China's top ten business brands (middle)

In the March issue of "CEConline", we conducted an exclusive interview on the brand management experience of Nokia mobile phones, McKinsey & Company and IBM notebook computers among the "Top 10 Chinese Business Brands". In this issue, we present the brand management experience of BMW, Guanghua School of Management of Peking University, Sony digital cameras and Rolex watches.

BMW: Brand is to meet customer needs

The survey of "CEConline" once again confirmed BMW's excellent brand value, despite the negative impact of the "BMW Crash Case", "Donkey Pulling BMW Case" and so on. In the minds of managers, BMW still holds the No. 1 position in the car brand, with a 70% brand lead over its second-place competitor.

We also see that in China, BMW's sales performance and brand value are not harmonious in terms of driving speed: last year, BMW's Asian market increased by 2.6%, while the Chinese market was the only market with a decline in performance, compared with the same period last year. down 10.2%. Dr. Christoph Stark, the former senior executive of Mercedes-Benz, has been the president and CEO of BMW Greater China since last year, and is responsible for making Greater China the largest market for BMW in Asia.

The new executive who just switched from Mercedes-Benz to BMW believes that the meaning of the brand is to meet the needs of customers. On this basis, to achieve better sales performance.

"CEConline": How do you understand the brand of the product?

Stenko: On the one hand, brands classify products. Brands, on the other hand, represent not only the product, but also the company that makes the product, the market in which the product is sold, and so on. But that's just the face of the brand.

For us, the value of our brand increases if the branding of our products meets the needs of our customers. In other words, our brand is about meeting the needs of our customers. This is our brand's promise to our customers. Our commitment is reflected in quality, technology, performance, driving pleasure and more.

There are two ways to meet customer needs: objective and subjective. The objective represents the technical aspect; the subjective aspect is to affect the enthusiasm of consumers. Attracting customers is generally a combination of multiple subjective factors, such as attracting customers through appearance. Customers will recognize us as a top car brand only when every aspect of our product is excellent.

BMW is not only a premium brand, but a leader in premium. Advanced technology, performance, innovation, etc., are reflected in each generation of products. BMW always feels superior, always top-of-the-line, always state-of-the-art. Most of our buyers have a strong drive towards themselves and often buy our cars to show their success.

"CEConline": BMW's very important marketing experience is "brand globalization, marketing localization." For Chinese consumer groups, how does the company's "marketing localization" reflect?

Stenke: The entire marketing plan should be a process of combining international standards with domestic characteristics. Products, policy publicity, company image, etc. are all international standards. However, the planning of activities and the promotion of products have domestic characteristics.

As far as the product itself is concerned, the whole world is the same, the same standard, the same technology, the same quality. The only difference is that because consumers have different preferences, the color of the car will change. We will make some changes to the product according to the characteristics of each market to meet the special needs. For example, in the Chinese market, white and silver are more popular than black, so there is no need for us to produce black cars. Consumers expect the 7-series to be spacious, and 100% of the 7-series we introduced in China are long. Customers love leather seats, so we use them all and strongly increase the comfort and entertainment in the car. By improving these hardware and software, we bring our products closer to the market.

CEConline: What is the most important factor in BMW's branding process? Product design, performance, or something else?

Stenko: That's a tough question to answer. The core of the product contains many aspects, and each aspect cannot function alone. If the product is well designed but lacks a good engine, people will say, "Oh it looks good, but it doesn't drive well"; if there is a great engine but the design is not good, people say, "Oh, it's It's comfortable to drive, but I don't want to be a clean car driver." All aspects need to be combined, and design and performance are all important. That's why there are different departments in a company, and while each department emphasizes its importance, none of them actually work alone. Our success is also the result of excellent performance in each department.

"CEConline": You mentioned just now that the market competition is very fierce, and our survey results show that BMW has a 70% brand lead over its competitors in the competition. What do you see as an advantage over rival BMW brands?

Stenke: An important competitiveness is that we have been pursuing the advance in design and technology, thinking of the front of consumers. Put the best technology and design in front of consumers first.

