Across The News

Archive for mai 2011

Dear readers,

 Writing 10 articles in 10 weeks was a first for me.   I tried to post interesting advertising news in order to learn and discuss about a subject I like.  Even if my first post doesn’t enter in my theme, I wanted to focus my blog on the Advertising and all the campaigns all around the world. 

 However, keeping a blog is not easy. Indeed, I experienced unexpected droughts of inspiration, difficultly maintaining a schedule, or succumb to the pressures of always needing fresh content.

 I hope my articles interested you and I would like to thank you for having shared your impressions and opinions with me.

 Now, my semester is about to end and a new chapter begin. I don’t know yet if I will write again on this blog, but create a blog, was for me a real opportunity to express myself and share my opinions and knowledge with you, readers.

 Thank for having contributed to the evolution of this blog.

To finish , The last film of Dior with Marion Cotillard, Ian McKellen, and Russell Tovey. Don’t hesitate to comment it !

  

 

 

Creative, innovative, different and sometimes shocking, international advertising is everywhere… But how brands are adopting a global marketing strategy? Let’s take Red Bull as an example.

Founded in 1987 by Dietrich Masteschietz, the brand has taken almost the half of the US market for energy drinks and up to 70% of the market globally, in more than 100 countries. “Despite his obvious dislike of the spotlight, he cannot escape his success. Last year, 2.5 billion Red Bull cans were sold around the world, generating €2.2 billion in turnover. One billion cans were sold in America, 272 million in Britain, 150 million in Germany and 130 million in Austria — the biggest markets.” (The Sunday Times – Big man drives forward energy-packed brand).

Red Bull bases its strategy on 4 pillars:

Sport Sponsoring: 1st and most important pillar of its marketing strategy, the sport sponsorship is used since the creation of the brand. Indeed, because of political issues (ex: France banned the product during 12 years) the brand has been known as a forbidden product. As we know, everything which is forbidden is attractive. Being more and more popular, the brand decided to advertise through others Medias.

Advertising

Sampling: The role of Red Bull’s sampling teams is to communicate the benefits and effects of the product directly to the customer and report back.

Events

 

                                                                                                                        

Another strategic programme to provide « cool » postsecondary students with free cases of the drink has been developed, in order to convince them to throw. Also Red Bull Has developed MET (mobile energy team) programme: people who drive specially designed Red Bull Racing Car.

However, in order to have a successful marketing strategy, the brand has to understand the variables contained in every target market (political, cultural…). Indeed, some markets react differently to some marketing strategies than others and because the commercialisation of a product used to be consumed by athletes to improve their performance, Red Bull is considered as a non standard product.

We can confirm that the company first entered markets with similar language (or countries which inhabitants are mostly familiar with English), similar law and political systems, business practices, marketing infrastructure, industry structure and culture. But the brand as to face with the language issue and had to readapt its strategy.

Indeed, according to the country, we notice different perceptions and meaning of “excitement”, one of the brand’s characteristic. In UK, “excitement” is associated to with being young, contemporary, spirited. In the US and Spain, it also conveys imaginativeness, uniqueness, and independence, whereas in Japan it includes talkative, funny and optimistic.

 

Moreover, the brand plays a lot on the humour. But in 2007, an Italian priest has persuaded Red Bull to withdraw an advertisement setting its product in a nativity scene on the grounds it is disrespectful to Christianity. Considered as an « a blasphemous act ». The ad depicted four wise men, instead of three, visiting Mary and the Baby Jesus in Bethlehem. The fourth wise man bore a can of the soft drink. Priests also objected to the company’s slogan, « Red Bull gives you wings », said by angels in the animated advert.

 

Red Bull Christmas Campaign

 

Do you really think the commercial needed to be banned? For me, the commercial is quite funny and take a nativity scene as a base, is not worth than Benetton’s poster with the baby, in its campaign “The cycle of the life” (i.e the previous post).

