following previous literature on customer-based brand equity investigates the sources of B2C brand equity with the Corporate Social Responsibility in the Electrical Bicycle markets.
1.2 Research motivation and purposes
We knew the GHG emissions caused by air pollution. The potential climatic changes impacted nature disasters happened in all over the World. There is a Clean Development Mechanism (CDM) program under United Nations Framework Convention on Climate Change (UNFCCC) on the Kyoto Protocol in item 12. The emissions- reduction projects in developing countries could gain the Credit. Kyoto Protocol will be out on 2012, therefor, UNFCCC members signed a new Durban Climatic agreement in Durban, South Africa on Dec. 11th., 2011 , to continuous the GHG emission control after 2012. There is a sanction of the law to be following after 2015. They also set up a US$ 100 billion Green Climatic funds spending every year, to help the developing countries run the CDM programs. It’s great news that China, India and USA signed the Durban Climatic agreement on the Dec. 2011. They are the top 3 countries caused the GHG emission problems.
The case company wants to investigate a success business matrix and Brand equity on Electrical Bicycle (EB) in Vietnam market. Vietnam Government encouraged the EB products to replacement the motorcycle volume in their market.
There is a law to allow a senior high school kids ride an Electrical Bicycle (EB) to school, instead of riding a gasoline motorcycle. Vietnam Government did not offer a subsidy to EB products as the most developed countries have their incentive policy.
The manufacturing could registered their production volume and count the emission-reduction on CDM projects under the UNFCCC. Once got an approval and a certification no., then those earn credits by sold out the EB volume could be tradable
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and saleable in the future. For example; Mr. Chang who’s a president of Trend Micro Co. went to the North of Vietnam in 2006, set up a company called InnovGreen Co., already planted more than 24,700 acres land of trees till today. The tress could be counted the CO2/e and selling their carbon right to another counties or companies.
The estimated value as below;
2.47 aces (=one hectares) on 20 years forestation land will gain12.6 tons fixing carbon per year. Mr. Chang could gain 126,000 tons fixing carbon right every year on those 24,700 acres after 2026. Plus bring a lot of positive images on Trend Micro’s Brand Equity, those value will be unlimited to count.
Many OEM factories, companies and brand are facing a lot challenge in the competitive environment. Raw material, Labor, energy and manufacturing cost are all increased on past 3 years. Customers want to have a cost reduction every year, or change to buy from another sources or brands. To build their brand is more and more important which want to maintain their competitive advantage. Aaker (1991) contended that to get the markets is more important than to get the factories and the only way to enforce the markets is to own one or more competitive brands. How about the brand of Electrical Bicycle industry in emerging country as Vietnam?
The European Commission decided to cease imposing anti-dumping tariffs on Vietnamese bicycles beginning on July 2010. While many other countries continue to be subject to
tariffs.( http://www.dtinews.vn/en/news/018/3979/ministry-warns-bicycle-makers.htm l)"If the quantity of Vietnamese bicycles exported to the EU increases suddenly, it is likely that the EU will again impose an anti-dumping tariff on Vietnamese bicycles,"
said Vu Ba Phu, deputy head of the authority.
So, it’s not only a traditional simple two wheels bicycle, the case company wants
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to involve the EB products could gain a dividing product line in emerging market, and plans to bring the future extensional their market to EU.
There are 30 bicycle production enterprises and around 2 million capacities per year in Vietnam. It’s less 100,000 units of EB product manufacturing today. However, the motorcycle manufacturing are less than 15 brands company in Vietnam, Such as Honda、Yamaha、Suzuki、VMEP、Piaggio plus another small local brands manufacturing. The top 6 companies already covered 90% of market share. As can be seeing from Figure 1, the total motorcycle volume is more than 33 million in Vietnam on 2011. ( Source:
General Statistics Office of Vietnam)
Figure 1 Motorcycle Quantities from 2001-2011 in Vietnam 836 1,027 1,138
1,338 1,609 1,862 1,955 2,044 2,330 2,435
3,340
1 2 3 4 5 6 7 8 9 10 11
Motorcycle Quantity/10,000
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The motivation and benefit from consumer concerned with electric bicycles including as below;
1. Health Benefit from cycling
2. Practicality benefit from energy saving
3. Economic and environment benefit from reduce the GHG emission 4. Safety concerned due to the speed limited
5. Hope for the present and future product in the world
Most bicycle manufacturing put their effort on Europe and Japanese market.
The vast majority of all bikes sold worldwide (82 percent) are manufactured in two countries: An estimated 124 million bicycles were manufactured worldwide in 2007.
• China (71.8 percent or 89.0 million units)
• India (10.0 percent or 12.4 million units)
According to Bicycle Retailer & Industry News (9/1/08), approximately 20.8 million electric bikes were sold worldwide in 2007, 20 million of which were sold in China.
Only 120,000 eBikes were sold in the United States in 2007, although that total is expected to hit 170,000 in 2008 and 220,000 in 2009.
http://www.interbiketimes.com/pdf/Bicycle_Industry_Facts_Sheet--Fall2008--Fin al.pdf
Compared with motorcycle growing volume, it’s a lot of business opportunity on EB product in Vietnam. The Case company has designed the EB products and focus their target market on 11 years to 19 years old school kids, through the current North、
South and Middle of Vietnam agents to sell their electric bicycle.
Vietnam Government has a laws limited for below senior high school kids ride a motorcycle to their school. This request brings a targeting and positioning on case company on their EB products.
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The products photos as below;