The second is that the company knows where its strengths are and where its professional strengths will be reflected. In the 1980s and 1990s, many large companies began to expand their business, involving many other areas of business, but now these companies are focusing their development direction on the central business. And BMW has been concentrating its resources on premium cars for many years.

The third point is that BMW is a highly unified company, and everyone works hard for the company's goals. While the company is large, everyone is heading in the same direction.

"CEConline": You just mentioned that always sticking to the high-end line is a major feature of BMW. In September last year, the BMW 1 Series was launched in Europe, and there is news that SUV models will be launched in 2007 and 2008. Do you think this strategic move will have a certain impact on the high-end positioning of the BMW brand?

Stenko: It was a natural strategic choice. If you look back 20 years, when I took my driver's license, there were only two BMWs in the world. When the market changes, it is necessary to follow the changes of the market. Maybe the 1 series won't be successful 20 years ago, and it won't be 10 years ago. But now more and more young single aristocrats are willing to drive this kind of car, they like the design of this kind of car. Companies are obliged to develop such products to meet their needs. BMW's high-end brand family has not been diluted by the appearance of the 1 Series, which will be very successful in 2005.

"CEConline": Will 1 Series be introduced to China?

Stenko: It depends on how the market develops and our market strategy. We are closely following market conditions. The launch of the Mini Cooper can be said to be very popular. This is also important for the 1 Series. We want to be a market, but first the market has to exist. We will pick the right time.

"CEConline": What is the expansion goal of the BMW brand in the Chinese market? Where is the difficulty?

Stenke: Our goal is to take root in China and become a market leader. BMW is currently the No.1 premium car manufacturer in the world, and we want to make it the No.1 premium car manufacturer in China.

The difficulty is that the Chinese market is complex and highly competitive. Moreover, our time in China is relatively short. Our factory is only two years old. It is a big challenge to learn and grow in a new market, but also to grow rapidly and reflect our competitive advantages. The most important thing is to make the right decision at the right time.

In addition, a good cooperative relationship with the government is also very important for the company to achieve long-term development.

"CEConline": Not long ago, there were some negative reports about BMW's "lottery case", "hitting people" and "donkey pulling a BMW". Did these negative reports have an impact on BMW's brand?

Stenko: There are some downsides. But our company wasn't in it, and we didn't support them in doing so. Our company has always been law-abiding and abiding by the social code of ethics for more than 80 years. It happened like I picked up a Coke can and smashed someone, and the Coca-Cola Company got involved. As a company, support the society to take action, such as through some educational means, to avoid or prevent similar incidents from happening in the future.

From the service itself, with the complexity of the product, the difficulty of the service is also increasing. Some problems are not easy to solve. We will provide a variety of solutions. But on the other hand, from the customer's point of view, we must also understand and cooperate with us. The customer relationship in China is more complex and requires a more mature relationship between customers and companies. Companies, suppliers, service providers, customers, etc. all need a mature process.

Kong Ande (Chief Representative of BMW Beijing Representative Office): The "Donkey Pulling a BMW Case" and the "BMW Lottery Case" are two completely different events. Generally, customers in foreign countries will contact the agent directly if they have problems, but this is not the case in China. If Chinese customers think that the product has some serious problems, they often go to the media instead of solving the problem through consumer complaint channels or legal channels.

"CEConline": As of the end of October last year, BMW's sales growth was 11%, the same period the growth rate of domestic cars was 22%. How do you think slower relative growth is related to higher brand recognition?

Stenko: First of all, the overall trend of the car market in 2004 was rising, but there were also many turbulent factors, such as the overall price decline in 2004. Most of them do well because of the introduction of new models.

Second, although the entire market is developing upwards, according to national statistics, the luxury car market is still shrinking. Under these two premises, we still have growth in the miniature high-end market, and we have also increased market share in the high-end market. From this perspective, we are still a brand that can be more accepted by customers. By the end of last year, our market share in the high-end market reached 20%.

