The document discusses Monogram Group's work helping Chinese companies enter the US market through branding. It outlines Monogram's research finding low awareness of Chinese brands in the US. The document then details Monogram's process of developing brand strategies, including creating a new US brand called Züuma for a Chinese GPS mount company called Asianbag. Monogram established US operations for Asianbag and helped launch its new branded products.

1. Branded Entry into the U.S.
Market for Chinese Companies
Presented to Booth School Alumni
The Monogram Group
February 17, 2011
Copyright 2011 The Monogram Group, Inc.

2. First, a bit of background
on our agency.

3. Monogram is a branding & advertising
agency that specializes in boldly creating
and repositioning brands.
Founded in 1990, we serve divisions of the Fortune 500,
leading middle-market private companies, civic
organizations and entrepreneurial startups.
For clients facing substantial growth opportunities
or wanting to change the game in a commoditized
environment, we offer a powerful blend of high-level
strategic thinking and creative execution.
We often act as the quarterback for our client’s brand,
delivering measurable results.

4. Our clients include many leading consumer
and B2B brands, many of them global.
™

5. We also serve many of Chicago’s most
respected civic institutions and retailers.

6. Our Chinese client list includes companies
in a diverse array of sectors and revenue.

7. Scott Markman, Founder and President
The Monogram Group
29 years in branding building and
corporate design.
Media coverage: ARD German TV, Wall
Street Journal, Xinhua (China’s Press
Agency), China Daily USA, Ad Age Global,
Industry Week, China Business Network,
Chicago Tribune, Chicago Sun-Times,
Crain’s Chicago Business
Speaking engagements: US-China Global
Brand Summit, Asia-Pacific Chamber
(Shanghai), National Venture Capital Assn.,
The Smithsonian, the British-American
Business Council and Commercial
Investment Real Estate Institute.

8. Now, let’s do a quick
exercise together:
1) What is a brand?
2) What Chinese brands can you name?

9. And, here they are:

10. Why Chinese brands?
Are we crazy?
What could possibly be
in it for a relatively small
Chicago agency?

11. So how did we get started?
What did we do to establish
credibility, make contacts,
set up meetings and sell
our services?

12. We started with quantitative market research,
querying 1,100 US consumers 2x on their
attitudes towards China and Chinese brands.
Optimal
Position

13. Even the biggest Chinese brands were virtually
unknown to American consumers, scoring the
same awareness levels as brands we fabricated.
% Americans Aware of the Brand

14. And that low awareness (along with a poor
overall image of Chinese quality) correlated to
low scores on quality perception.
% Americans Believe Brand is High Quality Based on Name

15. However, Americans were not shutting the door to
Chinese brands in many categories...especially
those they already associate with China.
% Americans Open to Purchasing from a Chinese Brand

16. The same branding fundamentals that all US/
Western companies must follow were identified
as precursors for Chinese companies as well.
67% of Americans say it is important that a Chinese
company wanting to sell its products in the US has an
English language web site written in excellent English.
45% of Americans say it is important that they purchase
Chinese goods from a brand with which they are familiar.
36% of Americans say it is important that they have
seen ads for a Chinese brand before they buy their
products.

17. A relationship map for our branded entry
service offering.

18. Our services reflect an integrated approach for
a Chinese company’s branded entry needs.
PHASE I PHASE II PHASE III PHASE IV
Entry Strategy Supporting Brand Go to Market
Advisory Entry Services Building Programs
Category/Market M&A Brand Concept Trade Shows
Analysis & Messaging
Legal Counsel Advertising
Consumer/Buyer Naming &
Insights Brand Identity
Accounting Direct/Email
Product
Product Packaging
Positioning Banking Social Media
Warehouse Sales Presentation
Product & Brochures Event Marketing
Innovations & Logistics & Sponsorships
Website
Human Resources
Public Relations
Trade Show
Sales and Booth
Distribution

19. And once we got there,
what did we find?
(or, Scott’s excellent adventure
into exploring China, Chinese
culture, values, beliefs and
business practices)

20. Scott Markman’s Top Ten perceptions of
Chinese business people.
#10: Very, very, very risk averse
#9: Assume they can’t trust you until proven otherwise
#8: Follow relationship, not expertise
#7: Reticent to pay for professional service and advice
#6: Hyperfocused on distribution and sales

21. Scott Markman’s Top Ten perceptions of
Chinese business people.
#5: Very short-term in their thinking
#4: Understand “brand” simplistically
#3: Slow to embrace the American Way of business
#2: Won’t say no to your face
#1: Assume a lower price solves all problems

22. What have we learned from
our experiences so far?
How has our approach evolved?
What do we look for in seeking
out clients?

