As the economic globalization, increasing companies pay more and more attention on their brand influence, which can bring in a lot of profit with slight effort in latter period. TCL, which is a Chinese multinational electronics company headquartered. It began manufacturing consumer electronics for the Chinese market during the 1980s which can remind Chinese of their childhood, adolescence and even adulthood by their advertisements.

According to National Bureau of Statistics of China Advertising Association and the Urban Social and Economic Survey Group report, in January 1998, TCL ace TV on national TV advertising investment reached nearly 6 million RMB, which is in the first place among similar products in terms of TV ad. Obviously, a huge advertising investment produced a huge brand benefit. It is estimated that in 2000 TCL’s brand value reached 10.6 billion RMB, becoming a large sum of intangible assets in the TCL.

Chinese consumers have always shop around, not to mention whether they are loyal to a brand. What makes TCL bosses pleased was that, TCL has been established a significant value proposition awareness in the minds of Chinese consumers: Although “TCL” itself does not has any special meaning, these three simple red letters can be recognized easily by consumers among dozens or even hundreds of similar products.

Because “TCL” lacks the meaning of the concept, TCL is also very easy to extend its market. TCL brand covers nearly everything from phones to TVs, mobile phones, computers, monitors, and even to education, routers, and dozens of large and small product range — the latter product’s advertising investment is almost zero, thus saving a lot of advertising costs.

To conclude, establishing a great and influential brand name exerts a far-reaching impact on a company. Therefore, management should take it into consideration to develop the business.

Reference

1． TCL Corporation. From Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/TCL_Corporation