Brands Across
borders - advertising foreign brands in Asia
by
David Kilburn
Marshall McLuhan was right:
the world is a global village. Foreign brands are successfully establishing
their own awareness and consumer image throughout Asia. As a result, multinationals
are mastering a delicate partnershipglobal branding married to local sensibilities.
"The big idea must travel, but
that doesnt mean the execution has to be the same," explains Grace Atkinson,
deputy regional director, Asia/Pacific, J. Walter Thompson. "Our job is
to make sure the brand is intact." Its a sentiment agency professionals
share. "We arent trying to build a brand image so much as maintain it,"
agrees Larry Rinaldi, a management partner at Ogilvy & Mather in charge
of IBM for its Asia/Pacific division. "People in China recognized the brand
name. They knew it was big and international." Unilevers Lux, a mobile
brand like CocaCola and Levis, enjoys the same recognition. "Lux has a
tremendous reputation in China and Vietnam and developed this well before
our marketing began," says Howard Belton, managing director, detergents
at Nippon Lever in Tokyo.
In fact, getting three factors
rightimagery, relevance and innovationcan translate into an advertising
and sales bonanza abroad. For example, when J. Walter Thompson used American
stars, including Demi Moore, Liv Tyler and Brooke Shields in advertising,
Lux successfully extended its product range in Asia. The ads star appeal
proved universal, although the product range differed in each country:
In Indonesia, Lux is a soap; in China, Taiwan and the Philippines, its
a shampoo; in Japan, its everything from soaps to shampoos.
And variety pays. Dentsu reports
that Luxs media spending in Japan last year was nearly $27 million, but
since Japan represents 61 percent of Asia/Pacific ad spending, sources
estimate total ad spending there to be at least $40 million.
Conversely, a technology company
like IBM capitalizes on a products relevance to further marketing opportunities.
Says O&Ms Rinaldi, "The key is to make sure what you articulate in
advertising is relevant to the technical maturity of the market. Similar
images trigger different responses in different countries."
A memorable IBM spot created
for Japan is a case in point. It shows two kimono-clad women in Kyoto,
Japans ancient capital, talking about information technology. In Japan,
a kimono evokes a world of traditional values and ideas that have staying
power. A customer leaves and the owner performs her calculations on an
abacus, another symbol of stability. The second leg of the campaign, which
starts this year, will focus on IBM solutions and will be tailored to each
market, say industry sources. They report that IBM spent a total of $115
million in Asia/Pacific in 1996. Of that total, roughly 50 percent was
earmarked for brand advertising. The rest helped sell a range of IBM products.
Like IBM, Timotei shampoo, a
Unilever brand, has also tailored ads to distinct markets. In Japan, Timoteis
advertising, based on images of a blond girl washing her hair and a market
position as a shampoo that offers superior mildness, proved successful
when the brand launched in 1985. But in Taiwan, the ads ran into problems.
Raven-haired Taiwanese girls found it hard to relate to blondes. Some even
wondered if Timotei would change the color of their hair. For a time, the
campaign was changed to feature black hair.
"Its a balance of global strategies
with local sensitivity," says Atkinson. De Beers diamonds packaged diamonds
as the gift of love. But the campaigns images drew negative reactions
in China and Korea, she says, so JWT decided to use local love stories.
"There is no such thing as a brand that cannot travel across borders."
Given this, Ogilvys first global
campaign for IBM, in 1995, used different TV spots to unify the brands
global image. It allowed each country to tailor the campaign, while maintaining
a consistent approach. Still, sales is a two-trick pony. First, perfect
the image, second, master the art of innovation. For instance, as living
standards have risen across Asia, so has an interest in personal care.
From 1994 to 1996, the value of the total hair-care market in Thailand
alone jumped from $247 million to $310 million!
Thailand is crucial for Western
marketers because it influences the tastes of its less-developed neighbors:
Vietnam, Cambodia, Laos and Myanmar. "Recently, weve made a major effort
in Southeast Asia to launch Organics shampoo. The technology and packaging
were developed in France, but Thailand launched the brand first in 1993.
Today, its marketed in Taiwan, the Philippines, Indonesia, Korea, Australia,
Japan, New Zealand, Malaysia, Singapore and China," says Nippon Levers
Belton. "It carries the same name and packaging, though the contents vary.
We need to deliver the same benefit to consumers in markets where there
are differences in hair quality."
Constant innovation is also
at the core of IBMs technology marketing. Here, too, an international
reputation can help, especially in Japan, where IBM has strong rivals.
"Reliability and quality are hugely important in Japan, and IBM scores
well in these areas," says Rinaldi. Moreover, innovation can change the
rules of the marketplace. In 1987, when Kao Corp. launched Attack, a compact
detergent, consumers switched rapidly, making Kao the market leader with
a 52 percent share. Ten years later, Kao still dominates the market with
a 40 percent share. In Beltons view, the biggest gains, despite the risks,
occur when a marketer suggests radical cultural change.
Consider the case of Domesto
in Japan. The concept of Domesto is that it cleans and kills germs. The
emphasis in Japan is more on cleaning than germ killing. In building the
brand, Nippon Lever spent 10 frustrating years on hygiene education. "The
idea that germs could remain even if something looked clean had little
impact," says Belton. All that changed in 1996 when a nationwide food poisoning
epidemic caused by poor hygiene made thousands ill. During the epidemic,
people remembered Domesto was advertised as killing hidden germs. The end
result: Sales doubled.
"The role of communicators has
become more complex," adds Marcio Moreira, McCann-Erickson Worldwides
Asia/Pacific regional director and chief creative officer. "The need to
communicate a cohesive central idea about a brand is bigger than ever."
Enter relevancy, another key element in successful advertising, and a lesson
IBM has taken to heart. "Its a combination of branding, the level of product
advertising and how its coordinated," says Rinaldi.
"Consumer needs are amazingly
similar market to market," Atkinson concludes. "The challenge for the agency
is to touch people with a message." |