How international brands affect consumers' choices<\/p>\n
Satyasuryawan, Contributor, Jakarta<\/p>\n
Who hasn't heard of the Hard Rock Cafe? Once just a dream for
\nJakartans, its arrival ten years ago allowed people here to
\nreally enjoy its world famous ambience. Today, the strong
\nmarketing of the Hard Rock Cafe not only lies in its restaurant
\nbusiness or merchandise sales, but has spilled over into other
\nareas with Hard Rock FM radio and Hard Rock Hotel in Bali.<\/p>\n
Strong world brands are highly valued marketing assets.
\nGenerally, consumers have a perception that such brands
\nimplicitly provide a guarantee for quality compared to unbranded
\nproducts or unknown brands. Consumers seldom think twice before
\ndeciding to purchase these famous brands, even though there are
\nother better quality and lower-priced substitutes available on
\nthe market.<\/p>\n
Another business using an internationally renowned brand as
\nits asset is the Starbucks Coffee cafe, which, PT Sari Coffee
\nIndonesia, as its franchisee, opened in May for Jakarta's coffee
\nlovers. Indonesia is the 25th country to host this American cafe,
\nwhich is located in Plaza Indonesia and the Jakarta Stock
\nExchange.<\/p>\n
\"We have been overwhelmed with customers since the very first
\nhour we opened and they don't seem to mind lining up,\" said Kiki
\nSoewarso, its marketing manager. With such brisk business, it is
\nonly natural that the company plans to open another cafe in
\nPondok Indah Mall.<\/p>\n
However, it's not an easy job to market an international brand
\nwhen another strong brand -- also internationally well-known --
\nis well established in the same market segment. Take the
\nworldwide battle between Coca-Cola and Pepsi Cola as a case in
\npoint. For Pepsi, it has been an uphill struggle to win over
\nIndonesian soft drink consumers, who are relatively quite loyal
\nto Coca-Cola.<\/p>\n
Both brands are astute in distribution and product
\ndiversification strategies. In face of the stiff competition in
\nthe soft drink market, Pepsi has launched a bottled tea beverage:
\nTekita, while Coca-Cola's version is Fresstea. Coca-Cola is also
\nmarketing a bottled mineral water brand that it took over: Ades.
\nThese international players see the diversification strategy as
\nnecessary because they have to compete against major brands,
\nincluding Aqua bottled mineral water and Teh Botol Sosro.<\/p>\n
It is much easier to market products with well-known brands,
\nas building an image through advertising campaigns is
\ncomparatively more costly in the case of new brands.<\/p>\n
PT Hanjaya Mandala Sampoerna believes in this theory and that
\nis why the manufacturer of \"A Mild\", in line with its
\ndiversification policy, has purchased the production and
\ndistribution license of a French cigarette brand, St. Dupont. The
\ncompany is fully aware that it will face tough competition from
\nother established brands, such as Marlboro and Lucky Strike.<\/p>\n
\"We have taken a major step in the premium brand segment, not
\nonly domestically but also in the international market,\" said
\nSugiarta Gandasaputra, the company's director for the Indonesian
\ncigarette business, in SWA magazine in the Apr. 8 edition. In
\nonly one and a half years, this newcomer has proven to be a solid
\ncontender against the giant brands.<\/p>\n
Apart from its positioning, a brand's success also depends on
\nother crucial factors, such as its marketing strategy, product
\nmix or differentiation, pricing policy and advertising as well as
\npromotional campaigns. Consumers' emotions and experiences from
\nusing the product also play an important role. Likewise a
\n\"pioneer or leadership\" position also helps a great deal, meaning
\nwhether the brand was introduced much earlier, hence it is more
\ndeeply rooted in consumers' minds than the newcomer.<\/p>\n
David A. Aaker, a marketing expert, once said that while a
\nproduct has functional benefits, a brand gives emotional
\nbenefits. Consumers buy a certain brand, because, among other
\nthings, it provides them with confidence and a feeling of
\nsecurity and that it is completely unique and embodies more value
\nfor money.<\/p>\n
This is one of the reasons why Adidas, a sports shoe
\nmanufacturer, positions its brand as \"a reflection of lively
\ncompetition and sports lifestyle\". Its customers are also
\npampered at its store, Adidas World of Sports on Jl. Kemang Raya.
\nHere they can try on products on the basketball court and soccer
\nfield made available exclusively for them.<\/p>\n
\"We continually improve the quality, look, feel and image of
\nour products not only to match, but to exceed our customers'
\nexpectations and we provide them with the highest value for their
\nmoney,\" said Paul Hardisty, the managing director of PT Trigaris
\nSportindo, which is the sole agent for Adidas in Indonesia.<\/p>\n
Impressionable and positive experiences are usually embedded
\nin consumers' minds and in this way there is an emotional
\nattachment between them and the brands.<\/p>\n
Starbucks, for instance, also offers this kind of experience
\nand emotional relationship to its customers. Not only does it
\nmake available a great variety of high quality coffee, ranging
\nfrom Guatemala's robusta to other Latin American versions, but
\nit also gives superb service in a cozy atmosphere that makes its
\ncustomers feel very much at home.<\/p>\n
Hard Rock Cafe also cleverly plays on the emotional factor.
\nIts interior concept -- a giant guitar, memorabilia of legendary
\nmusicians, among other things -- and the quality of food and
\nservice are of the same high standard wherever it is located. Its
\nambience is contagious in the positive sense as indicated in the
\nsuccess of the Hard Rock FM Radio with its listeners.<\/p>\n
A brand can also be enhanced through programs that attract
\nconsumers, like the off-air programs often broadcast by Hard Rock
\nFM Radio using Hard Rock Cafe as its venue. This strategy
\nproduces a two-pronged effect, as the programs involving
\ncelebrated domestic and international artists benefit both the
\ncafe and the radio while the consumers' loyalty is further
\nstrengthened.<\/p>\n
Adidas also has quite a number of creative promotional
\nprograms that strengthen its bond with customers. Every year
\nvarious events targeted at teenagers and children are held, such
\nas the Street Ball Challenge basketball tournament and the
\nPredator Cup soccer matches. These highly popular events are
\nconsistent with and closely linked to the main theme of Adidas'
\ncommunications activities that use major international and
\ndomestic sports figures and clubs, such as David Beckham,
\nZinedine Zidane, Yayuk Basuki, Alibudimansyah and Romy C. Chandra
\nas well as the Bima Sakti soccer club.<\/p>\n
All these promotional events and activities are obviously used
\nto strengthen consumers' emotional ties with the brand, solidify
\na lasting loyalty and give the brand top positioning.<\/p>",
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