Philip KotlerS .C. J ohns on & S on Dis tinguis he d P rofe s s or of Inte rna tiona l Ma rke ting         Ke llogg S choo...
Conte nts                   Why AS EAN?             AS EAN Community 2015            AS EAN Re giona l Ma rke ting
Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
The Paradox of Globalization vs. Localization  “The World is Fla t” Thoma s L. Frie dma nN w Yo rk Tim e s c o lum nis t e...
Regionalization: The Right Balance                   ICT ha s a llowe d wide informa tion a cce s s .                   ...
The paradox has forced countries to form regional blocsS ource :Wikipe dia .com
Regionalization of Asia
Global View of Asia Re gional Blocs, including E Asia will bepromine                                ast                  ...
Asia Pre-Crisis: The Flying Geese    Before the crisis, “the flying geese” phenomenon was soaring throughout Asia and     ...
Asian Crisis           But the crisis put an end of “flying geese”.                                                       ...
Asia Post-Crisis: The Regional SquadronsAfter the crisis, squadrons of the former flying geese, who increasingly drive reg...
Chindia, where the worlds workshop meets its office                          China                                        ...
How should ASEAN ride the waveof the rising East (read: Chindia)?
ASEAN Countries at a Glance
The Rising East: Threat or Opportunity?               Threat                                                              ...
The First East Asia Summit Driven by ASEAN   Initiated by ASEAN, the first East Asia Summit held in Kuala Lumpur, Malaysia...
Why is ASEAN in the Driving Seat of the Greater East Asia?                                             AS EAN             ...
Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
Towards ASEAN Community 2015                                  ASEAN COMMUNITY 2015                                        ...
What does ASEAN Integration Mean?                                         Ta riffs will be e limina te d a nd non-ta riff...
Four Key Success Factors of ASEAN Integration                                    Rigorous Focus on                        ...
Corporate Trends Supporting ASEAN Integration        Global trends in manufacturing indicate a shift towards adopting flex...
Potential Cost Savings from ASEAN Integration
A Balanced Approach is NeededBenefits to MNCs                                                           Benefits to Local ...
Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
What is Marketing?                    Bra nd Inte grityPositioning                             DifferentiationBe S  ing tr...
Nine Core Elements of Marketing                (mind-share)                      (market-share)  S             STRATEGY   ...
Three Types of ASEAN Marketing Companies                                                  (3) THE                         ...
Local ChampionsS   Play small by serving niche marketsT   Address the local needs and wantsV   Maintain high level of cust...
MBF Cards of Malaysia                                                                          Local Champions     Positio...
Goldilocks of the Philippines                                                                           Local Champions   ...
Bengawan Solo of Singapore                                                                      Local Champions    Positio...
Locals Going RegionalS   Translate the regional positioning to local contextT   Ensure regional visibility and availabilit...
Extra Joss of Indonesia                                                                    Locals Going Regional     Posit...
Black Canyon of Thailand                                                                 Locals Going Regional    Position...
AirAsia of Malaysia                                                                      Locals Going Regional    Position...
MNCs Focusing on ASEANS   Coordinate the regional strategyT   Execute the local customizationV   Maintain the consistency ...
Glorecalization Approach for MNCs        MNC Type 1 - Strategy, Tactic, and Value                     MNC Type 2 - MNC wit...
Yamaha Motor                          Ya ma ha Bra nd a nd “Thre e Tuning Forks ” logo Consistent Global        The s pi...
Toyota Kijang                          Toyota Bra nd a nd “Thre e Ova ls ” logo Consistent Global        J a pa n-qua li...
Conclusions• ASEAN is a regional bloc of 550 million customers  with rich resources.• ASEAN is sure to get attention from ...
Kotler asean
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Kotler asean

  1. 1. Philip KotlerS .C. J ohns on & S on Dis tinguis he d P rofe s s or of Inte rna tiona l Ma rke ting Ke llogg S chool of Ma na ge me nt, Northwe s te rn Unive rs ity
  2. 2. Conte nts Why AS EAN? AS EAN Community 2015 AS EAN Re giona l Ma rke ting
  3. 3. Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
  4. 4. The Paradox of Globalization vs. Localization “The World is Fla t” Thoma s L. Frie dma nN w Yo rk Tim e s c o lum nis t e “The World is S till Round” Robe rt J . S a mue ls on N ws we e k c o lum nis t e
  5. 5. Regionalization: The Right Balance  ICT ha s a llowe d wide informa tion a cce s s .  Goods a nd s e rvice s ca n move che a pe r tha nks to che a p tra ns porta tion a nd ICT. Globalization  The world is more borde rle s s .  In a fla t world, compe tition s e a rche s for lowe s t cos t.  Conve nie nce of flows of informa tion, goods , s e rvice s , a nd pe ople within the re gionRegionalization  Re la tive ly s imila r ps ychology a nd na tiona l inte re s t within re gion  Na tiona l borde rs s till ha ve e conomic me a ning.  Na tiona l ma rke ts e xis t a nd a re de fine d by ps ychology Localization a nd politics .  Na tiona l e conomic a nd politica l s e tba cks ca n thre a te n globa liza tion.
