Special Topic Building Global Brands
Why develop brands? <ul><li>Higher profit </li></ul><ul><li>Greater longevity </li></ul><ul><li>More potential for product...
Leading global brands <ul><li>Coca-Cola </li></ul><ul><li>Microsoft </li></ul><ul><li>IBM </li></ul><ul><li>GE </li></ul><...
Brand Image Ranking 22 9 Honda 3 23 Rolls Royce 92 3 Pepsi Cola 4 20 IBM 85 2 McDonald’s 23 6 Toyota 14 7 Nestlé 5 8 Disne...
Huge opportunity for China <ul><li>Two-pronged strategy: </li></ul><ul><ul><li>Buy established brands </li></ul></ul><ul><...
Conditions now ideal for brands <ul><li>Capital:  </li></ul><ul><ul><li>China now has the necessary capital to build brand...
Example: Lenovo <ul><li>27% market share of computers in China </li></ul><ul><li>Bought IBM PC division for brand name </l...
Example: Bird <ul><li>China market leader in mobile phones </li></ul><ul><ul><li>#8 mobile phone brand in world </li></ul>...
Example: Haier <ul><li>Chinese appliance giant </li></ul><ul><ul><li>Ranked most valuable Chinese brand </li></ul></ul><ul...
China itself is a brand <ul><li>Chinese brand survey </li></ul><ul><ul><li>Online survey by Interbrand </li></ul></ul><ul>...
Brand China <ul><li>Question #2: Provide three words that represent your impression of Chinese brands today. </li></ul><ul...
Brand China <ul><li>Provide any comments on Chinese brands and their future for competing internationally </li></ul><ul><u...
Brand China: Survey conclusions <ul><li>Chinese brands suffer from negative perceptions of quality. </li></ul><ul><li>Attr...
Response to Brand China <ul><li>Distance company from Brand China </li></ul><ul><ul><li>Shanghai Automotive Industry Corp ...
 
What country is the parent? <ul><li>Firestone Tire  </li></ul><ul><li>Burger king </li></ul><ul><li>Rolls-Royce </li></ul>...
What is a brand? <ul><li>“ The sum total of all that is know, thought, felt and perceived about your company, service or p...
What is brand equity? <ul><li>“ The positive differential effect that knowing the brand name has on customer response to t...
A brand has a personality <ul><li>A brand is the personality of your service / product  </li></ul><ul><li>A good brand is ...
Brand Personality <ul><li>5 dimensions of brand personality </li></ul><ul><ul><ul><ul><ul><li>Aaker 1997 </li></ul></ul></...
Brand Personality <ul><li>Sincerity </li></ul><ul><ul><li>Down to earth, family oriented, small town </li></ul></ul><ul><u...
Brand Personality <ul><li>Excitement </li></ul><ul><ul><li>Daring, trendy, exciting </li></ul></ul><ul><ul><li>Spirited, c...
Brand Personality <ul><li>Competence </li></ul><ul><ul><li>Reliable, hard working, secure </li></ul></ul><ul><ul><li>Intel...
Brand Personality <ul><li>Sophistication </li></ul><ul><ul><li>Upper class, glamorous, good looking  </li></ul></ul><ul><u...
Brand Personality <ul><li>Ruggedness </li></ul><ul><ul><li>Outdoorsy, masculine, Western </li></ul></ul><ul><ul><li>Tough,...
Brand Personality: Levis <ul><li>Original </li></ul><ul><li>Masculine </li></ul><ul><li>Sexy </li></ul><ul><li>Youthful </...
A brand has a name <ul><li>A truly global brand name is… </li></ul><ul><ul><li>A translinguistic device - sounds & writing...
Recommendations for international brand names <ul><li>Simple spelling and short  </li></ul><ul><ul><li>2 or 3 syllables  <...
Unfortunate brand names <ul><li>Coors &quot;Turn it loose&quot;  </li></ul><ul><ul><li>in Spanish &quot;Suffer from diarrh...
A brand is a friend <ul><li>A friend is… </li></ul><ul><ul><li>Comfortable </li></ul></ul><ul><ul><li>Enjoyable </li></ul>...
Brand Friendship <ul><li>Consumer research comparing 2 brands </li></ul><ul><li>Company A Company B </li></ul><ul><li>Soph...
