Marketing & Advertising

A World of Inspirational Problem-Solving, Savvy Brands and Smart Marketing

The goal was not to create a list of the largest global marketers or rank the brands that contribute the most to their company’s market value — plenty of others tackle those lofty questions. Rather, we sought to chronicle the brands percolating at the local and regional level; sometimes great marketing lessons can happen in your backyard, sometimes halfway around the world.

Published

14 years ago

July 1, 2010

BusinesSuiteOnline

Sure, the Global Economy Is Challenging Right Now, but These Companies Have Found Ways to Make Their Brand Messages Work Harder to Reach Consumers

Posted by Ann Marie Kerwin on 06.14.10

And MTN is a new sponsor of soccer’s World Cup and U.K. team Manchester United, another one of our hot brands. Man U is a sports team unlike any other, with 333 million fans worldwide. Sponsorship of its shirts offer a unique global media channel.

NEW YORK (AdAge.com) — It’s surprising what you can learn about local marketing from the parochial approach of South African chicken chain Nando’s as it expands into three continents. Or how customer service can be the differentiator that makes an upstart brand like Brazilian airline Azul. Or how to keep your cachet even when moving into second and third-tier markets as Swedish retailer H&M has done in its aggressive global expansion.

World’s Hottest Brands

They are among the World’s Hottest Brands, an Ad Age Insights global report that tells the stories of 30 brands succeeding on a global, regional and local level.

But talk about a tough time to identify the world’s hottest brands. Categories from banking to automotive to retail were slammed as unemployment went up and consumer spending took a nosedive. Some marketers got by on the brand equity they’ve spent years building, others had to find a way to create demand for their products.

Take, for instance, Banco Hipotecario, which faced an arguably more devastating loss of consumer confidence in 2001. That was the year Argentina’s economy spectacularly collapsed, leaving a legacy of mistrust for all institutions. Over the past two years, Banco Hipotecario set out to win back consumers’ trust through smart marketing. The bank’s ads celebrated the idea of ownership, and reminded consumers why a relationship with a bank is more than a necessary evil.

Auto recovery
Auto brands had an especially tough 2009. But BMW managed to record a late-year uptick in sales, which it attributed to the growing market for luxury autos in China and coupling its long standing tagline, “The Ultimate Driving Machine,” with a new element: Joy.

The two other car brands on the list represent another kind of evolution, finding ways to address environmental concerns. Zipcar promotes car sharing rather than car ownership. The brand claims each Zipcar takes 15 to 20 owned vehicles off the road. And consumers can even choose their cars, reserve them and unlock a Zipcar all from an iPhone app.

The Tata Nano is billed as India’s first “car for everyone.” Costing just $2,000 and only 10-feet-long bumper-to-bumper, the Nano is small, cheap and fuel efficient and could just as easily be billed as a car for the next century. It already has copycats. China’s Geely Automobile, is developing a Nano rival that will cost just $2,144 when it goes on sale in 2012.

While China and India both represent huge untapped markets for many brands, getting products into the hands of customers that live in remote areas continues to be a challenge. Global computer maker Lenovo’s main strength lately is PC sales at home — particularly in China’s third-, fourth- and fifth-tier cities. Opening up distribution there means it now has a potential market of about 700 million first-time computer buyers. Lenovo reaches them through its “PCs for Rural China” program, presenting free films in more than 3,000 villages across China.

Fullerton India Credit Co. had a similar challenge. Small business owners in rural areas were among its best prospects for loans, but reaching them was a challenge as many are cut off from major media. The solution? Go to them. In a program dubbed “Gram Sabha” or “village meeting,” branded vans, which seat 10 to 12 people, were outfitted with a TV and DVD and, most importantly, air conditioning, a luxury in those areas. Potential customers watch 30-minute films about micro-finance. Through this initiative, Fullerton created a base of more than 600,000 customers in the past three years, with 50% categorized as “first-time” borrowers.

