Global Asian Brands

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Strong global Asian brands- Myth or reality? Danish Design Center Copenhagen, October 9, 2008 Martin Roll

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com ”What other brand name do you see tattooed on people?” Bob Dron, Harley-Davidson dealer Oakland, US

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com The most profitable companies focus on intangibles such as human capital, exploiting network effects, and creating synergies based on brands, rather than investing in tangible assets……… McKinsey & Company study

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com The Asian challenges Low cost is becoming a commodity Trading mindset Less focus on innovation Asset challenge Dominance of large diversified conglomerates Excess capacity IP/Trademarks

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com What matters to the boardroom? How to measure and track brand equity and the financial brand value? How do we maximize the brand’s contribution to the overall success of the business? Need for a cross-functional and metrics driven approach to brands Elevate the branding discipline into the boardroom

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com The Chief Marketing Officer CEO CFO CMO Brands must be run at the boardroom level and be an integrated part of all strategic issues Most brands are run by marketing departments and focus on the functional level of marketing The boardroom The marketing department Strategic level Tactical level

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com ”Prior to Samsung’s decision to manage the brand image through a central organisation, many of the marketing activities were localized to the region. What we found was dilution of the brand and a misconception of the corporate identity” Jong-Yong Jun CEO, Samsung Electronics

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Branding starts in the boardroom Mindsets & beliefs Skills Resources

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Branding starts in the boardroom

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Divert and differentiate

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com The Asian brand challenge no. 1: Lack of imagination and calculated risk taking Just do it Anything is possible

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com A new agenda for Asian brands Source: Asian Brand Strategy

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com The increasing Asian confidence

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Asia’s new creative class.... ”A gate has gradually been opened for creative people like actors and directors. We now have the chance to show other countries what we can do...” Zhang Ziyi Chinese actress

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com 3 Brand Growth Strategies Organic growth Alliance Acquisition Management expertise? Time-to-market?

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Singapore Girl launched in 1973

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Branding ExcellenceTM

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Source: SIA

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Source: SIA

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Source: SIA

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com

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Post-sales phase Sales phase Retention phase Pre-sales phase Marketing campaigns Word-of-mouth Travel agents Company policy Past experiences Sales office Website Requests Milage program Customer service Special offers Relationship program Customer satisfaction surveys Call center Ticket office Check-in Lounge Boarding In-flight Re-booking Luggage handling Complaints Transportation Accommodation Brand

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Brands as financial assets “Fully engaged customers deliver 23% premium over the average customer in terms of share of wallet, profitability, revenue and relationship growth”. Harvard Business Review July-August 2005

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Western brands in Asia

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Future brand leadership

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Be bold and daring.... ”Asian CEOs and their executive teams have the potential leadership, capacity and aspirational fuel to turn their organizations into some of the most admired and profitable global brands....” Martin Roll

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Weblog on Asian branding Case stories on Asian Brands and Asian management ”Best Business Books 2006” (Strategy+Business magazine) www.asianbrandstrategy.com

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com www.martinroll.com

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Martin Roll – Business & Brand Strategist Martin Roll delivers the combined value of an experienced international strategist and a senior advisor to corporate boards and top-management teams of Fortune 500 companies Martin Roll facilitates business leaders and organizations to think bold for future strategies. By focusing on building iconic businesses and brands, Martin Roll advises boardrooms on how to create sustainable competitive advantage and enhance shareholder value Martin Roll brings more than 20 years of management experience from the international advertising and branding industry

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Martin Roll – Business & Brand Strategist He is a frequent guest lecturer at leading global business school INSEAD, and guest lectures at Harvard, Wharton, London Business School, UCLA, Boston University and many others Martin Roll is the author of the international bestseller Asian Brand Strategy, a compelling book of frameworks for Asian branding and the winning formula for any global boardroom (“Best Business Books 2006” by Strategy+Business magazine) His next book (2009) looks at value creation through branding and how this guides leadership and performance at CEO and boardroom level MBA from INSEAD

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© VentureRepublic 2008 – All rights reserved - www.venturerepublic.com Contact details VentureRepublic Pte Ltd Level 21, Centennial Tower 3 Temasek Avenue Singapore 039190 Phone: +65 65 49 71 41 Fax: +65 65 49 70 01 Mobile: +65 91 26 35 04 roll@venturerepublic.com www.venturerepublic.com