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ASIAN BRANDSTRATEGY
EXECUTIVE SUMMARY
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ASIAN BRAND
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ASIAN BRAND STRATEGY
Towards 2020, a rapid changing landscape will emerge in Asia where the opportuni-ties for Asian companies to benefi t from international branding efforts will be larger than ever before. The growing emphasis on shareholder value and brand strategy to drive value will move up the boardroom agenda and become one of the most promi-nent drivers of value in Asia Pacifi c.
Asian Brand Strategy offers insights, knowl-edge and perspectives on Asian brands and branding as a strategic tool and provides a comprehensive framework for understand-ing Asian branding strategies and Asian brands, including success stories and challenges for future growth and strengths. The book includes theoretical frameworks and models and up-to-date case stud-ies on Asian brands, and it a must-read for Asian and Western business leaders as well as anyone interested in the most exciting region of the world.
The book presents the Asian Brand Leader-ship model illustrating the paradigm shift Asian brands need to undertake to unleash their potential.
First, mindsets and practices need to change in the Asian boardroom. The book invites a complete shift in the way Asian boardrooms think of branding: from a tactical view to a long-term, strategic perspective, from frag-mented marketing activities to totally aligned branding activities, from a vision of branding as the sole responsibility of marketing manag-ers to branding as the most essential function of the fi rm led by the boardroom.
Second, this new perspective must be steeped into a more acute perspective on the consumer behavior patterns. Asia is not a homogenous entity. Even more impor-tantly, Asian countries are more and more traversed by cultural fl ows permeating the region: cinema, music and fashion trends that are present extend beyond national borders to capture the imagination of mil-lions. Branding and brands do not operate in vacuum, but are closely linked to develop-ments in society, to people and to cultures.
Third, managers wanting to succeed in Asia need to abandon the idea of an oriental Asia of the past. Asian consumers are all vying for an Asian type of modernity that has noth-ing to do with colonial imagery.
Fourth, to create iconic brands, Asian man-agers will have to become trendsetters. The perspective developed in this book is that, in order to be successful, Asian brands need to capture the spirit of the region, but they also need to lead the way by creating that spirit.
Finally, this shift can be achieved only if ev-erybody in the company is convinced by the power of branding and if all strategies and actions are aligned around the brand. This must be led by the Asian boardroom.
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ASIAN BRAND STRATEGYENDORSEMENTS
“Building successful global brands is - and will be - critical for the rapidly increasing number of Asian champions on the global stage. Martin Roll pro-vides a compelling and practical roadmap on how to do this based on his extensive experience advis-ing Asian corporations.”
Dominic BartonWorldwide Managing Director, McKinsey & Company
“Martin Roll's Asian Brand Strategy provides superb motivation and substance into Asian brands and branding. It offers invaluable inspiration and guidance into one of the hottest areas of marketing.”
Kevin Lane KellerProfessor of Marketing, Tuck School of Business
“As Asian firms aspire to become global and chal-lenge the competitive landscape dominated by West-ern firms, they recognize that cost and quality advan-tages are necessary but not sufficient for sustained value creation. Martin Roll provides an illuminating insight into a critical missing link - the importance of global brands. Rich in concepts and detail this is an invaluable manifesto for Asian CEOs. A must read that will change perspectives and priorities.”
C.K. PrahaladFormer Paul and Ruth McCracken Distinguished University Professor, The Ross School of Business, The University of Michigan
“Martin is a top tier executive, business consulting professional whose accomplishments when it comes to branding excellence, leadership and Asian knowl-edge, are second to none. He is bright, articulate and freely shares his knowledge with wit and directness. He approaches both life and the consulting process with integrity, knowledge and a “can do” attitude. I would recommend him without hesitation.”
Michael Aagaard AndersenManaging Director, Pandora Asia-Pacific
“An insightful look into branding as a strategic tool for Asian companies - Asian Brand Strategy by Martin Roll is a brilliant, incisive read. A treasure of ideas and case studies, this compelling new book discusses the challenges Asian corporations face to stay relevant in today's dynamic, global market.”
N. R. Narayana MurthyChairman and Chief Mentor, Infosys Technologies Ltd.
“Branding has become a hot topic for Asian com-panies which are no longer able to compete purely as contract manufacturers and now need to directly “own” the end consumer. As shelf space in book-stores get filled with myriad books on branding as the next best thing, Martin Roll’s book Asian Brand Strategy stands out above the pack. It has the seri-ous theoretical framework which underpins any real understanding of the role of branding in business. And it has the practical pointers which make it useful for anyone wanting to implement a brand strategy.
I would strongly recommend this book as compul-sory reading for anyone who wants to understand the power of branding and how to implement a practical, no-gimmicks brand strategy.”
Ho Kwon PingExecutive Chairman, Banyan Tree Group
"Martin Roll has provided a much-anticipated primer on how Asian companies approach the discipline of branding. With the focus of the world economy gravitating inexorably to the Asia Pacific region, Asian Brand Strategy provides timely insight into the key players of today and the global com-petitors of tomorrow". Alan Lamminformer Publishing Director, Asia, TIME
“Asian Brand Strategy is an important handbook for Asian executives aspiring to build strong brands. It provides a solid foundation for future success in the global market place.”
