Managing Brands in Challenging Times Dr. Royce Yuen Visiting Associate Professor, HKU Chairman, Ogilvy Hong Kong Chairman, HK4As

Value of Brand is widely recognized

In mid-2002, the stock market value of Coca-Cola was US$ 136 billion Yet the book value was only US$ 10.5 billion Estimated value of Coca-Cola brand name was US$ 70 billion, well over half of its intangible value

Yet building brand has never been more challenging !

Two Major Factors

"Ordinary people can spread good and bad information about brands faster than marketers." Ray Johnson

This is particularly true in the Internet Age

Words of mouth becomes words of mouse

Kryptonite The “unbreakable bonds”

The hit that affects the world

“A brand is more than a logo. A brand is a promise.” - Mike Holland

The trust is gone !

As a result … Consumers are becoming more skeptical

How can brands win back the heart of consumers ?

Hint Number One Under promise, over deliver

Hint Number Two Do what matters to consumers, not you Focus on consumer insight

Case - Acuvue

Hint Number Three Manage all the stakeholders

AuthorizersBusiness partners External influencers Customers Government Regulators Board of Directors Professional societies Shareholders Demographics Market segments Geography High value Mass Employees Unions Suppliers Distributors Service providers Activist groups Journalists Experts Analysts Community groups The Stakeholder Universe

Hint Number Four Take prompt and decisive action

Hint Number Five Respect the local culture

And be sensitive about “how you say it”

Hint Number Six Be sensitive to political implications

The Marco Polo Bridge (luguoqiao) Incident marked the beginning of the Sino-Japanese War (1937 – 1945)

What is acceptable in one country may not be acceptable in another country What may be humourous can be seen as an offense

Hint Number Seven It’s not only what you do, it’s also what you don’t do

Hint Number Eight Don’t try to please everybody You will end up pleasing nobody

The World Car that drops out from the world

Be relevant Cowboy is COOL ! Hint Number Nine

Be relevant Well … may be !

Be relevant

Hint Number Ten Social value of brand Are brands good for business, bad for society ?

Being socially responsible is different from being a passive donor

CSR has to tie in with the role that the brand plays in society

First coverage - out 8th Jan - Closer Magazine (wkly)

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