Facebook gets personal

Facebook, the social network, is seeking to provide solutions helping brand owners forge substantive "associations around people."

Speaking to AdAge, David Fischer, Facebook's vp, advertising and global operations, suggested its core strength lies in offering an intrinsically interactive experience.

"The web can be the best branding opportunity if you think about creating associations around people," he said.

"Part of what's so exciting about Facebook, it's clear that what drives change and motivates people to act is other people … It's about how you tell stories through people."

"People, really, is the operating system that drives all of our behaviors. It's the organising principal that drives us. I'm seeing that come to life via Facebook."

Having previously worked for Google, Fischer argued the rapid rise of Web 2.0 platforms across the globe constitutes the next stage in the internet's development.

"Search has been an incredible advancement, but the opportunity for brands that the web has always represented - there's an opportunity to fulfill that through Facebook that you hadn't had before," he said.

Among the most successful firms here at present are soft drinks giant Coca-Cola, boasting 22.7m fans, and coffee house chain Starbucks, with 19.8m.

"Those millions of connections are not the end. It's just the start. Those millions are the means to the end," said Fischer.

"It's a way to build relationships with those people, and then to tap into all those people's friends. It's an opportunity to do word-of-mouth marketing at scale."

Indeed, Facebook is empowering companies as much as consumers, thus meeting a range of traditional needs in new ways.

"As we build out the social graph, there's an opportunity for brands to rebuild their businesses themselves," said Fischer.

"Marketing is key to that, and so is customer acquisitions and customer relationships."

Another essential strategy takes the form of an "always on" approach, from setting up pages to handing insider status to their followers, stimulating viral traction.

Ford, the carmaker, launched the latest version of the Focus in this way, demonstrating such a process in action.

Nike's 'Write the Future' video, for the FIFA World Cup in South Africa, also attracted 3m Facebook members, delivering considerable WOM.

"In the world of marketing, we think about paid media, owned media and earned media - all three exist on Facebook," Fischer said.

"As you build up more connections, each thing you publish, you can build more and more ongoing connections."

"Sponsored stories", which determines when netizens choose to "like" a brand, creates an ad featuring the names of the relevant person and product, and then displays it to their contacts, have also proved effective.

"That impact of having a name will increase brand awareness by 68%, and it has a four-times increase in purchase intent," Fischer said.

"That really is the power. And that's the kind of brand associations we're trying to build for companies. Branding should happen around people."

Although Facebook has rapidly become one of the biggest sources for display ads in nations like the UK and US, it only hosts a single homepage ad at any given time, and encourages clients to target specific demographics.

"We do want the messaging to pop. At the same time, we're careful to avoid an intrusive experience," said Fischer.

"We do what we think will be appealing to markers and be useful to our users. That's why we don't sell home page takeover for an entire day."

"Marketers have to understand the opportunity goes far beyond the particular box on the home page.

Retailers adapt in China

Major retailers like Tesco, Best Buy and Media Markt are rapidly adapting their strategies in China, reflecting the unique trading environment observable in the country.

Tesco has announced a scheme to build three Lifespace shopping malls in China via a partnership with Singapore's Metro Holdings, placing one of its supermarkets at the heart of each complex.

Looking forward, the organisation intends to open around 80 similar centres before the end of the decade, requiring approximately £5bn (€5.9bn; $8.1bn) in investment.

Niamh McSherry, from Berenberg Bank, argued this should not be perceived solely as a move in Tesco's core sphere of competence.

"We are not opposed to property development but we would flag that based on Tesco's plans ... it is likely to make more money in China as a property developer than as a retailer," she said.

Elsewhere, Wal-Mart is aiming to construct "compact hypermarkets" to penetrate underserved regions.

These outlets focus less heavily on a premium in-store experience, and offer a standardised template that can quickly be replicated.

"It is going to help us reach more people, not only in urban markets but also in rural areas and smaller cities," said Doug McMillon, chief executive of Walmart's international arm.

Carrefour recently shut down four stores in lower-tier cities including Dalian, Xi'an, Jiaozuo and Foshan, which may form part of a wider emerging trend.

