Top 10 Business Brands in China (Part 1)

Managers are the group with the most say over the brand. As individuals, they consume brands; on behalf of companies, they consume brands; as managers, they are also branding their products and services. At the same time, they are also confused about the brand. In the Chinese market crowded with billions of brands, only one in a million can stand out. Today, it has become common sense that brands have great value, but how to create brand value is still a myth.

Among the products and services most frequently consumed by Chinese managers, which brands do they admire the most? How do the brands most admired by managers shape, manage, and translate brand value into sales? The answers to these two questions can help Chinese managers understand the long-term and meticulous efforts needed to create brand value.

In order to answer these two questions, "CEConline" magazine conducted a questionnaire survey of "China's Top Ten Business Brands" (see the sub-column: "Survey Method and Survey Objects"), and based on the survey results as the sole basis, According to brand advocacy, brand leadership and brand importance, the "Top Ten Chinese Business Brands" (as shown in the table on the right) were selected, and an exclusive interview was conducted on the management experience of these brands.

Nokia: Brands are a platform for sales

For Colin Giles, senior vice president of Nokia, and Xueliang Chen, marketing director of Nokia Mobile Phones Greater China, the CEConline survey results are in They were expected. Colin Zhao was particularly confident when he talked about this in early 2005, because "2004 was the best year in Nokia's history in China." In 2004, Nokia reversed course in China, successfully turning brand value into sales.

CEConlines: In our survey, when managers were asked to choose their most admired mobile phone brand, 47.5% chose Nokia, 18.1% Samsung and 13.8% Motorola. We were a little surprised by the gap between Nokia and the second and third places. What factors do you think made Nokia such a high brand recognition?

Zhao Kelin: Managers are more concerned about quality. They are more brand-conscious. They can usually afford our "brand premium". So in this particular group, we have a high brand identity. In fact, according to the surveys we have, Nokia is the most loved brand across all demographics and market segments.

"CEConline": How do you do your own survey?

Chen Xueliang: It is a year-round follow-up survey. We will get a report every month, and a quarterly report will be more detailed. There are many indicators such as awareness, first mention rate, purchase desire and so on. The survey was conducted on the streets by means of questionnaires, and a third-party survey company did it. This allows us to know our own situation at all times. A brand can be compared to a person, how his health is and needs constant attention. Although we are the No. 1 brand in China, what is our leading position in different regions? It is clear that our advantages are not the same everywhere. In some places, our foundation was not so good in the past, and we need to work harder.

"CEConline": How is Nokia's brand identity reflected in sales performance?

Zhao Kelin: This is a very good question, because a few years ago, it was not reflected in sales performance. We especially lost out to our local Chinese competitors who executed better on sales. It was only last year that we discovered our ability to execute better in sales and translate brand preference into sales performance. Execution I'm talking about includes solid distribution channels, excellent retail management, and excellent promotions during peak periods such as Chinese New Year, May Day, and National Day.

Based on all market research, including those conducted by third parties, we were No. 1 every month last year. So it's very clear: the brand is the platform on which our sales are executed. Globally, brands are the cornerstone of our success. We have three main characteristics: product, demand and supply chain, and brand. So it's no surprise that we're successful in China when we execute our local sales.

"CEConline": We learned that Nokia's mobile phones are divided into 8 series, and more than one series is aimed at business people.

Zhao Kelin: Business people are the most loyal supporters of our brand. When we launched mobile phones about 15 years ago, it was basically business people who bought mobile phones. We know this demographic quite well, and they are the most demanding and experienced customers. We have a very close relationship with this group of customers. Maybe that's why we have more than one segment targeting them, I think you're talking about the personal communicator line, the fashion pioneer line and the ultimate classic line. All of these categories include business people, and business people may also appear in other series, because we are entering the era of more than one phone per person. Recently we've changed the segment a little bit and started focusing on some new categories like multimedia products, enterprise products, both of which include business users.

CEConline: It seems that until recently, Nokia prioritized quality over design. What do you think is the most important factor in building a mobile phone brand?

Zhao Kelin: If we look back on history, Nokia's brand represents three aspects: quality, design and user interface. We have the easiest and easiest user interface. What is the reason for doing this? How is it managed operationally?

To a certain extent, I still think we are the boss in these three areas. It is true that before the fourth quarter of last year, our products lacked some design elements that were especially loved by Chinese consumers, especially we did not have the foldable phones that Chinese consumers loved. At the Nokia global level, we realized we had to improve. We have to launch new products. We have to improve design and style.