Africa
Another region with many consumers in remote areas is Africa. But thanks to mobile phones, people formally cut off from internet and telephone services are now plugged in. MTN, South Africa’s telecom, is riding this wave of mobile adoption. In 16 years, it’s grown into the world’s 11th-largest global mobile brand, with 116 million subscribers. In the most remote parts of Africa, it has become the de facto banker, a leading source of agricultural and health-care information and a go-between for trade among farmers. And MTN is a new sponsor of soccer’s World Cup and U.K. team Manchester United, another one of our hot brands. Man U is a sports team unlike any other, with 333 million fans worldwide. Sponsorship of its shirts offer a unique global media channel.

Technology, of course, is inescapable today, which is why four internet companies made the list. Facebook, with 450 million members accessing the site in 70 languages, is truly a global brand. Even with complaints about its privacy policies ongoing, there’s no denying Mark Zuckerberg’s site changed the way marketers communicate with consumers. China’s Tencent Holdings is the company behind QQ.com, an instant messaging service with 522.9 million active user accounts, and Soso.com, a search engine poised to explode now that Google has withdrawn from China. Major marketers such as Procter & Gamble and PepsiCo have already tailored campaigns for QQ.

Latin America’s MercadoLibre is akin to the U.S.’s eBay, and has 42.6 million registered users. One of MercadoLibre’s remarkable achievements is how it introduced e-commerce in Latin America, a place where even face-to-face commerce is mistrusted. Europe’s e-commerce powerhouse, Asos, was really an afterthought. In 2000, Nick Robertson noticed a demand for information about celebrities’ choice of clothing. So he set up a site — As Seen On Screen — that pictured famous people and listed exactly which brands they wore. Mr. Robertson hoped to make money from ads. But he soon decided Asos would actually have to sell the clothes to make money. Now it not only sells the labels celebrities wear, it’s got its own Asos label as well.

Natura, a Brazilian cosmetics company, has both sustainability and social networking at its core, and it was early to both trends. One of the company’s founding principles is that people and the environment are interconnected. Its sales strategy also takes a cue from how consumers are connected to one another, as Natura is the largest direct-sales company in Brazil. It’s now establishing retail locations and looking to take its brands global.

Retail was another challenged category, but the four retailers included in this list — H&M, Ikea, Tesco, and Uniqlo — each figured out how to make their operations work across borders, no easy feat. They also share a similar brand promise: quality goods at lower prices.

While it’s hard to argue or beat a brand premise that promises the best product and the best price, some brands manage to get consumers to pay more because of an inherent good associated with their name. Brazil’s Havaianas has taken the lowly flip-flop and turned it into a fashion sensation. Nike, likewise, has surrounded its athletic shoes and apparel with an aura of excellence by aligning with top athletes. It then takes those alliances and does innovative and extraordinary marketing around them, like the Chalkbot it built for Lance Armstrong’s return to the Tour de France. China’s Li Ning is studying Nike and building its very own aura. The company was founded and named after China’s most famous Olympian, but now it’s aligning with top Chinese and American athletes and even opened up a store in Nike’s hometown of Portland.

Planning expansion
Another brand from Asia is deliberately staying local, but by doing so, it is outselling package-goods giants Procter & Gamble and Unilever in its home market. Shiseido’s hair-care brand, Tsubaki, a line of shampoo and conditioners that use red camellia flower oil as a key ingredient, was pitched as more effective for Japanese women’s hair. Sales soared.

Tim Hortons is a beloved brand in its home country of Canada. Started as a coffee and donut shop by hockey legend Tim Horton, the chain today has 3,015 shops in Canada and can claim 40% of that country’s quick-service market. With 527 U.S. locations, it’s now eyeing how to move further afield.

As it looks to expand, Hortons may want to study what South African brand Nando’s has done. The chicken restaurant can be found in 35 countries, including Canada. While it has yet to put in a global branding campaign, it has established a consistent identity of cheekiness. Each region is told to “be parochial” and use local references in its marketing. By playing off current events, Nando’s stays topical and top of mind.