Peking University Guanghua: Brand comes from high quality

In China, China Europe International Business School, Guanghua School of Management of Peking University and School of Economics and Management of Tsinghua University are all top business schools, but because of different survey standards The rankings are different. Our survey results show that among the domestic business schools, the most popular brand among managers is Peking University Guanghua School of Management. According to Professor Li Yining, Dean of the Guanghua School of Management at Peking University, for business schools, the brand must be shaped from four aspects: students, teachers, scientific research and service.

"CEConline": We know that Guanghua School of Management was formerly known as the School of Business Administration of Peking University. Since the establishment of the School of Business Administration in 1993, as the dean, what is the ideal positioning of the School of Management in your mind?

Li Yining: Guanghua's positioning: to be the first university in China, and then to be a world-renowned university.

For internationally renowned business schools, we need to learn their good things, and at the same time create our own model. Since 2000, we have put forward the sixteen-character school motto: control scale, improve quality, build brand, and reputation first. The reason for putting the brand in the school motto is to make students and units pay more attention to Guanghua, and to set an example for other business schools.

First of all, the scale should be controlled and not too large. Business schools will dilute resources when they grow in size, mainly teaching resources. In 2000, the national target for Guanghua MBA students was 400, and there were thousands of students on the score line. We only recruited 240 students. The total number of students in the school is now limited to 3,000. In the past two years, we have increased by more than 10 people every year, and only increase the number of students when the teachers can meet the teaching quality.

Secondly, improving the quality is divided into three aspects: improving the quality of teaching, improving the quality of scientific research, and improving the quality of the entire hardware equipment (improving the quality of scientific research services for students). Guanghua teachers can go to other schools to give presentations, but they cannot take part-time classes, because part-time classes are duplication of work. Time is the most precious, and we do not advocate low-level duplication of effort. When recruiting teachers, they are required to be able to teach, to engage in research, and to have practical ability.

The brand is shaped by four aspects: students, teachers, research and service. The best undergraduate students in the country are in Guanghua, and they are all the champions of the college entrance examination in each province. Teacher recruitment must first go through trial lectures and then vote to ensure the quality of teachers. Last year, there were more than 20 teachers taking the test, and finally 8 were selected. One time, 6 people came, and none of them were hired. In terms of scientific research results, we require teachers to publish influential articles internationally. In terms of service, Guanghua's hostess are all trained in etiquette, and they are all our college students and graduate students.

In terms of reputation, it is not easy to make promises, and promises must be done well. For example, when people invite us to hold classes, we do not readily agree, but we must do well when we agree. Don't let money blindfold your eyes. Once the sign is smashed, everything is over.

Now ten years have passed since Guanghua, our goal has not changed, but we have put forward higher requirements: first, to reflect the characteristics of Peking University more, that is, the profound cultural heritage and the intersection of literature and science. Peking University is the big environment of Guanghua, if it is separated from Peking University, there will be no big environment. For example, CEIBS and Yangtze River, although they are doing well, but without the background, the environment will be different. Second, strengthen the construction of Guanghua alumni network. Third, the construction of the case library. This is led by Peking University and is being run by more than 40 schools. It's all about China's own case.

"CEConline": The School of Management has developed in China for so many years, and now there are some well-known business schools in China, such as China Europe International Business School and Tsinghua School of Economics and Management. Do you think Peking University Guanghua is different from other business schools?

Li Yining: Schools of Management all have their own strengths. Guanghua's students are of good quality. For example, CEIBS has no undergraduates, and although there are undergraduates at Tsinghua University, there are not as many champions as us. After all, Tsinghua is a science and engineering background, and its humanistic characteristics are not as good as that of Peking University. Other schools are not bad either. Second, the content of the course is well designed. There are some courses that are interdisciplinary, for example, EDP has a "Management from History" class. Third, the teachers are good.

"CEConline": In order to promote the positioning of Peking University Guanghua, what work have you done?

