From Multinational Corporations On Local Companies In The Successful Experience Of The China Brand Asset Management Brand Building

With the improvement of China market economy and increasing challenges from the overseas after China's entry of WTO, products competition more and more embodies brands competition. Obviously, our local brands are growing with a poor continuity, which is called "Shortsighted Problem". Nowadays, short-life enterprises are increasing, even including some famous-brand enterprises, which disappeared suddenly after achieving brilliant achievements, wasting numerous money and labors. With the analysis of local brands' existing problems, We have to say that most local enterprises work very hard, but still failed just because of wrong brand management in strategy planning or daily practice. From the analysis, we can find many "hard wounds" in local brands: lack of position of brand core value, marketing strategy is often changed without adhering brand core value, advertisement changes at will delivering different key messages to public, etc. Despite huge investment in advertisement, enterprises' brand equity, whole value and prestige haven't increased with years.In sharp contrast with local brands, international brands have successful experience in brand equity building - adhering brand core value to build brand equity year by year, which is proved to be the key secret of brand success.Theoretically speaking, brand core value is not only the main body of brand equity, but also the brand soul. It is the center of brand marketing and communicating activities. Namely, all enterprises should base on brand core value to manage all activities including marketing and communications and build brand equity. Brand management is a comprehensive and complex work, but the key process is clear - basing on brand core value, making right brand positioning and conducting comprehensive brand management (all marketing and communicating activities), and building brand equity.With rich brand management experience, some international brands are also making great success in China market, which is even more worth studying to local enterprises. In this paper, two well-known international companies, Electrolux and IKEA, are analyzed, focusing on their brand core value and brand equity building.The analysis of Electrolux and IKEA brand management is really a good textbook for local enterprises. How to build strong brands? How to build brand equity successfully to raise brand value? With Electrolux and IKEA case studies and theories (i.e. Local Brand Strategy of Weng Xiangdong, 360-degree Brand Manager Theory of Olilvy & Mather), this paper proposes a solution for local brand management.