Other brands made the list because they hit with just the right product at the right time. Nintendo Wii, with its sensor-motion technology, transformed the video gaming space. The founder of JetBlue left that company and moved to Brazil, where he noted a definite gap in airline service that he could fill with Azul. The Economist has been around for 167 years, but its presentation and packaging of world events seems to work just as well today.

If you want to be a global brand and save the world, follow Pampers’ lead. Procter & Gamble teamed with UNICEF for the “one pack equals one vaccine” program, and transferred its child development brand attribute to the developing world.

The promise of branding is that it can take a commodity product and imbue it with qualities that make consumers choose it over any other. That’s not a new idea, but it is always heartening to see it really work. Argentina’s Mama Lucchetti brand of pastas and soups got a makeover by agency Madre, Buenos Aires, and sales took off. A catchy jingle, cute animated characters, and a great consumer insight add up to a near perfect case study in branding.

And for a master class in global branding, see Coca-Cola and McDonald’s — two megabrands that don’t take anything for granted, reinventing and refreshing as they go to maintain worldwide dominance.

Despite economic downturns and increased competition, the power of a well-managed brand endures.

originally published in Adage – http://adage.com/globalnews/article?article_id=144404

Business Insights

Should Social Media Influencers Use Agents to Negotiate on Their Behalf? A Look at Industry Disparities and Best Practices

Published

1 month ago

October 3, 2024

BusinesSuiteOnline

In the fast-growing world of social media influencers, the challenges of negotiating brand deals and securing fair compensation are becoming increasingly evident. Jamie Hamilton’s experience as a style influencer is a case in point. Like many new creators, she negotiated her first big brand deal alone, believing she had secured a good rate. However, she later discovered a fellow influencer on the same campaign, with similar follower numbers, was paid significantly more. The difference? Her colleague had professional representation, while Hamilton did not.

As the influencer marketing industry is projected to hit $24 billion by the end of 2024, with further growth expected in the coming years, the question of whether influencers should hire agents or negotiate independently has gained prominence. While some creators navigate this landscape on their own, others rely on professionals to secure deals, leading to a wide disparity in earnings and opportunities.

The Wild West of Influencer Marketing
Influencer marketing, despite its maturity, remains highly unstructured. Creators act as independent contractors, with no official market rate for content creation or promotion. Pay secrecy is widespread, and there is little transparency in how brands assign value to influencers. This lack of standardization has resulted in significant pay disparities, particularly among marginalized groups.

For example, reports show that plus-size and Black influencers often receive lower compensation than their peers despite similar audience sizes and engagement rates. Hamilton’s experience with pay inequality is echoed by numerous influencers, revealing a consistent pattern of underpayment for creators who do not fit a brand’s traditional image.

The lack of formal structures means that influencers often operate without the legal protections or support systems typical in other industries. Creators frequently face rapid rises and falls in their careers, with little recourse if brands decide to pull back from campaigns or cut budgets. Additionally, child influencers — some of the youngest in the field — face precarious working conditions, with only two U.S. states requiring parents to set aside a portion of their earnings.

The Role of Agents in Leveling the Playing Field
Given these challenges, many influencers are turning to agents and managers to represent their interests and navigate the complexities of brand partnerships. Agencies and management firms provide several advantages, including:

Negotiation Expertise: Agents bring a deep understanding of industry standards, brand expectations, and market rates, allowing influencers to secure more lucrative deals. They can effectively push back on low offers and demand fair compensation for their clients’ work.

Brand Connections: Agents often have established relationships with brands, PR agencies, and marketing firms, which can lead to higher-quality partnerships and more consistent deal flow.

Contract and Legal Protections: With formal representation, influencers can ensure their contracts include clauses that protect their intellectual property, likeness, and creative control. These professionals also help navigate potential legal pitfalls.

Leveling Disparities: For influencers from marginalized communities, agents can help address pay gaps by advocating for equitable compensation based on reach, engagement, and audience influence — rather than appearance or background.