How to build a brand <ul><li>A commitment from top management </li></ul><ul><ul><li>A visible president like Branson? </li...
Measuring Brand Equity <ul><li>Awareness : Aided (fill in blank) and unaided recall (multiple choice / top of mind) </li><...
Measuring brand equity <ul><li>“If a Coke bottle were a person, what kind would it be?” </li></ul><ul><li>“If you met that...
Need to monitor brand <ul><li>Brand tracking </li></ul><ul><ul><li>Growth in awareness, familiarity, commitment, etc. </li...
Positioning <ul><li>Research to determine how brand is perceived compared to competition </li></ul><ul><li>Determination o...
 
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Digital Camera Brands
Automobiles
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Luxury Strategy Brand China Survey,Response To Chinese Brands

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Luxury Strategy Brand China Survey,Response To Chinese Brands

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Transcript of "Luxury Strategy Brand China Survey,Response To Chinese Brands"

  1. 1. Special Topic Building Global Brands
  2. 2. Why develop brands? <ul><li>Higher profit </li></ul><ul><li>Greater longevity </li></ul><ul><li>More potential for product extensions </li></ul><ul><li>Higher stock price </li></ul>
  3. 3. Leading global brands <ul><li>Coca-Cola </li></ul><ul><li>Microsoft </li></ul><ul><li>IBM </li></ul><ul><li>GE </li></ul><ul><li>Intel </li></ul><ul><li>Nokia </li></ul><ul><li>Disney </li></ul><ul><li>McDonald’s </li></ul><ul><li>Toyota </li></ul><ul><li>Marlboro </li></ul>
  4. 4. Brand Image Ranking 22 9 Honda 3 23 Rolls Royce 92 3 Pepsi Cola 4 20 IBM 85 2 McDonald’s 23 6 Toyota 14 7 Nestlé 5 8 Disney 9 5 Kodak 2 12 Mercedes-Benz 1 4 Sony 6 1 Coca-Cola/Coke Esteem Share of Mind Firm
  5. 5. Huge opportunity for China <ul><li>Two-pronged strategy: </li></ul><ul><ul><li>Buy established brands </li></ul></ul><ul><ul><li>Develop own brands </li></ul></ul>
  6. 6. Conditions now ideal for brands <ul><li>Capital: </li></ul><ul><ul><li>China now has the necessary capital to build brands </li></ul></ul><ul><li>Regulations: </li></ul><ul><ul><li>Chinese government now supportive of building brands </li></ul></ul><ul><li>Market: </li></ul><ul><ul><li>Chinese consumers now have discretionary income to invest in brands </li></ul></ul><ul><ul><li>Chinese consumers now more sophisticated and demanding of quality </li></ul></ul><ul><li>Production: </li></ul><ul><ul><li>Some Chinese manufacturers now have excess capacity </li></ul></ul><ul><li>Brands: </li></ul><ul><ul><li>China has domestic brands and the beginning of global brands </li></ul></ul>
  7. 7. Example: Lenovo <ul><li>27% market share of computers in China </li></ul><ul><li>Bought IBM PC division for brand name </li></ul><ul><ul><li>Rights to IBM logo for five years </li></ul></ul><ul><li>Building own brand based on </li></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Innovative and entrepreneurial spirit </li></ul></ul><ul><ul><li>Accuracy and truth-seeking </li></ul></ul><ul><ul><li>Trustworthiness and integrity </li></ul></ul><ul><ul><li>Changed name to go global </li></ul></ul><ul><ul><ul><li>Selected blue as brand color </li></ul></ul></ul><ul><ul><ul><li>Using 2008 Olympics as springboard </li></ul></ul></ul>
  8. 8. Example: Bird <ul><li>China market leader in mobile phones </li></ul><ul><ul><li>#8 mobile phone brand in world </li></ul></ul><ul><li>Building own brand based on </li></ul><ul><ul><li>Phone fashion leader </li></ul></ul><ul><ul><li>Product innovation </li></ul></ul><ul><ul><li>Design and ergonomics </li></ul></ul><ul><ul><li>Fast response </li></ul></ul><ul><ul><li>Comprehensive distribution </li></ul></ul>