Li Yining: The positioning of publicity and promotion depends on enrollment. When recruiting students, Guanghua doesn't care about any affection, no matter how big a note is, and the list of admissions is published online. I have a relative who is 0.1 points off and that doesn't work either. And Guanghua's test scores are much higher than the national standards. The second is the Guanghua New Year Forum. Guanghua invites people from outside the school to give lectures every year, and the topics are different every year. In addition, we usually have a lot of forums. For example, today we organize a meeting on health management, and the Deputy Director-General of the Ministry of Health will come; tomorrow we will have a forum on the "third anniversary of China's accession to the WTO", and the Director-General of the WTO will all attend. The activities we do are very professional, and the discussions are all related to the entire Chinese economy and management situation. We rarely advertise, but our ideas are spread through these channels.

"CEConline": Peking University Guanghua has many well-known professors. What role do star professors play in the brand promotion of the business school?

Li Yining: Star professors play a very important role in enhancing the university's brand. But there is a very good professor atmosphere, it is possible to produce star professors. We also have a lot of professors who focus on academic research, maybe they are less involved with the media, but they are very famous in the academic field. It is these professors who are internationally recognized for their academic achievements. Of course, those with academic achievements may also become star professors.

"CEConline": Peking University Guanghua actually includes two brands, Peking University and Guanghua. What is the relationship between these two brands? Has the brand of Peking University played a great role in promoting Guanghua?

Li Yining: Guanghua is the brilliance of Peking University. If you take it out, it will definitely not be as good as it is now, and it will not reflect the characteristics of Peking University: Guanghua emphasizes interdisciplinary exchanges, and many courses are jointly offered with other institutions of Peking University, such as the Department of History. Peking University and Guanghua influence each other, Peking University influences Guanghua, and Guanghua strengthens Peking University. The most well-known of the various departments of Peking University is Guanghua. The ideological achievements of Guanghua College also contributed to Peking University.

"CEConlines": In our survey on managers, the brand of Peking University Guanghua ranked first among business schools. What do you think is the reason why Peking University Guanghua is ranked first among managers?

Li Yining: The evaluation criteria for many rankings are different. Guanghua is the most attractive brand and our influence is the greatest. Come to Guanghua to learn the most useful knowledge and make the friends you want to make the most.

The business school's brand appeals to two kinds of people: those who want to test, and those who want to use it. Like Japan's Panasonic, South Korea's Samsung all send students to us here. They didn't make any demands on us, and they were very happy to be able to enter Guanghua.

Sony:
Differentiation brings brand success

Sony never entered the field of traditional cameras, but developed the world's first digital camera more than 20 years ago. Today Sony has become the most respected digital camera brand by managers. Tadashin Matsushima, general manager of the Consumer Electronics Business Division of Sony (China) Co., Ltd., emphasized that Sony has an important brand characteristic, that is, its strong innovation ability and emphasis on differentiation, which not only refers to the product itself, but also includes marketing strategies, advertising and publicity. , public relations activities, etc., must be differentiated from other brands. This is the key to the brand's success.

"CEConline": The Sony brand has a wide range of products and has achieved good results. Digital cameras are a relatively new product area, what are the selection criteria for Sony's brand extension?

Matsushima Tadanobu: In terms of choosing a product field, Sony is relatively firm in the field of AV (audio and video products), especially entertainment consumer electronic products. This is our consistent strength. Core technology and market experience.

"CEConline": Compared with some brands with traditional advantages in the field of film cameras, such as Nikon and Canon, how did Sony gain consumer recognition when it extended its brand to digital cameras breakthrough?

Tadanobu Matsushima: It's true that Sony hasn't been involved in traditional cameras before, but we foresee the rise of digital technology very early on. One of Sony's very important brand characteristics is that it has a very strong ability to innovate. No matter which product category we enter, we place great emphasis on differentiation, which brings a good reputation and is the key to the success of the brand.

The world's first digital camera was developed by Sony in 1981, but it has been 15 years since we officially launched the Cyber-shot series. During this period, many traditional camera companies also began to study digital technology. In order to recover the research and development costs, some companies put products on the market after one year of development, and then went back to develop after receiving the income. We feel that by doing so, the product quality is not guaranteed, and it will have a very bad impact on the brand. Sony's approach is to actively scrap many products in the process of research and development until we think they are perfect enough to be put on the market.

