Branding - The Asian Dilemma

7/30/2019 Branding - The Asian Dilemma

1/23


2/23

By the end of 20th century, Asian companyrealized the need for the Strategic Branding toreduce the trade barrier in global arena.

From being anonymous suppliers toestablished brands, Asian businesses havestarted asserting their identities throughstrategic branding.

Singapore Airlines hosted a supernormalprofits with the help of Strategic Brandingwhen a rest of airline industry incurred a hugelosses in the 21st century.


3/23

Within Asian companies the desired forOEMs (Original Equipment

Manufacturing) to build a Brand wasgreat but knowledge to how to do it wasPoor.

Samsung was an OEM company but in1990s it choose to reposition its image inglobal market by building its own brand.


4/23

To discuss the constraints faced by Asiancompanies while creating international

brands.

To discuss the strategies that can help

the Asian companies in establishingglobal brands.


5/23


6/23

Question : 1

Raymond Leung, assistant general manager ofWinfat Industrial Company said,

"I can see the need to survive pushing moreOEMs towards creating their own

products. Branding, although further down theroad, is part of the process.

Why there was a need for Asian companies to

build brands rather than just being OriginalEquipment Manufacturers(OEMs)?


7/23

Asian Companies realized need forStrategic Branding towards end of 20thcentury.

Dynamic market changes (reduced tradebarriers and increased competition)

Apart from Samsung, Sony and Canonwhich gave Asia the taste of branding,

but they couldnt help Asia re-create suchstories.

Rapid Increase in the number of look-alikeproducts in market place, need to survive

and make oneself distinct in the crowd. Branding satisfy human needs by helping

companies make products that hadpersonalities, values and distinct faces.


8/23

Branding enable businesses tocommand a premium on theirproducts and increase their margins.

The premium was sought for havingcreated a stronger and long-lasting

relationships with the customers.

Some companies are advised to taketo International brand building in

order to be less vulnerable duringdownturns like recession.


9/23

Question : 2

Discuss the reasons for low success rateof Asian companies in building global

brands, when compared to the westerncompanies.


10/23

Asian companies not been able toovercome the perception about their

own markets had of them. Asian Consumers inclination towards

imported brands and West is Bestperception caused failure of their brands

against global brands.

Any copy or piracy to global brand ledto Disastrous failures.

Asian businesses still suffer from strategicmyopia, often settling for complacencyand short-term gains


11/23

Companies build components and end products, orassemble them for their customers, who then place theirown brand names on the finished products, addinglarge price premiums to the production cost.

Many companies in Asia have been caught in thiscommodity trap; a problem that has contributedsignificantly to the volatility and demise of theireconomies.

many Asian companies have joined the desperatepursuit of operational efficiency through qualityprogrammes, re-engineering, customer service andother prevailing trends that promise success.

Long-term survival and profitability depend on climbingout of the commodity trap via the only route possible differentiation via branding.


12/23

Question : 3

What challenges did Asian

companies face while emulating

western brands? How can they

overcome these challenges?


13/23

Asian companies have all the parameters tobecome brands but they just dont know how todo it.

Lack of branding expertise due to the toppositioned executives in Asian corporates(lackedin-depth marketing and branding skills).

Realised the potential of brands, didnt have theexpertise to tap that potential.

This all led to loss of strategic branding in majorAsian countries.

Buying a brand is one thing, but developing andmanaging successful brands is not an easy task.There is no quick fix solution, and manycompanies do not have the relevant experience

or knowledge necessary to embark on this route.


14/23

To over come these challenges several brand developmentagencies sprang up in Asia and clinch some big contracts.

Building a strong brand can be a hit or a miss. It takes lot oftime and money but still no guarantee, Thus Asian

companies were focussed to buy already establishedbrands.

Asian companies have failed to create strong brands and tostand out from the crowd. Faced with more deregulation

from the introduction of AFTA (ASEAN Free Trade Association)and WTO (World Trade Organisation) legislation.

Asian companies are now starting to adopt a more strategicfocus, centred on long-term survival and profitability viabranding. But governments have had to kick start the

revolution.


15/23

Question : 4

"One reason cited for this lack of branding

expertise was the kind of executives thatoccupied the top positions in the Asian

corporate.

What is the role of a top executive in branding?

Why should branding be addressed so carefully?

INFORMATION MINING


16/23

INFORMATION MINING

Need to know what you are targeting, research thecompany current challenges and needs and determinehow can he help the company to meet those challenges.

Keep up to date with the marketing trends and newdevelopments utilizing information for business improvement.

PERSONAL BRANDING AND VALUE PROPOSITION

Need to brand yourself and the unique value you offer,just to keep pace with them.

Responsible for brand building, liaising with agencies,production of in-house promotional materials andpublications.

Brand sales analysis and follow up for strategyimplementation and ensuring brand profitability.


17/23

Branding should be addressed so carefully :

Brand resides within the heart and mind ofcustomers, clients and prospects. Brand caninfluence the perceptions and experiences ofconsumers.

Strong brand is invaluable as the battle forcustomers intensifies day by day.

Branding is the source of a promise to your

consumer.

Branding is becoming increasingly relevant asthe world enters a new era of unprecedentedchange, upheaval and uncertainty.


18/23

Question : 5

Can more number of Asian companiesbuild global brands? On what aspects of

branding should they have to improve

upon?


19/23

Asian companies will find it incrediblydifficult to build international and globalbrands. Their reasoning is that most of the

world markets and the product categoriesin those markets are already dominated bypowerful global brands.

Asian companies have to overcomesignificant global consumer perceptions ofsub-par quality and other concerns relatingto the country of origin of the brand.

So for Asian companies wishing to createsustainable, profitable international andglobal market positions, branding is theroad to travel.

Focussed on following aspects


20/23

Focussed on following aspects

Asian corporate leaders with the vision necessary to harness technology andideas, both of which are freely available, and global niche markets areavailable to those who can move in quickly.

Use market dynamics to exploit the weakness of the power brandcompanies and establish new and innovative brands for the future.

Must be led by a top person/executive in the company.

Spreading of Asian cultural and social trends will highlight the potentialimpact of Asian brands in the global markets.

With the focus of the world economy gravitating inexorably to the AsiaPacific region, Asian Brand Strategy provides timely insight into the keyplayers of today and the global competitors of tomorrow.

Combined value of an experienced international branding strategist and asenior advisor to corporate boards and top-management teams across theworld.


21/23

Corporate thinking has to stop rigidly focusing on short-termprofits and concentrate more on long-term brand building.

There has to be a top management mind-set change about

what building a brand really involves. A brand is not merely alogo, slogan or advertising, as promised by many agenciesoffering these services.

Brand management is often inadequate, and this is what theWestern brands do so well. (Exceptions)Two Malaysian brands

Pensonic Holdings Berhad, a consumer household electronicscompany, and Kinta Kellas plc, an asset management anddevelopment consultancy are both currently undergoingtotal organisational change in order to bring their new brandstrategies to life across multiple markets.

Although product quality has improved tremendously in Asiawith many companies having reached world-class standards, itremains an indisputable fact that service quality needs drasticimprovement.


22/23


23/23

Branding - The Asian Dilemma

Documents