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Orient Pacific Century specializes in strategic
The practice of "marketing", which broadened the sales function to take into account previously ignored factors, is based on a set of principles based on scientific research emanating in the USA from the mid 1950's. It has only recently been applied vigorously in the Asian market place, both by Asian companies and multinationals competing in Asian markets. The sub field of "International marketing", an even newer concept, is just beginning to make it's presence felt as an aid to decision making in maximising returns in Asian markets. "Branding" is an even newer field. Ten years ago, market research agencies in Asia were rare, with demand met by international agencies. Part of this was due to the Western approach of most marketing theory, which failed to integrate sales cultures in emerging and culturally diverse markets. Asian business has traditionally relied on guanxi (or family connections), markets were more often than not controlled by governments rather than the free market, and government patronage resulted in favoured organizations tie-ing up consumer markets to the detriment of other companies that could offer better (and cheaper) products. With Western-educated sons returning home, and Asian markets in the great majority of cases freeing up, the practice of effective marketing is becoming increasingly important to business success in Asia. Major differences exist and will continue (see for example other articles from Asia Market Research dot Com), but the application of scientific consumer and industrial marketing techniques are here to stay. This week's selection of free articles from Emerald Intelligence + Full Text demonstrates this growth with articles pertinent to Asia showing a major increase in latter years, while they are few and far between in earlier years indexed by Emerald. Furthermore, the content of the articles mirror also the key topics that concern marketing management today. These are summarised and illustrated by just a few of the full text articles available for this week below: Before delving into the local marketing area, let's mention some of the general marketing articles that nevethless have great import to Asian marketing today: Pamela L. Alreck and Robert B. Settle in Strategies for building consumer brand preference, (Journal of Product and Brand Management; 08: 2 1999; pp. 130-144) reinforce that:
Keywords: Advertising, Brands, Consumer behaviour, Marketing management, Product management, Promotion
Branding is becoming more important in the Asia Pacific market today, with global brands creating severe competition for local brands, and the pace of change in the information age meaning product life cycles are shortening dramatically, especially in product classes such as computers and peripherals, information services, fashion and health care: Andy Haynes, Conway Lackman, and Audrey Guskey, target one of the key musts of effective branding in Comprehensive brand presentation: ensuring consistent brand image (Journal of Product and Brand Management; 08: 4 1999; pp. 286-300). The abstract reads:
Keywords: Brands, Product management, Marketing communications, TQM, Advertising Michael S. McCarthy and Donald G. Norris, in Improving competitive position using branded ingredients (Journal of Product and Brand Management; 08: 4 1999; pp. 267-285)
Keywords: Brands, Brand names, Product management, Brand equity, Competitive advantage, Marketing strategy
Branding services rather than physicial products creates some conceptual problems as "branding", by definition, creates a service out of a physical product! Building a brand for a service requires a full audit of the service brand, and the branding exercise itself ultimately has a much greater effect on product design. The particular case of branding services is taken up by Charles Blankson and Stavros P. Kalafatis, in Issues and challenges in the positioning of service brands: a review,
(Journal of Product and Brand Management; 08: 2 1999; pp. 106-118):
Keywords: Brands, Marketing theory, Positioning, Services marketing One real interest of our readers is the influnce of "brand name" on the brand. A key component of brand, Asian companies often use Western sounding names to increase the prestige or "quality preception" of their brand. Asian consumers may be surprised for instance to find the the retail chain "Giordano" is actually a Hong Kong company. Manufacturing, ownership, and distribution is all based in Hong Kong. The latest brand offering from Boon Rawd Brewery, Thailand's traditional and classic Thai company is the prestige beer "Mitweister". An earlier brand, the well known "Kloster Bier" in Thailand is actually a Thai beer using a European sounding brand name. Such approaches of course are politically in-correct, could be seen as misleading, .. and are (usually) highly succesful. The article, What's in a name? An intracultural investigation of Hispanic and Anglo consumer preferences and the importance of brand name, by Dennis N. Bristow , Jo Ann L. Asquith (Journal of Product and Brand Management; 08: 3 1999; pp. 185-203):-
Keywords: Brands, National culture, Consumer behaviour, Ethnic groups Following on this theme, "country of origin" is also a component of brand. In Orient Pacific Century's brand research involving scores of focus groups we have found that the perception of country of origin has a major influence on, among other things, perceptions of quality, reliability, and cost. Hwei-Chung Chen and Arun Pereira investigate how country-of-origin affects relate to the success of first-mover campaigns in Product entry in international markets: the effect of country-of-origin on first-mover advantage (Journal of Product and Brand Management; 08: 3 1999; pp. 218-231)
Keywords: Country of origin, International marketing, Market entry, Product management
Keywords: Clothing, Consumer marketing, Country of origin, Fashion, Import, USA The importance of country-of-origin information and perceived product quality in Uzbekistan by Osman M. Zain and Norjaya M. Yasin, (International Journal of Retail & Distribution Management; 25: 4 1997; pp. 138-145)
Keywords: Consumer behaviour, Country of origin, Marketing, Perception, Product quality, Uzbekistan Retailing in Asia is going through massive changes, including the entry of international chains such as Carrefours into Asian markets. This followed the Japanese invasion of the rest of Asia of the previous decade led by such names as Yaohan and Isetan. National chains, especially Indonesia ventures such as Hero, are facing severe competition from those with economies of scale as well as the "international brand name" advantage referred to above. Retailing in Asia is a major industry with the increased purchasing power of Asian consumers. Add to this that the major income from international tourism to most Asian countries is in the form of retail purchases, not accomodation or travel related spending as one would expect. Traditionally, Asia's retail advantage was seen as low costs due to low labour costs and rentals. However, fast overhead increases in such places as Singapore, Hong Kong, Malaysia and Thailand means this is no longer a competitive advantage. Consumerism has, and will for some time yet, prove to be an enormous stimulus to national economies. Shopping centers are a great source of pride, in some cases, become the modern equivalent of the kampung for meetings and community activities, and in the abscence of other options, also takes a share of the "entertainment market". The Singapore "shop till you drop" syndrome has permeated many other centres, but there are ominous clouds on the horizon. Singapore's retail sector has seen major difficulties in recent years, with Orchard Road considerably less opulent than it once was. As countries open up to other entertainment and leisure options, shopping is losing it's hold as the major source of entertainment for Asian consumers, and the result is less time in the shop! Lynda Chong saw the emerging problems several years back in Department stores in troubled waters: a Singapore encounter, (International Journal of Retail & Distribution Management; 24: 1 1996; pp. 34-39)...
