Report (PR industry) of Viettract FTA

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

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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

PR agencies segmentation

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CONTACT MEDIA

EDITORIAL

CRISIS MANAGEMENT

STRATEGIC PLANING

LOBBYING

SERIES ARTICLES

Maj

ority

M

inor

ity

Exec

utio

n

Inte

grat

ed

Prof

essi

onal

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

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

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

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

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

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

PR’S evolving role & its client types

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CONTACT MEDIA

EDITORIAL

CRISIS MANAGEMENT

STRATEGIC PLANING

LOBBYING

SERIES ARTICLES

• Its value is to expand the market via lobbying the government. At the same 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 be able to create a long term PR plan for client

• Although this function will help client to resolve negative issues, PR’s ethic should be considered.

• These are basis functions that most of PR agencies in Vietnam obtain.

Client types required

Mul

tinat

iona

l

Big

loca

l

Smal

l loc

al

Market values by segments in 2009

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60%

30%

10%

( Figure: estimated by FTA) (Source: in-depth interview PR experts)

Execution

Professional

Integrated

• Having PR expertise • Less than 10 such PR

agencies in Vietnam • Being able to handle strategic

PR projects.

• Media and advertising agencies who also have PR function.

• Approximately 100 agencies

• Person who have PR knowledge and experience such as freelancers, copywriters.

• Number of agencies: hundreds.

15 - 20 million

USD

Drivers for choosing PR Agency

7

%

( Source: synthesized by FTA Research & Consultant )

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

PR agency aided awareness

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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

(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.

9 ( Figure: estimated by FTA) (Source: in-depth interview experts)

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PR Market outlook for the next 10 years

11 Source: in-depth interviews

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.

Video sharing community

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. For the marketing promotion of small businesses, online video is really a hint 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.

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.

Blog

Social Network

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 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.

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.


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

• Integrated into global marketing plan • More consulting from PR agencies PR plan should link to

brand name, vision, mission of clients • More contracts for maintenance service.

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.

More professional PR Agencies

Changes of client’s demand

• 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.

High growth rate


13 Source: in-depth interviews

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.

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Current challenges and responses recommended

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Human resources

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

Customer perception

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

Government regulation

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

Current challenges and responses recommended

“Black” PR PR Ethnic

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

Changes of client’s demand

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

Depending on media

companies

PR is more an execution service, so such an effective media channels as well as its time slot 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

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The 3 factors impact on PR industry

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Strong economic growth

• Vietnam is amongst the most attractive destination in the region for foreign investors

• WTO, retaining high GDP growth, secured political environment etc.

marketing service market will be growing PR industry grows

Globalization progress

• Clients would be more demanding in order to be in line with other countries in their marketing implementation perception about PR from the 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.

Global Economic Crisis

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

Report (PR industry) of Viettract FTA

Business

Transcript of Report (PR industry) of Viettract FTA