I don't think Nokia puts quality over design, both are equally important. I think the company has indicated that we were a little behind on design. But since the fourth quarter of last year, we have launched a series of new products, almost without exception, focused on the design, the styles are very charming, and they are selling very well in China. More innovative and more design-focused products will be launched this year. I think the design problem has been solved.

"CEConline": So, Nokia still pays attention to the three aspects of quality, design and user interface?

Zhao Kelin: Yes. If you look at Nokia in terms of product rather than emotion, these three aspects are our brand identity.

The CEConline: We're about to ask emotional questions. Tapio Hedman, head of Nokia's global brand, once said that "some young people may find Nokia too popular and too mediocre". What image do you expect consumers, especially business people, to think of when they mention Nokia?

Zhao Kelin: In the past few years, we have broadened our product line and found that we need to communicate the brand with different segments of the population. It's a challenge, especially if you're communicating specific information to one of these groups. We are working on it. The youth group is an important target of our efforts.

We have always been a human company, the closest company to consumers. You think, after all, the mobile phone is something you have to hold in your hand for a long time in a day, and you have to stick it on your face. Therefore, it is very beneficial to make you feel that you have a personal connection with it. I believe we are also innovative companies. We want to be fun and find something fun in our brand. Then, we included the key elements that a mobile phone should have, such as convenience (convenience), freedom (freedom).

You know, we have some slogans we've used over the years, Connecting People is one of them, that sums up our business of connecting people. Human Technology is also one of them, and its Chinese translation ("Technology is people-oriented") is much better than English. Our products come more from the "people" aspect than the "technological" aspect. We like to think of us as companies that design products with consumers in mind.

From a business consumer's perspective, they want a credible, reliable company. This may make the quality factor one of the reasons why they love our brand. They want products that have a history of success and have proven themselves to be reliable over the years. I believe this is the connection between us and business users.

"CEConline": In brand management, what are the things that Nokia has done best? What are the things that are not good enough?

Zhao Kelin: Especially in China, brand management is quite complicated. There are too many elements in brand marketing and too many touch points with consumers. In terms of advertising, there are TV ads, magazine ads, newspaper ads, and radio. You walk into the store and you meet and communicate with salespeople. We use all of these elements extensively, and for the most part we do well. We have a very good tradition in China, so we have a very strong emotional connection with consumers, whether they buy our products or watch our TV commercials. An example that I would very much like to give is the TV commercial for the Chinese New Year last year, which was very touching. Many of our products are featured in the ad, but the focus is on Connecting People. I think the Spring Festival and Nokia products have something in common, that is, Connecting People. I think we're pretty good at these things.

I mentioned that our past efforts to turn brand preference into sales performance have greatly improved. We intend to take it to the next level by providing high-quality service that allows customers at the point of sale to enjoy the brand expectations they have with our brands.

"CEConline": Is there any difference between brand management in China and other parts of the world?

Zhao Kelin: I just mentioned "people-oriented technology", which is our main development for the Asian region , especially effective in China. This is one aspect of our adjustment: changing the positioning of our brand for the Asian market, which has been very well received. Maybe some of my European colleagues don't agree with this, but I think 'Technology for people' sums up our brand well.

In China, the biggest challenge is that it is too big, with too many cities and crowds at different levels. The biggest challenge is how to create a brand or a message to communicate with so many different people. Recently we changed our approach to deliver different messages in different regions of China.

In first-tier cities, including Beijing, Shanghai, Guangzhou, and perhaps Shenzhen, as well as some second-tier cities, we promote higher-end products and use a higher-end marketing plan that focuses on the brand personality rather than the product itself. We may use marketing programmes from overseas, including direct use of marketing materials from Europe or the rest of Asia Pacific. For the third- and fourth-tier cities, we promote some basic products that are not too expensive, and the marketing is more localized and focused on products, and more functions and discounts are introduced. That's special in China, we don't do that anywhere else in the world.

Chen Xueliang: I believe that your managers are read more in first- and second-tier cities. In these places our brand strength is quite strong. And in these cities we put more emphasis on high-end phones. Managers have a high frequency of surfing the Internet and are highly sensitive to external information. Therefore, these products have been released months before they go on sale, and these consumers know that these products are coming sooner than the average consumer. In big cities, our newspapers, magazines, and outdoor advertising are more comprehensive. We will also put it on elevator screens in A-grade office buildings, and we are one of the first companies to use this medium. The earliest when we were on the 6280, we thought that a product like this would be more effective for white-collar workers, and the advertising effect was very good.

CEConline: Has there been any big change in Nokia's brand management recently?

