OTC National, Boston The Global Brand Quiz Are you a brand - - PDF document

OTC National, Boston

The Global Brand Quiz

Are you a brand… master, expert, or apprentice?

Question 1 Nokia was founded as what type of business?

A wood-pulp mill A wood-pulp mill A TV set manufacturer A TV set manufacturer A manufacturer of telegraph wires A manufacturer of telegraph wires A maker of tires and rubber boots A maker of tires and rubber boots

Question 2 Why did McDonald's Big Tasty burger not make it to the U.S .?

The 840 calorie count was too high The 840 calorie count was too high The taste of the Emmental cheese was not liked The taste of the Emmental cheese was not liked It was too messy for the drive-thru It was too messy for the drive-thru Created in Germany and launched in Sweden...get real! Created in Germany and launched in Sweden...get real!

Question 3 Amy Winehouse ordered 48 bottles of which brand for a weekend concert?

Question 4 As of 2007 which country drinks more Guinness than Ireland?

United Kingdom China Nigeria US A

Question 5 Why did Coca-Cola withdraw from India in 1977?

The exchange rate did not make being there worthwhile The exchange rate did not make being there worthwhile Thums Up, a local brand, was too strong Thums Up, a local brand, was too strong The Indian government demanded the secret recipe The Indian government demanded the secret recipe Pepsi-Cola was already too well-established Pepsi-Cola was already too well-established

What does this tell us?

Going global requires the vision and will to make it happen The basic challenge is to find the right balance between mindlessly global and hopelessly local Managing global brands is a complex and challenging task Winning locally is the first step to creating a strong global brand

Presentation agenda

Strong global brands are rare Big differences in needs, values and culture still exist Global brand best practice Communication is one of the biggest challenges… … with consumers and with colleagues

Strong global brands are rare Strong global brands are rare

A brand exists in the mind of the consumer

And the associated ideas and memories must drive behavior which creates additional value for the business and its shareholders

People who Bond with a brand are more likely to buy it

Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know the name Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know the name

High share

• f wallet

Low share

• f wallet

Few OTC brands are truly global In scope

8 5 % of OTC brands only m easured in one country 8 2 % of all brands only m easured in one country

Nescaf Vis McDonald Alway Microso Coca-Co Colga Nok Goog Pampe e a 's s ft la te ia le rs

Global Power Score

Source: analysis of the BRANDZ database updated 2009

These are brands which have transcended countries and cultures

Even strong brands are not guaranteed the same success in every country

10 20 30 40 50 60 70 S

• u

t h A f r i c a M e x i c

• B

r a z i l C h i n a R u s s i a G e r m a n y U K U S A J a p a n I n d i a

Source: BrandZ 2007/ 8 % Bonded to Coca-Cola

Dimensions of commonality & difference

POLITICAL & LEGAL ISSUES LOGISTICAL CONSTRAINTS SOCIOECONOMIC FACTORS PHYSICAL NEEDS LOCAL PREFERENCES & CUSTOMS COMPETITIVE CONTEXT LOCAL UNDERSTANDING OF MARKETING BRAND STATUS

Big differences in needs, values and culture still exist Big differences in needs, values and culture still exist

Culture still differs around the world

Source: analysis of Global TGI and Pew Global Attitudes Survey Brazil Mexico Russia I ndia Germ any UK USA

Countries clustered by attitudinal variables

China

Big cultural differences on ‘ Individualism’

USA 39% Russia 46% Brazil 50% I ndia 58% China 70%

“I t is m ore im portant to do your duty than to live for your ow n gain”

Source: Global Target Group Index

Jack Daniel's: An independent spirit

Is culture holding Jack back?

2 4 6 8 10 12

U S A U K G e r m a n y F r a n c e B r a z i l H

• n

g K

• n

g T a i w a n

Source: BrandZ database

% Bonded to Jack Daniel's

Local brands have the home field advantage

Being part of the national culture is a significant driver

• f purchase intent for both global and local brands

% agreeing brand is part

• f national

culture…

Source: The Global Brand survey

Local Global

S trong local brands in Brazil

7% 13% 41%

What’ s more Brazilian than… Maradona?

Local brands are often very powerful

Global brand best practice Global brand best practice

Dimensions of commonality & difference

POLITICAL & LEGAL ISSUES LOGISTICAL CONSTRAINTS SOCIOECONOMIC FACTORS PHYSICAL NEEDS LOCAL PREFERENCES & CUSTOMS COMPETITIVE CONTEXT LOCAL UNDERSTANDING OF MARKETING BRAND STATUS

MOTIVATIONS TRANSCEND CULTURE

S

• lving the global/ local puzzle
• 1. Adapting products and

services to meet local needs and tastes 2. Solving the local value equation through product and pricing strategies 3. Ensure distribution and adopt more aggressive point-of- purchase tactics

• 4. Creating a strong presence

and a distinctive identity

• 5. Getting as close to the local

culture as is possible

Global brands succeed by disrupting the status quo

Local Global

Being seen as a brand that is "setting the trends" is a significant driver of purchase intent for both global and local brands

Source: The Global Brand survey

% agreeing brand is setting the trends

The scenario - Nicorette

Nicorette faced the issue of needing to distinguish itself from the competition The solution was to turn Nicorette from a pharmaceutical commodity into a consumer brand Instead of scaring smokers, the campaign would: support their self-esteem and give them confidence that they could, with help, ‘beat the craving’

Sour ce: WAR C

Nicorette "Cold Turkey"

30% increase in sales over four years

"'Cravings Man' has been absolutely essential to Nicorette success in Europe. From 2000 to 2004, based largely on the success of the Craving Man campaign, Nicorette grew from 7 advertised countries to 16." "Across Europe we have seen 30% growth in value sales over the course of the campaign (2001 to 2004) and we have a clearly established market leadership." "Our share of market grew from 33.2% in Q1 2001 to 41% in Q4 2004 across Europe." 2006 IPA Award Paper

Communication is one of the biggest challenges Communication is one of the biggest challenges

Communication is integrally bound up with culture

"Cold turkey"

=

"Pavo frío"

Only 1 in 10 ads which test exceptionally well in one country do so elsewhere

0% 5% 10% 15% 20% 25% 30% 35% Below average Average Above average Great Exceptional

Source: Link pre-test database

“Effective global brand m anagem ent is a continuous process of integration and alignm ent…there are tw o w ays of view ing this: endless conflict or enhancing global best practice."

Ben Haxw orth, global and local m arketing director, Colgate Palm olive

Global brand management is not easy

Ensuring scale is an advantage

Stay focused

Create a common language, purpose and passion

Structure follows strategy

Align the organization and create a common brand planning process

Ensure a common understanding

What is mandatory? What can be adapted?

Give global the benefit of the doubt

But stay in touch with local needs

Distance breeds distrust

Foster relationships that transcend geography and culture

Thank you for listening