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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 manufacturer of A manufacturer of telegraph wires telegraph wires A wood-pulp mill A


  1. OTC National, Boston

  2. The Global Brand Quiz Are you a brand… master, expert, or apprentice?

  3. Question 1 Nokia was founded as what type of business? A manufacturer of A manufacturer of telegraph wires telegraph wires A wood-pulp mill A wood-pulp mill A maker of tires A maker of tires and rubber boots and rubber boots A TV set manufacturer A TV set manufacturer

  4. Question 2 Why did McDonald's Big Tasty burger not make it to the U.S .? The 840 calorie count The 840 calorie count was too high was too high It was too messy for It was too messy for the drive-thru the drive-thru The taste of the Emmental The taste of the Emmental cheese was not liked cheese was not liked Created in Germany and Created in Germany and launched in Sweden...get real! launched in Sweden...get real!

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

  6. Question 4 As of 2007 which country drinks more Guinness than Ireland? China United Kingdom Nigeria US A

  7. Question 5 Why did Coca-Cola withdraw from India in 1977? The exchange rate did not The exchange rate did not make being there worthwhile make being there worthwhile Thums Up, a local brand, was Thums Up, a local brand, was too strong too strong The Indian government The Indian government demanded the secret recipe demanded the secret recipe Pepsi-Cola was already Pepsi-Cola was already too well-established too well-established

  8. 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

  9. 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

  10. Strong global brands are rare Strong global brands are rare

  11. 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

  12. People who Bond with a brand are more likely to buy it High share of wallet Individuals who Bond Individuals who Bond with a brand are more with a brand are more than ten times more than ten times more likely to buy it than likely to buy it than those who just know those who just know the name the name Low share of wallet

  13. 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

  14. These are brands which have transcended countries and cultures Global Power Score Pampe rs Goog le Nok ia Colga te Coca-Co la Microso ft Alway s McDonald 's Vis a Nescaf e Source: analysis of the BRANDZ database updated 2009

  15. Even strong brands are not guaranteed the same success in every country % Bonded to Coca-Cola 70 60 50 40 30 20 10 0 y A a o l a a K n a i i c z n n i c a U S s d a i a i i p s U r h n x r m f a u B e C I A J R M r e h G t u o S Source: BrandZ 2007/ 8

  16. Dimensions of commonality & difference POLITICAL BRAND & STATUS LEGAL ISSUES LOCAL LOGISTICAL UNDERSTANDING OF CONSTRAINTS MARKETING COMPETITIVE SOCIOECONOMIC CONTEXT FACTORS LOCAL PREFERENCES PHYSICAL & NEEDS CUSTOMS

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

  18. Culture still differs around the world Countries clustered by attitudinal variables Brazil Mexico Russia China I ndia Germ any UK USA Source: analysis of Global TGI and Pew Global Attitudes Survey

  19. Big cultural differences on ‘ Individualism’ China 70% I ndia 58% Brazil Russia 50% 46% USA 39% “I t is m ore im portant to do your duty than to live for your ow n gain” Source: Global Target Group Index

  20. Jack Daniel's: An independent spirit

  21. n a w i a T g n o K g n Is culture holding Jack back? o H l i z a r B e c n a r F % Bonded to Jack Daniel's y n a m r e Source: BrandZ database G K U A S U 12 10 8 6 4 2 0

  22. Local brands have the home field advantage Being part of the national culture is a significant driver of purchase intent for both global and local brands % agreeing brand is part of national culture… Local Global Source: The Global Brand survey

  23. 7% trong local brands in Brazil 13% 41% S

  24. What’ s more Brazilian than… Maradona?

  25. Local brands are often very powerful

  26. Global brand best practice Global brand best practice

  27. Dimensions of commonality & difference POLITICAL BRAND & STATUS LEGAL ISSUES LOCAL LOGISTICAL UNDERSTANDING OF CONSTRAINTS MARKETING MOTIVATIONS TRANSCEND CULTURE COMPETITIVE SOCIOECONOMIC CONTEXT FACTORS LOCAL PREFERENCES PHYSICAL & NEEDS CUSTOMS

  28. S olving 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

  29. Global brands succeed by disrupting the status quo Being seen as a brand that is "setting the trends" is a significant driver of purchase intent for both global and local brands % agreeing brand is setting the trends Local Global Source: The Global Brand survey

  30. 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

  31. Nicorette "Cold Turkey"

  32. 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

  33. Communication is one of the Communication is one of the biggest challenges biggest challenges

  34. Communication is integrally bound up "Cold turkey" "Pavo frío" = with culture

  35. Only 1 in 10 ads which test exceptionally well in one country do so elsewhere Exceptional Great Above average Average Below average 0% 5% 10% 15% 20% 25% 30% 35% Source: Link pre-test database

  36. Global brand management is not easy “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

  37. 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

  38. Thank you for listening

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