Colin Zhao: The biggest and most exciting change is that we hired Keith Pardy to run our brand globally , before he worked in brand management for The Coca-Cola Company. I expect him to bring in the knowledge and experience of a company like Coca-Cola, which is quite successful in brand management, to help us solve the following problems: How to use a brand to reach many target market segments? How to keep the brand innovative, interesting and human Elements?

We cannot underestimate the power of brands. Branding is an important part of the sales and marketing mix, an essential element of the business that drives it forward in good years and bad. We are entering a good year this year and branding will be one of the key elements of our success.

CEConline: How would you like consumers to differentiate Nokia from its competitors?

Kelin Zhao: We are a consumer-oriented company that creates innovative, high-quality products.

"CEConline": When consumers compare Nokia mobile phones with other mobile phones, do you want them to say that Nokia mobile phones are more beautiful in style, more innovative in technology, or better in quality?

Colin Zhao: Yes Nokia's expectation is that we do everything that is said above. Consumers have higher expectations of Nokia than other brands. The size and scale of our organization enables us to do all of this. We don't need to focus on just one aspect. This is the benefit of Nokia as a market leader with over 30% of the global market share.

McKinsey: Brand is Everyone's Responsibility

The management consulting industry is developing rapidly in China. Not only are international giants entering China one after another, but also local consulting companies are sprouting up like mushrooms after a rain. However, the survey results tell us that although local public opinion once questioned the implementation effect of McKinsey's cases in China (such as Shida Computer, China Unicom, etc.) behind. Except for McKinsey, the brand advocacy of all consulting companies is under "indifferent/can't choose", and none of them can break through the siege of many different brands in the consulting industry. At the same time, we regret to see that very few local consulting firms have a certain level of brand recognition.

Why can McKinsey be self-reliant? Ogden, chairman and president of McKinsey & Company Greater China, revealed that at McKinsey, no one is in charge of brand management, and brand management is everyone's responsibility.

"CEConline": When McKinsey first entered the Chinese market, how did it gain the recognition of local clients?

O'Golden: As a global company, McKinsey has experienced experience when entering every new market. The challenge of building awareness locally is the same in China. We've come a long way to get people to understand what McKinsey is. First, it is necessary to take the initiative to go out and visit clients, and let the senior managers of those local companies understand the work of McKinsey and the value we can provide; then, use various publications to communicate and express as much as possible the views of various aspects of McKinsey, such as "McKinsey Top Management Series", management books published by consultants, articles published in the media, etc. In addition, the key is to be very good at listening in the communication with the customer, to increase the knowledge and familiarity of the local situation, in order to research the specific solution for the specific local customer. Through a series of efforts, the Chinese market began to gradually understand McKinsey, maybe they still do not know how we do things, but they do know what we are doing.

I remember McKinsey's first client in China, a multinational company, chose us because it had worked with McKinsey in other countries. Then we started working with its joint venture in China. During this process, some Chinese entrepreneurs have the opportunity to get a close look at the effect and influence of McKinsey's consulting. At present, only 1/3 of our customer structure are multinational companies, and 2/3 are local Chinese companies.

"CEConline": When you communicate with local clients, how do you express McKinsey's brand values and brand culture to them?

O'Golden: Although McKinsey was incorporated in the United States in the 1920s , but now its most prominent positioning is "global integration". The way we think, and the way we serve our customers, is globally integrated. To do business in China is to bring international experience to China to help local companies transform their business and improve their performance.

For our clients, McKinsey is both global and local. That is to say, we not only understand the local situation, but also have global experience, we will flexibly adopt different methods according to different enterprises to achieve different impacts. We want McKinsey in our clients' minds to mean partnership, long-term impact, trust, and commitment.

"CEConline": When the brand does not have a strong reputation and influence, what is the biggest challenge between McKinsey and Chinese clients?

O'Golden: The biggest challenge is how to build trust between them . That is, how to get clients to trust that a project will have the most effective impact in the time we promise it. You know, McKinsey charges a lot for consulting services, so convincing clients to make such a large investment is only possible if we promise to see results very quickly. Therefore, we usually break through a small part at the beginning, and gain some significant and visible effects in the short term, which will help improve the trust of customers, and then continue to the next step of cooperation.

"CEConline": Does McKinsey have its own dedicated brand or market leader?

O'Gordon: As a professional consulting firm, McKinsey's brand management is a very critical job, but it is closely related to many Depending on the company, we do not have a dedicated "Chief Marketing Officer" position or so-called marketing department. All directors, partners and management of the company have such responsibilities, so as the president of Greater China, brand management is obviously my ultimate responsibility. In fact, at McKinsey, the establishment and maintenance of the brand image requires everyone to pay.

