The concept of a company's business reputation is closely related to its own value
Posted: Sun Feb 16, 2025 10:03 am
Moreover, even three years after the scandal, the negative reputation of an unscrupulous and controversial brand did not allow D&G to return the Chinese consumer market - Asians declared a boycott of the brand. This was written about by leading world media such as CNN, BBC, etc. The brand lost 3% of the Asian market in just a year, while the Chinese luxury trade segment itself doubled in 2020. Thus, despite all the "ephemeral" nature of business reputation as an asset, due to neglect of it, the organization suffered very real financial losses.
This is far from the only failure of Western brands in the Eastern market, which could have been avoided by carefully studying the information field.
Before launching an advertising campaign, it is necessary to analyze the information agenda of the market, assess the mood of the audience, its readiness for extraordinary and provocative advertising projects. At a minimum, conduct an analysis of your organization's competitors in the media of the region of interest - how their advertising campaigns mexico mobile database were conducted and how the media wrote about them. For larger campaigns, it is advisable to order not only media analytics, but also sociological research, which reveals the difference in cultures and the audience's readiness for "shock" advertising.
To denote this phenomenon, economists use the term "goodwill" - the difference between the purchase price of the organization and its own capital.
A big name and loyal fans are expensive, as proven by the example of car brands. Thus, Volvo is no longer a Swedish car, and Jaguar and Land Rover are not English. From the point of view of analyzing business reputation, the example of the resale of the Volvo brand is interesting. Today, the production of the once Swedish car is carried out by the Chinese concern Geely Holding Group, which bought the car brand for 1.8 billion dollars in 2009. By the way, Volvo has been riding on the image of a reliable European car for a long time, although in fact since 1999 it belonged to the American company Ford Motor Company. Initially, the Americans bought the Swedish brand 3.5 times more than the Chinese - for 6.5 billion dollars. In addition to financial indicators, it is obvious that Ford representatives paid for the "fresh" Volvo brand with a national history. The Chinese got an organization not only with financial, but also with reputational problems after a massive reduction in the staff of the car concern and prerequisites for bankruptcy.
As for Jaguar and Land Rover, the "Englishmen" went to the Indian giant Tata Motors in a deplorable state and had nothing but losses. The very fact of selling two luxury brands with a national English name to India speaks of problems with the business reputation of the automobile companies - the deal amounted to 2.3 billion dollars, which is not so much for luxury.
This is far from the only failure of Western brands in the Eastern market, which could have been avoided by carefully studying the information field.
Before launching an advertising campaign, it is necessary to analyze the information agenda of the market, assess the mood of the audience, its readiness for extraordinary and provocative advertising projects. At a minimum, conduct an analysis of your organization's competitors in the media of the region of interest - how their advertising campaigns mexico mobile database were conducted and how the media wrote about them. For larger campaigns, it is advisable to order not only media analytics, but also sociological research, which reveals the difference in cultures and the audience's readiness for "shock" advertising.
To denote this phenomenon, economists use the term "goodwill" - the difference between the purchase price of the organization and its own capital.
A big name and loyal fans are expensive, as proven by the example of car brands. Thus, Volvo is no longer a Swedish car, and Jaguar and Land Rover are not English. From the point of view of analyzing business reputation, the example of the resale of the Volvo brand is interesting. Today, the production of the once Swedish car is carried out by the Chinese concern Geely Holding Group, which bought the car brand for 1.8 billion dollars in 2009. By the way, Volvo has been riding on the image of a reliable European car for a long time, although in fact since 1999 it belonged to the American company Ford Motor Company. Initially, the Americans bought the Swedish brand 3.5 times more than the Chinese - for 6.5 billion dollars. In addition to financial indicators, it is obvious that Ford representatives paid for the "fresh" Volvo brand with a national history. The Chinese got an organization not only with financial, but also with reputational problems after a massive reduction in the staff of the car concern and prerequisites for bankruptcy.
As for Jaguar and Land Rover, the "Englishmen" went to the Indian giant Tata Motors in a deplorable state and had nothing but losses. The very fact of selling two luxury brands with a national English name to India speaks of problems with the business reputation of the automobile companies - the deal amounted to 2.3 billion dollars, which is not so much for luxury.