Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
The Transition of Asian
Brands from Good to Great
Branding Conference
Global Ways to Build Global Brands
Hong Kong, 8th February 2012
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
Copyright
Copyright © BrandAsian Pte Ltd. To order copies, or request permission to reproduce
materials, contact [email protected] or go to www.BrandTalkAsia.com.
No part of this presentation may be reproduced, stored in a retrieval system, used or
transmitted in any form or by any means – electronic, mechanical, photocopying,
recording or otherwise – without permission of BrandAsian Pte Ltd.
2
3
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 3
The Brutal Truth is neither easy to tell,
nor as it turns out…easy to hear.
4
“A book that can leave
you devastated.”
“Such observations leave you
with the feeling that Joseph
Baladi is perhaps not sensitive to
both the cultural and economic
environment in Asia while
passing judgment on branding
here…. Asia is tired of the West
preaching to us. It’s time,
perhaps, for people to
understand this part of the
world’s way of doing things and
help in building on it. That’s
something worth thinking about
before deciding to read.” (Written
by an advertising executive who states
he is being “brave” to review the
book).
“Baladi will face his own
challenge: getting
criticism-averse Asian
CEOs to pick up his book.”
5
Asia Pacific Business
& Engineering Report
Brand Equity – Malaysia
Business Today - India
CHINA Daily Asia Times
Singapore
Business
Times
Calibre Magazine - Malaysia
MKT Inst. Singapore
The Nation - Bangkok
Warc Magazine - UK
Channel
News Asia
Positive
Press for
“Brutal Truth”
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
6
The world has
changed but
too many
Asian
companies
are not paying
attention
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
7
The very real
and sudden
price of not
recognizing &
embracing
change
“If you don’t like
change, you’re
going to like
irrelevance even
less.” General Shinseki, US Army
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
8
4 words
Globalization
Technology
China
Brand
9
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 9
“9/11 and how that event
changed our lives and
perspectives forever is the
political equivalent of how
globalization,
technology…and China have
changed the competitive
landscape.
We see the former with
contextual clarity, yet legions
of us are unable to see even
shades of the latter.
We need to wake up!” Tom Peters, Re-Imagine
This has particular
application and
relevance to Asian
companies if they are
to compete, survive
and thrive
10
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 10
The world has changed… 1. Globalization has shrunken the
world with better technology and instant communications
2. Globalization has forced businesses to look outside their home markets to enhance economies of scale and diversity risk/reward balances
3. Globalization has empowered consumers
4. Consumers are more price and value sensitive and better informed
5. Products look more alike
6. Hyper competition has made differentiation more difficult but more essential
7. Mass advertising is losing some effectiveness
11
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 11
The pace of change The pace of “the paradigm shift” has visibly changed:
Before about 1000AD, it literally took about a thousand years
for change to unfold
By the year 1000, a paradigm shift was taking place every
100 years
By the 1800s alone, there was more change than there had
been in the previous 900 years
In the first 20 years of the 20th century there was more
change than there had been in the “mad” 1800s
By the year 2000, a massive paradigm shift was taking place
every decade.
Looking ahead Ray Kurzweil* predicts that there will be one
thousand times more technological change in the 21st
century than there was in the 20th century *Futurist
13
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 13
Asia over the past two decades:
In resisting pressures to globalize Asian companies adopted a mix of two basic strategies. They either:
1. Walled off their home markets and became local dominant players and/or
2. They penetrated overseas markets by exporting from their home base.
14
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 14
Result: Companies chose to diversify across industries to form
conglomerates. In international markets, many of them
chose to maintain their competitive advantage via low
cost production. This is the reason for many OEMs.
This made some sense in yesterday’s environment.
Asia over the past two decades:
15
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 15
GLOBALISATION
There exists a new imperative today. Yesterday’s
environment is gone and Asian companies must globalize
– and have been globalizing - for 5 reasons:
1. Post 1997 Asian financial crisis - the IMF forced many Asian governments to open
up their markets to international competition.
2. The Asian financial crisis revealed the weaknesses with the conglomerate
strategy. The alternative to this was going global.
3. The Asian financial crisis forced the rise of new levels of transparency.
4. China as the factory of the world and India as the back-office of the world started to
undermine the competitiveness of many industries in Asian home markets.
5. The need to go up the value chain – beyond low cost manufacturing and OEMs –
to building their own brands along with distribution and service capabilities in
markets around the world.
16
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 16
And this has been happening.
As a result there is increasing talk about the
coming of a paradigm-shifting so-called
Asian/Chinese Century
17
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 17
The Asia/China Century – The Paradox As common as the term is
becoming, there exists
paradoxically both, no
formal structure in place
for bringing it about, nor any
real understanding over how it will come about – from any
quarter in Asia. Certainly not
from the business sector.
HOW??
