bez_granka_nebyla_snidane bez_kridelek_ale_tluste_5cm mala_svacinka PEDRO Advertising in Czech Republic Radoslav Škapa tak_to_je_stroj_poctu uces_vydrzi_cely_tyden vaticka_co_pohladi za_ty_prachy_aspon_10x cigarety_z_bulharska_ty_pisou lepsi_jak_cd-r napoj_mladi_a_sily 19_1980_deli.jpg () 19_1989_deli.jpg () 19_1993_deli.jpg () 19_1998_deli.jpg () 19_1999_deli.jpg () 19_2001_deli.jpg () 19_DELI orisky.jpg () 1980 1989 1993 1998 1999 2001 2004 Škoda Auto • owner: Volskwagen AG • biggest Czech car factory • established in 1925 306x306-Skoda-Logo Plzeňský Prazdroj / Pilsner Urquell • owner: SAB Miller • beer • established in 1898 PUlogo partneri_budvar Budějovický Budvar / Budweiser • owner: state enterprise of Czech Republic • beer • established in 1895 Top Trademarks in Czech Republic (2007) Baťa • owner: BSO (Bata Shoe Organization) • shoes and leather accessories • established in 1894 LogoBata_Gif Kofola • owner: Kofola Holding • soft drink • established in 1962 kofola_original_listek_cmyk Becherovka • owner: Pernod Ricard • herb liqueur • established in the end of 19th century logo_becherovka Mattoni • owner: Ronaldsay • mineral water • established in 1867 Česká pojišťovna • owner: Generali PPF Holding • insurance company • established in 1827 Staropramen • owner: InBev • beer • established in 1870 Česká spořitelna •owner: Erste Bank •bank •established in 1825 logo_mattoni Staropramen 13212_big CS Value of trademarks •World (2007) •Google (66,4 bil.$) •General Electric (61,9 bil.$) •Microsoft (54,9 bil.$) •Coca-Cola (44,1 bil.$) •China Mobile (41,2 bil.$) • • •Europe (2007) •Nokia (32,3 bil.$) •LVMH (29,8 bil.$) •Unilever (25,1 bil.$) •Telefónica (23,9 bil.$) •Vodafone (22,6 bil.$) • Advertising in Czech Republic- historical overview •Until World War II situation similar to other West European countries: •High level of development of advertising •Big companies had specialized dep. of promotion –Bata – 200 employes in promo. activities –Laurin & Klement/Skoda – 56 emp. –Koh-i-nooru – 10 emp. Advertising in Czech Republic- 1948 - 1989 •- Companies put under state ownership (nationalization) -Advertising played marginal role in central planned economy -A few marketing companies operating in Czechoslovakia: -Rapid – promotional activities in foreign markets -Merkur – promotion on domestic market -Broad variety of activites that had unstable quality -Lots of people having worked for those companies had formed advertising industry after the year of 1989. Advertising expenditure per capita Bez názvu2 Source: Marketing andMedia PocketBook 2006; data for 2004 Comtemporary situation in Czech advertising Bez názvu5 Bez názvu6 Bez názvu7 Source:WARC, GlobalMedia CostComparison2006 edition; data for 2004 Relative cost per thousand Descriptive statistics of new EU countries Population1 GDP per capita2 Advertising spending3 Advertising spending as % of GDP4 Internet household penetration5 Online spending6 Internet Advertising spending7 Czech Rep. 10,288.9 73.6 769,186 0.65 29 7 22,734 Cyprus 776.0 88.9 89,073 0.54 37 2 n.a. Estonia 1,339.9 59.8 107,744 0.79 46 n.a. 3,607 Hungary 10,057.9 62.5 1,029,874 0.91 32 7 21,302 Latvia 3,385.7 48.6 129,961 0.81 42 1 7,277 Lithuania 2,280.5 52.1 150,07 0.50 35 2 3,086 Malta 407.7 71.7 n.a. n.a. 53 n.a. n.a. Poland 3,8101.8 49.7 1,862,672 0.55 36 6 32,885 Slovakia 5,391.6 57.1 n.a. n.a. 27 0 n.a. Slovenia 2,010.3 81.9 242,656 0.64 54 9 5,484 EU 10 74,040.3 64.6 39 Marketing and ownership •Czech branches of international companies adapt foreign concept to local market •Czech companies (and companies overtaken by foreign owner recently) create original concept in cooperation with Czech marketing agencies. •Advertising decision influenced by top management (in Czech companies) and by brand managers (foreign companies). •Foreign companies test success of marketing campaigns more often. Marketing spendings (2003) Companies in the Czech Republic spent about 47 billion crowns (2,1 % of gross national product) on marketing last year. •one third of it on advertising •The rest: trade fairs and exhibitions, promotional letters, telephone offers, events in support of sales, promotional items,presentation on Internet pages. Promotional activities represent about 43,735 billion crowns, which is 92,8 % of total marketing costs. 