Some agencies, such as Gleam Futures and Digital Brand Architects, have built reputations for representing top-tier influencers and securing multi-million-dollar deals for their clients. These agencies act as intermediaries, positioning influencers for long-term success while handling the complexities of contracts, fees, and negotiation.

Best Case Examples
A notable case involves Chiara Ferragni, a fashion influencer with over 29 million Instagram followers. Ferragni, who is now considered one of the most successful influencers globally, has representation through a top-tier management firm that helped her grow her brand into a multi-million-dollar business, complete with her own fashion line and global endorsement deals. Ferragni’s success is a clear testament to the power of having expert negotiators who can leverage influence for greater financial gain.

Another example is Jackie Aina, a beauty influencer and advocate for diversity in the beauty industry. Aina has consistently used her platform to push for inclusion, and through her representation, she has managed to negotiate higher-paying, more meaningful partnerships that align with her values. Aina’s success in securing deals with top beauty brands demonstrates how professional management can help influencers amplify their impact while ensuring fair compensation.

The Argument Against Agents
Despite these benefits, not all influencers see the need for agents. Some creators prefer to maintain control over their brand and business, fearing that agents might dilute their creative voice or charge hefty fees. While top influencers may find it easier to secure representation, smaller creators might struggle to justify the cost of hiring an agent, especially in the early stages of their careers when cash flow is uncertain.

Additionally, some influencers have successfully built their businesses through direct relationships with brands. For instance, Emma Chamberlain, a YouTube sensation, initially negotiated many of her deals on her own before eventually bringing in professional representation as her career expanded.

The Future of Influencer Marketing
As influencer marketing continues to grow, the debate over professional representation is likely to intensify. With the industry projected to contribute significantly to the U.S. economy by 2027, creators will face mounting pressure to formalize their operations, especially around issues of compensation and intellectual property. As Alicia Clanton pointed out in her extensive report on the industry, influencers are now key players in shaping public opinion, consumer behavior, and even political outcomes. This level of influence demands more structure and accountability.

For now, creators must decide whether to go it alone or seek professional representation. While hiring an agent might not be feasible for everyone, the benefits of having experienced negotiators at the table cannot be ignored — especially in an industry where pay disparities are rampant, and deals can be as unpredictable as they are profitable.

Ultimately, the choice may come down to the influencer’s long-term goals: Do they want to maximize short-term profits, or are they focused on building a sustainable, lasting brand? For many, the answer could well involve an agent’s helping hand.

Businessuite Markets

RJRGLEANER Communications Group’s Revenues Registered Growth Of Just 1% Over The Prior Year As Many Businesses Taking A “Wait And See” Approach To Marketing Spend.

Published

3 months ago

August 4, 2024

BusinesSuiteOnline

Anthony Smith Chief Executive Officer For Radio Jamaica Limited (RJRGLEANER) Has Released The Following Audited Financial Results Of The RJRGLEANER Communications Group (The Group) For The Year Ended March 31, 2024.

The financial year under review continued to be impacted by both local and international challenges, including the high levels of inflation over the past two or three years that have resulted in increased costs to the business.

At the same time, the implementation of higher interest rates by the Bank of Jamaica (BOJ) has seen many businesses taking a “wait and see” approach to marketing spend, and this has affected the Group’s advertising revenues. Despite the challenges, the Group’s revenues registered growth of 1% over the prior year but this was offset by higher cash and non-cash costs.

While the performance of the Group fell short of expectations, we are taking the necessary steps designed to bring long-term sustainability and success to the business, which operates in an industry that is also undergoing rapid change.

The Group recorded a pre-tax loss of $567 million and an after-tax loss of $529 million for the year, compared to a pre-tax profit of $245 million and an after-tax profit of $250 million for the prior year period.

