J ÖNKÖPING I NTERNATIONAL B USINESS S C H O O L JÖNKÖPING UNIVERSITY Adjusting brand image to cul- ture through advertising A study of Swedish companies established in Japan Master’s Thesis within Business Administration - Marketing Author: Sabina Pracic Karolina Stenberg Tutor: Karl Erik Gustafsson Jönköping June 2006 Acknowledgments We would like to thank our mentor for this thesis, Professor Karl-Erik Gustafsson for all his help and constructive criticism which he as offered to us during our tutoring sessions. We would also like to extend gratitude to all the companies and their contact persons who helped us by giving us their most valuable time in doing an interview with us. The people we would especially like to thank are: from Husqvarna Viking, Miss. Ikuko Sakuma; from Kosta Boda/Orrefors, Mr. Mats Mark; From Swedish Match, Mr. Bengt Jönsson; from Tempur, Mr. Pele Siljedahl; from Yamaha Scandinavia AB, Mr. Mats Udd and finally from Volvo Cars, Mr. Kamata Takatoshi. Moreover we would like to thank the person which spawned the idea for this thesis in our minds and that is Professor Garr Reynolds of Kan- sai Gaidai University in Hirakata City-Osaka, Japan. i Master’s Thesis within Business Administration - Marketing Title: Adjusting brand image to culture through advertising – Swedish compa- nies advertising in Japan Authors: Sabina Pracic Karolina Stenberg Tutor: Karl Erik Gustafsson Date: 2006-06-01 Subject terms: International Advertising, Branding, Culture, Marketing in Japan Abstract Background Companies today are becoming more and more internationalized. In their home countries they have already established strong brand recognition and a strong image. This image is in turn visible in their advertising. As Swedish companies travel abroad some aspects have to be adapted to the new culture. A culture viewed as very different from the West is the Japanese culture. Swedish companies entering this culture must adapt in many ways in or- der to reach the Japanese consumers. Some companies with well established images might not be willing to make some of the adaptations. Purpose The purpose with this thesis is to establish if Swedish companies who have established themselves in Japan have to change their image through advertising in order to match the culture. Method This gathering of empirical data in this thesis was performed through a qualitative method. Six companies were contacted for phone interviews. Five of these companies were Swedish companies established in Japan and one of them was a Japanese company established in Sweden. All interviews were conducted with people in managerial positions. As a compari- son between Sweden and Japan, ads for each company were also used in order to make our conclusions. Results This thesis will show that most likely, Swedish companies must to some extent adjust their brand images to fit the Japanese culture. These adaptations are viewed mainly through their advertising efforts though also through their service and product improvements. ii Table of Contents 1 Introduction...............................................................................1 1.1 Background ............................................................................................1 1.2 Problem statement .................................................................................2 1.3 Purpose..................................................................................................3 1.4 Perspective.............................................................................................3 1.5 Delimitations...........................................................................................3 2 Marketing Promotion ................................................................4 2.1 Advertising..............................................................................................5 2.2 International advertising .........................................................................6 2.3 Advertising in Japan ...............................................................................7 2.3.1 Women in Japanese advertising ............................................................8 2.3.2 Men in Japanese advertising..................................................................8 2.3.3 Stars in Japanese advertising ................................................................9 2.3.4 Design of Japanese advertising ...........................................................10 3 Branding.................................................................................. 12 3.1 Brand Value..........................................................................................12 3.2 Positioning Choice................................................................................12 3.3 Brand-name strategies .........................................................................13 3.4 Identity..................................................................................................14 3.5 Image ...................................................................................................15 3.6 The Japanese brand.............................................................................15 4 Culture ..................................................................................... 17 4.1 The socio-cultural environment ............................................................17 4.2 Japanese consumers ...........................................................................19 4.3 Japanese female consumers................................................................19 4.4 Female cuteness culture ......................................................................20 5 Methodology ........................................................................... 22 5.1 Research design...................................................................................22 5.2 Research method .................................................................................22 5.2.1 Personal interviews ..............................................................................23 5.2.2 Sample .................................................................................................24 5.2.3 Document examination.........................................................................26 5.2.4 Data analysis........................................................................................26 5.2.5 Validity and relevance ..........................................................................27 6 Empirical research.................................................................. 29 6.1 Husqvarna Viking .................................................................................29 6.1.1 Branding...............................................................................................29 6.1.2 Culture..................................................................................................30 6.1.3 Marketing Communication – Advertising ..............................................30 iii 6.2 Kosta Boda/Orrefors.............................................................................31 6.2.1 Branding...............................................................................................31 6.2.2 Culture..................................................................................................31 6.2.3 Marketing Communication – Advertising ..............................................32 6.3 Swedish Match .....................................................................................32 6.3.1 Branding...............................................................................................33 6.3.2 Culture..................................................................................................34 6.3.3 Marketing Communication – Advertising ..............................................34 6.4 Tempur.................................................................................................35 6.4.1 Branding...............................................................................................35 6.4.2 Culture..................................................................................................36 6.4.3 Marketing Communication – Advertising ..............................................37 6.5 Volvo Cars............................................................................................38 6.5.1 Branding...............................................................................................38 6.5.2 Culture..................................................................................................38 6.5.3 Marketing Communication – Advertising ..............................................39 7 Yamaha – Empirical data and analysis.................................. 40 7.1 Branding...............................................................................................40 7.2 Culture..................................................................................................41 7.3 Marketing Communication – Advertising ..............................................42 7.4 Tentative conclusion – Yamaha ...........................................................44 8 Analysis and Tentative conclusions...................................... 45 8.1 Branding...............................................................................................45 8.1.1 Tentative conclusion: Branding ............................................................48 8.2 Culture..................................................................................................49