John A. QuelchLincoln Filene Professor of Business Administra-tion Harvard Business School and Chairman of the Academic Council at CEIBS
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iii
CONTENTS
List of figures vii
List of tables viii
List of illustrations ix
About the author xi
Foreword xiii
Preface xvi
1 INTRODUCTION 1Lack of value creation 2The eroding low-cost advantage 3Less than 10 global brands originating from Asia 4Reasons for the lack of strong Asian brands 5A new paradigm for the Asian boardroom 9The scope of the book 11Notes 12
2 BRANDING – THE DRIVER OF A SUCCESSFUL BUSINESS STRATEGY 13Perceived risk 16Branding drives shareholder value 16Brands and market capitalization 18Brands’ contribution to stock market performance 19Growing significance of intangible assets 20The need for brand-driven organizations in Asia 21Boardroom mindset and beliefs 23Skill sets 25Resources 27Notes 29
3 TRANSFORMING HOW WE UNDERSTAND ASIAN CULTURES AND CONSUMERS 31
Introduction 31From a homogeneous region to a mosaic of cultures 32From exotic Asia to modern urban Asia 33From separate countries to connected ones 35From American images to prominence of Asian images and music 39Opportunities in subcultures 41Transforming how we view Asian consumer psychology 46The importance of in-groups in Asian cultures 48Being different like everybody else 50Conclusion 52Notes 53
iv Contents
4 ASIAN COUNTRY BRANDING 56Export branding 57Generic country branding 60Future opportunities 67Conclusion 71Notes 71
5 CELEBRITY BRANDING IN ASIA 74Endorsements 77Celebrity endorsers in Asia 82Celebrity endorsement models 85Challenges in celebrity branding 88Celebrities in India 91Conclusion 92Notes 94
6 ASIAN BRAND STRATEGY 96Aligning the brand 96Brand management model 97Brand audit 99Brand identity 101Brand strategy 103Brand implementation 112Brand equity 117Brand valuation 124Conclusion 127Notes 127
7 SUCCESSFUL ASIAN BRAND CASES 129Branding is the face of a strong business strategy 129CASE 1 Singapore Airlines 130Background 131Brand philosophy 131Brand communication 135Brand strategy 135Future challenges 137CASE 2 Amanresorts 138Background 139Brand philosophy 140Brand communication 144Future challenges 145CASE 3 Shiseido 145Background 146Brand philosophy 147Brand strategy 149Future challenges 150CASE 4 Samsung 151
Contents v
Introduction 152Brand philosophy 153Brand communication 155Future challenges 157Notes 160
8 ASPIRING ASIAN BRAND CASES 161CASE 1 Jim Thompson 162Background 162Brand philosophy 164Brand strategy 165Brand communication 165Future challenges 167CASE 2 Li Ning 169Background 170Brand philosophy 171Brand communication 174Future challenges 174CASE 3 Jet Airways 176Background 176Brand strategy 177Brand communication 179Future challenges 180CASE 4 Giordano 182Background 182Brand philosophy 184Giordano’s competitors 187Future challenges 188Notes 189
9 10 STEPS TO BUILD AN ASIAN BRAND 1911. The CEO needs to lead the brand strategy work 1932. Build your own model as not every model suits all 1963. Involve your stakeholders including the customers 1974. Advance the corporate vision 1985. Exploit new technology 2006. Empower people to become brand ambassadors 2017. Create the right delivery system 2038. Communicate! 2059. Measure the brand performance 21110. Adjust regularly – be your own change agent 212Notes 213
10 ASIAN BRANDS TOWARD 2020 – A NEW CONFIDENCE IN THEBOARDROOM 215
Implications for successful brand strategies in an Asian context 215Challenges for aspiring Asian brands 216
The global brand landscape will change significantly 219Branding in the Asian boardroom 222Cost advantage is meant for investment – not short-term
profit making 224Can the West maintain its branding edge? 225Conclusion 227Notes 235
11 CONCLUSION 236Note 238
FUTURE CHAPTERS 239
Appendix: Interbrand brand valuation 240
Journals, periodicals, newspapers and press agencies 242
Bibliography 243
Index 249
vi Contents
1
CHAPTER 1
INTRODUCTION
A journey of a thousand miles begins with a single step.Confucius
The face of business in Asia is changing faster than one can blink one’seyes. Asian companies that used to be back-end workhorses, manufacturingconsumer goods cheaply for Western companies, are slowly realizing thebenefits of branding. A case in point is Pantech, a South Korean firm whichbegan by selling pagers in the early 1990s. By the end of the 1990s, Pantechwas selling mobile phones as an original equipment manufacturer (OEM)to Western companies like Motorola and Audiovox. But Pantech’s 42-year-old chairman Park Byong Yeop knew that in the face of cheaper competi-tion, his business model had to change.
In the past few years, Pantech had heavily invested in developing itsbrand, allowing the company to more than double margins. In 2004, Pantechsponsored the hit TV series Lovers in Paris and used the South Korean popstar BoA to advertise its products. Soon after the release of the series, Kore-ans were buying 1,000 Pantech phones a day in just one electronics marketalone.1 Park aims to sell 80 percent of the mobile phones under Pantech’sbrand name in 2005, up from just 31 percent in 2004. The company spends 7percent of sales on research and development (R&D) and has earmarkedUS$200 million to develop the brand’s identity in 2005.2
Park is portrayed in local media as a successful entrepreneur rather thansomeone who inherited a conglomerate.3 His vision is to become theworld’s number five mobile phone maker, and targets shipment of 28million handset units and sales of US$3 billion in 2005.4 Pantech has comea long way from its modest beginnings as an OEM only 15 years ago.
In a market where competition implies slashing prices on their unbrandedproducts, Asian businesses are slowly becoming more attentive to the powerof brand identity in capturing consumers and returning larger profits on theirinvestments. Firms are realizing that whereas they were wearing themselvesdown on razor-thin margins to compete with the next supplier, they couldincrease returns by investing in their brands. This then is the shift in thinking
that is pushing boardrooms in Asia toward creating strong brands to differ-entiate themselves and consequently realize greater profits.
Most Asian firms, however, still view branding as advertising or logodesign. If firms are to benefit from branding, they must recognize that itimpacts the entire business – the structure, goals, attitude and the veryoutlook of those in the boardroom. Managers will need to see branding notas an appendage to the ongoing business, but rather as an infusion whichseeps through the very spirit of the organization, as a healthy return oninvestment (ROI). In fact, it will require a shift in focus and priority forevery functional aspect of the organization aligned around multiplecustomer touch points.
Before branding can be taken on board, however, it is important to under-stand its implications, its various shades and hues, its forms and practices,its purpose and its advantage. It is no less than a paradigm shift that execu-tives must undertake across Asian boardrooms. How this change in think-ing can be analyzed, captured and managed by Asian boardrooms andcorporate management teams is the core of this book.
Lack of value creation
A 2003 report by Goldman Sachs forecast that, by 2041, China will haveovertaken the US economy in size and will become the world’s largesteconomy. The Indian economy would be larger than Japan’s by 2032.5
China and India are indeed leading Asia’s growth path, with implicationsfor industries and companies all over the world. But as Rajat Gupta, asenior partner with McKinsey & Co (and former worldwide managingdirector), has said:
Though Asia has been growing, the growth has not been enough to make it a
superpower. For Asia to earn the right to be a superpower, we not only need to
make a significant contribution to the world economy, but also and perhaps
more importantly we need to see the emergence of several successful global
companies out of Asia.6
The changes in the Asian competitive environment are driven by severalfactors: the rapid development of China and India; increasing deregulationand trade liberalization; and the implications of new demographic andsocial trends throughout the region. These changes involve entire value
2 Asian Brand Strategy
Introduction 3
chains in manufacturing and services, issues related to efficiencies in oper-ations and productivity gains, innovation and design, a reduced focus onbroad diversification, which has been the prevalent structure of Asian busi-nesses particularly within Asian family businesses, and distribution andcollaboration within industries.
The eroding low-cost advantage
A large part of Asia’s economic development until now can be attributed tolow-cost advantages which enabled Asian companies to gain market sharefrom other suppliers. In the past two decades, Asian countries have slowlybut surely attracted many industries: light manufacturing in Guangdong,electrical equipment in Guangxi and software development in Bangalore.But Western companies, by buying some of these Asian firms or aggres-sively outsourcing some of their operations, are already streamlining theircost structures. Low cost alone no longer provides a significant advantage.The cut-throat competition in many industries, resulting in tremendouspressure on margins, has forced companies to look for additional measuresto survive and grow their businesses. One example is mobile phones, wherecontract manufacturers are doing well if they reach 15 percent in grossmargins while brand owners can reach margins double that.7
Asia is still one of the world’s biggest providers of commodity products.At the same time, Asian manufacturers mostly produce for other companiesand the majority of these products are therefore non-branded. In otherwords, these are volume products without strong brand identities. Instead,the largest part of the financial value is captured by the manufacturers’customers – the next player in the value chain – primarily driven by strongbrand strategies and successfully planned and executed marketing programs.
The difference in the proportion of value captured as represented by theAsian manufacturing price and the Western retail price serves as a goodexample. A branded sports shoe is produced in Asia at an estimated US$5,sold to the sports shoe brand for US$10 and the consumer buys it in theretail store for US$100 – in other words, a twentyfold increase throughoutthe “product-to-brand” value chain. This leaves the Asian manufacturerwith only a fraction of the substantial value that consumers are willing topay for the brand in the end.
