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CHAMBER PROGRAMMES                                       October 2003 Issue


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Chamber Programmes


"You have to home in on things which are important to people," says Mr Siewert. 施維德說:「針對人們看重的東西制定營銷策略。」Made-to-Measure Marketing

Coca-Cola's Winning Formula

One of the earliest TV commercial jingles that I can remember from my childhood is "I'd Like to Teach the World to Sing (In Perfect Harmony)," sung by the New Seekers, for Coca-Cola's TV ad in 1971. The commercial, featuring children from around the world singing on a hilltop, was so popular that the song -- without the Coke references -- became a hit in its own right.

One spin-off -- or side effect -- of that promotion is that images of the ad and the lyrics are burned onto my brain for the rest of my days. But the very fact that it is still retained by my ever-diminishing memory just goes to show the impact that Coca-Cola adverts can have on people.

Patrick Siewert, Group President, East and South Asia, Coca-Cola Asia, explained at the Chamber's September 15 roundtable luncheon that the company's adverts continue to have a profound effect on people. One of the company's adverts in Japan for a drink called Georgia, for example, has resulted in a television series starring the characters of the commercial.

He attributes this level of success to careful analysis of customers and their environment. So if you say, "that hits the spot exactly right" in the Philippines, or "that refreshes your day every day" in Indonesia, or "that needs no reason" in Japan, you are basically saying "Coca-Cola."

Homing in on everyday aspects of life of specific demographics in Asian countries has further woven The Coca-Cola Company's products into the diverse fabric of Asian cultures.

This approach is far more successful than trying to associate a product with the latest fads, he says. Companies can spend a great deal of time and money following trends in marketing new products, but unless there is a fundamental change in consumer behaviour, the product will die out by the time the next trend arrives.

The key to persuading consumers into buying a product almost habitually is to associate it with things which are a part of their daily life or which are important to them, Mr Siewert says.

In India, for example, when people buy a soft drink, they simply say "Thanda," which basically means "cold soft drink." Coca-Cola's new marketing strategy is to make

"Thanda" synonymous with Coca-Cola. So Thanda=Coca-Cola.

In Japan, the pressures on the salaryman are sympathised with in the company's advert for soft drinks. In the commercial, some old friends take solace while chatting over a can of Georgia upon a chance meeting at a vending machine. They leave each other with a sense of hope and confidence under the slogan, "Tomorrow is Another Day."

"You have to learn and understand about the things which are important to people, because no one-size fits all," Mr Siewert says. "By understanding our consumers and their environment, we will understand the role our brand has in their lives, and their interaction with it."

  

CEPA Roundtable Workshop
Selling a Message

Hong Kong's advertising, convention and exhibition sectors are among the 18 service industries that have been given easier market access into China under CEPA. Starting January 2004, they will be able to offer their services in the Mainland on a wholly-owned basis, representing early and even exclusive liberalization beyond China's WTO commitments.

Veteran players in these industries who already have established a foothold in the world's fastest growing economy are very excited about prospects that CEPA might open to their businesses.

"For advertising services providers, it is really an exciting time [to be in China]," says Mr Yung. 戎氏說:「對於廣告服務供應商,這的確是進軍中國的大好時機。」Speaking at the Chamber's CEPA roundtable workshop on advertising and convention services on September 11, Steven Yung, Chairman, Clear Media Ltd, described CEPA as a catalyst for business growth in the post-WTO China market, which will benefit the advertising sector and supporting services.

"Currently, China seems like a 'coliseum' for local and foreign branded products competing for market share," Mr Yung said. "For advertising services providers, it is really an exciting time to help clients gain or expand their foothold in China. And adverts, being a key sales and marketing tool, could never be as important as they are today."

Under CEPA, Hong Kong advertising companies enjoy a time advantage over their foreign competitors since they are allowed to set up wholly-owned firms in the Mainland from the start of 2004, which is two years ahead of the China's WTO timetable.

CEPA is a good step forward, says Mr Chu. 朱裕倫認為,「安排」標誌著中國向港企業開放向前跨進一大步。Stanley Chu, Chairman, Adsale Exhibition Services Ltd, and Chairman of the Hong Kong Exhibition and Convention Industry Association, who also spoke at the workshop, echoed his optimism, describing CEPA as a good step forward in opening the door to Hong Kong enterprises.

To local convention and exhibition service providers, CEPA is particularly meaningful in that it offers liberalization on top of China's WTO commitments. Similar to the advertising sector, Hong Kong convention and exhibition firms can provide services directly and independently in China starting next year, as opposed to being just a joint organizer as in the past.

"With CEPA, Hong Kong companies should be able to obtain a show license through their Mainland subsidiary. This is because China no longer restricts the ownership of license to the 200-plus Mainland companies, who previously had exclusive rights to stage international exhibitions," Mr Chu, said, adding that this should also clarify who owns the fairs.

However, he hopes that clarification on the definition of a Hong Kong company and other ambiguities can be tackled as soon as possible to allow local firms to start work on how they can benefit from the agreement.

SpeechSpeech   
Mr Yung's Slides Mr Chu's Slides



Full list of Chamber programmes in September >>


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