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					The New Brand Extensions of
          B-to-B
Claus Wüstenhagen
               CEO
 Vogel Business Meiden GmbH & Co. KG
Chances and Risks
of Internationalising
     B2B-Brands
Brands have always been important,
particularly in the consumer goods industry,
and they are becoming increasingly so.
The 21st century will be a century of brands.
    What exactly is a brand?

A – That thing they burn into cows
B – A logo or a trademark
C – A jingle or a slogan


 A – That thing they burn into cows
             Branding is …


• about differentiation

• about getting your targets to choose
  you over your competition
Good brands have three basic
         functions:

• efficient information!

• non-material benefit!

• risk reduction!
       Conclusion: Brands


• provide significant added value,
• represent some of a company’s most
  valuable capital,
• play a crucial role in a company’s
  success on the market.
   On the domestic market a
    strong brand enhances
(through line extensions and/or brand
transfer)
• growth and expansion
• gain of market shares
  and
  gain of market power
             Globalisation

Will a successful brand on the domestic
market continue to be so at an international
and/or multinational level?
 Globalisation of the markets

• opens up a whole range of opportunities
  and potentials
• is an interesting option for many
  companies to act
• will be mandatory for many small and
  medium-sized companies in the future
What does this development
mean for specialist publishing
        companies?
• we depend on the advertisement
  business
• our industry customers are going abroad
 We must decide, which products we
   want to/can offer at which prices and in
   which markets.
The marketing budgets end up going abroad
with production and sales.
In the relevant sectors up to 60 % has
already gone, and in some cases even
80 %.
      International Activities of
       German B2B Publishers
    100
                       81,7 %

      80


      60


      40                               26,8 %
                                                        21,1 %

      20


       0
            Total international   Joint Ventures   Subsidiaries
                activities
Source: Deutsche Fachpresse
    Cross-border publishing:

Development and production on the spot with local
specialists and in the respective national language
 substantial, high risk financial commitments
If we follow the customers into foreign markets a
strong brand has good chances
 nevertheless, risk of market erosion
Sensitivity!
         Vogel Media Group

• Established in 1891 by Carl Gustav Vogel in
  Pößneck, Thuringia
• The company’s head office has been in
  Würzburg since 1952
• The core of its business are the specialist
  media activities of Vogel Business Media
• A joint venture with Hubert Burda Media
  Holding (50 %) in the field of computer media
  (CHIP)
• We employ some 2,100 people worldwide
• Our international network puts out a total of
  over 100 publications
• The sales of the Vogel Media Group total
  some 400 million Euros
• The three prominent areas of our business:
   - Industry
   - Cars
   - Computer & Communications
• We focus on Eastern Europe and the
  emerging markets in Asia
Circulation: appr. 50,000 weekly   Price: € 4.50
Market leader
         The Key to Success

Editorial competence in the market for the market:
• Collaboration with highly qualified partners
• Act locally: Local titles with editorial
  independence -> market orientation!
  (Individual character of markets)
• International coordination office Würzburg:
  The share of “German” articles is determined
  by the respective national editorial offices.
              Status quo:

• The international publishing business
  accounts for some 27 % of our sales,
  and
• in the case of MM MaschinenMarkt for
  appr. 10 % of our advertisement
  business turnover in Germany.
  “MM Industrial Magazines:
The right support for industry”
1. The competence and tradition of the MM brand
2. Local editorial offices
3. A worldwide, coordinated network of editorial
   offices
4. The premium quality of the specialist journal and
   communications platform
5. Excellent proximity to customers and target group
   coverage
6. One-stop service
Brands are essential stabilising factors

in the globalisation process.
Thank you.

				
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posted:11/15/2011
language:English
pages:25