CEConline: What channels do you use to promote your brand?

O'Golden: The most common practice is one-on-one interviews. McKinsey serves some leading companies in China. Our consultants will take the initiative to come to the company to talk face-to-face with the leadership and explain how McKinsey serves clients and makes an impact. This not only deepens their understanding of McKinsey consultants, but also deepens their understanding of the McKinsey brand.

Of course, we also need to create wider publicity in the business community, so that more people can understand McKinsey's philosophy and the industry standards that McKinsey represents. In the past 10 years, we have been talking about various management topics through the media and publications, such as how to run a business, how to manage the performance of employees, how to increase sales, strategies in various industries, and so on. At present, as far as I know, the readers of "McKinsey Top Management Series" have reached 10,000, and the readers are mainly senior managers of various industries and companies. And the online version has more readers, which also expands the brand's reach.

Another very important channel is public speaking. It brings opportunities for communication in public, and can interact with the audience to discuss various ideas of McKinsey in the industry. We want McKinsey to be known for what it is and for the impact it can bring to business. Speeches can also introduce McKinsey's consultants to more people. We have very good partners in China, and they are more well-known in the industry through speeches. McKinsey is engaged in a "people" business, and people are the most important, so the establishment of the consultant's personal brand is also very important to McKinsey's brand promotion.

CEConline: How many public speaking events do you attend each year?

O'Golden: Personally, about once every six weeks. But you know, many of my colleagues are also active in various forums and seminars at the same time, so overall it's fairly frequent.

"CEConline": In the process of dealing with clients, McKinsey's consultants can be said to be the spokesperson of the brand. How do you build a common brand awareness among your internal staff?

O'Golden: McKinsey people come from all over the world and are a diverse mix. We don't want to standardize all staff because they have different backgrounds and knowledge structures. . But they do have a "McKinsey way", and when they start working, people will recognize it as a McKinsey. That refers to the way you communicate with customers, the way you learn, the way you solve problems, and so on. These are the tools McKinsey teaches its employees, and in the process of using them, they gradually develop a common trait that becomes integrated into their personalities.

The most important thing in building this shared brand awareness is for employees and senior colleagues to work together and learn by example and example the values and principles of McKinsey: how McKinsey people work and why we work. At the same time, we have arranged many global training programs, where employees from 20 or 30 countries gather to share their views and experiences, and jointly cultivate a sense of identity with the McKinsey brand.

In addition to these, we also create formal occasions to emphasize brand values. For example, every year McKinsey has a "Value,s Day". On this day, instead of visiting clients, everyone discussed values and culture together, and put forward some case studies, such as how to reflect McKinsey's brand value in an appropriate manner on special occasions. In our view, McKinsey's values, culture and brand are combined into a whole.

"CEConline": Some people think that compared with Western companies, Chinese companies are more affected by brand factors when choosing consulting companies. Do you agree?

O'Golden: Not really, I think Chinese clients are actually much more mature than they think. They always want to get to know us better. The benefit of having a high brand awareness is that it creates an opportunity for us to more easily reach out to leading local customers. However, when it comes to specific project discussions, it is still necessary to have suitable people and correct methods to provide effective services.

So, look at the impact of the brand from two different stages. When building a relationship in the first stage, brand awareness is very important; but in the second stage, the quality of the service provided is even more critical, which is also the real content behind the brand.

"CEConline": For some reasons, McKinsey and Chinese clients have also experienced some controversial project cooperation, are you worried that this will affect McKinsey's brand reputation, how to make this possible impact drop to lowest?

O'Golden: Every project and every client McKinsey attaches great importance to, because every cooperation will have an impact on the brand reputation. It must be seen that a very important prerequisite for a successful collaboration is that both we and the client's senior management are confident that the desired results will be produced within the expected time frame. Once we've identified the best way to benefit our clients, we won't compromise.

Hard conversations are inevitable in the process of agreeing with clients, as McKinsey's recommendations often include "changes," sometimes significant changes that some managers are reluctant to embrace. Therefore, based on past experience, explaining "why change is needed" and allowing management to truly accept our conclusions have become an increasingly important part of project communication.

As we continue to build our reputation in the Chinese market through project execution, we have also learned to invest more time in researching the scope and expected effects of projects before we start working with new clients to ensure that we are fully satisfied with each other consensus. At present, our work is more about forming a "virtuous circle" of constantly strengthening brand together with the old customers we have cooperated with. Practice has proved that improving communication can increase mutual trust and respect, and our reputation is also derived from this.