Primary contributors to this year’s performance were: –
• An increase of $54 million (1%) in the Group’s revenues, driven mainly by increases in the Audio/Visual division of $55 million (2.3%) and in the Audio division of $44 million (5.5%), offset by a decrease of $44 million (1.9%) in the Print and Online division.
• The Group continued to experience softness in the overall advertising market as businesses reported the continued impact of local and global economic conditions.
• Direct expenses were higher than the previous year’s results by $86 million (3%), which included increased costs in airing of local and foreign productions, broadcast fees, and fees related to increased activities.
• Selling expenses were lower by $24 million (4%), driven by lower sales-related costs, as the Group continues to implement its cost containment strategy.
• Administrative expenses increased by $431 million (32%) compared with the prior year, driven primarily by:

 increased depreciation charges ($32 million) relating to ongoing capital projects, including the development of our Nextgen digital broadcast infrastructure,
 software upgrades and reclassification of expenses from the Other Operating expenses category of $150 million,
 increases in Expected Credit Loss (ECL) expenses of $191 million (including a $45 million reversal of a reduction in the prior year ECL) as customers delayed payments due to the challenging economic conditions,
 increases in operational expenses including insurance by $23 million and staff related expenses relating to canteen costs by $26 million and professional fees by $41 million.

• Other operating expenses were reduced by $100 million (11%) compared with the prior year; driven primarily by reclassification of depreciation costs to administrative expenses and deferral of software charges.
• Gain in fair value of investments of $62 million. During the year, the Group changed its investment properties accounting policy from a cost valuation method to a fair value method. This yielded a gain of $62 million which impacted positively on the Group’s results.
• Impairment and share of net loss of associated companies were higher by $48 million as the projected improvements in these companies during the year did not materialize, largely because of the economic climate.

Over the past year, we have embarked on an ambitious transformation journey to drive future growth and success. While this journey has resulted in short-term financial challenges, we believe it is essential for our long-term sustainability and competitiveness. For example, the significant investments we made in new technologies, processes and talent have increased our expenditure thus impacting our short-term financial performance. However, these investments are crucial for our turnaround strategy and will drive efficiency, innovation, and revenue growth in the future.

Partnering with consultants PWC, the company is in the process of designing a new Target Operating Model (TOM). This process is expected to result in fundamental changes to the way we do business — including the company’s structure, processes and policies which will be optimized and aligned to better ensure that we can execute our strategy. We expect to complete this exercise and begin implementing the change initiatives in September 2024.

Key highlights of our transformation initiatives include:

• The board and management of the company have agreed to the top five strategic imperatives needed to ensure the long-term sustainability and success of the company. All the activities within the Group are now aligned around these initiatives.
• Partnering with consultants PWC, the company is in the process of designing a new Target Operating Model (TOM). This process is expected to result in fundamental changes to the way we do business — including the company’s structure, processes and policies which will be optimized and aligned to better ensure that we can execute our strategy. We expect to complete this exercise and begin implementing the change initiatives in September 2024.
• We have invested significantly to modernize and digitize our network infrastructure, bringing it to world class standards. For example, the installation of the new digital backhaul network is now complete and is supporting the transmission of High-Definition Services to the Group’s ATSC 3.0 (Next Gen TV) network. As at the end of June 2024, more than 66% of Jamaica’s population is now covered by the ATSC3.0DigitaI TV network, making Jamaica only the 2nd country in the world to achieve this level of coverage. This investment will present the Group with several new options to increase advertising and non-advertising revenues in the future.
• The Group has also been investing in its print operations, to increase operational efficiency and reliability. These investments are also expected to improve financial returns in subsequent years.

We acknowledge the short-term impact that these initiatives have had on the Group’s financial performance but are confident that our efforts will yield sustainable benefits, including:
• Improved operational efficiency
• Enhanced customer experience
• Increased and diversified revenue streams
• A lower cost base
• Stronger competitive positioning

We are committed to navigating this transition period and emerging stronger and we look forward to sharing the positive impact of our transformation initiatives in the coming quarters.

For More Information CLICK HERE

Artificial Intelligence

AMK Communications Pioneers AI-Generated Advertising Campaign for InterMetroONE

Published

4 months ago

July 22, 2024

BusinesSuiteOnline

In a landmark move set to redefine the advertising landscape, AMK Communications, through its subsidiary Click Digital Agency, is poised to launch Jamaica’s first AI-generated advertising campaign for the revolutionary InterMetroONE super app. This ground-breaking initiative not only marks a significant milestone for Jamaica but also positions AMK Communications as a leader in innovative marketing strategies within the Caribbean region.

