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| Sunday, 7 May 2006 |
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Kishu on global perspectives of marketing and branding Caltex CEO Kishu Gomes said past trends suggest that the Asian consumer will increasingly rely on Brands but the commodity market will still be large for Generic Products that offer value for money. He was addressing the World Marketing Conference on Global Perspectives of Marketing and Branding: the Future Challenges in the Petroleum Industry. He said given the economic environment in Asia the marketers will be required to carefully choose between high image Brands vs. functional Brands to drive volumes, thus gross margins. Global Brands have so far been successful due to technology behind brands, ability to leverage global brand equity, greater investment capacity and global synergy in every aspect of Management. On the other hand the domestic brands will still receive government protection with positive response by the consumer to patriotic Brand Values, Culture and Personality highlighted by the organisations giving them undue advantage. He said in relative terms the Asian consumer is a rationale thinker who looks for more functional benefits and value and will not easily and quickly embrace new values. Political relations between Asian countries will help domestic Brands to cross borders to become international brands. While the Asian consumer mobility in the global market will create a good platform for Asian brand penetration in regional and global markets, the same consumer getting adapted to the global culture will influence the behaviour of the local consumer favouring global brands. Technology transfer to Asian countries by the Global heavyweights can change the paradigm for domestic brands in terms of quality and productivity leading to creation of superior image for marketing success. Domestic organisations will leverage the free movement of skilled people trained by MNCs can improve the competitiveness of local companies through new strategic moves in terms of Marketing and Branding. Gomes said MNCs dependence on Asian raw materials for product brands and people for service brands make their competitive position somewhat vulnerable to domestic brands, especially with the trend of domestic companies moving into middle and even upper consumer segments forces global brands to cut prices affecting brand profitability. MNC's creating an 'Asian brand platform' with tailored value propositions
may favour the domestic firms on the long run. MNC's Marketing Intellect
will become more vulnerable to domestic/Asian firms with them crossing
boundaries enhancing the image of the employer, he said. |
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