CHAMBER PROGRAMMES
October 2003 Issue

Chamber Programmes
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.
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.
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.
Speech
Mr Yung's Slides Mr Chu's Slides
Full
list of Chamber programmes in September >>
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