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AWI uses 'guerilla tactics' in Chinese online marketing

11 Nov, 2008 04:42 PM
Australian Wool Innovation has launched its biggest marketing campaign in China for more than a decade, but this time it will use "guerilla techniques" to hone in on online communities with its Woolmark brand.

Conventional marketing media in China is incredibly expensive, so AWI has decided that an integrated off-line/online strategy will give the best return, with business partners contributing three times AWI's marketing contribution.

According to AWI, it will be the first time that Australian Merino wool will utilise guerilla marketing techniques to sell the Woolmark brand story.

AWI chairman, Brian van Rooyen, says the thrust of the campaign covers five cities across China and has the potential to reach more than 15 million people.

"This is an exciting development involving partnerships with eight department stores and more than 35 Chinese knitwear brands and Woolmark licensees," Mr van Rooyen said.

"It will result in a 5pc increase in unit sales of Australian Merino knitwear for all partners involved and a 20pc increase for foot traffic.

"lt will restore the credibility of the Woolmark brand and license to Chinese licensees as a device which provides differentiation and drives demand.

"This is an example of how AWI can use dynamic and creative marketing techniques at a comparatively low cost in order to promote wool in key markets."

Over the last decade, due to a lack of marketing support, Woolmark licensee numbers in China have dropped each year by 15pc resulting in low consumer awareness of the Woolmark.

By using a well-known Chinese fashion 'blogger' and other online marketing techniques, younger fashion markets will be exposed to the Woolmark.

AWI says that after just a few weeks in action - the campaign began in late October and ends on December 7 - the push is already exceeding its targets for online visits.

The online component is being driven by a consumer website at www.merinotouch.com.cn.

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Get on with it. If you don't get the price up soon there won't be any wool to supply them with.
Posted by Ted O'Brien., 12/11/2008 6:31:36 AM
I have had a passing interest in the state of greasy wool production since leaving the rag trade. I have noticed over the past years, the gradual collapse of the wool bureaucracy, wool research and promotion combined with a continuous downward trend for the price of raw wool. I cannot help but think that all the hallmarks of an industry being dismantled are apparent in the Australian wool growing industry. While I have heard many disgruntled woolgrowers over the years, but have witnessed nothing change in your industry, I genuinely ponder why on earth do they stay in business? If your income is less than $30K net income per annum per person, you are simply counting days.
Posted by Steve Serrandon, 12/11/2008 10:56:47 AM
Well, that's a first. An AWI activity that is low cost and actually has some tangible, measurable impact.

If you'd done more of this stuff for the last seven years maybe your company would have a shred of credibility...

Posted by John Dickinson, 12/11/2008 11:54:51 PM
Thank you, Steve Serrandon, for telling it how it is. It was never any problem with wool the product that brought this about, nor any problem in the hugely expanding marketplace.

This is all the result of terrible errors in the management of the marketing by Australian politicians, starting with the Wool Marketing Act of 1987, and continuing today with such things as ABARE's outrageous price forecast for 2006.

People have stuck with wool, Steve, because they love wool and know it is capable of much better things. But with the management we have you are right to say we are simply counting days.

The cost of this mismanagement to Australia's economy over the last 18 years is now in the hundreds of billions of dollars.

Posted by Ted O'Brien., 13/11/2008 7:19:07 AM
Use this exact link: http://www.merinotouch.com.cn./ Hopefully we are not paying for, and sponsoring Martell Whiskey Mr AWI. I am getting this translated to see what's going on here..Website hacking or cross promotion?? This is hardly Guerilla marketing on the net. I would suggest trying some viral marketing like Carlton Draft's 'for the love of beer' online campaign. The under 25s were queing up for a beer after that. Forget the Guerilla, there's an elephant in the room!!
Posted by Tony Benson =Wooltrade, 17/11/2008 5:27:23 PM
Tony If you deliberately enter the incorrect web address, not surprisingly you go to the wrong website. Try entering the correct web address and you will see the AWI program. And I'm glad you are not doing the wool marketing if you think Carlton Draft was successful. The ads are funny but their sales are not. Local beers barely grew last year whereas premium imported beer is growing at double digit rates (as are boutiques). Heineken anyone?
Posted by Sir George, 18/11/2008 11:06:44 AM
Sir George, That link is so similiar that net users will make that blunder and make it often. It's called website piggybacking and is very common. It can be stopped easily. It's a shame though, because it is a much better site than AWI's. I hardly think Australia's biggest tap beer is something to call funny. Calton Draft was unheard of in Sydney and QLD until 3 years ago completely overtaking VB, 4X and New. Survey Says: people drink premium beer when they are niteclubbing or special occacions, but you missed the point again Sir George, their ad campains online had got down to the Gen Y's and excited them about their product, by using emails and videos that they love to send around. We need to excite the Gen Y's and X'ers who think wool is as cool as a nana's nighty. The real website above doesn't do that and i suggest you have no idea how to market to the cash rich youth whatsoever.
Posted by Tony Benson -Wooltrade, 19/11/2008 3:35:46 PM
Tony, Maybe you don't like the AWI website but it isn't targeted at you...and I doubt you can read Chinese, so I take your comments with more than a grain of salt... You pretend to be a marketing expert to Chinese consumers - maybe those with some international marketing experience actually know what they are doing?? Gee it would be tough to give AWI some praise instead of uninformed criticism wouldn't it? How about you have a look at the whole campaign before you criticise it...it's not just a website...Ni shi bai chi!
Posted by Sir George, 19/11/2008 5:43:31 PM
Sir George, agreed something is better than nothing, but at what cost and for what gain, spend v return. I think you will find that web marketing is something we do as an internet based company for Australia's most traditional industry. Hardly uninformed criticism. Where are your internet credentials to stand up for your opinion? Yes, I dont read Mandarin, but we have people who can and Babblefish. Their is good and bad criticism, i subscribe to the former.
Posted by Tony Benson -Wooltrade, 20/11/2008 11:48:22 AM

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Image: Michele Mossop, AFR
Image: Michele Mossop, AFR
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