18
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 18
Everything depends on “HOW”
is defined
21
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 21
The “American” Century changed the world - culturally
The single most powerful driver and indicator of economic power and growth is consumer spending. Consumers buy brands. Brands single handedly created the so-called American/Western Century and, in the process, defined millions of people across generations around the world.
23
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 23
The Asian/Chinese Century
The current major economic growth that is taking place in Asia is not being driven by Asian brands. It is being driven by Asian products. There is a difference. A process that is driven by products is not sustainable. It will run out of steam sooner or later. It will need to be replaced by the first of the great Asian brands.
But when will this
happen?
And which brands will
be the first to do so?
24
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 24
The Asia/China Century
When we talk about brands, we are not talking about just “any” brands.
Ordinary or even “good” brands are not sufficient. The landscape is already awash with these.
What will be required will be “great” brands. Paradigm changes
don’t happen on their own and are not associated with things
“ordinary”.
25
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 25
And the reality is
that with the
notable exception
of 1 or 2 brands
there exist NO
great Asian
brands.
Who says so?
26
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 26
“Of the 100 companies surveyed,
about half view branding as short-term
blitzes to bump up sales rather than as
a long-term holistic strategy to build
the name and reputation of the firm”. The Straits Times, Sunday, April 6, 2003
“(most SMEs) don’t appreciate the value of
good branding and marketing…the typical
SME is too focused on immediate returns
and undertakes short-term sales-driven
activities…” The Straits Times, Tuesday, May 24, 2005
“Speak to almost any small or medium
enterprise and they would most likely tell you
that the proportion of their annual budget
allocated for branding is unsubstantial, if
anything at all. TODAY, Wednesday, September 20th, 2008
For one thing,
the press…
In Singapore…
27
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 27
“Most Malaysian companies are not spending
enough in brandbuilding and development
(stated) Minister of International Trade and
Industry Datuk Seri Rafidah Aziz. She said
local companies need to rethink their
approach to branding or lose out in the current
competitive market…” The New Straits Times,
February 7 2004
“Datuk Seri Ong Tee Keat,
transport minister in
Malaysia, stated that despite
being aware about the
benefits of branding and
marketing, most local firms in
Malaysia fail to take
its advantage.” Article Alley,
December 23, 2009
“…there are significant gaps in branding knowledge and understanding amongst many
Malaysian SME companies. The majority seems to perceive brand building purely as a
cost and do not see the importance of branding as a valuable asset which needs to be
invested in.” MARKETING-Interactive, March 12, 2010
In Malaysia…
28
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 28
In China…
18 July 2009
“Another barrier for
Chinese brands … is
their lack of marketing
experience. Some
companies do not have
a marketing
department, much less
chief marketing officer,
and branding is often
treated as a "special
project“…”
Made in China,
2007 Brand
Study, Interbrand
“Associations related to
"cheap" and "poor quality"
…will require that Chinese
brands find competitive
advantages beyond price.”
January 2008,
Landor, Thinking
Articles
Brand China is
a distinctive
brand but still
largely seen
around the
world as “not
for me.”
29
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 29
Question:
“What are Asian’s most favourite brands?”
But the most important voice are those of consumers:
30
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 30
…buy western brands
They are aspiring…
They are obsessing…
They are going out of their way to…
Answer::
31
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 31
How much of a fuss do most
Asian brands create with
consumers when they launch?
Most of the time, Asian
companies are making
“me too" products. Asian
consumers buy these
mostly only when the
price is right.
That is a fact.
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
32
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
33
With regard to success and “fame” there exists in Asia,
a glass ceiling for company and product brands.
34
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 34
Where are the
Asian
Brands??
35
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 35
Where
are the
Asian
Brands?
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
36
Why?
5 key reasons…
37
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 37
Five Reasons Why There are Very Few Great
Asian Brands
1. Myopic CEO leadership
2. Corporate culture is by default, rather than by
design
3. Charlatan brand practitioners
4. Performance of government agencies
5. Advertising agencies’ lack of branding
competencies
38
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 38
1. Myopic CEO leadership
“Myopic” does not mean stupid or ignorant
per se.
Asia boasts some of the most inventive,
energetic, vibrant and vital entrepreneurs on
the planet.
What they lack – specifically – is knowledge
about branding.
39
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 39
Purpose:
1. Myopic CEO leadership
“To make money”
Having said this, the aspirations of the
present generation of Asian business
leadership tends to overly focus on one
singular thing.
40
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 40
Patriarchal Management Approach:
Command and-control business management
style that fails to solicit or encourage all members
of the company to work together.
Two factors commonly contribute to this mentality:
1. anachronistic obsession by CEOs and their top
executives with keeping everything “secret.”
2. “Face”.
1. Myopic CEO leadership
41
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 41
Inability or reluctance
to view the brand as a tangible asset.