In the past 15 years, Sony has developed the key technology of CCD imaging, and solved the problems of extending battery life and miniaturizing main components, so that we can take the lead in opening the market for household use.

Another entry point is styling. In the past, cameras, especially professional cameras, were square in shape, which was considered to be more convenient to hold; while Sony's earliest P-series digital cameras were rectangular in shape with an arc on the left half. At that time, there had never been a camera of this shape on the market. Some people once said that it was unprofessional and unaccustomed to it. But once it was put on the market, it was especially popular with consumers because it was fashionable and individual.

Overall, innovations in technology and style compared to traditional camera brands have helped Sony quickly gain recognition in the digital camera field.

"CEConline": In China, the market competition for digital camera products is very fierce. What special brand marketing strategies does Sony adopt?

Tadanobu Matsushima: As far as Sony's brand strategy is concerned, no matter what product it is for, whether it is digital cameras, color TVs, or notebooks, the key to our success is the same, that is, differentiation. This not only refers to the product itself, but also includes marketing strategies, advertising, public relations activities, etc., which must be differentiated from other brands. If it is said that others do well and we follow him to imitate, it will be difficult to succeed.

Another key is consistency. That is to say, all activities and all strategies must be unified under one strategy, and one message, one voice and one caliber should be guaranteed in all marketing activities. If the information delivered on different channels is different, then consumers will be confused and do not know exactly what Sony is. I think, not only the brand marketing of electronic products is like this, but other products, such as cars and houses, must also achieve the consistency of information transmission, otherwise consumers will not trust you. This is determined by the nature of consumers, not by the characteristics of the company.

"CEConline": In such a large company, in such a large market, how can all the messages communicated be consistent?

Matsushima Tadanobu: It's actually very difficult to keep the information sent to the whole company consistent. The most important link is people, because people are most likely to have a sense of trust with each other, and we want to make the voices of employees who have direct contact with customers consistent. Last year, we organized product training for more than 10,000 people, not only telling employees that Sony's products are the best, but also telling them what is good and what can be improved, etc., so that employees truly trust this brand.

In addition, employees themselves are using Sony products, which allows them to have the same experience as customers and gives employees a sense of confidence to convince others. It can be said that Sony is making the best products on the one hand, and on the other hand, it is also cultivating the best people to promote these products.

"CEConline": Many of Sony's product series have their own sub-brands, such as VEGA for color TVs, VAIO for notebooks, and Cyber-shot for digital cameras. But when it comes to digital cameras, consumers don't immediately think of Cyber-shot, but directly reflect the parent brand Sony. How do you think about the cooperation of mother-child brand promotion?

Tadanobu Matsushima: On digital cameras, the font of Cyber-shot is usually small, and under the camera, it is not easy to notice; in the past, in outdoor advertisements and magazine advertisements, Sony was usually in the upper left corner of the page. Cyber-shot is in the lower right corner. However, since last year, the font size of Cyber-shot on the camera has become larger; at the same time, in outdoor advertisements and magazine advertisements, the position has been reversed, with Cyber-shot in the upper left and Sony in the lower right, and the font size is similar.

This is because, last year, we found that many people did not know what Cyber-shot was, so we made such an adjustment, hoping to increase the awareness of the sub-brand. But that doesn't mean it will stay that way in the future. For example, when "Sony" first came to China in 1994, many people didn't know much about it. At that time, the company decided to put the Chinese characters "Sony" and "Sony" together. After doing this for two years, when "Sony" was gradually accepted by the market, the Chinese characters were removed.

Similarly, in the digital camera advertisement, the adjustment of the position of the parent and child brands is also a phased action. We also revert to the original order after a particular promotion is over. Because Sony is the largest parent brand covering all products, it means brand image and brand assurance; while Cyber-shot is just a description of a product line. Therefore, Sony first priority, Cyber-shot second priority, this brand communication sequence is the same principle. Exceptions will be made unless it is to launch some strategically important new products, or to reposition the sub-brand, and put the promotion of the sub-brand first.

