Excerpt of further issues topics:
Brand Equity and Brand Strategy,
Brand Equity and Brand Diffusion, Brand Equity
and Company Success, Brand Equity and Sales and
Acquisition of Brands or Companies, Brand Equity
and Marketing Investment
The Case of
BenQ-Siemens With Regard to Brand Equity
Schmid-Preissler, SchmidPreissler International
The abolition of jobs which
the bankruptcy of the Siemens mobile phone „buyer“
BenQ caused, is surely of harrowing magnitude.
Especially for those affected by it. If and if
so how much responsibility Siemens is going to
have to take on is going to stay the secret of a
After these recent developments, repercussions
on the brand equity are not going to stay a
secret. Siemens is working on damage control by
creating an employee benefit trust and a job
exchange where among others the heavily
criticized bonuses of Siemens management for one
year are supposed to flow into, is surely not
going to distract attention from it.
In a globalized market criticism on the conduct
of a business becomes global quickly. And when a
corporate brand such as Siemens also emerges as
a product brand, criticism on such a brand
quickly can turn global. Situations as this one
have shown in the past, many multinationals have
made the painful experience, that criticism on
the conduct of the company does not just affect
the company, but also its brands. Sometimes it
is about labor conditions at production sites of
the export processing zone Cavite, south of
Manila and sometimes it is about environmental
“crimes” such as the deforestation of the
The value of products and as such the proceeds
they generate and the added value included in
the price depends more and more on the brand
which accompanies the product and stands for the
product and the company performance. The
assumption that the quality of a product
represents the success of a product is outdated.
Nowadays, quality is a matter of course.
Research done by renowned institutes in the
whole world has shown that quality can only
create conditional differentiation in
Often the qualities of different competitors are
interchangeable. And more and more often you can
find products from assumed competitors which in
all actuality come from the same factory. A good
example is the shoe production in Asia where
without doubt shoes from Nike, Reebok or Adidas
could come from the same factory.
We think brand marketing is facing a change of
times and instead of applying small corrections,
we have to put the basics to the test, we have
to rethink everything and get back on target,
which in our opinion is going to lead to new
successes. In this regard it is imperative to
make sure the structure in which the brand life
is residing, is sustainable.
How are brands managed and lead? There is a huge
difference between management and leadership. To
lead also means to be able to make decisions. To
manage usually means to execute.
Companies whose leadership waives the right to
brand leadership or simply does not get involved
in brand leadership, are endangered in their
existence in the long run. This realization is
prevailing. Even the biggest businesses have
more and more often brand managers or brand
divisions on a board level.
The way we estimate the case of BenQ-Siemens,
those responsible at Siemens have lost track of
diligent brand leadership in regards to the
brand Siemens of formerly international standing.
And this is going to have consequences.