Figure 1.1 illustrates four scenarios of how a brand is integrated in thevalue chain. In certain cases, companies are vertically integrated and can
own part of the channels, including retail outlets, the distributors and/orthe production facilities. For example, Nike operates many of its ownretail outlets.
In the last 10 years, the number of distributors in the sports goods indus-try has decreased more than 50 percent as many sports brands have becomedistributors themselves. This is particularly the trend among the largestbrands. The sports shoe brand captures an estimated 40–95 percent of theentire financial value depending on its level of vertical integration.8 In otherwords, brands capture a significant portion of the total value.
Figure 1.1 Four scenarios for value creation through brandingSource:VentureRepublic
Successful global companies share certain common characteristics, oneof which is strong brand equity in the market. Despite Asia’s size andeconomic growth, it has not seen the emergence of many strong and inter-national brands.
Less than 10 global brands originating from Asia
In a study measuring the financial value of worldwide brands conducted byInterbrand and Business Week in 2004, one important finding was that only
4 Asian Brand Strategy
Productioncost
Productioncost
Productioncost
Productioncost
Value
Scenario A Scenario B Scenario C Scenario D
Retailgrossmargin
Brandgrossmargin
Distributorgross margin
Brandgrossmargin
Brandgrossmargin
Manu-facturergrossmargin
Manu-facturergrossmargin
Manu-facturergrossmargin
Brandgrossmargin
Retailgrossmargin
14
44
44
24
44
43
14
44
42
44
44
3
12
3
12
3
12
3
12
3
12
31
23
14
24
3
14
44
24
443
100
10
5
four of the top brands originate in Asia.9 Three classic brands come fromJapan and a fast-growing ambitious brand comes from South Korea: Sony,Honda, Toyota and Samsung.
A simple question then remains: What about the rest of Asia? Looking atthe region as a whole, there are less than 10 powerful global brands origi-nating from Asia. Brands like Singapore Airlines, Shangri-La Hotels,Banyan Tree, Acer, HSBC, Shiseido and a couple of others are powerfulglobal brands with a strong Asian heritage.
But given the size and volume of Asian business today, it is evident thatAsia could build many more prominent brands and capture more financialvalue from better price premiums and customer loyalty. Branding canbecome an important driver of shareholder value for Asian companies inthe future, as this book will illustrate.
Reasons for the lack of strong Asian brands
There are many reasons why Asian companies have not fostered manyglobal brands until now. The appreciation of branding as a strategic conceptcan be influenced by:
■ The stage of economic development of societies
■ Less focus on innovation
■ Broad diversification of businesses
■ The Asian business structure
■ Implications of intellectual property (IP) protection.
These five factors are now discussed.
The stage of economic development of societies
The Asian countries are at different stages of development. At one end ofthe spectrum are developed countries like Japan, South Korea, Singapore,Taiwan and Hong Kong. At the other end are developing countries likeVietnam, Cambodia and Indonesia. In between are countries like Malaysia,Thailand, China and India which are moving through rapid transitions. The
Introduction 5
development stage of these countries can influence business priorities, thedegree of business sophistication and where to fit into the value chain on theoverall level.
When countries and industries move from low to high tech, they aregenerally more inclined to supplement their low-cost advantage with aholistic value perspective. Very often they are forced to move up the valuechain while losing their low-cost advantage in manufacturing to competi-tors with lower labor costs. Although the value perspective does notexclude seeking to drive costs down constantly, it aims primarily at creatingadditional perceived value for products and services. This is where brandsoften start to play their role as drivers of shareholder value through betterprice premiums and enhanced customer loyalty.
It would not be entirely correct to assume that the economic stage of devel-opment and degree of branding are correlated. In general, any company,regardless of country origin, can decide to build brands. However, theeconomic development stage of a country and the level of sophistication of anindustry can serve as important indicators to estimate whether branding gainswide appreciation and momentum.
Regional technology clusters are already emerging in Asia.10 An exam-ple is India where low and high tech go hand in hand. Bangalore is a well-known cluster of strong technology firms like Wipro and Infosys. A servicecompany, Jet Airways from Mumbai, is catching up quickly, based onexcellent standards in all operations, and provides world-class service, asillustrated in Chapter 8. Therefore, Asia is a region where branding as astrategic discipline is work in progress.
Less focus on innovation
Although innovation is difficult to measure, R&D spending as a ratio ofgross domestic product (GDP) can be an indication. On a national level,Asian economies lagged behind the rest of the world on R&D spending as aratio of GDP from 1987 to 1997, with the exception of Japan and SouthKorea.11 Japan and South Korea each currently spend 3 percent of GDP onR&D, compared to 2.7 percent in the US.
But indications show that the innovation deficit is likely to change. Chinais targeting to spend 1.5 percent of GDP on R&D in 2005, compared to 0.6percent in 1996. Asian countries are also trying to take a lead in three areaslikely to generate the next wave of innovation: biotechnology, nanotechnol-
6 Asian Brand Strategy
ogy and information technology (IT). As an example, Asia spends as muchas the US and Europe combined on nanotechnology. In addition to this,China, India, South Korea and Taiwan are shifting from top-down, state-directed technology policies to more flexible, market-oriented approachesin order to foster innovation and entrepreneurship.12
As low cost is ceasing to provide a competitive edge for Asian compa-nies, differentiation driven by enhanced innovation capabilities will beparamount for future success. Innovation needs to become a top priority forAsian companies aspiring to build strong brands.
Although design is only a tiny part of an entire brand strategy, it can helpto create visible differentiation for products and shape customer percep-tions. The internationally recognized designer Philip Starck gave his viewon how Asia lacks its own design:
Today the designer in Hong Kong or Taipei opens the magazine and looks atthe best-seller and copies that. But to be successful you have to find your owndesigns and energy.13
Broad diversification of businesses
Another impediment to building brands in Asia in the past was the diversi-fication of businesses spanning many industries with limited overlap andsynergies. The prevalent mindset in Asia is based on trading, rather thanbranding, and the generation of revenues, rather than profits. But it is hardto create a relevant, clear and differentiated brand strategy, and build acorporate brand which encompasses all areas, when a business has its handsdipped in every pie.
Thailand’s Charoen Pokphand (CP) Group is an example of an Asiancompany moving against the common diversification trend. Traditionally, ithad interests in telecommunications, satellite, cable television, motorcyclemanufacturing, petrochemicals and brewing. Despite its diversified busi-nesses, CP has continued to expand its integrated food business by control-ling the entire supply chain. By transferring its agribusiness formula toother agricultural products and across countries, CP has also become one ofthe world’s leading agribusiness groups. With higher demand for qualityprocessed foods from US, Europe and Japan, CP has renewed its focus onincreasing value-added in its agriculture business to become the “kitchen ofthe world”.14
Introduction 7
The Asian business structure
Another important reason for the lack of strong brands can be found in theprevalent business structure within Asia, which consists of many small andoften family-owned businesses – with diversified business interests as illus-trated before. It is much harder to overcome the barriers to brand buildingwhen resources are limited. In this case, the management perspective wouldfavor short-term business wins against brand strategies which require moreresources and long-term perspectives. Despite a younger generation takingover as leaders, it can still be a major barrier to convince the older genera-tion about the need for investing in intangibles in the form of brands as itruns against the business heritage and prevalent internal wisdom.