For example, Home Depot, the US home improvement specialist, has closed its last remaining branch in Beijing, the fifth of the company's Chinese shops to have been shuttered in two years.

Electronics chain Best Buy is taking the same approach regarding its nine branded stores, instead adding between 40 and 50 sites under the Five Star banner it acquired in 2006.

"We are really committed to China, and we are trying to figure out the business model that is going to work for us in China," said Kal Patel, Best Buy's Asia president.

Five Star controls 170 stores, and competes with indigenous rivals such as Suning and Gome, boasting networks of more than 1,000 outlets apiece.

"The Five Star brand has been in the market considerably longer and is a brand people recognise. Not many people in China know what Best Buy is," said Ben Cavender, an analyst at the China Market Research Group.

Paul French, an analyst at Access Asia, suggested the dominance of independents and plazas meant Best Buy, which provided a "a much nicer retail environment" than the norm, was "a concept ahead of the consumer".

"There are too many brands and not enough people buying the high-margin items," he continued. "The pie is going to get cut very thinly."

In contrast, Media Markt, owned by German giant Metro, currently possesses a single store in China, in Shanghai, but hopes to run over 100 branches by 2015.

Media Markt believes the electronics retail sector could be worth €150bn in 2013, as demand among increasingly affluent buyers grows.

"The positive response towards our first store in Shanghai shows that our business concept is working in China," said Ton Wortel, ceo, Media Markt China.

Ding Wenjin, an analyst from Dongguan Securities, warned the discounts available online, and price sensitivity linked to inflation, mean conditions might still prove challenging.

"Foreign companies are sometimes bolder than local ones, but the local companies know more about the local customers. They are better at controlling costs and keeping prices low," said Ding.

Mercedes tops UK brand charts

Mercedes-Benz, Rolex and the BBC are among the brands UK consumers consider to perform the best in areas such as reputation and quality, a survey has found.

Superbrands, which rates the country's leading products on an annual basis, partnered with the Centre for Brand Analysis to poll industry experts and 2,000 adults.

Participants were asked to assess the reputation, quality, reliability and "distinction" of relevant offerings, alongside the emotional and functional benefits they provided compared with competitors.

Mercedes-Benz, the German automaker, claimed first position in the rankings, boasting a maximum 100 index points, having also featured in the top ten every year since 2006.

"Everybody in the company is absolutely committed to delivering exceptional levels of customer service, and this survey result shows that these efforts are paying off," said Wilfried Steffen, president/ceo of Mercedes-Benz UK.

"Throughout 2011 we will continue launching a wide range of innovative new products and customer service initiatives across the country."

Luxury watch brand Rolex retained second on 95.8 points, while the BBC resided in third, posting 94 points, with the broadcaster one of the five premier operators in each of the last five years.

Coca-Cola grabbed fourth, registering 92.3 points, and Google, a previous winner, took fifth, lodging 89.1 points.

Microsoft, which led the 2010 standings, occupied sixth, receiving 87.9 points from the sample, meaning 2011 was the first time in six years that either it or Google did not head the charts.

British Airways followed, securing 84.6 points, Apple generated 84 points, and Jaguar - owned by Indian conglomerate Tata Group - was, along with BMW, a new entry in the top ten, yielding 81.8 points.

They replaced toy brand Lego, falling to sixteenth spot, and the Encyclopaedia Britannica, now the final member of the top 30.

Separately, Superbrands released a list of the UK's pre-eminent business brands, as decided by a panel of 2,000 senior executives.

Rolls Royce, active in sectors from aerospace to defence, attained 100 points here, while Research in Motion's BlackBerry smartphone logged 94.9 points.

"Rolls-Royce Group has prospered by combining customer focus, teamwork and technology," said Sir John Rose, the organisation's ceo.

"We invest for the long term and concentrate on producing complex power systems which are mission critical to our customers for use on land, sea and in the air.

"This has given us access to global markets. It has enabled us to double in size in the past ten years and gives us confidence that we can do so again in the next decade."

