SUCCESSFULLY MIGRATING BRANDS ACROSS THE GLOBE CREDENTIALS: YOUNG & RUBICAM GROUP & BAV CONSULTING
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SUCCESSFULLY MIGRATINGBRANDS ACROSS THE
GLOBECREDENTIALS: YOUNG & RUBICAM GROUP & BAV CONSULTING
WHO WE ARE
• Young & Rubicam Business Consultants, Geneva and BAV Consulting, New York: a unique center of competence within Y&R Group.
• A strategic brand consultancy dedicated to assisting companies in the planning, successful migration to, and growth of their brands in, international markets.
• Clients: MNCs, B2B and B2C across categories including consumer products, food and beverage, consumer electronics, hospitality, energy, telecommunications, financial services, IT, medical devices and industrial.
WHAT WE OFFERUnderstanding the marketBrandAsset Valuator® (BAV®) database and expertisePrimary research: local intelligence & consumer insightsMarket & category assessmentBrand-scape analysis
Building a winning strategyBrand differentiation: Octagon™ Internal alignment: staff preparednessPortfolio rationalization: brand architecture
Transitioning the brandMigration planning and implementation: 10 critical steps
Measuring and improvingKPIs to establish ROI
WHY THIS MATTERSThe world as we know it will be very different... If you’re not in the right place, you’re out of business!
Source: http://www.theguardian.com/news/datablog/2011/jan/07/gdp-projections-china-us-uk-brazil
Rise and fall
GDP at purchasing power parity (PPP) rankings
Economic growth
2009 rank GDP at PPP* 2050 rankProjectedGDP at PPP*
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China
India
US
Brazil
Japan
Russia
Mexico
Indonesia
Germany
UK
France
Turkey
Nigeria
Vietnam
Italy
Canada
South Korea
Spain
Saudi Arabia
Argentina
$ 59’475 bn
$ 43’180 bn
$ 37’876 bn
$ 9’762 bn
$ 7’664 bn
$ 7’559 bn
$ 6’682 bn
$ 6’205 bn
$ 5’707 bn
$ 5’628 bn
$ 5’344 bn
$ 5’298 bn
$ 4’530 bn
$ 3’939 bn
$ 3’798 bn
$ 3’322 bn
$ 3’258 bn
$ 3’195 bn
$ 3’039 bn
$ 2’549 bn
Projected average annual real growth in GDP, 2009-2050
Vietnam 8.8 % India 8.1 % Nigeria 7.9 % China 5.9 % Indonesia 5.8 % Turkey 5.1 % South Africa 5.0 % Saudi Arabia 5.0 % Argentina 4.9 % Mexico 4.7 % Brazil 4.4 % Russia 4.0 % Korea 3.1 % Australia US UK Canada Spain France Italy
GermanyJapan
2.4 %2.4 %
2.3 %2.2 %
1.9 %1.7 %
1.4 %1.3 %
1.0 %
$ 14’256 bn
$ 8’888 bn
$ 4’138 bn
$ 3’752 bn
$ 2’984 bn
$ 2’687 bn
$ 2’257 bn
$ 2’172 bn
$ 2’020 bn
$ 1’922 bn
$ 1’540 bn
$ 1’496 bn
$ 1’324 bn
$ 1’280 bn
$ 1’040 bn
$ 967 bn
$ 858 bn
$ 595 bn
$ 586 bn
$ 508 bn
US
China
Japan
India
Germany
Russia
UK
France
Brazil
Italy
Mexico
Spain
South Korea
Canada
Turkey
Indonesia
Australia
Saudi Arabia
Argentina
South Africa
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But being in the right place, and doing it right, is tricky business.
• The opportunity is tremendous, but the ask is high.
• Failures outnumber successes.
• As brands spread their wings across many geographies and cultures, there is even more pressure to maintain a coherent brand essence.
• The landscape, as well as the brand-scape, will change enormously in the coming years requiring MNCs to continually evolve.
WHAT WE’VE DONE
Consulting expertise Proprietary database
Young & Rubicam Business Consultants and BAV Consulting have joined forces to create new territory and
global expertise. Together we combine the services of more traditional disciplines. We are backed by our
global, proprietary database, BrandAsset® Valuator, or BAV®, that informs our strategic recommendations.
Branding, marketing & design
Managment consulting
firms
Communication agencies
Employee engagement
$150 million invested
20 yearsof history
50’000 brands
50countries
330studies
870’000consumers
70 brandmetrics
200+categories
Academicallyvetted
Mentioned in30+ books
&
THE RESULT
A unique and quantifiable approach to reduce the risk, and increase the opportunities, for
successfully migrating brands around the globe.
OUR TOP 5 LESSONS IN GLOBALBRAND MIGRATION
1. Look Before You LeapScope out the global brand-scape
2. Be An AnthropologistLearn to think like one
3. You Are Where You Are FromCountry of origin matters
4. Grow Roots & WingsEnsure your brand is migration-ready
5. All Aboard!Involve your entire organization in the migration
1. LOOK BEFORE YOU LEAP
• Lack of preparedness and due dilligence is one of the primary causes of failure.
• Brands evolve very differently in the East from how they evolve in the West.
• Market characteristies and consumer preferences are very different across markets.
• Deep knowledge of the market (both differences and similarities), in conjuction with flexibility and readiness to adapt, are keys to successful migration.