  6. 6. The paradox has forced countries to form regional blocsS ource :Wikipe dia .com
  7. 7. Regionalization of Asia
  8. 8. Global View of Asia Re gional Blocs, including E Asia will bepromine ast nt P rincipa l blocs will be Europe , Ea s t As ia a nd the Ame rica s . The 21st Century is theAsian Century! Asia will bealmost half of theworld’s economy by 2020
  9. 9. Asia Pre-Crisis: The Flying Geese Before the crisis, “the flying geese” phenomenon was soaring throughout Asia and influencing the Pacific Rim economies. The forma tion re s e mble d flying ge e s e , he a de d by J a pa n, while the re s t of the group followe d. Countrie s towa rd the front te nd to tra ns fe r “olde r” indus trie s to countrie s a t the ba ck.Note :“Flying Ge e s e ” is a conce pt de ve lope d by Ka na me Aka ma s u tha t be s t de s cribe s the e conomic s tructure of As ia be fore the cris is .
  10. 10. Asian Crisis But the crisis put an end of “flying geese”. Source: BBCAsian Economic Crisis in 1997-1998: The End of “Flying Geese”, The end of the good old days of the Asian miracle
  11. 11. Asia Post-Crisis: The Regional SquadronsAfter the crisis, squadrons of the former flying geese, who increasingly drive regional integration.SAARC Squadron China Squadron Korea Squadron Japan Squadron ASEAN Squadron
  12. 12. Chindia, where the worlds workshop meets its office China India  S trong te chnology a nd s e rvice indus try  Ma nufa cturing gia nt with the lowe s t price s  Re la tive ly e fficie nt ca pita l ma rke t  Hybrid communis t-ca pita lis t mode l tha t  S trong priva te s e ctor a nd le ga l StrengthsStrengths e na ble s de ve lopme nt fra me work  S olid prima ry s chools  Younge r workforce  Infra s tructure tha t lure s fore ign inve s tme nt  Growing popula tion  Good dis tribution of we a lth with highe r pe r-  Gre a t unive rs ity s ys te m ca pita income  S trong e ntre pre ne uria l culture  Attra cts highe r price s  Re d ta pe , corruption, tough la bor la ws a nd bure a ucra cy a ll de te r Weaknesses inve s tme ntWeaknesses  He a vy re lia nce on low price s  Woe ful infra s tructure  We a k fina ncia l s ys te m  La cklus te r prima ry e duca tion  Ine fficie nt ca pita l s ys te m s ys te m  S low popula tion growth  Exclus ive growth e nvironme nt to the rich  The priva tiza tion of ke y indus trie s ha s s toppe d
  13. 13. How should ASEAN ride the waveof the rising East (read: Chindia)?
  14. 14. ASEAN Countries at a Glance
  15. 15. The Rising East: Threat or Opportunity? Threat Opportunity ASEAN IntegrationIndividua l countrie s in AS EAN AS EAN is the only re gion a re nothing compa re d to ca pa ble of be ing in the drive r Chindia s e a t of the Gre a te r Ea s t As ia inte gra tion** AS EAN is the firs t to s e a t AS EAN countrie s toge the r with China , India , J a pa n, S outh Kore a ,Aus tra lia , a nd Ne w Ze a la nd, a s we ll a s Rus s ia (a s a n obs e rve r) in one ta ble during the firs t Ea s tAs ia S ummit.