47 bil. Only 7,3% is spent on salaries of marketing specialists and on market research. Marketing research – data (2005) •Spendings in marketing research per inhabitant •UK 40$ •France 36 $ •Sweden 36 $ •Germany 27 $ •Norway 26 $ •USA 26 $ • •Slovenia 7,52 $ •Czech Republic 7,35 $ (24 place). Marketing research – data (2005) •Spendings in marketing research (Czech Republic): •40% manufacturers •12% financial institutions and insurance companies •12% utilities and telecommunications •10% media •6,5% retial •5% business to business research •3% public sector • •80% consumer x 20%non-consumer res. •82% for Czech companies x 18 foreign clients •82% quantitative research x 15% qualitative resear x 3% desk research Spendings in marketing research (world): 48% manufacturers 15% media 8% public sector 5% utilities and telecommunications 5% retial 4% business to business research 4% financial institutions and insurance companies Marketing research – data (2007) •Approx. 50 specialized companies (and 50 others not specialized to research only) •3/5 of them are located in Praha. •Research industry grows by 10 % annually. •¾ of clients require full service – data, analysis, interpretation and practical implications. •Middle sized and small Czech companies use market research less. •Most used techniques: face to face interviewing, phone interv., written questioning, mystery shopping, experts interviewing. •Topics: custommer behaviour and habbits, research of trademarks, custommer satisfaction, image research. • Advertising and Czech population Like it 6% Don’t like it much 10% Don’t like it 34% Indifferent 50% Sample n=1095, 2003 J – people between 19 -29 L – people above 44 Education – no influence grafik Level of over-saturation by ads (in per cents) (TNS Factum ) grafgif Potential for advertising: point of sale market2 Bez názvu Perception of advertising by Czech population Advertising and Czech population Advertisement should be: •Truthful (49,9%) •Credible (objective) (42,3%) •Funny (38,4%) •Informative (37,7%) •Comprehensible (31,0%) •Quiet (25,6%) •Raise interest in product (23,4%) •Creative (22,8%) Only 32% of Czech admit to be influenced by adv. while shopping. Advertising and ethics Czech advertising standards council -Self-regulating institution in ad. business -No legal power for sanctioning -Respected by majority of ad. firms - Public opinion -Ad. of cigarettes should be banned (37,7%) (the most rejected topic) -Erotic or sexual motives in ad. strongly rejects 6,1% (accepted often by younger generations and men) Bez názvu Basic (Ethical) Requirements for Advertising are: •not encouraging to breake law •be decent, honest and truthful •meet the principles of a honest competition among competitors. •Not endanger good name of advertising as such or decrease the trust into advertising as a service provided to consumers •not involve elements derogating human dignity •not take advantage of consumer's receptiveness under threshold of consciousness. •not be hidden •not use fear without any justified reason •must not take advantage of holders of the public authority In 2006: 72 complaint – 19 problematic, 45 unaccepted 24 1997 – Raveli – shoemaker, Václavka & Dášenka, abuse of the state representative, lack of good taste 2000 – Netcentrum, s.r.o. –Billboard www.iwillbeback.cz 021_b_2000 www.wegottagohereall.cz? 021_a_2000 2000 Foundation of animal rights Billboard: Do you know its price? 007_2000 Pinelli – Semtex – energy drink. Billboard BSE gives you wings. Semtex gives you life. 14 22-2002 Obrazek reklamazavadna03 reklamazavadna04 http://www.cbw.cz/phprs/2007010207.html Vodafone’s Chihuahua campaign • Bez názvu