But being family-owned and small does not necessarily leave brandingout of the equation, as Singapore-based Banyan Tree Hotels and Resortshas proven very successfully in less than 10 years. It made the transitionfrom a disused tin mine on a strip of land in Phuket, Thailand, in 1994 to aninternationally recognized and highly awarded hospitality brand, with qual-ity resorts throughout Thailand, Indonesia, China, India, and the Maldivesand more destinations being planned.
As Ho Kwon Ping, chairman of Banyan Tree, reflected:
I felt that Asian business would never get anywhere if it didn’t own brands.
Partly this reflected the earlier experience in our family business of putting in
the energy to build a brand as agent for an overseas principal, only to lose it
when they eventually took the brand in-house. I also knew the problems of
competing in commodity markets where the business disappears as soon as a
cheaper supplier comes onto the scene.15
Banyan Tree has achieved this position with limited spending on marketingand advertising and has instead relied on effective public relations andthird-party endorsement programs to build the brand. Chapter 10 illustratesfurther how Banyan Tree is successfully managing the brand.
Implications of IP protection
The implications of IP protection in Asia have been a major barrier againstbuilding brands. In their own backyards, many Asian companies havefaced rampant counterfeiting and infringement of IP rights. Until and
8 Asian Brand Strategy
unless legislation and law enforcement get better in the region, it may be ahurdle that prevents a deeper appreciation and respect for intangible assetmanagement in the Asian boardroom.
The World Customs Organization estimates that 5–7 percent of globalmerchandise trade, amounting to US$450 billion, is due to counterfeits.China alone is estimated to be contributing to almost two-thirds of all thefake and pirated goods worldwide.16 In 2004, for example, French luxuryhouse LVMH spent more than US$16 million on investigations, busts andlegal fees against counterfeiting.17
Introduction 9
One of the famous spots in Bejing used to be Xiushui or Silk Street. Ranking inthe top three of Beijing’s attractions, the narrow and crowded street wouldattract thousands of foreigners every year to buy cheap counterfeit versions ofglobal luxury brand names like Ralph Lauren, Louis Vuitton, Prada and manyothers. It was recently closed down by the Chinese authorities for renovation.Instead, stall holders would have an option to take up a stall at the nearbyXiushui shopping center, where a trading corner of less than 5 square meterswill auction for as much as US$400,000.
A new paradigm for the Asian boardroomMany of the ideas and recommendations contained in this book are drivenby the Asian brand leadership model, illustrated in Table 1.1. The modelillustrates the paradigm shift that Asian brands need to undertake in order tounleash their potential.
First, mindsets and practices need to change in the Asian boardroom.This book invites a complete shift in the way that Asian boardrooms thinkof branding: from a tactical view to a long-term, strategic perspective;from fragmented marketing activities to totally aligned branding activi-ties; from a vision of branding as the sole responsibility of marketingmanagers to branding as the DNA and most essential function of the firmled by the boardroom.
Second, this new perspective must be steeped in a more acute perspec-tive on consumer behavior patterns. Asia is not a homogeneous entity. Evenmore importantly, Asian countries are more and more traversed by culturalflows permeating the region: cinema, music and fashion trends that atpresent extend beyond national borders to capture the imagination ofmillions. Moreover, branding and brands do not operate in a vacuum, butare closely linked to developments in society, to people and cultures.
Third, managers wanting to succeed in Asia need to abandon the idea ofthe oriental Asia of the past. Asian consumers are all vying for an Asiantype of modernity that has nothing to do with colonial imagery.
TABLE 1.1 Asian brand leadership model
Old paradigm New paradigm
Success factors for Manufacturing-driven agenda Branding-driven agendaAsian boardrooms
Production Design, innovation and production
Tactical advertising Strategic branding and marketing
Low cost/low perceived value Low cost/high perceived value
Silos of activities Collaboration
Price as driver of sales Value as driver of sales
OEM Trademarks and IP
Short-term financial value Long-term brand value
Mid-level and separate Boardroom-driven marketingmarketing functions functions
Fragmented marketing Totally aligned marketingactivities programs
Disparate product lines Synergies between brands (brand architecture)
Marketing through promotion Branding through people
A function drives the brand An organization drives the brand
Company-centric value Co-creation of valuecreation
Consumer behavior Collectivist In-group/out-group
Regional homogeneous Scapes/flows/hybrids
Symbols Oriental New Asia
Products and services People and places
Western celebrities Hybrid + Asian celebrities
Culture Following trends Creating trends
Japanese and Korean icons Fragmented icons, Pan-Asian icons
Silos of activities Collaboration
Strategy drivers and Sales perspective Branding perspectivemeasures
Market share Brand equity
Awareness Brand audit
Tangible financial value on Tangible + intangible value onbalance sheets balance sheets
Marketing as cost Branding as strategic investment
Source: VentureRepublic
10 Asian Brand Strategy
Fourth, to create iconic brands, Asian managers will have to becometrendsetters. The perspective developed in this book is that, in order to besuccessful, Asian brands need to capture the spirit of the region, but theyalso need to lead the way by creating that spirit.
Finally, this shift can be achieved only if everybody in the company isconvinced of the power of branding. And, in turn, this can only happenthrough accountability and systematic monitoring of branding investmentsand performance. It is only then that Asian brands will become truly great.
The scope of the book
This chapter has discussed the implications for a new Asian business land-scape, where Asian companies can step up and capture more financial valuethrough brands.
Chapter 2 looks at branding and how the discipline relates closely tobusiness strategy. Branding can drive shareholder value. There are manymanagerial challenges, processes and tasks needed to succeed with it,which are discussed further.
Chapter 3 is dedicated to Asian consumers and cultures and describessome of the transformations taking place in Asia. It provides a new way oflooking at the region and covers issues like group versus individual orienta-tion, roles, symbols and family. The chapter looks at the transformationfrom a purely collectivist perception toward an in/out-group perspective,which can help us to understand Asian consumers better. It also discussesscapes, flows and hybrids.
The quality perception of a brand can be derived from the perception of agiven country. Chapter 4 discusses country branding and the country oforigin effect, how it affects brands and which measures companies shouldtake to benefit the most from a given country’s image. This also includesexamples of how some Asian countries have branded themselves.
Strong brands are often driven and influenced by popular culture andmultiple activities and trends in society. Celebrities and other public figurescan act as potential endorsers for products and services and be an instru-mental part of a brand strategy. Chapter 5 discusses how to involve celebri-ties and other endorsers, and their ability to support Asian brand building.
Chapter 6 is dedicated to brand strategy. It provides frameworks foraligning the brand and an entire brand management model.
Chapters 7 and 8 illustrate case studies of successful as well as aspiring
Introduction 11
Asian brands. The two chapters illustrate different angles of building andmanaging brands in an Asian context through a selected portfolio of Asianbrands. The multiple and diverse brand stories can inspire the Asian board-room and serve as discussion points when crafting future brand strategies.
Chapter 9 is a step-by-step guide to brand building for Asian board-rooms, and discusses the processes and systems needed to successfullymanage brands.
