World Economy: Large enterprises entering the era of communication

Aug 25, 2008

Large enterprises entering the era of communication

Large Chinese enterprises have entered the era of communication with the Beijing Games, alongside the multinationals that have assimilated since lurette beautiful, the virtues marketing major sporting events.
"It was expected that international development of Chinese brands. The Olympic Games are the platform that allows them to bounce back," said Antoine Bourdeix, Beijing representative of Publicis Consultants.

"They have recognized the importance of communication and image. It is for them a natural development," he adds.

The computer manufacturer Lenovo has launched this internationalization in 2004 by buying the PC division of U.S. giant IBM. Haier and Tsingtao have followed in 2005 by becoming sponsors of the Olympics, in line with Coca Cola, McDonald's or Adidas.

"We wanted to take this opportunity to consolidate our brand as a global brand," said Diao Yunfeng, a director of Haier, Chinese giant, world number four appliances and electronics.

In contrast, foreign companies took the opportunity to specifically target the vast Chinese public and its emerging class of consumers, associating their image with the greatest sports stars of the country: the basketball player Yao Ming, Liu Xiang athlete or diver Guo Jingjing.

Some have even made the choice to devote all their resources as Samsung Electronics, of which 80% of marketing budget in 2008 has been injected into the Asian giant.

"China is so great and represents nearly 25% of our worldwide sales. So we preferred to adjust our target," explains Gyehyun Kwon, vice president of the South Korean who says he saw its market share in the mobile telephony from 14% in 2007 to 20% this year.

The Chinese advertising market, growing 20 to 25% per annum by profession, has become a market leader.

According to estimates by ZenithOptimedia agency, a subsidiary of Publicis, the Summer Olympics in Beijing are expected to generate $ 3 billion in advertising investment, of which 1 billion in China.

This momentum is expected to pass the Chinese advertising market in fifth place worldwide, ahead of Italy.

"For its size and growth rate, the Chinese market is unique. There was no such enthusiasm for investment in China a few years ago. For foreign companies the Games were a great opportunity to inform the Chinese Consumers who they are, "says John Davis, director of marketing department at the University of Management in Singapore.

Chinese or foreign, however, no company is willing to disclose the cost of these years of campaigning.

According to Chinese media, the biggest of the sponsors, like Coca Cola, McDonald's and General Motors, would pay $ 65 million of rights.

At Coca Cola, sponsor of a multitude of sporting events, said modestly that "sport is a big component of the marketing program" of the company.

But the benefits "worth every penny of investment," said Petro Kacur, spokesman for the American giant of the drink, a far cry from the cold sweat of sponsors last winter when China was caught in the maelstrom of events in Tibet or taken to task for its support to Sudanese regime.

An opinion that seems to share Tsingtao: The brewer announced Saturday he went for a tour and became a partner of the NBA China.

World Economy

Large enterprises entering the era of communication

0 Comments: