       increasing in 2010

                                       • Overall marketing service
                                         market is growing
                                       • PR industry was still grown
                                         during the economic crisis
                                         period.
                                       • Customers are more and
                                         more understanding about
                                         values that PR brings.
                                       • High growth rate of media
                                         channels (e.g. TV channels,
                                         newspapers/magazines,
                                         social community network…)
                                       • Switching from ATL spending
                                         to PR and BTL spending
                                       • PR spending is much lower
                                         than Advertising while its
                                         effectiveness still is
                                         recordable.




( Figure: estimated by FTA)
(Source: in-depth interview experts)
                                                                9
PR industry overall view & Determining PR’s
                                  evolving roles
  Forecasting PR market outlook in Vietnam for
                             the next 10 years
     Uncovering how the companies in Vietnam
            respond to the new PR challenges
Assessing the impacts of the changing business
                                  environment




                                           10
PR Market outlook for the next 10 years
Online PR via Social Community Network (PR 2.0)
There are many online activities being available in Vietnam. However, it’s just more about
promotions and product launching.

o Encourage consumers to easily express their opinions, and so marketers are able
  to understand more insight about what consumers are thinking.
o Obviously, there is also a PR method least costly compared to traditional forms of
  advertising and other marketing activities.



    Video             Online video website was viewed as one of the fastest growing areas in the world
                      media. Sites such as YouTube has been attracting thousands of daily visitors.
    sharing           For the marketing promotion of small businesses, online video is really a hint
    community         particularly attractive because the creation and distribution of the contents of
                      Video & Podcasts are much less expensive than the traditional media
                      advertising.


    RSS feed          The text public information is combined with other multimedia elements like images,
                      video clips, links to blogs, digital tags, and RSS feed search engine. This broadcast
                      mode through advanced communication tools are useful in helping
                      companies to market directly.

    Blog              Not merely for entertainment, blogs also acts as a source of accurate information
                      to capture the new trends in technology and the many hot topics are people
                      interested. Word-of-mouth marketing is the main function of Blog PR.

    Social            While MySpace as a place to be seen regularly by music enthusiasts, then LinkedIn
                      and Facebook are considered a public community network works most prestigious
    Network           network for businessman and general people. Users will be clearly stated
                      background themselves and doing their job, then can connect with other
                      individuals of the same business.                                                 Source: in-depth interviews
                                                                                                       11
PR Market outlook for the next 10 years
PR environment
The current situation is that with high growth rate of PR industry, the market has been presenting more
and more professional PR agencies to satisfy the changes of client’s demand.


      High growth rate             • Marketers tend to using PR instead of advertising because
                                     competitive price with diversified functions. Thus, budget for PR
                                     may increase sustainably.
                                   • Perception of clients will change whereby PR’s roles and
                                     functions are understood correctly.
                                   • Good and stable economic growth rate of Vietnam economy 
                                     positive impact on marketing service in general and PR in
                                     particular.

     More professional             • Client’s expectation as well as needs will be increasing (e.g.
     PR Agencies                     strategic PR agencies, PR involving lobbying), so there will be
                                     just professional agencies to be able to satisfy such client’s
                                     demands.



      Changes of                   • Integrated into global marketing plan
      client’s demand              • More consulting from PR agencies  PR plan should link to
                                     brand name, vision, mission of clients
                                   • More contracts for maintenance service.


                                                                                                          12
PR Market outlook for the next 10 years

PR Association
Many PR agencies are operating in the market. However, there is no PR
Association to help these agencies in developing such a PR community
networking as well as coming up with a Codes of Conduct for PR industry.

  • Play-ground for PR agencies, where experience and knowledge
    exchanged

  • Impact on Government rules

  • Come up with PR Code of Conduct

  • Organize professional workshop, conference for PR industry  training
    as well as updating upcoming PR techniques  to help development
    of PR industry in general as well as to develop human resources for
    PR industry in particular.