  9. 9. Example: Haier <ul><li>Chinese appliance giant </li></ul><ul><ul><li>Ranked most valuable Chinese brand </li></ul></ul><ul><li>Bought Maytag for brand name </li></ul><ul><li>Building own brand based on </li></ul><ul><ul><li>Local brand name in each market </li></ul></ul><ul><ul><li>Products adapted to different consumption styles </li></ul></ul><ul><ul><li>Entering niche markets </li></ul></ul><ul><ul><li>Speed and differentiation </li></ul></ul><ul><ul><li>Sponsoring Australian basketball team </li></ul></ul><ul><ul><li>Joint ventures with Fujitsu, Hitachi, Sanyo </li></ul></ul>
  10. 10. China itself is a brand <ul><li>Chinese brand survey </li></ul><ul><ul><li>Online survey by Interbrand </li></ul></ul><ul><ul><li>243 international brand executives </li></ul></ul><ul><li>Question #1: Does “Made in China” help or hurt Chinese brands? </li></ul><ul><ul><li>79% believe it hurts </li></ul></ul>
  11. 11. Brand China <ul><li>Question #2: Provide three words that represent your impression of Chinese brands today. </li></ul><ul><li>Ranking Attribute Rating Attribute </li></ul><ul><li>1 Cheap 6 Innovative </li></ul><ul><li>2 Poor value 7 Lack of track record </li></ul><ul><li>3 Poor quality 8 Dated / old </li></ul><ul><li>4 Unreliable 9 Largely unknown </li></ul><ul><li>5 Unsophisticated 10 Aggressive </li></ul>
  12. 12. Brand China <ul><li>Provide any comments on Chinese brands and their future for competing internationally </li></ul><ul><ul><li>“Need to overcome the lack of quality perception” </li></ul></ul><ul><ul><li>“Need to enhance communications to grow awareness” </li></ul></ul><ul><ul><li>“China is well positioned for brand success” </li></ul></ul>
  13. 13. Brand China: Survey conclusions <ul><li>Chinese brands suffer from negative perceptions of quality. </li></ul><ul><li>Attributes of prestige, trust and safety are not associated with Chinese brands (innovation and reliability are good). </li></ul><ul><li>Need to move away from being low-cost, original equipment manufacturers to creating and managing dominant global brands. </li></ul><ul><li>Chinese brands are competing solely on tangible dimensions like quality and price. They will compete more effectively once they inject personality and emotion. </li></ul>
  14. 14. Response to Brand China <ul><li>Distance company from Brand China </li></ul><ul><ul><li>Shanghai Automotive Industry Corp (SAIC) bought Rover </li></ul></ul><ul><ul><li>Fast and less expensive </li></ul></ul><ul><li>Change perception of Brand China </li></ul><ul><ul><li>Shanghai Tang promoting their line of luxury fashions as “A Chinese lifestyle brand that’s relevant” </li></ul></ul><ul><ul><li>Slow but ultimately more beneficial </li></ul></ul>
  15. 16. What country is the parent? <ul><li>Firestone Tire </li></ul><ul><li>Burger king </li></ul><ul><li>Rolls-Royce </li></ul><ul><li>RCA Electronics </li></ul><ul><li>Dr Pepper </li></ul><ul><li>Gerber </li></ul><ul><li>Holiday Inn </li></ul><ul><li>Japan (Bridgestone) </li></ul><ul><li>Great Britain (Diageo) </li></ul><ul><li>Germany (Volkswagen) </li></ul><ul><li>France (Thomson SA) </li></ul><ul><li>Great Britain (Cadbury) </li></ul><ul><li>Switzerland (Novartis) </li></ul><ul><li>Great Britain (Bass PLC) </li></ul>
  16. 17. What is a brand? <ul><li>“ The sum total of all that is know, thought, felt and perceived about your company, service or product.” </li></ul><ul><ul><ul><ul><ul><li>www.brandingasia.com </li></ul></ul></ul></ul></ul><ul><li>“ A name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.” </li></ul><ul><ul><ul><ul><ul><li>Kotler and Armstrong 2006 </li></ul></ul></ul></ul></ul><ul><li>“ A ‘liking’ or a ‘friendship’ relationship between the customer and the brand.” </li></ul><ul><ul><ul><ul><ul><li>General Foods </li></ul></ul></ul></ul></ul>