Other factors such as consumer buying patterns and interest also affects such decision. When Red Bull targeted Europe, they used a small, thin can which worked very well in Europe as it generated a perception of quality. However, when Red Bull went to the USA, the American consumers did not initially like the small cans since their consumers prefer drinks in bigger, Red Bull had to adapt their packaging to their consumer need and launched 500 ml cans.

“It’s quite normal that you spend millions of dollars on marketing on TV, but here it’s marketing investment in assets,” Mateschitz says. Spending millions of dollars on advertising , the Red Bull’s prime focus on their marketing in the USA and Europe has been through sponsorship of extreme sports (bmx, skateboarding, F1 and now that extreme aeroplane sport). Those campaigns have been fairly standardised as it successfully creates a brand characteristic of a extreme, modern, cool product. Last September, The UK leg of the Air Race, an aerobatic speed event spanning seven countries, took €400 million (£272 million) of Red Bull’s annual marketing budget. However, to enter in china for example, the brand had to change their campaign since such extreme sports are frowned upon in areas of Asia and in some states are in fact banned.

As the result, the company, with its slogan « it gives you wings » and its product aggressively marketed, spending millions of dollars through advertising, tournament sponsorship (Red Bull Air Race, Red Bull Crashed Ice), sports team ownerships (Red Bull Racing, Scuderia Toro Rosso, EC Red Bull Salzburg, FC Red Bull Salzburg, Red Bull New York, RB Leipzig), celebrity endorsements, and with its record label, Red Bull Records, music , has to adapt its communication in function of the host country.

I am wondering now if international advertising has a really impact on consumers… Indeed, studies show that on average, we see 3000 ads per day, but when was the last time I bough a product after seeing an ad ? What I can say is advertising will have, for sure, a direct or indirect impact on you. Let me take a personal example. I really don’t like the taste of the red bull drink but who never drank a vodka red bull in a bar or in a club? Because, it is cool, because it is modern and trendy, because my friends drink it, and because “Red Bull gives you wings” and energy when you are tired, (brand’s characteristics), I drink red bull too. What about you?

Let’s talk about international advertising… It is true that my blog is based on advertising news, but what is international advertising ?

According to  Wells (Principles and effective IMC practice) , « Advertising that promotes the same product in several countries is known as international advertising”. (example of Coca Cola in Japan and Peru)

         

  

 

Moreover, we notice different types of advertising :
 
– Print Advertising – Newspapers, Magazines, Brochures, Flyers
 
–  Outdoor Advertising– Billboards, Kiosks, Tradeshows and Events
 
Broadcast advertising– Television, Radio and the Internet
 
Covert Advertising– Advertising in Movies
 
Surrogate Advertising – Advertising Indirectly :
in cases where advertising a product is banned by law. Ex : Instead advertising Bagpiper Whiskey, they replace it by Bagpiper Soda, so as not to hurt the sentiment of people.
 
Celebrity Advertising
 
 
  “The key challenge for brands is to use the different platforms appropriately – not all messages are right for all mediums,” – Ms. Danziger
 
 
 
What about the spending on advertising ?

 Global spending on advertising grew up of 4.9% in 2010 and will grow by 4.5% in 2011. We notice that the regions which spent the most on advertising are: USA (Known as huge society’s consumption) and then, Europe. As the result, we  can suppose that US culture (“American dream”, creativity, like advertising) influenced Europe.  

                                    Source: ZenithOptimedia’s Advertising Expenditure Forecasts, December 2010
 

  This will be led by online advertising which will increase by 7.7%. But spending on print advertising will fall by around 2%.

“Extending print-media brands online offers some hope of reversing the downturn, but digital ad revenue will not replace that lost by print in the foreseeable future” –  the World Association of Newspapers.
 
