Brand building has long been
the rage in industrialized countries and now the buzz has reached Asia.
Gurus are preaching to Asian entrepreneurs that they should build their own
brand names rather than copy someone else’s ideas.
Innovate rather than imitate seems to be the thing to
do. Great examples are offered: Sony, Nike, Orange. All prime examples of
profitable products made successful through brand building. Through years of
advertising these brands have become recognizable symbols to nearly everyone
on the planet.
Although the investment put into consulting and mass
communication media is high, the long term benefits are worth it, right?
Sure - if you have an enormous budget it’s fine, but
when branding is pouring money into a big black hole and waiting for the
long term effects, many Asian business people will prefer to keep copying
already established products and hope for brand diffusion rather than
differentiation. If the concept of creating brand equity equals a money
spending exercise, who will do it? The basic purpose of marketing is still
to bring profit to the organization and maybe a basic viewpoint and the use
of available resources is what is needed in South East Asia right now.
In countries where competition, individual achievement
and standing out from the rest are not among the most important values,
there are typically few well known brands. Still, Asian marketers have
always understood the need to persuade and compete in their advertising
messages. So in the past decades, where strong brands have proven to be
money makers, the Asian business scene has naturally started taking notice.
At the same time advertising agencies and consultants in the region have
been keen on stressing on advertising as the only way to truly create a
brand. Clients are told that in order to create awareness they need to make
some noise and therefore spend money.
The role of advertising itself is changing rapidly,
due to emerging media technology such as mobile phones, the internet and
point of purchase advertising. Ad agencies are desperately trying to catch
up with the new media. Meanwhile back in the industrialized world, many
industry experts are questioning big advertising budgets. John Kuraoka
believes that clients "are seduced by the Big Splash approach". He says that
big spending on "silly copywriting" worked well in the 90's, because times
were good and money was made regardless. According to William J. McEwen,
agencies are more concerned with their fees than selling products. He says
the power of advertising is exaggerated and cites Starbucks as an example of
how a brand can be established without massive spending.
In some product categories in South East Asia,
spending on brand building is already established. One example is the
lucrative energy drink market in Thailand. In a bid for market share several
advertisers are spending heavily on traditional media such as TV and
billboards. This particular market has switched from being use oriented to
being user-oriented, and linking a well known spokesperson to the brand has
been the preferred method. Presenters, mostly rock stars, are promoting new
brands or old brands that have been revamped. One new entrant to the market
claims spending the equivalent of 11 million US dollars for advertising in
2003. The question now is whether producers with smaller budgets can try to
promote innovative products to consumers through brand building and not
loose their shirts. There is hope for Asian entrepreneurs who want to want
to build a unique brand without taking huge financial risks.
Since the global trend is shifting from excessive
spending on mass media to more focused promotional activities the companies
can look in their own back yard for the answers. In Thailand events and
promotional activities are effective and popular. If girls with silver
skirts and microphones can’t get peoples attention, what can? New
technologies such as mobile phone messaging and the Internet can also be
good communication tools. Demonstrations using skilled demonstrators are a
way to create short term product trial as well as promoting the brand. Point
of purchase marketing can communicate branding now at bus stations, malls,
train stations, inside taxis outside taxis and, yes, even toilets. These are
relatively inexpensive ways of communicating a message that could build a
brand. Nobody says the building of a brand has to happen overnight. The
cheaper options will take longer time for the brand to be built – that has
to be admitted. But the point is that brands require innovation not only in
the product development stage but also in methods of finding low cost media.
Of course the choice of media will always depend on the target customer.
Finally, another important issue besides the execution or choice of media
channel is the original idea for the brand and how that idea is perceived by
the target audience.
Kristian Gotthelf
Researcher
Research Institute of Bangkok University
Rama 4 Road, Klong Toey
Bangkok 10110
Thailand
Phone +66 2 350 3500 #772
kristian.g@bu.ac.th