A New Era of Advertising

The introduction of AI-generated advertising heralds a new era of creativity and efficiency in marketing. By leveraging advanced artificial intelligence, AMK Communications can produce highly targeted, data-driven campaigns that resonate deeply with diverse audiences. This technology enables the creation of personalized content at scale, ensuring that every message is relevant and engaging.

Unparalleled Benefits for Clients

For clients, the benefits of AI-generated advertising are manifold:

Enhanced Creativity: AI tools can analyse vast amounts of data to generate unique, creative concepts that might not emerge through traditional brainstorming sessions. This opens up new avenues for storytelling and brand expression.

Data-Driven Insights: AI provides valuable insights into consumer behavior and preferences, allowing for more precise targeting and message customization. This ensures that marketing efforts are not only creative but also strategically aligned with audience interests.

Efficiency and Scalability: AI can rapidly produce multiple variations of ads, testing and refining them in real-time to optimize performance. This reduces the time and cost associated with traditional ad creation and allows for quick adjustments based on market feedback.

Personalization at Scale: With AI, it’s possible to create highly personalized advertisements for large audiences, ensuring that each viewer receives a message that feels uniquely tailored to them. This enhances engagement and drives better results.

Setting Trends in the Caribbean

AMK Communications’ initiative is part of a broader trend towards the adoption of AI in advertising. Globally, AI is being used to create more dynamic, interactive, and personalized ad experiences. From chatbots and virtual assistants to AI-driven video content, the possibilities are endless. This move by AMK places Jamaica and the Caribbean at the forefront of these international developments, showcasing the region’s ability to innovate and lead in the digital age.

Looking Ahead

The AI-generated campaign for InterMetroONE will serve as a benchmark for future marketing efforts, demonstrating the power and potential of artificial intelligence in advertising. As AI continues to evolve, it will unlock even more opportunities for creativity and efficiency, helping brands to connect with their audiences in deeper, more meaningful ways.

AMK Communications Limited and Click Digital Agency are not just launching a campaign; they are setting a new standard for the industry, proving that the future of advertising is here and it is powered by AI. Clients can look forward to a new realm of possibilities, where technology and creativity come together to deliver exceptional results.

Businessuite News24 International

Unilever Initiates Talks To Potentially Sell Ice Cream Business

Published

4 months ago

July 20, 2024

BusinesSuiteOnline

Unilever has initiated talks with buyout firms to potentially sell its ice cream business, a move estimated to be worth up to $19.4 billion. This strategic decision aims to streamline Unilever’s operations and focus on its core business areas.

Unilever’s ice cream division, which includes renowned brands like Ben & Jerry’s, Magnum, and Wall’s, generated a turnover of €7.9 billion in 2023, representing about 13% of the company’s total sales. The separation will create a standalone ice cream business with significant global presence in both in-home and out-of-home segments.

The sale is driven by the distinct operational needs of the ice cream business, which differ from Unilever’s other segments. Ice cream has unique supply chain requirements, seasonal demand fluctuations, and higher capital intensity. By separating, Unilever can focus on its remaining core segments—Beauty & Wellbeing, Personal Care, Home Care, and Nutrition—aiming for mid-single-digit sales growth and improved margins post-separation.

The potential buyers include private equity firms like Advent International, Blackstone, Cinven, and CVC Capital Partners, which have shown preliminary interest. The separation process will involve significant operational changes, including a major productivity program aimed at reducing costs by €800 million over the next three years, offsetting any dis-synergies from the separation. This plan also involves a restructuring that will impact approximately 7,500 predominantly office-based roles globally.

Overall, this move is expected to create a world-leading ice cream business with the flexibility to grow and innovate independently while enabling Unilever to become a more focused and higher-performing company.