Another figure presents us the Top 10 advertisers :
 Usually a crisis touched first the marketing department. Indeed, when the budget is going down, companies focus money on the most effective items. Instead of spending more on advertising, companies will direct effort to Search Engine Optimisation. Keep working on improving relevance, increasing user satisfaction, helping users to link to your business… Consequently, I can guess that between 2009 and 2010, the crisis had an impact on the advertising budget of companies.
 
 International ads have the same goal : trasmit a message.
 

However, international communication process is not as simple as just sending a message, and may fail for a variety of reasons: a message may not get through because of media adequacy,   the message may be received by intended audience but not be understood because of different cultural interpretations, or because the marketer did not correctly assess the needs and wants of the target market… 

 

 

                                                                       Source: international marketing, C. Graham.

 

International advertising : what is next ? 

With the globalisation and the saturation of the home country market, companies become more and more international, settling their business in foreign markets. As the result, marketing continues to be challenged to prove its effectiveness, searching “for creative ideas and attention-getting images….”. They have to take many variables in consideration (geographic, behavioural..) to target their international audience and face to different barriers to develop their brand(Cultural, language, political).

 For that, innovation and creativity are keys.  But we can wonder what will be the future of the international advertising?  

As I wrote in an previous article : be stupid is the new way to be in a society?

Benetton advertised it brand with is out of phase with the product or the brand…In his campaign “the cycle of the real life”, Oliviero Toscani presents a newborn baby girl, Giusy,intended as an anthem to life, but was one of the most censured visuals in the history of Benetton ads. The goal ?  create the most memorable and controversial ads in history.

 To finish with another example, the brand  Marithe et francois girbaud advertising has been bannedin 2005 in  Italy because of the representation of the Last supper. 

But, does this kind of advertising have a better impact on you and on your consumption? Is it really necessary???

Mobile advertising is becoming an essential pillar of a successful online marketing strategy. Indeed, according to StrikeAd report, « of those agencies actively including mobile into their clients’ campaigns, the majority of spend was below £50,000 in 2010. A breakdown of the data reveals that 28.3% of agencies’average spend on mobile was less than £10,000, while 30.4% of agencies spent an average of £10,001-£20,000 per mobile campaign, and 32.6% spent an average of between £20,001-£50,000. »

Why agencies are increasing their spend in mobile advertising? 

Well, because of the globalisation and the saturation of home country, companies become more and more international, setting their business in foreign markets. As the result, marketing continues to be challenged to prove its effectiveness, searching « for creative ideas and attention-getting images ». Developping advertising through mobile is, I think, a good way for « better learnings on ad network performance.”

Are high-end brands on too many low-end channels?

« Luxury consumers are presented with a barrage of media choices in which to connect with brands such as Facebook, Twitter, Tumblr, Web sites, phone numbers and YouTube accounts. » Because of the mobile advertising developpement, brands are still trying to decide about their communication strategy.

“A brand should use every available channel that is consistent with the brand’s position,”  said Al Ries, president of marketing strategy consultancy Ries & Ries, Roswell, GA. “High-end brands, of course, should avoid channels that are considered low-end channels.”

“The key challenge for brands is to use the different platforms appropriately – not all messages are right for all mediums,” Ms. Danziger said. “They need to find which messages should be delivered via Twitter, which via Facebook, which from the company Web site, and use them accordingly. 

 However, a lack of data – or as Claire Valoti, head of online and mobile at Mindshare, puts it, “there is an abundance of data, but a lack of the right data”. The fragmentation of the mobile industry has prompted agencies to call for mobile standardisation, but this is symptomatic of the mobile industry and is more likely to get worse before the situation improves. Also, agencies continue to ask for a greater understanding of the mobile medium.

In my opinion, luxury brands should, in fact, avoid this new platform to not affect their brand image. Consequently, brands must look for a correct way to market themselves and stick with it. As said Pam Danziger, president of Unity Marketing, Stephens, PA :  “Web sites are the ideal medium to deliver those fact-filled data basics about the product and brand.”

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