CEConline: As far as digital camera products are concerned, what is the most effective brand communication channel for Sony in the Chinese market?

Zhongxin Matsushima: In terms of brand communication channels, we usually use high-end magazines and TV media, but the most distinctive thing is that Sony provides a lot of experience opportunities. For example, in department stores, IT hypermarkets, or large electrical appliance malls such as Gome and Yongle, we work with dealers to create an experience venue for Sony digital cameras. This is great for brand communication, conveying the functional and ideological advantages of the brand.

In addition, according to the market information we have obtained, 20%-30% of customers will seek the opinions of their friends and family before purchasing a digital camera, so a large part of the expansion of the market comes from this kind of word of mouth, from the already purchased digital camera. affirmed by consumers of Sony products. So Sony attaches great importance to after-sales service, so that customers who have already purchased products are more satisfied, and he will tell more people. Service has actually become a market behavior, and it is also very important to our brand promotion.

Rolex: Five Elements of Brand Strategy

About 80% of the world's timepieces are made in China. But they are worth less than 10% of global sales. Switzerland only makes 5% of the world's timepieces, but its value exceeds 50% of the world's. These simple figures speak volumes about the unquestionable value of brands.

Switzerland is home to famous watch brands, of which Rolex is the most famous. The Swiss luxury watch maker, which will celebrate its centennial in 2005, sells 650,000 to 800,000 watches a year, with total sales exceeding $3 billion.

So, what is Rolex's brand strategy to conquer the world?

Know your target customers. Everything starts with a clear target customer. Analysts from the zero-point survey believe: "The success of Swiss watches lies in their grasp of the market, but Chinese companies do not understand their target customers."

A company needs to understand how its brand meets the deep psychology of customers needs, to meet the desires and dreams of customers. What Rolex does better than most watch brands is to connect with the lifestyles its customers desire. In every aspect of marketing, Rolex has always associated its brand with wealth and the upper echelons of society. For customers who belong to this class, there will be various decorations that show success - such as Rolex watches.

Keep values consistent. Brands come from the consistency of values. It usually takes a certain amount of time for customers to associate those values with the brand and its owner.

All along, in a global context, Rolex has never ceased to reinforce the "success" and "achievement" it stands for. One manifestation of this is his choice of endorsers, which include world champions in sports, esteemed artists and record-breaking explorers. Wearers of Rolex watches exude an air of success and achievement.

Let the product preserve its value. The strongest brands make themselves investments, which means higher premiums. In order to preserve the value of the product, the Rolex company produces watches in limited quantities. Companies have a keen understanding of luxury goods supply and demand -- knowing that if they keep their products scarce, they can affect value, stimulate demand, and facilitate product appreciation.

Rolex's limited-edition Daytona Cosmograph collection, for example, is a cherished collectible. This particular watch is very rare, and the high price reflects its rarity.

Demanding sales channels. Brands, especially luxury brands, are heavily influenced by sales channels. It is a great honor to be an official Rolex dealer.

As an example to illustrate this point, Ross-Simons in the US has served 4 million customers through direct sales through catalogues or websites. The company's marketing executive said it was difficult to get Rolex as a supplier, with only about half of the company's retail stores selling Rolex, and the brand was not in their catalog. On the homepage of the company's website, it is marked: "Real Rolex watches are only available in regular Rolex watch stores".

Do not extend to other areas to avoid brand dilution. Cartier and Montblanc have long extended their brands to different products, while Rolex only makes watches and has never licensed its brand to be used for other purposes.

"Branding is all about focus," said renowned marketing expert Martin Lindstrom. "Focus means a lot of things, but the most important thing is that you focus on a specific group of customers. , clear values and style." When you have different product categories under your brand, it's hard to maintain that concentration.

However, some data show that in 2004, Rolex's sales in the Chinese market can only be ranked second or third, and the first international brand is Omega. Like BMW, Rolex faces the challenge of translating brand value into sales.

China's top ten business brands (middle)

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