Managing Brands in Challenging Times

Managing Brands in Challenging Times

Dr. Royce YuenVisiting Associate Professor, HKU

Chairman, Ogilvy Hong Kong

Chairman, HK4As

Value of Brand is widely recognized

In mid-2002, the stock market value of Coca-Cola was US$ 136 billion

Yet the book value was only US$ 10.5 billion Estimated value of Coca-Cola brand name was

US$ 70 billion, well over half of its intangible value

Yet building brand

has never been more challenging !

Two Major Factors

Two Major Factors

"Ordinary people can spread good and bad information about brands faster than marketers."

Ray Johnson

This is particularly true in the Internet Age

Words of mouth becomes words of mouse

Kryptonite

The “unbreakable bonds”

The hit that affects the world

“A brand is more than a logo. A brand is

a promise.” - Mike Holland

The trust is gone !

As a result …

Consumers are becoming more skeptical

How can brands win back the heart of consumers ?

Hint Number One

Under promise, over deliver

Hint Number Two Do what matters to consumers, not you Focus on consumer insight

Case - Acuvue

Hint Number Three

Manage all the stakeholders

Authorizers Business partners

External influencers

Customers

GovernmentRegulators

Board of DirectorsProfessional

societiesShareholders

Demographics Market segments

GeographyHigh value

Mass

EmployeesUnions

SuppliersDistributors

Service providers

Activist groupsJournalists

ExpertsAnalysts

Community groups

The Stakeholder Universe

Hint Number Four

Take prompt and decisive action

Hint Number Five

Respect the local culture

And be sensitive about “how you say it”

And be sensitive about “how you say it”

Hint Number Six

Be sensitive to political implications

The Marco Polo Bridge (luguoqiao) Incident marked the beginning of the Sino-Japanese War (1937 – 1945)

What is acceptable in one country may not be acceptable in another country

What may be humourous can be seen as an offense

Hint Number Seven

It’s not only what you do, it’s also what you don’t do

Hint Number Eight

Don’t try to please everybody You will end up pleasing nobody

The World Car that drops out from the world

Be relevant

Cowboy is COOL !

Hint Number Nine

Be relevant

Well … may be !

Be relevant

Hint Number Ten

Social value of brand Are brands good for business, bad for

society ?

Being socially responsible is different from being a passive donor

Being socially responsible is different from being a passive donor

CSR has to tie in with the role that the brand plays in society

First coverage - out 8th Jan - Closer Magazine (wkly)

Thank You