Lecture 1: Global brand development and Chinese brands

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Chinese government encourages outward expansion globally of companies (Internationalisation process)

"Going Global policy" to dominate other markets outside of China.

Reasons for market entry (UK firms in China)

"Our objectives were obviously to try and create a business market share and hopefully to develop a profitable company" (Director, UK Engineering Company)

Joint Venture

-Partnership bectween two brands

Is tesco a global market?

-strong in the home market? Yes -Balance of sales across countries? No Tesco is not a global market.

How many Chinese brands in the Interbrand Top 100 best global brands?

1

A brand

A brand: 1.Creates an 'identity' 2.May have symbolic values and convey status 3.Reduce risk for the buyer -they create trust 4.Registered brands enjoy legal protection 5.Are a device central to the overall strategy of an organisation

Chinese Brands Only 23% of people can name at least one Chinese brand - an increase of just 3% since 2012.

Bank of China, Hawawi, Leonovo

Brand Z use different ways to measure global brands vs Interbrands.

Brand Z more favouable to Chinese companies, internbrand more historical data because CHinese brands gre recentely, CHinese brands got a long way to go.

Semiotic analysis; Logo evolution

Brand transition; western brands e.g. NIke and Pepsi have decades of branding experience so logo development, NIke have dropped the name as they have recorgnition

What is a global brand?

its difficult to decide: does it mean that it is in so many countries, having global recorgnistion, in a partculat industry?

Branding is hard because what language do you use?

just combine the name and adapt to the target language of the country that they're in Tesco was one of the last supermarkets to enter chinese market and why they were not successful

Geely logo v Toyota logo

legal issues when brand identify as been trade marke infringement ; interletucal property; logo too similar

Joint Ventures Chinese brand development through international joint ventures - Joint venture success factors

partnetships between Uk or CHina company (doesnt matter the company) BP and SInopec, B&Q in China the purpose is that every partner benefits. This would help China access the UK market and CHina access us Market and different cultural knowledge; networks and relationships Problems can be if 50/50 split no one party has more power; a conflict will happen no overriding say in decision making .. but Uk manager shangi hi chairperson from UK in China to avoid conflict ´Share the same strategic objectives ´Regular communication ´Foreign firm - always send 'big boss' ´Understand / adapt to cultural differences ´50/50 EJV problems with decision-making ´Above all - persistence, hard work and maintaining successful relationships

Branding and Semiotics

-all of those things together; identity, Nike swoosh as a symbol that identifies the brand.

Quelch, John (1999) what he argues constitutes to global brands 11:30

-brand MUST be strong in the home market; Tesco strong in the domestic market -does the brand have a balance of sales across different markets; Tesco has pulled out of China, US, parts of Asia and therefore doesn't fit the criteria hasnt got the geographic coverage -does the brand address similar consumer needs worldwide e.g. McDonalds do they? Maybe, (im loving it, standardized slogan globally) -does the brand have the same positioning in the mind of the consumer across the markets e.g. Mcdonalds yes because their decision as fast food but some food may vary but the message is basically the same or uni lever who have brands that differ across markets so have different positions. -Country of origin e.g. person wanting to buy a German car because they believe that German engineering is the best. Or British biscuits, Italian suit because Italian fashion is the best, cultural stereotype for consumers, do they value the county of origin when buying products. How do you define county of origin; is it by country of brand or country of manufacturing, Toyota made in the UK (so could argue that its a British made product) but the country of origin of the brand is Japanese. Or jaguar made in the UK but the parent company is tata which is Indian. -Product category focused.= successful brands must focus on one product category, McDonalds (fast food), Apple (technology), Google (technology), Nike (Nike sportswear); if a brand doesn't focus on one area -Corporate name; must be a name that travels well across international markets e.g. Steinbark piano across China, Wahaha in China which travels well across international markets but they don't travel well so business adapt their name, AXE and Lynx cuz of trade mark. Global brands: Amazon, Google, Apple, typically big US presence but Alibaba (business to business ecommerce site) and Tencent which are Chinese.