Microsoft was third, recording 94.1 points, beating Google's 92.3 points, Apple's 91.3 points and the London Stock Exchange's 90.6 points.

Professional services firm PricewaterhouseCoopers, pharma giant GlaxoSmithKline, and Visa credit cards all surpassed the 88-point benchmark.

"As we enter another difficult year, the resilience of a business can be boosted by its reputation, helping to stimulate demand and loyalty versus weaker-branded rivals," said Stephen Cheliotis, ceo of the Centre for Brand Analysis.

Facebook, Dentsu in tie-up

Dentsu, the holding group, has signed a deal to become Facebook's "official representative" in Japan, a move indicative of the social network's efforts to enhance its position in the Asian nation.

Under the terms of this agreement, Dentsu's Cyber Communications unit will handle Facebook's advertising sales in the country.

Elsewhere, Dentsu is taking on exclusive responsibility for marketing Facebook's Premium Ads, covering areas including polls, events, "likes" and videos, for a year.

Dentsu's additional capabilities incorporate providing consultancy services for brands wanting to leverage the Web 2.0 platform, such as through building pages and applications, or driving word of mouth.

"Dentsu will be a valuable partner for us as we seek to support marketers in Japan to connect and engage with their customers," Blake Chandlee, Facebook's president and commercial director, Asia Pacific, Latin America, and emerging markets, said.

"Dentsu understands the unique social marketing opportunity on Facebook, and will work directly with brands here to help them create and implement campaigns that will impact their businesses in meaningful ways."

On its part, Facebook intends to share the latest best practice examples with Dentsu, while the latter firm can also propose new advertising models, alongside suggesting methods for brands to integrate social and traditional media.

"As communication styles diversify, social networking, which directly connects consumers to other consumers, has become a vital communications medium in the world today," said Akira Sugimoto, an executive officer at Dentsu.

"I believe that our collaboration with Facebook will play a key role in our initiatives to further strengthen links between consumers and corporations."

As previously reported, Facebook is attempting to gain ground in countries like Japan - where it opened an office in September 2010 - and South Korea.

"Japan is a very big market which we really have been working on," Chandlee told the Asian Media Journal in an interview last month.

Ford takes global view

Ford will look to international markets and tap in to consumers' fuel economy concerns in a new global ad campaign for its Focus model, in an attempt to boost sales even as oil prices rise.

The New York Times reports that the automaker will be taking a "global" perspective in promoting the 2012 Ford Focus, with WPP agency consortium Global Team Ford developing a single campaign that will be rolled out worldwide.

"The last time we launched a car, we had eight [campaigns]," James D Farley, Ford group vice president for global marketing, sales and service, said at a news conference.

Ads in traditional media, including TV spots and newspaper and magazine ads, will share a similar "look", reflecting the Focus' repositioning as a "world car".

Farley added that the Focus is set to be "the biggest launch we've ever had, the biggest media weight".

Ford hopes that the range's smaller sizes - and the fact that some of the models will be hybrid and electric cars - will be a selling point in a world of rising fuel prices.

The Focus' fuel economy will be highlighted in some of the ads - as will the possibility for customers to add on fuel-saving technology that automatically cuts out the engine when the car stops.

"With this car and this launch, the most important thing is providing a simple explanation of the product and the technology. Particularly as oil nears the $100 oil price, technology elements are becoming more important. It resonates with consumers all around the world," Farley was quoted by Mediapost as saying.

The ads strike an optimistic tone following what has proved a tough few years for US automakers.

While Ford avoided filing for bankruptcy protection throughout the economic downturn, rivals GM and Chrysler both decided to take US government support in 2009.

Chrysler references the crisis in its current Imported from Detroit campaign, based around a TV commercial starring rapper Eminem which premiered during this year's Super Bowl.

The Wieden & Kennedy-developed spot, which highlighted the motor city's rebirth following hard times and promoted the automaker's new Chrysler 200 model, has generated significant online buzz.

AdAge reports that the campaign was the second most-popular viral ad in the last week, generating 2.45m views over the seven-day period.

It was behind another Super Bowl ad, Volkswagen and Deutsch's The Force, which had 3.49m views.