Make Yourself Heard Ericsson‟s Global Brand Campaign
In partial fulfilment 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
Ericsson is a 120 year old company and the leading supplier of equipment and services for the telecommunications industry. The company‟s products range from advanced systems and products for wired and mobile telecommunication in public to private networks with its operations spanning across 130 countries. Its equipments are used in 40% of all mobile phone communications. In 1997 the company was organized in three business areas – Radio Systems, Infocom Systems and Mobile Phones and Terminals.
168 billion SKr in sales 54 million subs. of mobile phone systems
R&D budget >20% of sales
>90% turnover outside Sweden
The case deals with the Mobile Phones and Terminals business of the company globally. Company sells its product of this business in 92 countries. The business faces competition at global level, mainly from Nokia and Motorola who are the current market leaders.
21% Almost Stable
22% Drastic Decline (30% since 1995)
16% Huge Increase (45% since 1995)
Challenges facing Ericsson
1. Low brand awareness and recognition a) Non-European markets very low b) US Market close to zero 2. Perception of technological superiority BUT “cold, distant and conservative” 3. Integration of Product focused and Brand focused campaigns - ultimate sale through local sales companies who only do product focused advertising 4. Communication with other company divisions 5. International Advertising - Marketing communication decision making is global
Global Brand Campaign Launch
The company has never launched any particular branding or promotion campaign at global level though they undertook a pan-Europe promotion campaign for a new product GH337 which was considered successful. Thus the company decided to undertake a global promotion campaign to increase the brand awareness and modify the perception of the brand from “cold, distant, conservative and technology oriented company” to the one which makes customers feel stronger emotional and psychological bond with the company. The tag line for the global campaign was “Make Yourself Heard”. The campaign was launched at global level in 1998 after getting positive response in the pilot runs. The campaign raised concerns from local and regional organizations about its effectiveness in boosting sales especially because most of the financial burden was being borne by them. 3
The key issue was that the branding campaign did not include any reference to any product of the company in the markets. The primary concern in the case is about the future promotion campaigns. Whether the company should continue with the similar campaign or make it more products focused and customize it for different local markets.
Role of Brands in Consumer or Industrial Products and Services
Brand is a distinct identity for a product. A brand can signal status, quality, and good value. Consumers tend to place a “value” in a brand. They are more comfortable buying brands that they are familiar with specially in case of consumer goods or industrial products , like a car home appliances, mobile phones etc. Brands also tend to create an entry barrier in an industry, serve as a source of competitive advantage, and secure a price premium over other brands like in case of Ericsson that charges a premium over Nokia and other players. Consumer durables are mostly high involvement products and have a complex decision making system because of relatively large prices involved. Thus, the consumers prefer buying brands that they can trust. Strong brands help build the corporate image, making it easier to...