23. Distribution is very different in the US vs. China,
and because that is top of mind for every prospect,
we have to start there.
National
Retailers
Private Innovative Branded
Label Products Products Products
• Dominates products • Creates its own • A strong brand gives
competing on category, highest retailer reason to stock
low price (not chance to gain the product (Chinese
available anymore) distribution companies’ best choice)

24. The Five Prerequisites every Chinese
company needs to have to consider the
US market.
Excellent product quality (ideally, innovative products)
Clear, realistic business objectives
An international talent team
Appropriate financial resources
Patience (minimum 2 year time commitment)

25. ...which lead to The Five Factors every
Chinese company needs to master for
success in the US market.
New product development
Willingness to adapt business practices to US standards
and methodologies
Insights about consumers who buy their products
An understanding of the wholesale and retail process
The differences between OEM and Branded business
models and how to do both concurrently as a
transitional stage

26. The Old Reality vs. the Future Opportunity
OEM Model Branded Model
Good enough for client specs Excellent quality, own design
Cheapest price Competitive price
FOB only Entire logistics & customs continuum
Transactional focus Relationship with buyers and consumers
Trade shows, friends’ intros Marketing and sales support
Immediate sales Longer sales cycles with many factors
No consumer contact Understanding, serving consumers
Low margin, high volume Much higher margins and creation
financials of brand value

27. Case Study:
Changzhou Asian Endergonic
Electronic Technology Co., Ltd.
(Asianbag)

28. Asianbag is the leading manufacturer
in dashboard mounts for portable GPS
devices and smartphones.
This US$12 million company has been selling to four US
importers for 2 years. They have 10% market share, and
their products are sold at Best Buy and Radio Shack.
They own two US patents and several Chinese patents for
their designs.
Monogram was hired in Sept. 2009 to create a US brand
for Asianbag and build US distribution to grow sales and
dramatically increase profit margin.

29. Steps in our process to date.
Conducted online market research with 55 US consumers.
Created the brand concept, value proposition,
positioning and personality.
Created names for the brand and product line,
trademark, package design, web site and sales materials
to prepare for the brand launch in May 2010.
Coordinated the company’s setup in the US,
including filing a trademark application.

30. Steps in our process to date.
Attended National Consumer Electronics Show, met
potential sales reps, gathered feedback from retailers.
Set up warehousing, sales and merchant banking
operation.
Developed e-commerce enabled website.
Created social media strategy including Facebook, Twitter.
Developed new product features.

32. Chinese OEM brand name

33. New US brandmark and tagline

34. Züuma Dashboard Mounts (Z4 and Z6)

35. Züuma
packaging
moist towelette

36. Züuma Sales
Collateral
Comes with an adjustable
bracket. Ideal for cell phones.
Inner diameter : 55mm
Outer diameter : 140mm
Please call us at
877-90-ZUUMA.
Or, you can email our North American
Sales & Distribution Manager,
Michael Zakkour, at:
michael.zakkour@myzuuma.com.

43. What have we accomplished?
Established a long-term partnership with Priceless
Resource, a leading electronics distributor to reach
all big box retailers.
Established a relationship with a Canadian distributor
in to sell Züuma products in Canadian market.
Got Züuma listed on a leading loyalty reward service
whose clients include Citibank.
Placing Züuma products in major retailers,
both online and brick & mortar stores

44. Product innovations

45. Product innovations

46. Case Study:
Yuzhou Green-Ship Garden
Supplies Producing Co., Ltd.

47. Green-Ship is a $7.5 million manufacturer
of unique flower pots and planters made
from a patented composite material.
$5 million in sales in Europe and $2.5 million in the US, all
under private label. They have no domestic market.
Founded in 1993, they own over 20 Chinese patents for
their manufacturing of their products.
They are completing the construction of a new factory in
Qingdao that will allow them to triple in sales.
Monogram was hired in January 2011 to create a US brand
and build distribution to dramatically grow sales with
independent garden centers.

48. Steps in our process to date.
Conducted online market research with US consumers.
Created the brand concept, value proposition,
positioning and personality.
Conducting online research with buyers at independent
garden centers nationwide.
Developing marketing communications materials.
Preparing list of distributors for factory, planning to attend
3 major trade shows in 2011.

49. Consumer Research Question #1
Who in your family buys flower/vegetable pots?

50. Consumer Research Question #2
When purchasing a flower/vegetable pot, what
features are most important?

51. Consumer Research Question #3
Are you more inclined to buy a pot at a national
retailer, a garden specialty shop or online?

52. Consumer Research Question #4
Where do you go for information about potting plants?

53. Consumer Research Question #5
If flower pots were made of eco-friendly material, would
that be an important factor in your purchasing decision?

56. Chinese OEM brandmark

57. Current China Green-Ship.com web site
Home Page

58. Current China Green-Ship.com web site
Introduction Page

59. Current China Green-Ship.com web site
Introduction Page

60. Current China Green-Ship.com web site
Product Page

61. Current China Green-Ship product catalog.

62. New US brandmark and tagline

63. New Product Catalog

64. New Product Catalog

65. New Product Catalog

67. Point of Sale Materials

68. Who’s next?
What Chinese brands can you
expect to see coming to a store
or showroom near you?

69. And, here they are:

70. Thank you very much
for your time tonight.
Questions? Comments?

71. For more information, please contact:
The Monogram Group
233 S. Wacker Drive, Suite 410
Chicago, Illinois 60606 USA
Tel: +1 312-726-4300
Fax: +1 312-726-4308
www.monogramgroup.com
www.monogramgroup.com.cn
Scott Markman, President
smarkman@monogramgroup.com
John Yang, AE/China Specialist
jyang@monogramgroup.com
Direct: +1 312-268-6687