  16. 16. The First East Asia Summit Driven by ASEAN Initiated by ASEAN, the first East Asia Summit held in Kuala Lumpur, Malaysia, inDecember 2005, brought together leaders of the former flying geese, with the objective to establish the East Asia Free Trade Area by 2015 and moving towards the New Asia. (Observer)
  17. 17. Why is ASEAN in the Driving Seat of the Greater East Asia? AS EAN High Ba rga ining Ne utra l P os ition P owe r AS EAN is not cons ide re d a “thre a t” to China , India , J a pa n, Compe titive Attra ctive S ingle S outh Kore a , Aus tra lia , a nd Ne w Re giona l P roduction Re giona l Ma rke t Ze a la nd Ba s e  Huge ma rke t  S mooth flow of goods ,  High cons umption s e rvice s , a nd pe ople  Le s s compe titive unde r FTA  Abunda nce of na tura l re s ource s  Low la bor cos t
  18. 18. Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
  19. 19. Towards ASEAN Community 2015 ASEAN COMMUNITY 2015 AS EAN S ocio- AS EAN S e curity AS EAN Economic Cultura l Community Community (AS C) Community (AEC) (AS CC) The P e a ce ful, P ros pe rous , a nd P e ople -Ce ntric AS EANP roduction/S upply Re giona l P roduction Ba s e S ingle Re giona l Ma rke t Cons umption/De ma nd Dua l Tra ck S tra te gy
  20. 20. What does ASEAN Integration Mean?  Ta riffs will be e limina te d a nd non-ta riff ba rrie rs will be gra dua lly pha s e d outAll ba rrie rs to the fre e flow of  Rule s a nd re gula tions will be s implifie d a ndgoods , s e rvice s , ca pita l, a nd ha rmonize d s kille d la bor a re re move d  AS EAN inve s tors will be pe rmitte d to inve s t in s e ctors forme rly clos e d to fore igne rs a nd the s e rvice s s e ctor will a ls o be ope ne d up  Applica ble inte rna tiona l s ta nda rds a nd pra ctice s a re followe d, a nd policie s on inte lle ctua l prope rty rights a nd compe tition a re put in pla ce The re gion will be come a  Re giona l infra s tructure will be more de ve lope d with more le ve l pla ying fie ld the e xpa ns ion of tra ns porta tion, te le communica tions a nd e ne rgy linka ge s
  21. 21. Four Key Success Factors of ASEAN Integration Rigorous Focus on Worka ble Ins titutions High-Impa ct S e ctors Continue d S upport by More Effe ctive P ublic- AS EAN Le a de rs P riva te Colla bora tionS ource : McKins e y&Compa ny, AS EAN Compe titive ne s s S tudy, 2003.
  22. 22. Corporate Trends Supporting ASEAN Integration Global trends in manufacturing indicate a shift towards adopting flexible production techniques and integrated production chains It is no longe r cos t e ffe ctive for a ll ma nufa cturing a ctivitie s to be done in in-hous e or in a s ingle country MNCs a re inte gra ting the ir ma nufa cturing a ctivitie s a cros s s e ve ra l loca tions MNCs a re not only s e e king la rge cons ume r ma rke ts but a ls o re giona l s ite s whe re the y ca n e s ta blis h e fficie nt production ne tworks Regional Production Base
  23. 23. Potential Cost Savings from ASEAN Integration
  24. 24. A Balanced Approach is NeededBenefits to MNCs Benefits to Local Companies Ta rge ting more s a le s volume  More e xport opportunitie s to in the AS EAN ma rke t Compone nts procure me nt on AS EAN ma rke t  AS EAN-wide e xpa ns ion a n AS EAN-wide ba s is More product s pe cia liza tion opportunity for corpora te growth s tra te gy to a chie ve e conomie s of  Te chnology a nd fina ncia l s ca le Gre a te r e mpha s is on s upport opportunitie s from MNCs profita bility us ing AS EAN-  AS EAN-wide pool of ta le nt wide ope ra tions A Balanced Approach
  25. 25. Why AS EAN? AS EAN Community 2015AS EAN Re giona l Ma rke ting
  26. 26. What is Marketing? Bra nd Inte grityPositioning DifferentiationBe S ing trategy CoreTactic Br ge a Brand nd ma BRAND Id BRAND dI e nt n ity Bra Value Indicator
  27. 27. Nine Core Elements of Marketing (mind-share) (market-share) S STRATEGY TACTIC TExplore Positioning Differentia Engage BEING tion STRATEGY CORE TACTIC 1 2 3 4 5 6 7 8 9 Process Execute VALUE ENABLER VALUE (heart-share) V
  28. 28. Three Types of ASEAN Marketing Companies (3) THE MULTINATIONALS FOCUS ING ON AS EAN MULTI- NATIONALS AS EAN LOCALS LOCALS(1) THE LOCAL CHAMP IONS (2) THE LOCALS GOING AS EAN