                                                                     Source: in-depth interviews   13
PR industry overall view & Determining PR’s
                                  evolving roles
  Forecasting PR market outlook in Vietnam for
                             the next 10 years
     Uncovering how the companies in Vietnam
            respond to the new PR challenges
Assessing the impacts of the changing business
                                  environment




                                           14
Current challenges and responses
recommended

                     Since there is no professional PR training in
     Human           Vietnam, PR agencies need to have specific
   resources         plan for training their staff at the beginning,
                     which is a healthy way for developing the industry



                     Although PR Vietnam industry is growing
                     dramatically, its roles have not been recognized
    Customer         and understood correctly. Customers’ perception
                     about PR that PR is just for consequence
   perception
                     resolving and media contacting  education to
                     customers is needed via direct communication
                     to customers, workshops etc.



                      So far there is yet any official regulations for PR
   Government        industry. PR is understood as advertising
   regulation          mission for PR Association



                                                                            15
Current challenges and responses
recommended

                     PR agencies, especially professional companies
    “Black” PR       will be facing this issue since some clients shall
     PR Ethnic       seek for professional agencies to overcome their
                     trouble or crisis  mission of PR Association to
                     educate clients about PR ethnic



                     PR still is the marketing tool, so it would require
     Changes of      such a return on investment  research
  client’s demand    agencies to come up with a method to
                     measure the effectiveness of PR campaign




   Depending on      PR is more an execution service, so such an
      media          effective media channels as well as its time slot
    companies        and location of airing will be playing a very
                     important role  relationship is a must
                     required to act in PR industry
An idea to measure PR’s effectiveness

There are some indicators to measure the PR’s effectiveness

    Who is the target audience?

    Measure reaching ratio after the PR launching

    Key message take out from the PR campaign

    Changes in consumer’s thinking and behaviors towards the
    company/ brand.
    …


     Figure out an index after launching such a
     PR campaign
                                                               17
PR industry overall view & Determining PR’s
                                  evolving roles
  Forecasting PR market outlook in Vietnam for
                             the next 10 years
     Uncovering how the companies in Vietnam
            respond to the new PR challenges
Assessing the impacts of the changing business
                                  environment




                                           18
The 3 factors impact on PR industry
                      •   Vietnam is amongst the most attractive
                          destination in the region for foreign investors
    Strong economic   •   WTO, retaining high GDP growth, secured
        growth            political environment etc.
                           marketing service market will be growing 
                          PR industry grows




                      •   Clients would be more demanding in order to be
                          in line with other countries in their marketing
     Globalization        implementation  perception about PR from the
      progress            clients will change
                      •   PR industry is being updated upcoming
                          techniques thanks to the interaction between local
                          PR agencies and foreign agencies
                      •   Trends of M&A from MNC advertising agencies 
                          to be positioned as full service agency.



                      •   Some clients switch into using PR instead of
    Global Economic       Advertising because PR is lower investment while
        Crisis            directly connect to consumers.


                                                                               19
20

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Report (PR industry) of Viettract FTA