Finally, Chapter 10 provides a discussion of the challenges in the years tocome for Asian boardrooms, what the brand change agents will become andhow Asian brands can potentially challenge their Western counterparts.
The appendix provides a useful guideline to brand valuation based on themethod used by Interbrand.
Notes 1 http://joongangdaily.joins.com.html.2 “Another Korean cell-phone power?”, Business Week, 4 April 2005.3 “Park loves the nightlife”, Institutional Investor, International Edition, 28(7),
2003.4 “Pantech refocuses on North America, EU”, The Korea Herald, 10 March, 2005.5 “Dreaming with BRIC’s: The path to 2050”, Global Sachs Global Economics
paper 99. See www.gs.com/insight/research/reports/99.pdf.6 The Hindu Business Line, November 17, 2003.7 “Brand and deliver”, CFO Asia, 30 March, 2004.8 Author’s interview with Lars Wiskum, a leading international consultant in the
sports goods industry.9 See: http://www.businessweek.com.
10 Enright, Michael J. (1998), “Regional clusters and firm strategy.” In Chandler,A. D., Hagstrom, P. and Solvell, Ö. (eds) The Dynamic Firm, pp. 315–42. Oxford:Oxford University Press.
11 Winning in Asia, Peter Williamson, Harvard Business Press, 2004, page 91,Figure 4.1.
12 “Is America losing its edge?”, Foreign Affairs, November–December, 2004.13 “A Starck vision of Asia’s future as elite producer of brands”, Wall Street
Journal, 7 April, 2004.14 “CP Group: From seeds to kitchen of the world”, Case by Peter J. Williamson
and Keeley Wilson, INSEAD Euro-Asia Centre, Singapore, 2003.15 Chua Chei Hwee,“Banyan Tree Resorts and Hotels: Building an international
brand from an Asian base”, in Geertz, C. (ed.) (1983).16 “New initiative to assist WCO members to respond to counterfeiting in the
Asia/Pacific region”, press release by the World Customs Organization, 6February, 2004, www.wcoomd.ord/ie/En/en.html.
17 “Fakes! The global counterfeit business is out of control, targeting everythingfrom computer chips to life-saving machines”, Frederick Balfour and CarolMatlack in Paris, Amy Barrett in Philadelphia, Kerry Capell in London, BusinessWeek, 7 February, 2005.
12 Asian Brand Strategy
AAccenture 74, 80Acer 5acquisition growth strategy 107,
110–11disadvantages 111
acquisitions 225activity ratios 20Adidas 75agriculture 7Air Deccan 181airlines
low-cost, India 180–1touch-point model 116see also Air Deccan; Jet Airways;
Singapore Airlines; Thai Airways;Tiger Airways; Valuair
Alcatel 110alliance growth strategy 107, 109–10alliances 115Amanresorts 138–45
background 139–40brand communication 144–5brand equity 139, 143brand philosophy 140–4company culture 145exclusivity 138, 140, 143–4future challenges 145holistic experience 140, 143luxury private homes 140, 141–2management 145non-institutional 140, 141training 141, 144
Angsana Resorts 231–2, 233Appadurai, Arjun 36–7Apple 24
recruitment 202Aravind Eye Hospital 70–1Asia
connected countries 35–9, 52culture 9, 31–3, 39–40dynamics of 31–55psychology 31, 32, 46–7receding American influence 39–40traditional/stereotypical 33–4varying stages of economic
development 5–6Asian brand leadership model 9–11Asian Paints 45, 46, 103assets
intangible 17, 18, 20–1, 124–5,217
tangible 17, 124, 217associations/alliances
for brand building 115see also brand association
auditboardroom audit 28
see also brand audit
BBachan, Amitabh 80, 86, 91Bae Yong Joon (Yonsama) 84–5Bajaj Auto 82bands 39Bangalore 6Bangladesh, Muslims in 42banking
Islamic 42see also HSBC
Banyan Tree Hotels and Resorts 5,8, 33, 227–34, 237background 228brand building 228–31brand communication 231brand equity 231community projects 230and the environment 229, 230,
231expansion 231–3future challenges 233–4innovation 234partnerships and joint ventures 233success factors 234training 229
Baron International 44Bausch & Lamb 87Beckham, David 81beer 34–5, 45, 89beliefs, in the boardroom about
branding 23, 23–5, 28biotechnology 6blogs 200BMW 120boardroom
boardroom audit 28brand model 195commitment to/involvement in
branding 27, 129–30, 215–16,222–4
leading brand strategy 24–5,192, 193–6
marketing decision-making 211–12mindsets and beliefs 23, 23–5, 28non-executive directors 213remuneration 212success factors 10training 216
Bollywood 36–7, 91Bossini 187bottled water 220–2bottom of the pyramid (BOP) 15,
219brand ambassadors 192, 201–3brand architecture
Samsung 159
Shiseido 147, 151brand associations 118, 119–21
emotional 120–1functional 120
brand attributes 101brand audit 26, 98, 99, 99–101, 120
benefits of 99phases of 99
brand awareness 118brand board 196brand boardroom model 195brand building 26–7, 96, 99, 105,
197Banyan Tree Hotels and Resorts
228–31Jet Airways 180Li Ning Sports Company 176Shiseido 147steps in 192
brand communicationAmanresorts 144–5Banyan Tree Hotels and Resorts
231Jet Airways 179–80Jim Thompson Thai Silk Company
165–7Li Ning Sports Company 174Samsung 155–7Singapore Airlines 135
brand contribution 125, 126brand delivery 21–2, 193
company guidelines 204system 192, 203–4
brand differentiators 100, 101brand dilution, Jet Airways 181brand discount rate 126, 241brand earnings 125brand endorsement 74–7
categorization 77by celebrities 74–7, 80, 81–2celebrity benefit involvement
model 78–9definition 74by experts 77, 79–80functional benefits/values 77–8mixed 77, 81–2by ordinary people 77, 79social benefits/values 77, 78types of 76see also celebrities and entries
beginning with celebritybrand equity 98, 99, 125, 211
Amanresorts 139, 143Banyan Tree Hotels and Resorts
231and brand valuation 17–18and cash flow 126definitions 16–17, 117
249
INDEXPage numbers in italic refer to case studies
Jet Airways 180, 181Jim Thompson Thai Silk Company
164, 167, 169Li Ning Sports Company 171Shiseido 150Singapore Airlines 138stakeholders concerned with 117
brand equity model 117–24brand essence 98, 102brand growth
growth matrix 105–7growth rate 124performance appraisal and 223Singapore Airlines 107strategies 107
brand holding companies, Shiseido150
brand identity 96, 97, 98, 99, 101–3BritishIndia 209–10Jim Thompson Thai Silk Company
167power of 1, 11purposes of 101
brand image 97, 118brand impact 205brand implementation 98, 99,
112–16external 98, 114–16internal 98, 113–14
brandingimpact on entire company 2, 24internal 202–3as an investment 14perceptions of 23role of 240–1as a strategic concept 5terminology 14
brand leadership, boardroom andCEO 24–5, 192, 193–6
brand leadership model 9–11brand management
bottom-up vs top-down 191–2,193
BritishIndia 208–10Giordano 182–4Jim Thompson Thai Silk Company
167an ongoing process 204, 222see also boardroom; brand building
brand management model 97–9,114
brand marketing plan 26brand metrics 197, 211
focus of 212performance model 122–3
brand models 192, 196–7boardroom model 195McDonald’s 208