1. Myopic CEO leadership
42
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 42
1. Myopic CEO leadership
Branding = Logos
Branding = Advertising
Branding = “nice to have”
Branding Projects:
- Do them quickly
- Do them cheaply
Misconceptions:
43
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 43
CEOs and senior decision makers find difficult to
get their heads around the idea that branding is
conceptual and requires lateral and non-linear
thinking.
1. Myopic CEO leadership
44
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 44
The Problem: The Asian CEO
There is a massive amount of documented and anecdotal evidence that shows beyond any doubt that the single, most obstructive hurdle preventing mediocre and “good” companies from breaking through a decades-long glass ceiling and achieving “greatness” is CEO mentality and CEO ignorance - in that order- as far as branding is concerned.
Mentality: He is almost exclusively driven by a desire to (only) make money - rarely by passion. He will over promise and under-deliver. He will take short-cuts and consider himself clever for doing so. He rarely looks beyond today and lacks vision.
Ignorance: He misunderstands branding and sees it as the company name and logo and its promotion through media. Its conceptual, business and strategic dimensions are totally lost on him and through his impatience he dismisses the process or undermines it before it even gets underway.
As a result, Asian consumers fail to love, lust for, or be inspired by most Asian brands.
1. Myopic CEO leadership
45
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 45
“It’s all about the brand!”
If the CEO does not get it, or does not get behind it, the
overall result of
any branding initiative will almost always be compromised
brand
1. Myopic CEO leadership
46
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 46
In corporate environments where the CEO
reigns supreme, employee risk-taking is almost non-existent.
2. Corporate culture is by default, rather than by design
The life-blood of great brands is creativity and
innovation that originates from within the
organization, and its source is corporate
culture.
47
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 47
Consumers are not Number1 “We give top priority
to the interests of
our staff, second
priority to those of
our customers, third
to our
shareholders.”
Richard Branson,
1993
2. Corporate culture is by default, rather than by design
Employees are
enablers. In a very
real sense, they
alone determine the
fortunes of the
company.
48
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 48
In a business environment replete with
alpha-type CEOs who know exactly
what they want, and believe they know
what they need, there is no shortage of
“consultants” who are willing to give
them exactly what they want and tell
them what they want to hear.
3. Charlatan brand practitioners
49
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 49
Different strokes for different folks:
Beyond “good” and “bad” lie “right” and
“wrong,” as far as matching different brand
practitioners to different client company
needs.
Branding companies occupy a continuum
3. Charlatan brand practitioners
50
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 50
Good intentions: Government agencies that encourage and support brand building –
primarily through grants and subsidies.
“BrandPact is a multi-agency initiative to better meet the varied brand
development needs of local enterprises as they grow and expand within Singapore and into the global
marketplace. It is a holistic initiative that will raise awareness and understanding
of branding, develop brand savvy executives and catalyse the adoption of
branding as a strategy for business competitiveness.”
SPRING Singapore website
4. Performance of government agencies
51
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
“…Branding is an important aspect of
improving the competitiveness of products
and services. It has been my desire and
belief to see Malaysian brands achieve
distinction on a global level…”
Prime Minister of Malaysia
“…By creating our own products, which
carry Malaysian designs and brands, it will
able to carry our brands into the international
area in term of international recognition and
acceptance…
”Deputy Prime Minister of Malaysia
Malaysian Brands
Source: www.MalaysiaBrands.com
Good intentions:.
4. Performance of government agencies
52
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 52
Poor follow-through:
Unfortunately, many are not doing enough and a major opportunity is
being wasted. Three reasons:
1. Failure to recognize and address the key reason for slow brand
development
2. A policy that undermines the stated goal of the agencies
3. Internal shortcomings that adversely impact the outcome of
branding projects
4. Performance of government agencies
1
2
3
53
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 53
1. Many companies struggle to find their way through the branding
building maze
2. Some end up with less than qualified consultants
3. Some end up with the wrong consultants
4. Their experience with and understanding of branding does not get
elevated. This results in compromised projects and almost always
little to no “execution”
5. Brands fail to be transformed.
6. Taxpayers’ money is wasted.
4. Performance of government agencies
Government agencies across Asia need to:
(a) get tough; and (b) get smart.
End result:
Recommen-
dation:
54
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 54
As many as 80,000 jobs in the US alone disappeared
between 2004 and 2008. Gone were the best and the
brightest.
This has resulted in ever-heavier workloads being placed on
less experienced and less capable individuals.
5. Advertising agencies’ lack of branding competencies
Exacerbating these problems:
1. Lack of education and training
2. Recruitment from a lower quality pool of people.
55
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 55
Result:
Impaired and incomplete internal learning.
Young executives develop misconceptions
and misunderstandings, which, over time,
often become ingrained beliefs that are very
difficult to change and generally are damaging
to the business of clients—particularly brand
building.
