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GS Group pushes new brand onto consumers

Summary: Intensive corporate identity campaigns improve brand awareness and bottom lines When the franchise owners of the convenience store chain LG25 were notified that they must replace their signboards with the new brand GS25 most of them got upset with the abrupt change They feared the seemingly minor change in the most familiar retail brand in the country could nibble away at the long running appeals of LG25 which led to a spate of petitions from the franchise members But GS Holdings Corp and its subsidiaries have persistently pushed their fresh identities onto consumers throughout the past year after its split from LG Group which industry watchers think has effectively allayed any concerns about marketing The recent spread of copycat convenience stores such as JS25 and Gets25 well demonstrates how successfully GS Group branded itself One year of intensive campaign has improved the brand awareness of GS25 the convenience store chain of GS Group The Korea Herald Having invested some 100 billion won $110 million the nation s seventh largest business group launched nationwide campaigns and commercials to catch the public s attention The newly branded subsidiaries embarked on some eye catching promotions last year giving attractive freebies such as stocks and an apartment built by its affiliate GS Engineering Construction Corp one of the nation s top construction companies The new GS logo is an epitome of these values and also a promise that we now hope to grow into a world class company that concentrates not only gaining revenue but also on contributing to society said Andrew Kim vice president of GS Holdings In addition to vying for the public s attention via major scale marketing schemes GS senior executives have joined in to tour affiliates and other partner companies and to advertise the new brand Last April GS Caltex Corp s chairman Hur Dong soo made the rounds at 20 of the company s gas stations to help raise its brand awareness To further boost its brand recognition overseas GS Group also held several offshore investor relations in global financial hub cities Hong Kong Singapore London and New York last September The rebranding efforts by GS Group first came to fruition when its major subsidiary GS Caltex Corp launched the new gasoline brand Kixx a year ago Since its former brand Sigma 6 was more like a management slogan hung around corners at the plants the oil refinery replaced it with the fresh brand that sounds more powerful to drivers Overwhelming rivals in the gasoline market our brand aims to offer faster and more dynamic experiences to customers the company said Such a fast and dynamic corporate identity is also magnified by its new advertisement model Park Ju young a rising soccer star His agile and somewhat rough moves on the field helped GS Caltex build the identity of Kixx brand into what the company s marketing experts wanted In only one year a total of about 3 400 gas pumps of GS Caltex were renamed and painted with the group s new symbolic color dark green Such branding integration is also applied to 2 100 convenience stores of GS Retail Co We carried out large scale promotions and advertisements of GS brand through co marketing programs under the GS wing Since our businesses are mostly consumer intimate we have been successful in the publicity activities GS Holdings noted The intensive financial outlay on the establishment of new corporate identity is expected to return not only in terms of brand awareness but in terms of figures on bottom lines as well GS Holdings will begin to receive brand royalty income from its subsidiaries in 2007 which industry watchers expect to become a crucial tangible revenue source with the brand power growing GS Holdings NAVPS or net asset value per share is estimated at 39 806 won but this figure increases to 46 589 won when a brand royalty value of 662 1 billion won is reflected said James Kim an analyst at Woori Investment Securities Co Along with dividend income GS brand royalties paid by subsidiaries could become one of the company s most important sources of revenue and should provide stability to GS Holdings revenue stream since the royalties are calculated based on sales not profit Kim estimated the annual royalty income to aggregate 33 billion won in 2007 and 36 2 billion in 2009 Considering the revenue stream from the intangible asset in the pipeline he stressed the current share price of GS Holdings is quite undervalued kkt heraldm com By Ko Kyoung tae Intensive corporate identity campaigns improve brand awareness and bottom lines When the franchise owners of the convenience store chain LG25 were notified that they must replace their signboards with the new brand GS25 most of them got upset with the abrupt change They feared the seemingly minor change in the most familiar retail brand in the country could nibble away at the long running appeals of LG25 which led to a spate of petitions from the franchise members But GS Holdings Corp and its subsidiaries have persistently pushed their fresh identities onto consumers throughout the past year after its split from LG Group which industry watchers think has effectively allayed any concerns about marketing The recent spread of copycat convenience stores such as JS25 and Gets25 well demonstrates how successfully GS Group branded itself One year of intensive campaign has improved the brand awareness of GS25 the convenience store chain of GS Group The Korea Herald Having invested some 100 billion won $110 million the nation s seventh largest business group launched nationwide campaigns and commercials to catch the public s attention The newly branded subsidiaries embarked on some eye catching promotions last year giving attractive freebies such as stocks and an apartment built by its affiliate GS Engineering Construction Corp one of the nation s top construction companies The new GS logo is an epitome of these values and also a promise that we now hope to grow into a world class company that concentrates not only gaining revenue but also on contributing to society said Andrew Kim vice president of GS Holdings In addition to vying for the public s attention via major scale marketing schemes GS senior executives have joined in to tour affiliates and other partner companies and to advertise the new brand Last April GS Caltex Corp s chairman Hur Dong soo made the rounds at 20 of the company s gas stations to help raise its brand awareness To further boost its brand recognition overseas GS Group also held several offshore investor relations in global financial hub cities Hong Kong Singapore London and New York last September The rebranding efforts by GS Group first came to fruition when its major subsidiary GS Caltex Corp launched the new gasoline brand Kixx a year ago Since its former brand Sigma 6 was more like a management slogan hung around corners at the plants the oil refinery replaced it with the fresh brand that sounds more powerful to drivers Overwhelming rivals in the gasoline market our brand aims to offer faster and more dynamic experiences to customers the company said Such a fast and dynamic corporate identity is also magnified by its new advertisement model Park Ju young a rising soccer star His agile and somewhat rough moves on the field helped GS Caltex build the identity of Kixx brand into what the company s marketing experts wanted In only one year a total of about 3 400 gas pumps of GS Caltex were renamed and painted with the group s new symbolic color dark green Such branding integration is also applied to 2 100 convenience stores of GS Retail Co We carried out large scale promotions and advertisements of GS brand through co marketing programs under the GS wing Since our businesses are mostly consumer intimate we have been successful in the publicity activities GS Holdings noted The intensive financial outlay on the establishment of new corporate identity is expected to return not only in terms of brand awareness but in terms of figures on bottom lines as well GS Holdings will begin to receive brand royalty income from its subsidiaries in 2007 which industry watchers expect to become a crucial tangible revenue source with the brand power growing GS Holdings NAVPS or net asset value per share is estimated at 39 806 won but this figure increases to 46 589 won when a brand royalty value of 662 1 billion won is reflected said James Kim an analyst at Woori Investment Securities Co Along with dividend income GS brand royalties paid by subsidiaries could become one of the company s most important sources of revenue and should provide stability to GS Holdings revenue stream since the royalties are calculated based on sales not profit Kim estimated the annual royalty income to aggregate 33 billion won in 2007 and 36 2 billion in 2009 Considering the revenue stream from the intangible asset in the pipeline he stressed the current share price of GS Holdings is quite undervalued kkt heraldm com By Ko Kyoung tae

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