OFFLINE BRANDS STRUGGLE WITH ONLINE STRATEGIES
(13th September 1999)

SYDNEY, AUSTRALIA:  In a private briefing held with key brand managers today, Sydney based Internet research company, APT Strategies warned that traditional brand managers are in a perilous position as they fumble in the wake of emerging online brands who are brand building with consumers online.

According to a recently released study conducted by APT Strategies in August 1999, it was found that 100 top Australian brands have no Internet presence whatsoever. Household brands such as Hungry Jacks, Red Rooster and Victoria Bitter are going unnoticed by millions of Australians regularly browsing the Internet.

According to Mitch O'Brien, Brands Manager at APT Strategies "the main reason for this is that brand and product managers are not utilising the Internet to enhance consumer loyalty and relationships, which are key elements of brand building."

APT Strategies findings are reinforced given that 650,000 Australians have shopped online in the past 12 months - according to the Australian Bureau of Statistics. According to Mr O'Brien, "a strong approach to online branding will bolster more online and offline sales. Although the majority of online purchases are currently by males, trends show that women are steadily increasing their online activity and marketers need to actively target the different online consumers."

APT Strategies recommended that offline brands establish a database of consumers that represent their target market. This does not necessarily mean establishing a website.

Many consumer packaged goods brand managers understand a website is not an outlet to sell more products. Using an example, Mr. O'Brien noted that "Carlton Cold has enhanced their brand image among their online target market by using the US firm togglethis.com. with a cheap and effective email marketing program that reached thousands of consumers".

APT Strategies Online Shopping survey revealed that these types of internet communities are growing in popularity in Australia with 11 per cent of respondents intending to join a virtual community in the next 6 months.  Marc Phillips, Principal of APT Strategies, encouraged brand managers to link their brand to large communities of their target market. K-Mart found that promotions with companies such as Webstakes.com. and Coolsavings.com, were extremely effective in driving online consumers to existing 'bricks and mortar' stores.

Australian companies with major brands who lack a website presence such as Hungry Jacks and Red Rooster should note that fast food restaurant chains in the USA are driving online consumers into offline stores and increasing sales.

In the wake of it's findings, APT Strategies announced the Australian Online Brands survey that will collect product usage and consumption information on over 200 top Australian brands.