  • 1. 1
  • 2. Topic: Setting the Right Position for PR in the Changing Business Environment • PR industry overall view (estimate market size, growth, types of PR agency, changes in the past few years) and Determining PR’s evolving role • Determining PR’s evolving role and its future opportunities and Forecasting PR market outlook in Vietnam for the next 10 years • Uncovering how the companies in Vietnam respond to the new PR challenges • Assessing the impacts of the changing business environment (globalisation progress, WTO-participation, global economic crisis, unstable financial market) on the PR function in Vietnam 2
  • 3. PR industry overall view & Determining PR’s evolving roles Forecasting PR market outlook in Vietnam for the next 10 years Uncovering how the companies in Vietnam respond to the new PR challenges Assessing the impacts of the changing business environment 3
  • 4. PR agencies segmentation Professional Used to "guiding" the public for the LOBBYING purpose of better in business Minority Acts as a brand consultant, to collaborate closely with clients right from the STRATEGIC PLANING beginning of brand building Integrated Predictions, warnings and help companies CRISIS MANAGEMENT plan to prevent, mitigate to the maximum risk and deliver the solutions needed to overcome the crisis. Creating overwhelmed effect, using the press as SERIES ARTICLES a useful tool to strengthen and build its own brand for the company. Majority Execution Writing and editing articles which are able to transfer the PR EDITORIAL objectives to target consumers. Contacting media channels such as newspapers, magazines, TV CONTACT MEDIA commercial, radio to book a good time slot and location for PR campaign  Relationship with channels play a very important role 4
  • 5. PR’S evolving role & its client types Client types required • Its value is to expand the market via Multinational lobbying the government. At the same LOBBYING time, this function is totally depending on the government’s regulations for PR. • PR agencies will be the strategic partners of clients once they will STRATEGIC PLANING be able to create a long term PR plan for client • Although this function Big local will help client to resolve CRISIS MANAGEMENT negative issues, PR’s ethic should be considered. SERIES ARTICLES • These are basis Small local functions EDITORIAL that most of PR agencies in Vietnam CONTACT MEDIA obtain. 5
  • 6. Market values by segments in 2009 Execution • Person who have PR knowledge and experience such as freelancers, copywriters. • Number of agencies: hundreds. 10% Integrated 15 - 20 • Media and advertising 30% million agencies who also have USD 60% Professional PR function. • Approximately 100 • Having PR expertise agencies • Less than 10 such PR agencies in Vietnam • Being able to handle strategic PR projects. ( Figure: estimated by FTA) (Source: in-depth interview PR experts) 6
  • 7. Drivers for choosing PR Agency Apart from the basis requirement for a PR agency such as good objective understanding and creative PR strategy, the fact that the agency should have a good relationship with the press and government is driving the client’s choice. % Good understanding of PR objectives Unique and creative PR strategy Having good relationship with the press and government Highly competent and professional staff High ability to solve problems Punctuality in execution Strategic and crisis controlling ability Ability to manage large-scale PR campaign Responsive to client Flexible working style Prestigious and recommended agency Low price Professional facilities Multi-national agency 7 ( Source: synthesized by FTA Research & Consultant )
  • 8. PR agency aided awareness PR plays an important role towards marketers since it just follows advertising and event & brand activation. Venus, Galaxy, Golden Event, Max Communication and Biz Tequila are top PR agencies in terms of marketer’s awareness. Marketing services used in 2009 PR Agencies Aided Awareness 8 (Source: synthesized from FTA syndicated report)
  • 9. Growth of PR industry Reasons for dramatically increasing in 2010 • Overall marketing service market is growing • PR industry was still grown during the economic crisis period. • Customers are more and more understanding about values that PR brings. • High growth rate of media channels (e.g. TV channels, newspapers/magazines, social community network…) • Switching from ATL spending to PR and BTL spending • PR spending is much lower than Advertising while its effectiveness still is recordable. ( Figure: estimated by FTA) (Source: in-depth interview experts) 9
  • 10. PR industry overall view & Determining PR’s evolving roles Forecasting PR market outlook in Vietnam for the next 10 years Uncovering how the companies in Vietnam respond to the new PR challenges Assessing the impacts of the changing business environment 10
  • 11. PR Market outlook for the next 10 years Online PR via Social Community Network (PR 2.0) There are many online activities being available in Vietnam. However, it’s just more about promotions and product launching. o Encourage consumers to easily express their opinions, and so marketers are able to understand more insight about what consumers are thinking. o Obviously, there is also a PR method least costly compared to traditional forms of advertising and other marketing activities. Video Online video website was viewed as one of the fastest growing areas in the world media. Sites such as YouTube has been attracting thousands of daily visitors. sharing For the marketing promotion of small businesses, online video is really a hint community particularly attractive because the creation and distribution of the contents of Video & Podcasts are much less expensive than the traditional media advertising. RSS feed The