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Consumer Behavior - Chivas Regal Trademark Case

Essay by   •  January 8, 2013  •  Research Paper  •  7,420 Words (30 Pages)  •  1,432 Views

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If Saab becomes Chinese should it rename?

* Vladimir Djurovic, president at Labbrand, suggests the name might not work well in China. "We have already found in previous research projects on car brand names, that names with this term were not a favourite choice in China because they are a little too spiritual".

* Given both Labbrand's expertise and MG's experience, the acquisition might be the perfect opportunity for repositioning the Saab brand, especially if the product line were to change. However this move is not risk-free.

* Saab's name "萨博" is widely recognized by the Chinese audience, so renaming might mean losing loyal customers. To solve this Vladimir Djurovic, president of Labbrand, believes that "instead of renaming, Saab could consider developing a better tagline to fit the Chinese market and make the brand more vivid in the imagination of Chinese consumers".

Chivas Regal Trademark Case

* Chivas Brothers failed to establish that the spirits brand was "well-known" in China before the registration of Chivas Regal clothing in 2003, which would have been grounds to deny the application.Before the 2003 registration by the Wenzhou squatter, Chivas Brothers (the brand owner) had registered the marks in a number of Classes, including 33, which includes alcoholic beverages. However, just because a brand owner registers the mark in one Class this does not automatically protect against other registrants for different goods/services or for products in other Classes. The board has said the Zhejiang man didn't violate Chinese trademark law because the brand is used in different kinds of products.

* These disputes are won or lost on evidence. Companies that are organized, keep good records, and enjoy management continuity in their overseas operations can prevail, but if a brand owner is unable to come up with sufficient documentation, the squatters will prevail. In terms of the market, this squatter has the right to sell certain types of clothing with the Chivas brand on it, or license/sell that right to third parties. Chivas may therefore wish to purchase the mark, if the price is right.

Generations in China

Individuals born from about 1928 to 1945 (Traditionalists)

In the 1940's and 1950's, teens in China were living through a major transition. For teens coming of age during these years, it was a time of conflict and confusion as traditional ways of life were uprooted in pursuit of modernization. Hard physical work and poverty was a fact of life for most. This generation learned that affiliating with the "right" people was essential for survival, advice they undoubtedly offered to their children.

Individuals born from about 1946 to 1960/1964 (Boomers)

Members of this generation in China grew up with the belief that loyalty to the state and institutions would be rewarded, questioning authority was unacceptable, education was unnecessary, and anything "foreign" or "old fashioned" was unwanted. They were dedicated to a single way -- "the" way of doing things.

After Mao's death in 1976, the Cult of Mao rapidly devolved, leaving many in this generation -- now young adults -- disillusioned, uneducated, and angry at their sudden oust from power. Today this generation is known in China as the "Lost Generation," since, without any formal education, many of its members are ill prepared to participate in the modern world.

Generation X - Individuals born from about 1961/1965 to 1979

This generation of teens in China also grew up with more personal rights and freedoms than the previous two generations. By 1980, DENG XIAOPING had maneuverered to the top of China's leadership. There was a renaissance of traditional Chinese culture; local religions including Buddhism, Taoism and Confucianism flourished. Beginning in the late 1980s, mainland China was exposed to many Western elements: pop culture, American cinema, nightlife, American brands, and Western teen slang. China developed a strong cell phone culture, and soon had the most mobile users in the world.

Generation Y - Individuals born from 1980 to 1995

Y's in China share this generation's global sense of immediacy, coupled with the excitement of being part of the country's first wave of broad economic opportunity and growing national pride. Y's in China are confident and competitive. For many, a desire for economic success is closely coupled with a desire for status. They are looking forward, toward increasing China's role and influence in the world.

China, like other countries I'll discuss over the upcoming weeks, illustrates the dramatically different experiences and formative events that influenced those growing up in the 1940's - 1970's (the generations that I call Traditionalists and Boomers in the United States), and the growing similarity of experiences in the 1980's onward. Generations X and Y are the beginnings of global generations.

Possible question

How do you think China's history has influenced business practices and consumer preferences?

Louis Vuitton: Being Too Popular in China Is Not Good

Cherry's desire to save up to buy a Louis Vuitton is becoming a DOUBLE-EDGE SWORD for the brand. It means it will have years of growth there as incomes rise but its mass appeal also risks undermining its exclusive positioning. A firm conducted interviews with several dozen mega wealthy with investible assets of more than $10 million. The majority told us they no longer wanted to buy Louis Vuitton. As a woman in Beijing, who is worth billions, said, "Louis Vuitton has become too ordinary. Everyone has it. You see it in every restaurant in Beijing. I prefer Chanel or Bottega Veneta now. They are more exclusive."

Soaring wealth and obsession with luxury products provides huge opportunities for luxury retailers. The number of Chinese millionaires is estimated to more than double in the next five years. The Hurun Report estimates there are 271 billionaires, up from 189 in 2010. Wealthy consumers looking to differentiate from the masses provide an opportunity for luxury brands like Chloe, Hermes, and Patek Philippe that target the ultra-rich. Our research suggests that mega rich Chinese are less likely than ever before to buy the same brands as everyone else with the same big logos to show off status.

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