Cultural Impact on International Branding in Advertising----A case of success of LGE in China.
Is it possible to persuade consumers in different markets with the same advertising message? This question is one of the most fundamental decisions when planning an advertising campaign in different cultural areas and one of the most frequently discusses issues in advertising today.
Banding as a kind of marketing communication for consumers aims to create an image by designing and promoting certain products or services, their brand names, and additional values. International banding is an example of interactive communication between marketers and consumers from different cultures.
In sum, the main research question of the present study is how does culture impact on international branding in TV advertising and what specifically are these impacts?.
From late 1990's, the Hanliu phenomenon was firstly formed from Korean dramas and extended into various mass cultures. (The Hanliu phenomenon refers to the enthusiasm of Asian people for Korean mass cultures such as Korean dramas, pop songs and fashions.) This phenomenon leads to the popularity of Korean products and Korean cultures such as Korean dramas, music and entertainers among the young generation of China.
Hanliu phenomenon is a big chance for approaching the Chinese fashion market of the largest buying power in the world: 1,300 million people. On the other hand, China, the fastest growing market in the world, is one of the "must" markets for global business leaders. With many Korean companies locked in fierce battle for market dominance with local as well as foreign companies in China, LG Electronics has become a benchmark for success for others to follow. LGE is the first Korean electronics makers whose sales in China have surpassed that of the domestic market.
China is a market known for strong loyalty to domestic brands as well as cutthroat competition of more than 100 brands per product that also includes foreign companies.