text public information is combined with other multimedia elements like images, video clips, links to blogs, digital tags, and RSS feed search engine. This broadcast mode through advanced communication tools are useful in helping companies to market directly. Blog Not merely for entertainment, blogs also acts as a source of accurate information to capture the new trends in technology and the many hot topics are people interested. Word-of-mouth marketing is the main function of Blog PR. Social While MySpace as a place to be seen regularly by music enthusiasts, then LinkedIn and Facebook are considered a public community network works most prestigious Network network for businessman and general people. Users will be clearly stated background themselves and doing their job, then can connect with other individuals of the same business. Source: in-depth interviews 11
  • 12. PR Market outlook for the next 10 years PR environment The current situation is that with high growth rate of PR industry, the market has been presenting more and more professional PR agencies to satisfy the changes of client’s demand. High growth rate • Marketers tend to using PR instead of advertising because competitive price with diversified functions. Thus, budget for PR may increase sustainably. • Perception of clients will change whereby PR’s roles and functions are understood correctly. • Good and stable economic growth rate of Vietnam economy  positive impact on marketing service in general and PR in particular. More professional • Client’s expectation as well as needs will be increasing (e.g. PR Agencies strategic PR agencies, PR involving lobbying), so there will be just professional agencies to be able to satisfy such client’s demands. Changes of • Integrated into global marketing plan client’s demand • More consulting from PR agencies  PR plan should link to brand name, vision, mission of clients • More contracts for maintenance service. 12
  • 13. PR Market outlook for the next 10 years PR Association Many PR agencies are operating in the market. However, there is no PR Association to help these agencies in developing such a PR community networking as well as coming up with a Codes of Conduct for PR industry. • Play-ground for PR agencies, where experience and knowledge exchanged • Impact on Government rules • Come up with PR Code of Conduct • Organize professional workshop, conference for PR industry  training as well as updating upcoming PR techniques  to help development of PR industry in general as well as to develop human resources for PR industry in particular. Source: in-depth interviews 13
  • 14. PR industry overall view & Determining PR’s evolving roles Forecasting PR market outlook in Vietnam for the next 10 years Uncovering how the companies in Vietnam respond to the new PR challenges Assessing the impacts of the changing business environment 14
  • 15. Current challenges and responses recommended Since there is no professional PR training in Human Vietnam, PR agencies need to have specific resources plan for training their staff at the beginning, which is a healthy way for developing the industry Although PR Vietnam industry is growing dramatically, its roles have not been recognized Customer and understood correctly. Customers’ perception about PR that PR is just for consequence perception resolving and media contacting  education to customers is needed via direct communication to customers, workshops etc. So far there is yet any official regulations for PR Government industry. PR is understood as advertising regulation  mission for PR Association 15
  • 16. Current challenges and responses recommended PR agencies, especially professional companies “Black” PR will be facing this issue since some clients shall PR Ethnic seek for professional agencies to overcome their trouble or crisis  mission of PR Association to educate clients about PR ethnic PR still is the marketing tool, so it would require Changes of such a return on investment  research client’s demand agencies to come up with a method to measure the effectiveness of PR campaign Depending on PR is more an execution service, so such an media effective media channels as well as its time slot companies and location of airing will be playing a very important role  relationship is a must required to act in PR industry
  • 17. An idea to measure PR’s effectiveness There are some indicators to measure the PR’s effectiveness Who is the target audience? Measure reaching ratio after the PR launching Key message take out from the PR campaign Changes in consumer’s thinking and behaviors towards the company/ brand. … Figure out an index after launching such a PR campaign 17
  • 18. PR industry overall view & Determining PR’s evolving roles Forecasting PR market outlook in Vietnam for the next 10 years Uncovering how the companies in Vietnam respond to the new PR challenges Assessing the impacts of the changing business environment 18
  • 19. The 3 factors impact on PR industry • Vietnam is amongst the most attractive destination in the region for foreign investors Strong economic • WTO, retaining high GDP growth, secured growth political environment etc.  marketing service market will be growing  PR industry grows • Clients would be more demanding in order to be in line with other countries in their marketing Globalization implementation  perception about PR from the progress clients will change • PR industry is being updated upcoming techniques thanks to the interaction between local PR agencies and foreign agencies • Trends of M&A from MNC advertising agencies  to be positioned as full service agency. • Some clients switch into using PR instead of Global Economic Advertising because PR is lower investment while Crisis directly connect to consumers. 19
  • 20. 20