How do we classify/distinguish one Chinese brand from the other? A classification of China's leading brands

-by the extent that they have gone international/global. -Domestic Champions, brands that are mainly domestic e.g. Xiaomi (tech), China mobile -Transitional Brands- form dometic to international e.g. Midea (white goods whasing machine fridge), Chery -Global contenders; on the way to being global; Lenovo Hauwei •A classification of China's leading brands •Global brand contenders: We define a global brand contender as 'A Chinese brand that is strong in its domestic market, shows clear global marketing orientation and is making strides to combat possible negative COO effects'. • • Transitional Brands: We define a transitional brand as 'A Chinese brand that is starting to show signs of global ambition'. • • Domestic champions: A domestic champion can be defined as 'A leading Chinese brand that is particularly strong in its domestic market and this is the bulk of its business'.

What is a brand?

-its not just a logo, its also an identity, a symbol, slogan (Im lovin it)

Brands use semiotics to market their products

HSBC; ran a campaign, comparing different interpretation of brand in cultures. Brands look at word association, what do people see when they see the colour red- most people see danger in western society but in other cultures, it means good fortune and good luck so for brands like McDonalds advertising across different markets and cultures its important to identify what does colour mean. White in Asia is accosiated to death or misfortune and even numbers, number 4 is accosicated with death, apartment buildings in london they skip number 4 insead 3a

Brand Architecture

The naming and organizing of brands within a broader portfolio. "How you organise your brands in your portfolio" e.g. Unilever owns ben and jerries One way; Branded house Corporate brand name is prominant on everything e.g. Google: Google maps, groups, videos, books, scholar everything has the CORPORATE brand name on everything. Another example is FedX. The advntage of this is that the recorgnistion of the brand is high because the name is across all of the marketing. House of Brands: Corporate brand name e.g. unilever but have subrands like Tides, folgers and Pampers. The advnatage is that if you're in lots of different markets, you can adapt your brand name supermarket because pampers doesnt travel name or the corpoate brand name doesnt travel well aross markets e.g. lynx called Axe because the aprtent company cannot register "axe" in the UK because it has been registered as a trademark (legal reasons). Hybrid: Coca cola and pepsi cola; combinsation of the two e.g. Diet coke, cherry coke but other non coca cola brands, sprite, minute made orgnage juice, but the advantage is that you can adapt to different markets but at the same time get a strong band message out there by using corporate name i.e. coca cola across different brand names. Most Global brands either have 'branded house' or possiblily a 'hybrid' e.g. propergamble and unileaver who have a big portfolio

An example of a brand that doesn't need to name the brand along side its logo (we just know it) e.g. starbucks, microsoft, nike swoosh

a brand is a colour, identify, symbol and a MESSAGE to what the brand stands for the in the market compared to their competition

Chinese firms are going outward

because they have dominated the chinese market, they look to go to Asia first and then other countries

Tsing Sao

business to business market international markets come to UK, outdoor promotion in Manchestter chinese new year, London (cites with big chinese communities) usinf western social media and sponserships by spoonsering big major events

What will we see from Chinese brands in the short to medium term? Brand development - Implications for Chinese brands

continue what they're doing aided by the governments 'going global policy'. their main problem is that will they be able to adapt and standardize when they go international •Need to compete with foreign organisations •Learning can be achieved through a joint venture •Able to compete outside domestic market

Is there a theme between the top brands?

dominated by financial intitutions and tech companies, Number 9 is sinopec top evergy companies, has partnerships with BP and Petro China Number 4 is China's Google

Why are slogans effective

for recall and the ability to remember or recorgnise a brand for example, mcdonalds translates im lovin it but the message is the same.

Very often these countries will start of as exporting so not much focus on brand and also as OEM's (Orignal equipment manufacturer'

if your gonna buy a television, many were made in chinese companies on behalf of big companies such as sony. A lot of these companies are going alone in their own rights. Moving from production manufacturing --> to standing alone and becoming their own brands e.g. Hawawi

Brand is to create an identity

the forepoint we need to register and use all of the avaible legal channels registering brand as a trade mark

China's Globalisation

•Chinese firms tend to concentrate on becoming the dominant player in their domestic market •This is usually followed by exporting •How can Chinese firms become truly global companies? •- branding, develop supplier networks, raise quality standards, work with key stakeholders

China's Global Brand Aspirations

•Research into China's outward investment; more specifically the globalization of Chinese brands, has received limited attention (See Fan 2005, 2006, Lan 2005, Tucker 2006). •Chinese companies are increasingly looking to establish a presence for their own brands in key markets - and some, such as Lenovo, China Mobile and Haier have made great initial strides toward that end.


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