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
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
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
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
In a saturated markets of products andmessages, companies have to lookfurther than product and traditionalmarketing
“Brand equity is an strategicbridge to future earnings”.“Its a reservoir of cash flownot yet released”Richard Ettenson, Thunderbird University
“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 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).
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.
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
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.