5. Advertising agencies’ lack of branding competencies
56
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 56
A damaging side effect:
A fair proportion of executives at agencies believe branding
and advertising are one and the same thing.
5. Advertising agencies’ lack of branding competencies
57
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 57
When the 5 issues collide a vicious cycle emerges
3. Charlatan Brand
Practitioners
1. Myopic CEO leadership
2. Default Corporate
Culture
3
4. Government
Agencies
5 5. Advertising
Agencies
BRAND
1
2
4
58
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 58
59
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 59
Redefining Branding
60
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 60
What is a Brand?
Is it a trademark???
Is it a registered logo???
Is it a tagline???
Is it a well known name???
Is it advertising???
Is it a label???
61
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 61
Brands are not limited to
goods and services.
Brands are not the
exclusive domain of
business and commerce.
Brands amount to a
bigger conceptual idea:
Brands help people
define themselves
62
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 62
The Single Most Important Strategic
Construct:
The Brand Blueprint
63
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 63
The Brand Blueprint
The key
deliverables of all
branding projects
1. Brand Positioning
(inclusive of the Brand
Promise)
2. Core Brand Benefits
3. Core Brand Values
4. Core Brand Attributes
5. Core Brand Personality traits
6. Company Mission
7. Company Vision
64
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 64
BRANDING ADVERTISING
1 2
Brand
BlueprintCommunications
Strategy
1. The Brand Blueprint
2. Consumer Insights
3. Local Market
Circumstances &
Opportunities
The BRAND PROMISE
emerges from the confluence
of the 3 elements below:
1. The Brand Positioning
2. Core Brand Benefits
3. Core Brand Values
4. Brand Personality
5. Brand Attributes
6. Company Mission
7. Company Vision
Cre
ative E
xecutio
n
FIXED DYNAMIC
The BRANDING - ADVERTISING Construct
65
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 65
Brand Strategy
66
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 66
BRAND STRATEGY
It is almost axiomatic that if CEOs don’t
pay sufficient attention to brand
positioning, they will pay even less
attention to brand strategy.
67
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 67
IF YOU DON’T MAKE A CHOICE, THE
CHOICE MAKES YOU
Key Brand Strategy Drivers: 1. Differentiation
2. Emotional dimension
3. Focused target audience
4. Ability to innovate and remain relevant
5. CEO involvement and leadership
6. Employee involvement and commitment
7. Intelligent brand architecture
8. CSR: the new branding imperative.
68
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 68
Brand Development Methodology
69
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 69
1. BRAND
AUDIT
1. BRAND
AUDIT
5. BRAND
INTO
ACTION
5. BRAND
INTO
ACTION2. BRAND
EXPLORER
2. BRAND
EXPLORER3. BRAND
VALIDATION
3. BRAND
VALIDATION4. BRAND
BLUEPRINT
4. BRAND
BLUEPRINT
The Strategy-Centric Brand Development Methodology
A rigorous process
to validating and
exploring alternative
brand positionings
with consumers and
other stakholders
for purpose of fine-
tuning and decision
making
A rigorous process of
research and analysis
which draws
information from a
number of sources
and integrates it into
a holistic
understanding of the
brand relative to its
landscape as it
stands today
The collaborative
development of
future positioning
possibilities using
the brand
understanding
from Phase 1 as
input
Finalization and
delivery of the brand
blueprint, inclusive of
rationale. The
deliverable also
includes a framework
to align internal and
external activities to
the brand blueprint
Implementation and
monitoring. This
includes the internal
alignment of the brand
blueprint to the
organization as well as
finetuning or
redevelopment of
external expressions -
including visual brand
identity, and
communications
70
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 70
Brand Into Action
71
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 71
BRAND INTO ACTION = DELIVERING AGAINST YOUR PROMISE
Be careful what you promise
A brand will never live up to its potential, and in most cases will
actually flounder, unless conscious efforts are made to
make it real—that is, to go from the talk to the walk.
Comfortable Aspirational
PS
3
PS
2
PS
1
The Positioning Continuum
PS
4
Strategic
Pillars
72
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 72
The (immediate) Future
73
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding 73
There is greatness in Asian brands
It lies buried like a hidden treasure waiting to be
discovered by the most courageous and adventurous.
brandASiANb u s i n e s s & b r a n d i n g
The Brutal Truth About Asian Branding
74
Thank you
www.BrandTalkAsia.com
Copyright © BrandAsian Pte Ltd. To
order copies, or request permission to
reproduce materials, contact
[email protected] or go to
www.BrandTalkAsia.com. No part of this
presentation may be reproduced, stored
in a retrieval system, used or transmitted
in any form or by any means –
electronic, mechanical, photocopying,
recording or otherwise – without
permission of BrandAsian Pte Ltd.