brand orientation, shift to 223brand performance
analysis chart 100–1measuring 192, 211–12
brand personality 98, 102BritishIndia 209–10Giordano 188Jim Thompson Thai Silk Company
165, 167
Li Ning Sports Company 174–5Samsung 159Shiseido 149
brand philosophyAmanresorts 140–4Fiji Water 220–1Giordano 184–7Jim Thompson Thai Silk Company
164–5Li Ning Sports Company 171–4Samsung 153–4Shiseido 147–9Singapore Airlines 131–5
brand positioning 98, 102Li Ning Sports Company 175–6
brand promise 21–2, 193brand research, external 100brand returns, tracking 212brands
alignment 96–7business-to-business (B2B) 123challenges for 216–19as culture of product/service 119difficult for individuals to switch
14global, see global brandsinvesting in own 1–2strong, see strong brandsWestern, in Asia 225–6
brand scope 98, 102brand scorecard 211brand strategy 26, 98, 99, 103–11
basic components 212BritishIndia 209CEO/boardroom to lead 24–5,
192, 193–6evaluation and adjustment 192,
212–13implications for success 215–16Jet Airways 177–9Jim Thompson Thai Silk Company
165Samsung 153, 154Shiseido 149–50Singapore Airlines 135–7, 223success factors 129–30training in 201
brand strength 241see also strong brands
brand stretch, Jet Airways 181brand systems, complex 219brand training 113brand valuation 98, 99, 124–6,
127, 240–1purposes of 127
brand value 126calculation 241
brand vision 26, 98, 102, 192Branson, Sir Richard 25BritishIndia 33, 34
brand management 208–10business education 68–9business structure 8business-to-business (B2B) brands
15, 123buzz 199, 200–1
CCadbury 80, 86cameras 110capacity, excess 218case studies 129–30, 161–2
Amanresorts 138–45Banyan Tree Hotels and Resorts
227–34Giordano 182–9Jet Airways 176–82Jim Thompson Thai Silk Company
162–9Li Ning Sports Company 169–76Samsung 151–9Shiseido 145–51Singapore Airlines 130–8for further details see main entries
for the individual companiescelebrities
celebrity endorsers 82–5core capabilities 85in India 91–2overexposure 89, 90roles 77
celebrity benefit involvement model78–9
celebrity branding 74–95challenges in 88–91founder’s dilemma 89negative publicity risk 89
celebrity endorsement 74–7, 80,81–2cost 88–9guidelines 92–3
celebrity endorsement models 85–8celebrity brand impact model 87–8meaning transfer model 86–7source attractiveness model 85–6source credibility model 86
Chan, Jackie 74, 82Chanel 50, 89Chang Beer 34–5, 89Chang Jin Young 75channel management 224Charoen Pokphand (CP) 7Chen, Kelly 75Cheong Choong Kong 136Cheung, Jackie 75Chief Executive Officer (CEO)
leading brand strategy 24–5,192, 193–6
remuneration 212Chief Financial Officer (CFO) 194Chief Marketing Officer (CMO)
194–6, 222–3Chief Talent Officer 202China 41
beer in 45, 89diaspora 41distribution networks 224education 69excess capacity 218fake/pirated goods 9growth in economy 2luxury goods market 15, 226opening economy 216–17R&D spending 6
250 Index
Christian Dior 75Cisco 15, 109Citibank 42close distance 38clothing, see BritishIndia; GiordanoCoca-Cola 44, 116, 199
brand contribution to shareholdervalue 18, 19
in China 216–17cognitive misers 58Colgate 217collectable items 50–1communication(s) 192, 205–10
corporate, brand boardroommodel 195
guidelines 208innovative 115internal 114internet/intranet/extranet 200website 200word-of-mouth (buzz) 199, 200–1see also brand communication;
marketing communicationscommunity projects, Banyan Tree
Hotels and Resorts 230competition 3
increased on expansion 106unbranded products and 1
competitive advantage 15competitiveness 193complacency 213complaints, from customers 200conglomerates, dominance of
217–18Connery, Sean 87consideration 121consumers
Asian, psychology of 31, 32, 46–7behavior 10consumer power 129Muslim 41–3rural/low income 43–6
corporate communications, brandboardroom model 195
corporate logo and design 116corporate social responsibility (CSR)
226corporate storytellers 198corporate strategy 223corporate vision 192, 198–200cosmetics 83–4
see also Shiseidocost advantage 3–4, 216, 224–5
Singapore Airlines 136–7Coty 84counterfeiting 8–9, 218country branding 56–73
benefits of 57export branding 57–60future opportunities 67–71generic 57, 60–7Government role in 59–60India 65–7initiatives 61internal 57Malaysia 59–60, 61–2reasons for 56–7
Singapore 59, 60, 64–5Thailand 63–4
creative integration, Shiseido 148Creative Technology 14cricket 91cultural difference 46, 47
Hofstede’s model 47–8cultural industries 39cultural sensitivity of Western brands
225culture 10
Asian 9, 31–3, 39–40brands as 119collectivist 47, 48, 49, 59individualistic 47–8, 49, 59in-groups 48–50opportunities in subcultures 41–6subcultures, opportunities in 41–6
customer complaints 200customer relationship management
(CRM) 201customers
bonding with brands 119–20knowledge about brands 117, 121lifelong 204lifetime value 211loyalty 122new companies’ lack of
knowledge about 106customer satisfaction 193, 194, 211customer service, Giordano 184–6customer touch points, see touch
points
DDatacraft 199–200De Beers 32design 7, 116detergents 45
sachets 43Dewar 87diamonds 32differentiation 193
BritishIndia 209directors
non-executive 213see also boardroom
Disney 18, 90Disneyland 75distribution networks
in China 224in India 45, 224lack of 106Shiseido 149
diversification 7Jim Thompson Thai Silk Company
165Reliance group 217–18
dowry 46
Eeconomic development, stages of
5–6economic value added (EVA) 125education 68–9
globalization and 69electronics, see Samsung
endorsement, see brandendorsement
energy drinks 199enterprise resource planning 201entertainment, hybrid 38–9environment, Banyan Tree Hotels
and Resorts’ concern for 229,230, 231
Esprit 187ETUDE 80Everton Football Club 34, 89, 115exclusivity, Amanresorts 138, 140,
143–4expansion
Banyan Tree Hotels and Resorts231–3
Giordano 188–9Jim Thompson Thai Silk Company
167–9export branding 57–60
benefits of 57extranet 200extrinsic cues 58
Fface 49, 51familiarity 121family-owned businesses 8Fan Zhiyi 75Ferrari 74Fiji Water 220–2
background 220branding philosophy 220–1future challenges 222sponsorship 221
films, see movie industryfinance
brand boardroom model 195Chief Financial Officer (CFO) 194
financial analysis 125, 126, 240financial metrics 118, 123–4financial ratios, impact of brand
performance on 19–20financial resources 23, 27, 28,
106–7financial services, Islamic 42food
haram/halal 42impact of Muslim beliefs 42
foreign animosity model 59franchising 108
GGARMIN 90Geely Auto 108General Electric (GE) 18generic country branding 57, 60–7Gillette Company 110–11Giordano 182–9
attitude training 185background 182–4brand management 182–4brand personality 188brand philosophy 184–7brands 182–4competitors 187customer service 184–6expansion plans 188–9
Index 251
