Investing in brandingAn opportunity for chinese companies going global© Conrad Llorens /China at Barcelona Summit /October...
Brands are complex realities...
Feelings                                            PrejudicesPerceptions                            Relations    Associat...
Tangible   Intangible   Reason                    EmotionBody                                   Soul Concept              ...
Brand management involvesdifferent disciplines
Marketing                                 Communication              Human ResourcesFinance                         Techno...
A brand is many things at once
What people think about our        products and our company                            What people think about            ...
From a management point of view
A brand is a combination oftangible and intangible attributeswhich when properly managedMakes the product or service uniqu...
Brand equity providesHigher preference and customer loyaltyPremium prices, higher marginsStronger attractiveness to talent...
Most of the value   100 %that companies      80 %generate today      60 %comes from their    40 %intangible assets   20 % ...
In a saturated markets of products andmessages, companies have to lookfurther than product and traditionalmarketing
It’s the time for branding
Because differenciation based on tangible assets is almostimpossible
People are more esceptic andmore demanding for companiesto be responsible and ethicallycorrect
Because of the recessionmany peopple aredisappointed with thegovernments and the financialinstitutions.
But this means thatcompanies through its brandshave the opportunity to fill thegap
Competing on price is notsustainable on the medium term
The only way is to provide value
Brands have to combine globaland local focus(global concepts + local execution)Strategies based on universal conceptsImple...
How is your country brand?Products and corporate brands are also related to theassociations of the brand of their country
FranceFashionGlamourSophisticationElegance
GermanyEngineeringTechnologyEfficiencyReliability
ItalyHistory & cultureQuality foodFast carsQuality of life.
SpainPassion, energyWarmthVitalityLeisure
ChinaEmerging powerLow pricePerseveranceAncient culture
“Brand equity is an strategicbridge to future earnings”.“Its a reservoir of cash flownot yet released”Richard Ettenson, Th...
“The purpose of brands is toget more people to buy more ofyour product more often formore money”Sergio Zyman, CMO Coca-Cola
Investing in branding resultsin profitable and sustainablegrowth for the company
China’s domestic market is huge, but western and other emergingcountries are good opportunities too:Higher prices, higher ...
Chinese brands are gaining global presence and also credibility inthe domestic marketBut the challenge is shifting the per...
Beyond product and priceChinese manufacturers need to look beyond price to emphasizeunique aspects of their products and b...
Japan & Korea, “role models” (Sony, Samsung, Toyota...).But not exactly analogous.China is not forced to export at an inme...
www.summa.es
Challenges & opportunities for chinese brands going global
Challenges & opportunities for chinese brands going global
Challenges & opportunities for chinese brands going global
Challenges & opportunities for chinese brands going global
Challenges & opportunities for chinese brands going global
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Challenges & opportunities for chinese brands going global

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Challenges & opportunities for chinese brands going global

  1. 1. Investing in brandingAn opportunity for chinese companies going global© Conrad Llorens /China at Barcelona Summit /October, 2011
  2. 2. Brands are complex realities...
  3. 3. Feelings PrejudicesPerceptions Relations Associations Behaviour Culture Experiences Emotions
  4. 4. Tangible Intangible Reason EmotionBody Soul Concept Expression Internal External
  5. 5. Brand management involvesdifferent disciplines
  6. 6. Marketing Communication Human ResourcesFinance Technology Legal Management Psichology Sociology
  7. 7. A brand is many things at once
  8. 8. What people think about our products and our company What people think about the people who uses our brandHow people experienceusing our brand How people feel showing themselves with our brand What people say about your company
  9. 9. From a management point of view
  10. 10. A brand is a combination oftangible and intangible attributeswhich when properly managedMakes the product or service uniqueCreates emotional bonds and relationships with stakeholdersBuilds financial value
  11. 11. Brand equity providesHigher preference and customer loyaltyPremium prices, higher marginsStronger attractiveness to talentStronger attractiveness to investors and partnersHigher effectiveness in marketing and communicationHigher elasticity for extensions to new productsHigher incomes from licensingLess vulnerability to competitor actions
  12. 12. Most of the value 100 %that companies 80 %generate today 60 %comes from their 40 %intangible assets 20 % 1950 1970 1990 2010 Brand Other Intangible assets Tangibles assets
  13. 13. In a saturated markets of products andmessages, companies have to lookfurther than product and traditionalmarketing
  14. 14. It’s the time for branding
  15. 15. Because differenciation based on tangible assets is almostimpossible
  16. 16. People are more esceptic andmore demanding for companiesto be responsible and ethicallycorrect
  17. 17. Because of the recessionmany peopple aredisappointed with thegovernments and the financialinstitutions.
  18. 18. But this means thatcompanies through its brandshave the opportunity to fill thegap
  19. 19. Competing on price is notsustainable on the medium term
  20. 20. The only way is to provide value
  21. 21. Brands have to combine globaland local focus(global concepts + local execution)Strategies based on universal conceptsImplemention according to each market and culture
  22. 22. How is your country brand?Products and corporate brands are also related to theassociations of the brand of their country
  23. 23. FranceFashionGlamourSophisticationElegance
  24. 24. GermanyEngineeringTechnologyEfficiencyReliability
  25. 25. ItalyHistory & cultureQuality foodFast carsQuality of life.
  26. 26. SpainPassion, energyWarmthVitalityLeisure
  27. 27. ChinaEmerging powerLow pricePerseveranceAncient culture
  28. 28. “Brand equity is an strategicbridge to future earnings”.“Its a reservoir of cash flownot yet released”Richard Ettenson, Thunderbird University
  29. 29. “The purpose of brands is toget more people to buy more ofyour product more often formore money”Sergio Zyman, CMO Coca-Cola
  30. 30. Investing in branding resultsin profitable and sustainablegrowth for the company
  31. 31. China’s domestic market is huge, but western and other emergingcountries are good opportunities too:Higher prices, higher margins markets.Shift of the chinese consumer to pay price premium for chinesebrands will still need time, and it’s tougher than changing western’sperceptions about quality and value of chinese brands.Affordability, a key factor also in western markets (increasing “valuefor money” conciousness).
  32. 32. Chinese brands are gaining global presence and also credibility inthe domestic marketBut the challenge is shifting the perception from production tocreation: from “made in China” to “created in China”. ere are already good examples of sucessful chinese brandsbecoming global (Li-Ning, BYD, Metersbonwe...).In categories such us medicine, beer, spirits...brands are emphasinzingthe Chinese essence of their brands.
  33. 33. Beyond product and priceChinese manufacturers need to look beyond price to emphasizeunique aspects of their products and brands.Stand for something, quality, innovation and integrity are essencial tobuild powerful brands.Sucessful brands balance quality and value, whether at a high or lowprice and beyond product features to focus on the user experience
  34. 34. Japan & Korea, “role models” (Sony, Samsung, Toyota...).But not exactly analogous.China is not forced to export at an inmediate imperative.And it happens in a very different time and context.
  35. 35. www.summa.es

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