  17. 18. What is brand equity? <ul><li>“ The positive differential effect that knowing the brand name has on customer response to the product or service.” </li></ul><ul><ul><ul><ul><ul><li>Kotler and Armstrong 2006 </li></ul></ul></ul></ul></ul><ul><li>“ A brand that has strong positive associations in a consumer’s memory and commands a lot of loyalty as a result.” </li></ul><ul><ul><ul><ul><ul><li>Solomon 2006 </li></ul></ul></ul></ul></ul>
  18. 19. A brand has a personality <ul><li>A brand is the personality of your service / product </li></ul><ul><li>A good brand is seen as a friend </li></ul><ul><ul><li>Trustworthy </li></ul></ul><ul><ul><li>Dependable </li></ul></ul><ul><ul><li>Understanding </li></ul></ul><ul><ul><li>Caring </li></ul></ul>
  19. 20. Brand Personality <ul><li>5 dimensions of brand personality </li></ul><ul><ul><ul><ul><ul><li>Aaker 1997 </li></ul></ul></ul></ul></ul><ul><ul><li>Sincerity </li></ul></ul><ul><ul><li>Excitement </li></ul></ul><ul><ul><li>Competence </li></ul></ul><ul><ul><li>Sophistication </li></ul></ul><ul><ul><li>Ruggedness </li></ul></ul>
  20. 21. Brand Personality <ul><li>Sincerity </li></ul><ul><ul><li>Down to earth, family oriented, small town </li></ul></ul><ul><ul><li>Honest, sincere real </li></ul></ul><ul><ul><li>Wholesome, original </li></ul></ul><ul><ul><li>Cheerful, sentimental, friendly </li></ul></ul><ul><li>Example: Coca Cola? </li></ul>
  21. 22. Brand Personality <ul><li>Excitement </li></ul><ul><ul><li>Daring, trendy, exciting </li></ul></ul><ul><ul><li>Spirited, cool, young </li></ul></ul><ul><ul><li>Imaginative, unique </li></ul></ul><ul><ul><li>Up-to-date, independent, contemporary </li></ul></ul><ul><li>Example: Pepsi? </li></ul>
  22. 23. Brand Personality <ul><li>Competence </li></ul><ul><ul><li>Reliable, hard working, secure </li></ul></ul><ul><ul><li>Intelligent, technical, corporate </li></ul></ul><ul><ul><li>Successful, leader, confident </li></ul></ul><ul><li>Example: IBM? </li></ul>
  23. 24. Brand Personality <ul><li>Sophistication </li></ul><ul><ul><li>Upper class, glamorous, good looking </li></ul></ul><ul><ul><li>Charming, feminine, smooth </li></ul></ul><ul><ul><li>Wealthy, condescending </li></ul></ul><ul><li>Example: Mercedes? </li></ul>
  24. 25. Brand Personality <ul><li>Ruggedness </li></ul><ul><ul><li>Outdoorsy, masculine, Western </li></ul></ul><ul><ul><li>Tough, rugged </li></ul></ul><ul><li>Example: Nike, Marlboro? </li></ul>
  25. 26. Brand Personality: Levis <ul><li>Original </li></ul><ul><li>Masculine </li></ul><ul><li>Sexy </li></ul><ul><li>Youthful </li></ul><ul><li>Rebellious </li></ul><ul><li>Individual </li></ul><ul><li>Free </li></ul><ul><li>American </li></ul><ul><li>Exciting and rugged? </li></ul>
  26. 27. A brand has a name <ul><li>A truly global brand name is… </li></ul><ul><ul><li>A translinguistic device - sounds & writing </li></ul></ul><ul><ul><ul><li>Lenovo, Sony </li></ul></ul></ul><ul><ul><li>Consistent underlying core themes </li></ul></ul><ul><ul><li>Executed for at least 15 years in a similar manner across a very large number of countries </li></ul></ul><ul><ul><li>Consumer needs are consistent for the product category worldwide (airlines vs. coffee) </li></ul></ul><ul><ul><li>Ad spending of at least $200 million per year world-wide and more probably $.5 billio </li></ul></ul>
