11 October 2012
Red Peak’s work for YOU On Demand in BusinessWeek
by Megan Meagher
Our work for YOU On Demand is mentioned in BusinessWeek's latest article, "'Made in the USA' Still Sells." Our CEO James Fox is quoted as well on the state of American brands outside the home market.
"Not long ago, the Red Peak Group, a global brand-consulting firm with offices in New York, began researching names for a new product in China—a pay-per-view and video-on-demand platform that would allow people to stream licensed Hollywood movies into their homes. Along the way, they market-tested a range of Chinese-style names for the product. But in the end, the feedback was clear. Consumers in China preferred an American-sounding brand. The marketers went with “YOU On Demand.”
“What we found was that if you’re associated with a positive part of America, which Hollywood is, they want you to be more American, rather than more local,” says Red Peak Chief Executive Officer James Fox. “There’s still a status associated with American brands.”
These days the same holds true, marketers will tell you, in the emerging middle classes in developing countries around the world. In Brazil and India, Russia and China, the value of America as a brand-enhancing, anabolic sales booster has never been stronger. Budweiser (BUD), General Motors (GM), Tiffany (TIF), Jack Daniels (BF/A), Levi’s—the more American-sounding, the better. In the first six months of 2012, Harley-Davidson’s (HOG) retail sales were up 16.5 percent in the Asia-Pacific region and 58 percent in Latin America. Tiffany’s sales in Japan jumped 13 percent in the same period. In the past two quarters, Yum! (YUM), the parent company of KFC and Pizza Hut, has opened 328 restaurants in China. “Very American brands are doing incredibly well outside the home market,” Fox says."
Read the whole article here.
11 October 2012