The Brand Landscape: From Market Entry to Brand Adoption
Rudolf Tjandra
Thought Leader | Scholar Practitioner | Various Board Leadership & C Suites Roles | Business & Management Author | Independent Advisor | Growth Strategist | Director in Charge Kalbe Consumer Health & Bintang Toejoeh
In the exciting world of marketing and brand management, understanding how and when individuals enter your market—referred to as the Point of Market Entry (POME)—is fundamental. POME signifies the crucial moment when a person transitions from being outside your market to becoming a potential customer.
Imagine a woman who was previously uninterested in baby products. Her status as a potential customer changes the moment, she becomes pregnant. This transition highlights the importance of POME: recognising and capitalising on these pivotal moments when consumers enter your market.
But how do you ensure that this entry translates into lasting brand loyalty and engagement? This is where POBA, or the pinnacle of successful brand strategy, comes into play. POBA is achieved when your employees, consumers, media, and other stakeholders describe your brand in a clear, compelling, and consistent manner. It represents a high level of brand recognition and resonance.
To reach POBA, there are three cardinal rules to follow:
1. Understand the Brand
The foundation of successful brand adoption is a deep understanding of your brand. While this may seem straightforward, it's not uncommon for even senior executives to struggle with clearly articulating their brand's unique value proposition.
Example: Xiaomi's Brand Evolution
Consider Xiaomi, the Chinese electronics giant. Initially, Xiaomi was known primarily for offering budget-friendly smartphones. However, the company recognised that its true strength lay not just in affordability but in delivering high-quality technology with innovative features at a competitive price. By evolving its brand understanding to focus on high performance and innovation rather than merely low cost, Xiaomi transformed its market perception. The company’s success illustrates how a refined understanding of your brand’s core strengths and values can elevate it from a budget option to a globally respected tech player.
2. Talk About the Brand
Understanding your brand is just the beginning. Effective communication is essential. Your brand message must be consistently and broadly shared, reaching not only your consumers but also your employees and stakeholders.
Example: Uniqlo’s Communication Strategy
Uniqlo, the Japanese fashion retailer, provides an excellent example of effective brand communication. The company’s global strategy revolves around a message of simplicity, quality, and affordable luxury. Uniqlo maintains this consistency through various channels: in-store experiences, advertising campaigns, and social media. For instance, Uniqlo frequently uses seasonal campaigns and designer collaborations to keep its brand messaging vibrant and relevant. This consistent communication helps reinforce the brand’s core values and keeps it top-of-mind for consumers.
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3. Live the Brand
Living the brand means aligning your daily operations with your brand promise. If your operational practices do not reflect your brand message, achieving true brand adoption becomes challenging.
Example: Toyota’s Commitment to Quality
Toyota is synonymous with reliability and quality. The company’s commitment to its brand is demonstrated through its manufacturing processes and customer service, which consistently meet high standards. In Japan, Toyota’s philosophy of continuous improvement, known as Kaizen, is more than just a strategy—it's an integral part of daily operations. This dedication ensures that Toyota not only promises reliability but delivers it consistently, thus strengthening its brand reputation.
Putting It All Together
To achieve POBA, it is crucial to ensure that your brand is clearly defined and consistently executed both internally and externally. When employees, customers, and media perceive your brand in the same way, you have successfully reached a powerful state of brand adoption.
Key Takeaways:
By adhering to these rules and learning from successful East Asian brands, you can guide your own brand towards achieving POBA. Consistency, clarity, and alignment are essential to making sure your brand resonates with everyone who interacts with it.
The Potential of Emerging East Asian Consumer Markets
The rapid growth of consumer markets in East Asia presents a significant opportunity for brands aiming to expand their presence. According to McKinsey, the Asian middle class is expected to reach 3.5 billion by 2030, accounting for over half of the global middle-class population.
In Southeast Asia, the digital economy is booming, with e-commerce sales expected to exceed $300 billion by 2025, up from $100 billion in 2019. Countries like Indonesia, Vietnam, and the Philippines are experiencing significant increases in consumer spending, driven by a young, tech-savvy population and rising disposable incomes.
Brands that successfully navigate these markets by understanding local consumer behaviour, leveraging digital platforms, and aligning their brand values with regional preferences can achieve substantial growth and long-term brand loyalty. By adhering to the principles of understanding, communicating, and living your brand, you can position your brand to thrive in the dynamic and rapidly evolving East Asian consumer landscape.