Make Yourself Heard Ericsson?S Global Brand Campaign Essay Example
Make Yourself Heard Ericsson?S Global Brand Campaign Essay Example

Make Yourself Heard Ericsson?S Global Brand Campaign Essay Example

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  • Pages: 5 (1192 words)
  • Published: April 30, 2017
  • Type: Case Study
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Advertising Management Make Yourself Heard Ericsson's Global Brand Campaign In partial fulfillment of the course Advertising Management under the guidance of Prof. Mukul Gupta, Marketing Area, MDI Gurgaon Submitted by: Aditya Malhotra Divya Gosain Abhinav Singhvi Kaustuv Gupta Manish Sharma 13th December 2010 09P125 09P135 09P182 09P203 09P206

1 Introduction

Ericsson is a telecommunications industry leader with a history spanning over 120 years. They provide equipment and services for wired and mobile communication in both public and private networks across 130 countries. Their products are used in approximately 40% of all mobile phone communications. In 1997, the company reorganized into three business areas - Radio Systems, Infocom Systems, and Mobile Phones and Terminals.

Key Facts:
- Sales: 168 billion SKr
- Number of subscribers to mobile phone systems:54 million
- Number of employees: >100,000
- R budget: >2

...

0% of sales
- Turnover outside Sweden: >90%

The case revolves around the global Mobile Phones and Terminals business of the company. The company sells its products in 92 countries. The business faces competition on a global scale, primarily from Nokia and Motorola, who currently dominate the market. The sales figures indicate that the business has experienced an almost stable growth of 21%, a drastic decline of 22% (30% since 1995), and a huge increase of 16% (45% since 1995). Ericsson is currently facing two major challenges. Firstly, there is low brand awareness and recognition, particularly in non-European markets and close to zero in the US market. Secondly, although there is a perception of technological superiority, the company is viewed as "cold, distant, and conservative".

Integration of both Product focused and Brand focused campaigns is crucial, ensuring that local sales companies exclusively engaged in product advertising contribute t

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ultimate sales. Communication among various divisions of the company is also important. Another aspect that needs attention is International Advertising, as the decision-making process for marketing communication is global. A notable milestone would be the Global Brand Campaign Launch, which the company has yet to undertake. However, they have previously executed a successful pan-Europe promotion campaign for their new product GH337.

The company decided to launch a global promotion campaign to increase brand awareness and change the perception of the brand. The goal was to go from being seen as a "cold, distant, conservative and technology-oriented company" to one that creates a stronger emotional and psychological connection with customers. The global campaign, titled "Make Yourself Heard," was launched in 1998 after successful test runs. However, local and regional organizations expressed concerns about its effectiveness in boosting sales, as they were bearing most of the financial burden. One major issue was that the branding campaign did not mention any specific products in the markets. The main concern is now focused on future promotion campaigns and whether the company should continue with similar approaches or create more product-focused and customized campaigns for different local markets. Brands play a crucial role in both consumer and industrial products and services. They provide a unique identity for a product, signaling status, quality, and value. Consumers tend to place value in a brand.

Consumers have a preference for familiar brands, particularly when it comes to consumer goods and industrial products like cars, home appliances, and mobile phones. Brands can establish a barrier to entry in an industry, offer a competitive edge, and command higher prices than other brands. For instance, Ericsson charges a

premium compared to Nokia and other competitors. Consumer durables typically require significant customer involvement and involve intricate decision-making processes due to their higher costs. As a result, consumers generally show a preference for reliable brands.

Strong brands play a crucial role in enhancing the corporate image and facilitating the introduction and acceptance of products by distributors and customers. In summary, the following points highlight the significance of branding:

  1. Branding as a differentiator
  2. Branding as an identifier
  3. Branding as part of the corporate image
  4. Branding as a value-add in the proposition

This is evident in Ericsson’s Brand Campaign Timeline:

Year Brand Campaign Communication Core Product focused Benefits to consumers Message Vehicle Reach Objective(s) Sought
1995 (GH337) "Its about…" Press Pan-European Information dissemination (about features) Aid Adoption (Boost Sales)
1997 (GH688) HiTech revolution in business Bond Approved Product Placement Press Global
1997-98

Human contact, making the brand personal, integrating product and brand, "Make yourself heard," television press (including business magazines), billboards, global (with regional modifications), regional - at specific target segment, technological superiority (borrowed interest from James Bond Tie-in), build corporate image with end consumer and with trade, differentiation from competitors, aid adoption (boost sales), "Made for Business. Good for Life," press. The communication strategy behind Ericsson's brand campaign was to change its brand image as it was perceived differently in different countries and by different segments.

The company's previous image was often seen as "cold, distant, conservative, and technology oriented," and they desired to alter this perception. The new communication strategy set Ericsson's brand ambition as being known as a brand that prioritizes personal contact in mobile telecommunication. The company appropriately initiated a global brand campaign with the slogan "Make Yourself Heard." This campaign portrays Ericsson as a humane and empathetic company that enables individuals to freely communicate

and express themselves. 1. Strengthens a distinctive global image 2.

Increased brand awareness in different markets (currently behind competitors) 5 The Road Ahead ? By running the branding campaign globally the company has achieved top-of-mind recall among customers. In addition, the brand image has significantly transformed from previously being viewed as "cold, distant, conservative and technology oriented" to a brand that facilitates open communication and bridges distance between people. This transformation was crucial for the company's establishment in the B2C scene, where brand perception greatly impacts customer decision making. Moving forward, it is important for the company to maintain a consistent brand tagline in all its communications as it has successfully altered brand perception and connected effectively with audiences worldwide. Now, it is recommended for the company to integrate this brand-specific campaign with localized product-specific campaigns. This is essential to avoid a situation like Motorola's, where the company had awareness but lacked preference among customers.

Additionally, including the tag line in advertisements along with product-specific content can increase the likelihood of purchase as it capitalizes on the positive association that customers have with the brand. When launching new ads, it is important to incorporate both the usual product-specific content, as well as prominently display the company logo and tag line. The ads should be designed in a way that aligns with the tag line "Make Yourself Heard". An example of this can be seen in the provided print ad from Nokia, where they explicitly mention their global tag line "Connecting People" in a local advertisement specific to a particular product. To address concerns about the tag line not being suitable for other areas of the company,

it is recommended that the other two businesses be renamed. For example, they can use names like Ericsson Business Solutions for these businesses. This will allow for separate and more appropriate branding campaigns for these B2B businesses. The growing size of the mobile phone market and the increasing trend of customers purchasing handsets through retailers further justifies this re-organization of businesses into separate entities. So far, the company has successfully created top-of-mind recall and achieved a modified brand image.

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