  29. 29. Local ChampionsS Play small by serving niche marketsT Address the local needs and wantsV Maintain high level of customer intimacy
  30. 30. MBF Cards of Malaysia Local Champions Positioning Bra nd Inte grity Differentiation  S le e ction of cards suite to d Malaysia’s large and st niche segme ntsmost innovative and issuer  Early adoption of ne card w of niche cards technologies Brand Br ge a nd ma BRAND Id BRAND dI e nt MBF Cards n ity Bra
  31. 31. Goldilocks of the Philippines Local Champions Positioning Bra nd Inte grity Differentiation  Varie s of Philippine tie s The bake shop with original bake products and ryinternational standards cuisinecatering to Filipino taste  Unde rstanding of Pinoy values and se ntime nts Brand Br ge a nd ma BRAND Id BRAND dI e nt Goldilocks n ity Bra
  32. 32. Bengawan Solo of Singapore Local Champions Positioning Bra nd Inte grity Differentiation  H quality hand-made igh The conve nt gift and nie products with attractiveandsouve options of hand- nir exclusivepackaging  Conve ncefor orde nie r, made premium cake s, de ry, and colle live ction kue and cookie h, s  Gift vouche package r s Brand Br ge a nd ma BRAND Id BRAND dI e nt Bengawan Solo n ity Bra
  33. 33. Locals Going RegionalS Translate the regional positioning to local contextT Ensure regional visibility and availabilityV Build regional brand
  34. 34. Extra Joss of Indonesia Locals Going Regional Positioning Bra nd Inte grity Differentiation  In sache not in bottle ts, sThe affordable core e nce sse  Ge ration Biang (core ne of e rgy drink for core ne ge ration) ne ge ration ne  Largere distribution tail networks Brand Br ge a nd ma BRAND Id BRAND dI e nt Extra Joss n ity Bra
  35. 35. Black Canyon of Thailand Locals Going Regional Positioning Bra nd Inte grity Differentiation  E nsiveWe rn and Asian xte steFood house that com s bine (e cially Thai) food and spe We and E st ast coffe me e nu  Wild Wild We name and st décor  Largechain of outlets Brand Br ge a nd ma BRAND Id BRAND dI e nt Black Canyon n ity Bra
  36. 36. AirAsia of Malaysia Locals Going Regional Positioning Bra nd Inte grity Differentiation  Low-cost structureAS AN no-frills and fun E  F inte un rnal culture low-cost carrier Brand Br ge a nd ma BRAND Id BRAND dI e nt AirAsia n ity Bra
  37. 37. MNCs Focusing on ASEANS Coordinate the regional strategyT Execute the local customizationV Maintain the consistency of the global value
  38. 38. Glorecalization Approach for MNCs MNC Type 1 - Strategy, Tactic, and Value MNC Type 2 - MNC with are determined by the global office with Glorecalization Approach: little modification. Regional and local Consistent global value, offices merely act as supervisor and Coordinated regional strategy, and operator. Customized local tactic (The 3C Formula) Strategy Tactic Value Strategy Tactic Value Consistent Global Global Global Office Office Value(Conceptor) (Composer) Coordinated Regional Regional Regional Office Office Strategy(Supervisor) (Conductor) Local Local Customized Local Office Office Tactic(Operator) (Improviser)
  39. 39. Yamaha Motor  Ya ma ha Bra nd a nd “Thre e Tuning Forks ” logo Consistent Global  The s pirit of cre a ting “Ka ndo” (fe e lings of de e p s a tis fa ction Value a nd e xcite me nt) a s the bra nd mis s ion  Ya ma ha te chnology a nd production  “Growth” s tra te gy for AS EANCoordinated Regional  “P rofita bility” s tra te gy for US a nd Europe Strategy  Diffe re nt product mix for e a ch AS EAN country Customized Local  Diffe re nt communica tion a pproa ch for e a ch AS EAN country Tactic
  40. 40. Toyota Kijang  Toyota Bra nd a nd “Thre e Ova ls ” logo Consistent Global  J a pa n-qua lity ma nufa cturing Value  S a le s , S e rvice , a nd S pa re pa rts bus ine s s e s  P os itioning: AS EAN Fa mily Ca rCoordinated Regional Strategy  Diffe re nt communica tion a pproa ch for e a ch AS EAN country Customized Local Tactic
  41. 41. Conclusions• ASEAN is a regional bloc of 550 million customers with rich resources.• ASEAN is sure to get attention from MNCs and investors both as a source of products and a market for products.• ASEAN will bring benefits to the companies in all 10 ASEAN countries because it will lower their costs and provide larger opportunities .

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