Keywords: Department stores, Marketing strategy, Shopping, Singapore
Keywords: Asia Pacific Rim, Economic growth, Marketing environment
Quite a few articles this week too focusing on specific country markets. Here is a short selection of the most relevant:
Retailing and the retail space market in Singapore
Singapore's retail landscape has undergone much change since the 1960s as a result of its economic growth and social change. Fuelling the transformation is the Urban Renewal Authority (URA) whose policies have resulted in modern one-stop shopping centres. Today's retail market is highly cosmopolitan, complex and sophisticated with nearly every international brand and retailer found there. However, the retail market has been tough in the last few years owing to problems such as an oversupply of retail space, high labour costs and a tight labour market. Describes strategies adopted by retailers and developers to combat the problems in the industry. Among the strategies adopted by retailers are niche marketing and regionalization. They have also forged strategic alliances with other larger retailers. Developers, on the other hand, have recognized the need to find the right tenant mix as opposed to just securing the highest rents. Less competitive shopping centres have also considered converting their retail space to more sought-after office space. The government continues to steer Singapore's urban development with its policies. The URA's long-range vision is presented in its concept plan. The broad policies of the concept plan have been translated into detailed development guide plans for specific areas.Retailing in Thailand Antony Feeny , Theera Vongpatanasin , Arphaporn Soonsatham International Journal of Retail & Distribution Management; 24: 8 1996; pp. 38-44
Explains that in under 40 years the retailing industry in Thailand has developed from a traditional and backward industry into one that by the turn of the century may be as modern and vibrant as any in the world. However, uneven distribution of economic activity has meant that most of the major developments have taken place in Bangkok which accounts for 50 per cent of gross domestic product, but wealth and retailing activity are now spreading to the rest of the country where more than 80 per cent of the population live. Describes the diversity of Thai retailing. Explains its historical development, and outlines the differences between retailing in provincial Thailand and in Bangkok. Describes the different types of stores now being developed and the recent modernizing trends in the industry. Suggests the likely future trends in retailing over the next few years.Vietnamese distribution channels Bertrand Venard International Journal of Retail & Distribution Management; 24: 4 1996; pp. 29-40
Vietnam has for a long time been ignored by researchers due to the closed nature of the country. Little management research, especially in the marketing field, has been done in this emerging country. Aims, therefore, to describe Vietnamese wholesaling and retailing for consumer products. Distribution channels in Vietnam could be characterized as primitive structures, owing to their level of economic development. The example of Vietnam is interesting because its situation is classical for a less developed country: inadequate transport means; inadequate banking; smuggling; counterfeiting; import restrictions; import taxes; the need to pass through importation companies with little added value to enter the market; the passiveness, even incompetence, of intermediaries; the low income of the population. Therefore, despite huge opportunities in Vietnam, investors should be aware of the unexpected and unstable situations they will have to face, especially in the distribution field. Bases its findings on desk research and face-to-face interviews done by the author during a position as an expatriate in Vietnam, from 1993 to 1994.Hong Kong Retailers:The Relationship between Environment Hostility, Planning and Performance Lisa A. Phillips and Roger Calantone International Journal of Retail & Distribution Management; 22: 8 1994; pp. 13-24
Examines the environment hostility-planning-performance relationship of Hong Kong retailers. A positive relationship is found between environment hostility and the threats encompassed by the existing labour shortage, rising rents, foreign-based competition, the 1997 return to Chinese governance and Hong Kong's relationship with mainland China. Retailers who perceive less hostility in their environment are more planning-oriented. Short-term planners significantly outperformed non-planners. Formal long-range planning was unrelated to retailer performance.Strategies of Japanese Supermarkets in Hong Kong Yukiko Kawahara and Mark Speece International Journal of Retail & Distribution Management; 22: 8 1994; pp. 03-12
Argues that, by the early 1990s, an estimated half of all non-restaurant food sales in Hong Kong went through supermarkets. Local independents and small local chains cater to the lower end of the market. Two large local chains focus on Hong Kong's broad middle class and control over half of packaged food sales. Some Japanese supermarkets also target the local Chinese middle class. They define the two major local chains as their main competition, and make little attempt to maintain their Japanese identities. Other Japanese supermarkets are niche marketers. They maintain their Japanese identities more strongly, and give more weight to Japanese products. These stores are located in major shopping districts rather than in the main residential districts. They target expatriates, who may account for 30 to 40 per cent of customers. Finally, one Japanese store has positioned itself as the top quality supplier for the upper end of the market, and presents an international, not Japanese, image. Keywords: China, Hong Kong, International business, Japan, Marketing, Marketing strategy, Quality, Supermarkets
Branding Asia dot Com (Feature article presently on country of origin effects)
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