0,5180,1305,00

TeleconferenceHow Japanese Brands Succeed OnlineRon Rogowski

Senior Analyst

Forrester Research

March 27, 2006. Call in at 12:55 pm Eastern Time

2Entire contents © 2006 Forrester Research, Inc. All rights reserved.

Agenda

• Building brand online is different

• How 12 major Japanese sites stack up at delivering Web brand experience (and how they compare to US sites)

• Recommendations for better online branding


Brand is a hot topic in Japan

• Brands differentiated by the extra value they give, whether real or implied

• Trust, quality, and reputation tied to brands and their corporate associations

• Many brand “refreshes” of late


“Brand” can mean many things

• The name of a company, product, or service

• A trademark

• Whatever


For consumers, a brand is an experience

• Every marketing message consumers see or hear creates an impression of what the brand stands for — its image.

• Every interaction with a product or its maker provides tangible proof of the real value the brand delivers — its action.

© 2005, Forrester Research, Inc. Reproduction Prohibited

The Relative Importance Of Communicating Image And Delivering Value By Touchpoint

June 2005, Best Practices “How Brands Succeed Online”


Brand image: Measured by how well a site communicates and supports brand positioning

• Nissan: Enrich lives with attractive cars that offer superior value

• Mizuho Bank: Act with spirit and passion to improve customers’ financial futures

• Panasonic: Create practical and original ideas that will make customers happy

• Content, like details about product quality?

• Function, like “innovative” online tools?

• Language with appropriate tone and manner

• Imagery, like photos and color

• Typography including logos

• Layout that reflects the right esthetic

Brand positioning examples:

Criteria: Is the brand supported by . . .


Scoring for brand image reviews

June 2005, Best Practices “How Brands Succeed Online”


Results Of Brand Image Reviews Of 12 Major Japanese Sites In Three Industries

December 2005, Best Practices “How Japanese Brands Succeed Online”


Results Of Brand Image Reviews Of 12 Major Japanese Sites In Three Industries (Cont.)



Nissan9

Mazda8

Toyota7

Three of 12 sites passed our brand image tests

• To pass overall, a site needed an average score of 6 or higher on the brand image criteria

» Average score for 6 criteria = +1 or higher

UFJ Bank 5Sharp

3Sumitomo Bank 2


Key elements of Nissan brand positioning

• “SHIFT_the future”

• Enrich lives

• Create attractive cars

• Preserve the environment

• Pursue safety

• Offer superior value


+ “Enrich lives”


+ “Pursue safety”


+ Video shows high resolution close ups of interior and exterior views (attractive cars)


Key elements of Mazda brand positioning

• “Zoom-Zoom”

• Stylish

• Insightful

• Spirited

• Distinctive design

• Responsive handling and performance


+ Site moves fast and is highly responsive


+ Imagery is stylish and page loads “zoom-zoom”


Key elements of Toyota brand positioning

• “Innovation into the Future”

• Enrich society through car making

• Be a driving force in global regeneration by implementing the most advanced environmental technologies


+ Toyota’s Welcab showcases “innovation” and commitment to “improving society”


+ An entire section devoted to eco-cars shows innovation and environmentalism


Brand action:

• Banking: First-time home buyer wants to learn about the borrowing process, get home loan rates, and estimate payments

• Electronics: Research and find out where to purchase a 42-inch, high-definition TV with superior picture and sound quality. View price and product dimensions to determine if the unit is affordable (less than 700,000 yen) and will fit in the available space. See what accessories are available for mounting the unit on the wall and what they cost.

Measured by how well a site supports the goals of target users


Brand action evaluation criteria

• Is essential content available where needed?

• Is essential function available where needed?

• Are category and subcategory names clear and mutually exclusive?

• Does the site use language that’s easy to understand?

• Does the site use graphics, icons, and symbols that are easy to understand?

• Is text legible?

• Are interactive elements easily recognizable?

• Does the site perform well?


Results Of Brand Action Reviews Of 12 Major Japanese Sites In Three Industries



Results Of Brand Action Reviews Of 12 Major Japanese Sites In Three Industries (Cont.)



Just one passed our brand action tests

• To pass overall, a site needed an average score of 8 or higher on the brand action criteria

» Eight criteria x score of +1 or higher

Sumitomo-Mitsui Bank 11 Sharp 4 Resona Bank 2


+ Users can clearly see which loans are for first timers


+ Users can attend seminars that explain the lending process


+ Rates are prominently displayed


+ There is even information about how to compare loans


+ Calculate rates by home cost or by how much you can afford to pay each month


+ When users select a term, rates auto fill


Results From Brand Reviews Of 12 Major Japanese Sites In Three Industries



Results From Brand Reviews Of 16 US SitesJune 2005, Best Practices “How Brands Succeed Online”


What does it mean for non-Japanese firms?

• Image is important, but the “product” must be of high quality

• Don’t neglect the small details of brand action — whether online or offline

• Keep pace with high rate of change with innovations that align with overall brand strategy


Recommendations

• Build usable sites that won't frustrate and annoy customers

• Create a “brand persona”

• Make brand image permeate the site

• Conduct full brand image reviews on a quarterly basis

• Bring micro-sites into the fold

• When in doubt, let brand action trump image


Summary

• The quality of online branding is measurable

• Online branding has two dimensions: brand image and brand action

• Sites that enhance brand will excel in both these dimensions


Selected bibliography

• December 21, 2005, Forrester Best Practices “How Japanese Brands Succeed Online”

• January 6, 2005, Forrester Best Practices “How Japanese Consumer Electronics Brands Succeed Online”

• January 5, 2005, Forrester Best Practices “How Japanese Automotive Brands Succeed Online”

• January 5, 2005, Forrester Best Practices “How Japanese Bank Brands Succeed Online”


Ron Rogowski

+1 916/772-5931

[email protected]

www.forrester.com

Thank you

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