In an article from “The Observer,” John Naughton wonders in amazement at how society ever managed without the Internet. Naughton ponders a world without Google, Skype, instant messaging, and online bank accounts. And while the Internet has created boom for most of us, the rise of social media hasn’t been sweet ambrosia for all companies. In fact, with social media and Internet technologies, now company decisions and actions are mostly public, including those of front-line employees. Now, actions that happened last week, last night, or 10 minutes ago can be broadcast across the globe in seconds, creating very dangerous challenges for company branding and reputation efforts.

In the Financial Times article “Perils of a Tarnished Brand,” authors Morgen Witzel and Ravi Mattu notice that even the most scripted and orchestrated product launches can go haywire. And even when “best-intented” marketing plans are well-executed, companies can be exposed to the ramifications of their daily operational and strategic decisions (e.g., Google in China and BP). “What affects reputations, in turn affects brands,” the authors point out.

Every employee is a brand ambassador, and brand management is no longer simply the purview of marketing managers. Even the best branding intentions can go awry when actions don’t back up corporate speak, say Witzel and Mattu.

Of larger concern however, is marketing cost-cutting trends in the name of efficiency that potentially leave brands and reputations exposed.

Robert Mabro, Honorary President of Oxford’s Institute for Energy, describes this problem in a letter to the Financial Times. He writes, “(Companies) no longer want to employ specialists in soft matters, such as political issues and the like. When an accident occurs, they find themselves hopelessly unprepared. This of course (ends up) destroying shareholder value!” Moreover, economist John Kay sums up the problem quite succinctly, “Yesterday’s cost-savings are so often today’s corporate crisis.”

One potential solution is for companies to invest more in “softer matters” like brand, reputation, crisis and risk management. Undoubtedly, some of these considerations are tough to justify in an age of narrow return on investment marketing calculations such as cost per lead.

However, Internet and social media technologies that transmit events, news and crisis accounts—at the speed of light—aren’t going away. To succeed in such an environment, companies must invest in the softer functions mentioned above even when “payback” doesn’t appear imminent.

It’s difficult to forecast all types of crises that could occur. A much better plan is preparedness. Is your company up for the challenge?

Related: Financial Times “It Pays to Expect the Unexpected“

With increasing consumer incomes in China–not to mention more miles of highway constructed every year, US brands like McDonald’s, Starbucks, KFC and Pizza Hut are exploding in China. In fact, McDonald’s has over 800 restaurants in China and has plans to open 5,000-10,000 outlets total.
“The opportunities are endless,” says Jeff Schwartz, CEO of McDonald’s China. A blue ocean of opportunity for sure, but McDonald’s should be very wary of seeing Malan Noodles or Lihua Fast Food in its home markets in the near future.

China, it seems, isn’t content to simply be the factory to the world. In fact, Chinese companies have ambitious plans to move up the value chain and reach past providing the physical products behind global brands.

Case in point, a recent New York Times article mentions Taiwanese company Asustek’s efforts to build its own global brand. Asustek laptops are currently built under their own brand name and also under those of acquired brands Gateway and Packard Bell. In addition, Asustek is no stranger to innovation as the NYT article notes the company practically created the netbook category with the launch of Eee PC.

Chinese brands are also coming alive in B2B markets. According to a Business Week article on top 20 Chinese brands, Huawei Technologies is giving Cisco Systems all they can handle competitively.

The article mentions that Huawei “is spending heavily on research and development–in the global market for routers and other telecom gear. So far it has made great strides in developing countries, and it’s going after more developed markets such as Western Europe.” Broad Air Conditioning in China is also another brand to watch as they penetrate markets with natural gas powered air conditioning and are also testing solar powered units.

To be sure, a brand is much more than just a nameplate. Chinese companies wishing to compete in Western markets must not only create awareness and adopt a customer mindset, but also match very sophisticated operational (i.e. packaging, sales, customer service, daily routines etc) and strategic processes (i.e. brand management) already in place for most Western companies. In addition, talent management will also play a significant role in whether Chinese brands can successfully penetrate Western markets.

A final consideration; flush with cash, some Chinese companies are forgoing organic brand building and instead buying global brands such as Thinkpad and possibly Hummer.

Chinese brands are coming to a market near you–in droves. Meanwhile, complacency is no longer an option for Western brands.
Sun Tzu once wrote, “Invincibility lies in the defense; the possibility of victory in the attack.” Brand managers in Western countries would be wise to heed his advice.

Questions:
* Chinese companies are moving up the value chain and building global brands. Should Western companies worry, or is this much ado about nothing?
* Brand experts, other than those listed above, what processes must Chinese brands adopt to fully compete in Western markets?
* What global brands–perhaps on the decline–are fodder for Chinese purchase and invigoration? Which Western brands should be wary of Chinese brands?

The brand of a company is really its reputation. Just like a personal reputation, a brand reputation is formed based on the behaviors and actions of the company (or person), and how those behaviors and actions are perceived.

Since each of us understand what a personal reputation is, it makes it easier to understand what a company brand is.
John Moore (from Brand Autopsy) and I, some years ago, were working with a client that wanted help with their brand. Knowing that the business was full of smart people, but not seasoned marketers, we started first with the metaphor of personal reputation. Once everyone quickly understood that, we shifted-gears and related that back to their brand reputation.
The team found this extremely helpful, and in fact, had several ah-ha moments when managers finally understood what a brand is about!
In our examination of reputation, we identified these six characteristics and outlined these definitions.
Examining the company through these filters helps to gauge how you’re reputation is performing and which areas that may need development.

(1) Being Remarkable

Don’t be invisible.
You should have something special to offer. Something unique from your competition. Something that makes you noteworthy.

(2) Having Values

Stand for something not everything.
Have a reason for being. What is it your employees and customers can believe in? Make financial success a by-product of doing the right thing.

(3) Being Genuine

Appeal to Main Street, not just to Wall Street.
You need to be authentic, the real you. Any guise you may have that’s inconsistent with who you truly are will be discovered. So start by being real.

(4) Having Empathy

Cultivate loyalty beyond reason.
Work to support loyal customers more than others think is wise. Personalize the customer experience, treat each customer – no matter what your volume – as an individual. Support your evangelists, your raving fans, to increase your loyal following.

(5) Having Vision

Be mission bound.
Having vision means truly wanting to make the world a better place. It’s about looking to the horizon – the broad view… a company that is built to last, not built to flip. A brand with vision serves as an enabler to help consumers live their dreams.

(6) Being Conscientious

Make everything matter
You should have depth and social meaning. (Don’t be shallow). Strive for excellence. Have and support strong beliefs.
Taking a look at that list again, you’ll notice that the people and brands with the best reputations live according to most or all of these characteristics. It’s this character that forms their reputation… and their personal brand. The same follows for your company brand.
Are there other concepts you’ve found helpful to help communicate branding? Are there additional characteristics I should include?
Please add your comments!

Recommended Reading

If you feel your brand is lacking in any areas, use this suggested reading list to guide your development.