Charles Trappey Chiao Tung Universty Hsinchu THE CHALLENGE
- Slides: 8
Charles Trappey Chiao Tung Universty, Hsinchu
THE CHALLENGE How did Ben. Q create a global brand? EXTERNAL FACTORS INTERNAL FACTORS Brand Image: creating a brand with international appeal Branding vs. OEM Effects on revenue Country-of-Origin Effect (link with developing economy quality stereotypes) Attracting top marketing talent from around the world Marketing globally with limited resources: Which markets to enter first? THE EFFECTS Forecast for the Future: A globally recognized and respected brand?
Ben. Q Case Questions • What are some challenges Ben. Q encountered when branding globally? • What kind of country-of-origin effects does the company face? How detrimental can such an effect be? How can these effects be minimized? • Why did the company decide to create branded products? Discuss the effects of falling profit margins from OEM businesses and the subsequent need to increase profits.
Ben. Q Questions • Can a company successfully balance its branded products and its OEM manufacturing? • How does Ben. Q’s brand awareness affect its ability to attract international marketing talent? • With limited resources, which geographical areas should they focus on first -- Europe, or, should their promotion efforts focus on Taiwan, India and China where their brand is more established?
Ben. Q Questions • Creating Brand Equity: Is Ben. Q successful in increasing brand awareness and customer loyalty? Are they successful in creating brand associations? Do customers perceive Ben. Q’s products as high quality? Should they? • Compare Ben. Q to Samsung. • Discuss the Ben. Q slogan of ‘Bringing Quality and Enjoyment to Life’ and the commercial aims to behind this image.
Co. O Country-of-Origin Effect: Definition: Refers to the impact on customers of the "made-in" label, or, more generally, the country a product or service is perceived to be from. Products or services from countries with a positive image tend to be favorably evaluated, while products from less positively perceived countries tend to be downgraded. [1] Some countries are stereotyped negatively in terms of the quality of their products. Products that are assembled in places other than the home country are sometimes viewed as inferior. This is especially applicable in the electronics and automobile industries. [1] Johny K. Johansson , Global Marketing, Second edition. Mc. Graw Hill Publications
Branding Differentiation Strategy There are two reasons why Ben. Q moved from OEM business and started to create its own brand 1. low profit margins and 2. risk of losing OEM customers. • • • Over time, prices for consumer electronics products decrease – why? There are two ways to bring value to customers and, make them buy your products. One is to offer a low price and the second is to add value to your products and sell them at a higher premium. Ben. Q follows the second approach. By marketing its products as one that brings enjoyment and enhancement to one’s life, Ben. Q emphasizes on the emotional aspect of the product. By sponsoring UEFA 2004 and other promotional events and social activities, Ben. Q is increasing its brand awareness. Brand associations are created by their company’s environmental and education concern.
Branding • Global Marketing • The globalization of today’s marketplace forces a marketer to formulate marketing strategies across countries. • Ben. Q decided to boost its marketing campaign in the highly demanding European market. • What are the differences between a standard marketing campaign versus a global campaign?
