VietNamNet Bridge – While most enterprises have to cut down expenses in the economic downturn, and narrow the budgets for advertisement and sale promotion campaigns; some luxurious brands still spend hundreds of thousands dollars, or even millions of dollars to organize events to polish their images.
Big events always gather music stars, models, MC and famous actors
The night to celebrate the 125th anniversary of Mercedes brand in Vietnam took place in early June. This was an impressing event which gathered many music stars, models, MC and famous actors. Rumor has spread out that the cost of the celebration ceremony was very high, at about two million dollars.
Declining to reveal the official cost of the ceremony, Udo Loersch, General Director of Mercedes Vietnam said that Mercedes Vietnam wanted to organize a resounding event in the automobile industry
A manager of a well-known media company in HCM City noted that the event is really very imposing in terms of the scale and the investment. However, he thinks that the expenses for the event are not as high as people think. He believes that the event cost about 500,000 dollars, saying that only the big events which invite many stars, music bands and hire foreign audio and lightening systems would be cost millions of dollars.
However, the media expert admitted that among the companies which regularly organize events which attract the participation of famous people in the field of culture and arts, Mercedes proves to be the one which is always ready to spend big money.
“People think that the celebration ceremony cost millions of dollars because they saw the luxurious and the flashy images that stars and the audio and lightening systems created at the ceremony,” he said.
Director of a media company in Hanoi which provides event services to Mercedes said that at presentation, when businesses are facing big difficulties, they have to cut down expenses on advertisement and media campaigns. Therefore, a luxurious and costly event of Mercedes has caught the special attention from the public.
However, the director said that Mercedes’ similar events were organized in many countries around the globe, not only in Vietnam.
Another luxurious brand which always spends big money to polish images in Vietnam is Moet Henessy. The H-Artistry performance with the participation of David Cook and Alexandra Burke, champions from American Idol (the US) and X-Factor (the UK), and Thanh Bui from Top 8 Australia Idol is really a rare big event organized and sponsored by a brand.
The representative of Moet Henessy declined to reveal the total cost of the event. Meanwhile, a manager of a media company in HCM City has estimated that the event might cost nearly one million dollars, saying that the expenses of the ceremony alone would cost 500,000 dollars. Meanwhile, the inviting of foreign artists can only be undertaken by Moet Henessy, while this still cannot be undertaken by domestic companies.
The manager said that it would be unfeasible and unreasonable for the companies which need to advertise their products regularly, to organize such luxurious event in such difficult economic conditions.
H-Artistry was organized because the brand owner cannot carry out advertisement campaigns. Meanwhile, the concern should be taken full advantage as a rare event where the drink brand can appear.
A representative of Moet Henessy in Vietnam said that H-Artistry is the event organized by Henessy in many countries in the world, where the company did not advertise for Henessy brand.
Talking about the efficiency of the huge investments on luxury events, Udo Loersch, General Director of Mercedes said that those people, who love the Mercedes brand expect many other things besides the good cars, and this is the reason why the manufacturers organize such the events.
Vu Hoai Thu, Deputy Director of T&A Ogilvy, a media company, noted that the efficiency of big events cannot be measured exactly. The main purpose of the events is that potential clients can see the similarity and the links between the events and the features of the sponsored brands. The financial efficiency will come later, after the events become well known.