  27. 28. Recommendations for international brand names <ul><li>Simple spelling and short </li></ul><ul><ul><li>2 or 3 syllables </li></ul></ul><ul><li>Easy to pronounce in any language </li></ul><ul><ul><li>Not Printemps </li></ul></ul><ul><li>Avoid unintended meaning in target languages </li></ul><ul><ul><li>Not Nova by Chevrolet. </li></ul></ul><ul><li>Loss of original meaning not a major problem </li></ul><ul><ul><li>Local consumers give name new meaning (which may fit intended local positioning) </li></ul></ul><ul><ul><li>Carrefour </li></ul></ul>
  28. 29. Unfortunate brand names <ul><li>Coors &quot;Turn it loose&quot; </li></ul><ul><ul><li>in Spanish &quot;Suffer from diarrhea&quot; </li></ul></ul><ul><li>&quot;Pepsi Brings You Back to Life&quot; </li></ul><ul><ul><li>in Chinese &quot;Pepsi Brings Your Ancestors Back from the Grave&quot; </li></ul></ul><ul><li>Clairol’s &quot;Mist Stick“ (a curling iron) </li></ul><ul><ul><li>in Germany mist is slang for manure </li></ul></ul><ul><li>Gerber baby food had cute baby on the label </li></ul><ul><ul><li>in Africa, companies routinely put pictures on the label of what's inside since most people can't read </li></ul></ul><ul><li>Soft drink in Korea (Pocarino?): “Sweat” </li></ul>
  29. 30. A brand is a friend <ul><li>A friend is… </li></ul><ul><ul><li>Comfortable </li></ul></ul><ul><ul><li>Enjoyable </li></ul></ul><ul><ul><li>Caring </li></ul></ul><ul><ul><li>Honest </li></ul></ul><ul><ul><li>Dependable </li></ul></ul><ul><ul><li>There for you when you need them </li></ul></ul><ul><ul><li>Someone who treats you with respect </li></ul></ul>
  30. 31. Brand Friendship <ul><li>Consumer research comparing 2 brands </li></ul><ul><li>Company A Company B </li></ul><ul><li>Sophisticated Easy going </li></ul><ul><li>Arrogant Modest </li></ul><ul><li>Efficient Helpful </li></ul><ul><li>Self-centered Caring </li></ul><ul><li>Distant Approachable </li></ul><ul><li>Disinterested Interested </li></ul><ul><li>Which would you like as a friend? </li></ul>
  31. 32. How to build a brand <ul><li>A commitment from top management </li></ul><ul><ul><li>A visible president like Branson? </li></ul></ul><ul><li>Consistent quality control to demonstrate reliability </li></ul><ul><li>Clear differentiation of product / service </li></ul><ul><li>Strong promotional program to gain positive recognition </li></ul><ul><ul><li>Consistent message: visual and verbal </li></ul></ul><ul><ul><li>A promise that is desired and believable </li></ul></ul><ul><ul><li>An emotional appeal </li></ul></ul><ul><li>Adaptability to local conditions (“glocal”) </li></ul>
  32. 33. Measuring Brand Equity <ul><li>Awareness : Aided (fill in blank) and unaided recall (multiple choice / top of mind) </li></ul><ul><li>Associations : words associated with the brand name </li></ul><ul><li>Attitude : general liking, inclusion in consideration set </li></ul><ul><li>Attachment : loyalty to brand (over generations?) </li></ul><ul><li>Activity : advocating brand to others, spreading word of mouth </li></ul>
  33. 34. Measuring brand equity <ul><li>“If a Coke bottle were a person, what kind would it be?” </li></ul><ul><li>“If you met that person, what would they say to you?” </li></ul>
  34. 35. Need to monitor brand <ul><li>Brand tracking </li></ul><ul><ul><li>Growth in awareness, familiarity, commitment, etc. </li></ul></ul><ul><li>Brand reputation </li></ul><ul><ul><li>Loyalty, satisfaction, trust </li></ul></ul>
  35. 36. Positioning <ul><li>Research to determine how brand is perceived compared to competition </li></ul><ul><li>Determination of where brand should be placed to compete most effectively </li></ul><ul><li>Research to determine success of repositioning </li></ul>
  36. 38. Copiers
  37. 39. Digital Camera Brands
  38. 40. Automobiles

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