future challenges 188–9innovation 186, 188quality merchandise 186, 188training 185, 204value-for-money positioning
186–7, 188Giorgio Armani 24, 225–6global brands 219–22
originating from Asia 4–9vs local alternatives 58
globalization 36definition 40education and 69
Gong Li 82–3group orientation 48growth, see acquisition growth;
alliance growth; brand growthGucci 50, 51
HHaier 25hallyu 38Hallyuwood 38Hang Ten 187Harbrew Imports 89Hasselblad 110Hero Honda 109hierarchy of needs 46–7Hindustan Lever 44, 219Hofstede’s model of national
cultural difference 47–8holiday resorts, see Amanresorts;
Angsana Resorts; Banyan TreeHotels and Resorts; Shangri-LaHotels and Resorts
Honda 5Hong Kong 41hotels, see Amanresorts; Angsana
Resorts; Banyan Tree Hotels andResorts; Shangri-La Hotels andResorts
Houston Rockets 89, 90HSBC (Hong Kong Shanghai
Banking Corporation) 5, 42, 46,104, 237adaptation to local cultures 205,
206–7rebranding 205, 206–7training 202
Huawei, R&D spending 108–9, 224human resources 27
brand ambassadors 201–3brand boardroom model 195brand-oriented 114management, WPP 202shareholder value and 27
IIBM 15, 18, 20–1ICICI Bank 103idea-sharing website 239Ie 49IE (International Enterprise)
Singapore 161India
celebrities in 91–2country branding 65–7diaspora 92
distribution networks 45, 224education 69films 92growth in economy 2medical tourism 70–1Muslims in 42technology clusters 6
individualism 47–8, 49Indonesia
Chinese minority in 41Muslims in 42
information technology (IT) 7Infosys 6in-groups
in Asian cultures 48–50Indian 50vs out-groups 48
innovation 6–7, 193Banyan Tree Hotels and Resorts
234BritishIndia 210deficit 6–7, 224Giordano 186, 188Samsung 155Singapore Airlines 131
INSEAD 69intangible assets 17, 18, 20–1,
124–5, 217Intel 18intellectual property (IP) protection
8–9, 218–19Vietnam 108
Interbrand 17, 18brand valuation 127, 240–1
International Enterprise (IE)Singapore 60
internet/intranet/extranet 200Islam, see Muslims
JJapan
celebrity endorsers in 81, 82global brands from 5losing face 49R&D spending 6
Jet Airways 6, 176–82background 176–7brand building 180brand communication 179–80brand dilution and stretch 181brand equity 180, 181brand strategy 177–9competition 181future challenges 180–2management style 181–2training 178
jewelry 32Jim Thompson House museum
166–7, 168Jim Thompson Thai Silk Company
162–9background 162–4brand communication 165–7brand equity 164, 167, 169brand identity 167brand management system 167brand personality 165, 167
brand philosophy 164–5brand strategy 165custom-made fabrics 164diversification 165expansion beyond Asia 167–9future challenges 167–9single brand 169training 167
joint ventures, Banyan Tree Hotelsand Resorts 233
Jordan, Michael 74, 76, 77, 84journals 242Jun Ji Hyun 75
KKeijian 115Khan, Shah Rukh (King) 74, 91knowledge metrics 118–21Korean wave 38
LLenovo 20–1, 218–19leverage ratios 20lifetime value 124Li Ning Sports Company 169–76
background 170–1brand building 176brand communication 174brand equity 171brand personality 174–5brand philosophy 171–4brand positioning 175–6future challenges 174–6patriotism and national pride
170, 174, 175sports sponsorship 171, 173, 174value proposition 173
liquidity ratios 20Li Tie 115logos, corporate/brand 116L’Oreal 24, 78, 84, 198Louis Vuitton 50, 51loyalty 122luxury brands 50–1, 226luxury goods, Chinese market for
15, 226LVMH 9, 50
MMcDonald’s 90, 225
in Asia 32–3brand contribution to shareholder
value 18, 19brand model 208celebrity endorsement 80design schemes 116toy sales 50–1
McKinsey & Co 15Maersk 15Malaysia
Chinese minority in 41country branding 59–60, 61–2niche tourism 62tourism 61–2
managementmanagement control 105management style, Jet Airways
181–2
252 Index
see also boardroom; brandmanagement
market capitalization, brands’contribution to 18–19, 21
marketing 193–6brand marketing plan 26Chief Marketing Officer (CMO)
194–6, 222–3decision-making at boardroom
level 211–12organization structure 204outcome 26role of 26
marketing communications 114–15RedBull 199word-of-mouth (buzz) 199, 200–1
marketing mix 114Marketing Science Institute (MSI) 26market research 198market segmentation 240market share 123Marlboro 18Maslow’s hierarchy of needs 46–7measuring brand performance
192, 211–12Mecca Cola 42mediascape 37medical tourism 70–1Mercedes-Benz 18, 116mergers, see also acquisition
growth strategymetrics
financial 118, 123–4knowledge 118–21preference 118, 121–3see also brand metrics
Microsoft 18, 24mindset
Asian trading mindset 7, 217in the boardroom 23, 23–5, 28
mobile phones 1, 3, 109–10modernity 40Motorola 36–7movie industry
Indian 92South Korea 39see also Bollywood; Hallyuwood
music, Asian 39–40musicscape 39Muslims 41–3
banking 42consumer behavior 41–3food 42interest payments 42population spread 41–2
mythsFiji Water 220–2Jim Thompson 163, 167
Nnanotechnology 6–7nationalism, in Asia 40nations, growing irrelevance as
definers of identity 36net present value (NPV) 125, 126
of future profits 17newspapers 242
niche tourism, Malaysia 62Nike 4, 24, 116
brand endorsement 74, 75–6,76, 77, 84
corporate storytellers 198corporate vision 198recruitment 202
Nirma 45Nokia 18Norwegian Cruise Lines (NCL) 111
OOlympus, brand endorsement 75organic growth strategy 107–9organizational resources 23, 27Oshin 37OSIM 82–3Ou Baholyodhin 163
Ppaint 45Pakistan 43
Muslims in 42Pantech 1Park Byong Yeop 1partnerships, Banyan Tree Hotels
and Resorts 233patriotism and national pride, Li Ning
Sports Company 170, 174, 175Pepsi 90perceived risks in purchase 16perceptions of branding 23performance appraisal 223periodicals 242pop culture 84–5positioning, see brand positioning;
value-for-money positioningpower distance 47, 48, 51
low vs high 51–2preference metrics 118, 121–3press agencies 242price premium 123pricing, strong brands and 17Procter & Gamble (P&G) 35, 75,
110–11Tremor 201
product design, Samsung 154product placement, Samsung 157products
country of origin 57–9extrinsic cues 58low/high involvement 77, 86prices, manufacturing vs retail 3unbranded 1, 3
profitability 211profitability ratios 20psychological reactance theory 50psychology
of Asian consumers 31, 32, 46–7cognitive misers 58
purchase 121brand boardroom model 195
Qquality, Giordano 186, 188
RRai, Aishwarya 78, 91recall of brands 118–19
aided 118–19top-of-mind 119unaided 119
recognition of brand 118recruiting processes, staff 202RedBull 199Reliance group 217–18remuneration, boardroom 212Remy Martin 50research
external 100market research 198
research and development (R&D)224Huawei 108–9, 224Samsung 153–4, 224Shiseido 148spending as percentage of GDP 6
resources 27–9availability 106–7enterprise resource planning 201financial 23, 27, 28, 106–7organizational 23, 27see also human resources
return on investment (ROI) 212revenue 123risk, perceived, in purchase 16Rolls-Royce 15Ronaldo, Cristiano 75–6
SSAB (South African Breweries) 44–5safety 16sales, brand boardroom model 195sales orientation, shift from 223Samsung 5, 151–9, 237
background 152–3brand architecture 159brand communication 155–7brand personality 159brand philosophy 153–4brand strategy 153, 154competition 158–9consistency 158corporate brand 158event sponsorship 156future challenges 157–8innovation 155marketing organization 204product design 154product placement 157research and development (R&D)
153–4, 224Samsung Electronics 152–3, 154Samsung experience gallery 157sports sponsorship 155–6, 156–7training 154
“scapes” 36–7scarcity principle 50–1Schumacher, Michael 74self, independent vs interdependent
48–9shampoo, sachets 43, 219Shanghai 33–4Shanghai Tang 33, 34Shangri-La Care 203Shangri-La Hotels and Resorts 5, 33
Index 253
internal branding 203training 203
shareholder value 16–18, 23brands’ contribution to 18–19human resource management and
27Shiriro 110Shiseido 5, 145–51, 237
background 146–7brand architecture 147, 151brand building 147brand equity 150brand holding companies 150brand personality 149brand philosophy 147–9brand strategy 149–50creative integration 148distribution network 149future challenges 150–1research and development (R&D)
148silk
Thai vs Chinese 163see also Jim Thompson Thai Silk
CompanySingapore 41, 59, 60, 64–5
Chinese minority in 41country branding 59, 60, 64–5tourism 65
Singapore Airlines (SIA) 5, 22, 24,33, 130–8, 237–8background 131brand communication 135brand equity 138brand philosophy 131–5brand strategy 135–7, 223celebrity endorsement 81–2cost advantages 136–7costs 137customer touch points 204future challenges 137growth strategy 107innovation 131profits 137revenues 137training 134, 204
Singapore Girl 22, 82, 130, 133–5Singha beer 34SK-II 35
brand endorsement 75skill sets 23, 25–7, 28soft drinks 42–3Song Hye Gyo 80Sony 5, 24South Korea
celebrity endorsers in 82global brand from 5movie industry 39pop culture 84–5R&D spending 6
sponsorshipFiji Water 221Li Ning Sports Company 171,
173, 174RedBull 199Samsung 155–7
sports events, Singapore 65
sports goods 3–4see also Adidas; Li Ning Sports
Company; Nikesports sponsorship
Fiji Water 221Li Ning Sports Company 171,
173, 174RedBull 199Samsung 155–6, 156–7
stakeholdersconcerned with brand equity 117involvement in brand
creation/management 192,197–8
Starbucks 24building trust 202–3customer satisfaction 211
Star Cruises 111status 46–7stock market performance, brands’
contribution to 19–20strategy, see brand strategy;
corporate strategy; organicgrowth strategy
strategy drivers 10, 26strong brands 14
characteristics 13, 21–2contribution to stock market
performance 19–20, 21pricing 17see also brand building; brand
strengthsubcultures, opportunities in 41–6symbols 10
TTag Heuer 80Taiwan 41
toys in 50–1Takeshi Kaneshiro 38talent base 224Tam, Vivienne 225–6tangible assets 17, 124, 217TCL 109–10technology, exploiting 192, 200–1technology clusters 6television, pan-Asian 37–8television sets, sales in India 44Thai Airways 33Thailand 63–4
beer in 34–5, 89country branding 63–4medical tourism 70recession 34tourism in 63
Thompson (France) 110Thompson, Jim 162–3, 164, 167
see also Jim Thompson Thai SilkCompany
Tian Liang 87Tiger Airways 137Tiger Beer 34time-to-market 105–6Tokyo Beauty Center 81touch points 197, 201, 224
definition 112phases 112, 113
Singapore Airlines 204touch point model 112–13, 116
tourism 56Malaysia 61–2medical tourism 70–1niche tourism 62Singapore 65Thailand 63
Toyota 5, 59toys, in Taiwan 50–1trademark protection 218–19trading, Asian mindset 7, 217training
Amanresorts 141, 144Banyan Tree Hotels and Resorts
229boardroom directors 216in brand strategy 201brand training 113Giordano 185, 204HSBC 202Jet Airways 178Jim Thompson Thai Silk Company
167Samsung 154Shangri-La Hotels and Resorts 203Singapore Airlines 134, 204
transaction value 123Trung Nguyen 108Tuttle, Ed 164
UUnilever 46usage 121
VValuair 111value capture through branding 193value creation 17, 28, 205
through branding 4lack of 2–3
value-for-money positioning,Giordano 186–7, 188
video games 39Vietnam, Trung Nguyen 108Virgin Group 25
vision, see brand vision; corporatevision
Wwater, bottled 220–2websites 200
idea-sharing website 239Western brands in Asia 225–6Wipro 6, 237Woods, Tiger 74, 75–6, 80WPP, human resource management
202
YYanjing beer 89Yao Ming 74, 80, 89, 90yoga collection, BritishIndia 210Young, Tata 38Yue Sai Kan 83–4
ZZecha, Adrian 139–40, 145Zhang Ruimin 25
254 Index
MARTIN ROLLBUSINESS & BRAND STRATEGIST
Martin Roll is a world-renowned thought-leader on value creation through brand eq-uity driven by tremendous global experience and insights. He facilitates business leaders and organizations to think bold for future strategies. By focusing on building and managing successful businesses through iconic brands, Martin Roll helps boardrooms to enhance shareholder value and create sustainable competitive advantage.
Martin Roll delivers the combined value of an expe-rienced international business strategist and senior advisor to corporate boards and marketing execu-tives of the world’s largest companies including many corporations in Asia. He brings more than 20 years of management experience. Martin Roll holds an MBA from INSEAD.
Martin Roll is not only a highly accomplished speaker and presenter but as well a talented and well trained moderator of panel discussions and roundtables. He is a valuable contributor to any senior management discussion on the subject of leadership, innovation, growth, organizational ex-cellence and brand equity, its close link to manage-ment and how it drives outstanding performance through shareholder value.
He strides the industry-academia continuum and delivers superior value to his global audiences. Every year, he travels 500.000 miles on all conti-nents and speaks at more than 100 global top-level conferences. He is a frequent guest lecturer at INSEAD, Nanyang Business School, CEIBS and several other global business schools.
Martin Roll is the author of the global bestseller Asian Brand Strategy, a very compelling book of frameworks for Asian branding and the winning formula for any boardroom. Asian Brand Strat-egy was named “Best Global Business Book” by Strategy+Business magazine.
Martin Roll is currently writing two new global management books. The first one will look at the important interface between branding, leadership and strategy, and the role of the CEO. The sec-ond will discuss the role and position of the Chief Marketing Officer in management, which is set to change dramatically in the future.
www.martinroll.com
www.martinroll.com
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