SCOPE OUT THE GLOBAL BRAND-SCAPE
DEEP DIVE INTO THE MARKET DYNAMICS
Channels• Structure of trade (e.g.
modern vs. traditional)
• Channel players landscape
• Key requirements by channel
• Partnerships/alliances/
endorsements
Category• Category development and
trends
• Addressable market opportunity
• Market sizing (top down and bottom up)
• Unique preferences and
cultural context
Competition• Landscape and shares
• Positioning
• Pricing
• Consumer perceptions of competitive brands
• Media strategies
• Gap and opportunities
Customer• Preferences
• Drivers of demand
• Attitudes toward category
• Attitude towards brand in the category
• Segmentation
Brands evolve differently
How Brands Grow in the West
How Brands Grow in the East
Brands first develop Energized Differentiation and get customers excited about their brand; if the brand is Relevant to consumers, they will try it; usage/experience will help grow their regard (Esteem) of the brand, and as their relationship with the brand develops, depth of Knowledge will grow.
Asians invest in well-established brands. They will not try a brand unless it has become well established (Knowledge) and Esteemed in the marketplace; once a brand reaches that stage, it becomes personally Relevant and trial occurs. After experiencing the brand, consumers discover what truly sets the brand apart: Energized Differentiation.
ENERGIZEDDIFFERENTIATION
RELEVANCE ESTEEM KNOWLEDGE
The brands point of difference.
Relates to margins by driving pricing power.
How appropriate the brand is to you.
Relates to market penetration.
How well regarded the brand is.
Relates to loyalty.
An intimate understanding of the brand.
Relates to depth of consumer experience.
Percentilerank
Brand Strength Brand StatureLEADING INDICATOR LAGGING INDICATORFuture Growth Value Current Operating Value
ENERGIZEDDIFFERENTIATION
RELEVANCE ESTEEM KNOWLEDGE
Percentilerank
Source: BAV Brand Equity Methodology
Variation in category premiumness
Economy and Premium Sales Profile
Pri
ce I
nd
ex (
Hig
hes
t= 1
00
%)
Cumulative Volume
Philippines
Malaysia
Vietnam
India
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%100%90%80%70%60%50%40%30%20%10%0%
BRAND D
BRAND C
BRAND BBRAND A
Each step represents a brand at its price pointand volume from lowest priced to highest.
Different consumer preferences
Country Occasion
Hap
py
Tim
es&
En
joya
ble
Fun
for
Kid
s
Sm
art
Ch
oic
e
Eas
y Fo
rmat
Tast
e
Fru
it
Wat
er
Hea
lthy
or
Nu
trit
iou
s
Flav
or
Var
iety
Argentina
Anytime
Anytime
Lunch
Mealtime
Anytime
China
Philippines
Mexico
Brazil
Categories and consumers exhibit significant differences across markets
The same product category is much more
premium in Vietnam and Malaysia than in India.
The same drink is a fun for kids, mealtime drink
in Brazil, but an anytime, easy to drink water
replacement in China.
Indians skew upscale in their brand preference, the US skews more mainstream
Source: BAV Consulting Analysis
Upper ClassDistinctiveDynamicAuthenticRestrained
TrustworthyHigh Quality
Down to EarthFriendly
OriginalReliableSimple
Good ValueLeader
Fun
• Arguably this is the newest, and most important step in global brand migration.
• The reason is simple: the closer you can be to your audiences, anywhere, the more successful your brand will be.
• The issue: the further you go from markets you know, and venture into unfamiliar cultures, with mores, languages and value systems that you do not understand, the more difficult it is to effectively
communicate.
2. BE AN ANTHROPOLOGISTOR LEARN TO THINK LIKE ONE
How does an appliance brand adapt to an Indian kitchen?Indian kitchens are separate rooms, nothing like the «open format» US kitchen: a modern, urban, elite phenomenon.
There are no fans, in spite of the kitchens being hot, because of gas flames.
Often, the refrigerator is in the dining room.
Self-cleaning chimneys are
growing in popularity due to spices and oil being hot and messy.
There are no ovens as
Indian cuisine rarely requires
baking.
Stoves are gas, cylinder-fed (with one in stock), and pipe-fed in newer homes.
As there are few utility rooms in Indian homes, washing machines are valued for durability, not aesthetics.
By contrast, refrigerators signify status, come in colors and patterns, and are proudly displayed in dining rooms.
How does an appliance brand adapt washing machines and fridges for the Indian home?
Rat Mesh Saree Wash
How does a dairy brand connect to consumers in non-dairy cultures?It requires an understanding of women and their relationships with their bodies and health.
Activia, Romania Activia, Egypt
In the Middle East, women want good digestive health to better take care of their families.
In Romania, Brazil and Thailand, appearance (a flat belly) is a key to social success.
How do you connect to Business Management about effective leadership and their reponsibility for technology choices?It requires an understanding of individualist vs. collectivist cultures. Thinking like an anthropologist applies even for categories, like technology, that travel well. You need to understand, for example, are leaders more white knights on a horse or shepherds of a flock?
Office 365, US Office 365, India
A case in point: “completely Tom”, a multi-media campaign deve-loped in the US to promote Office 365, “your complete office in the cloud.” The campaign was aimed at “every Tom” or “every Dick or Harriet” who needed to unders-tand how the cloud could help them individually promote greater efficiencies in their teams. As for Tom, Office 365 supports him in winning a big pitch by allowing him to connect with his team to adjust his presentation in real time, videoconference them into the meeting and send them congrats via the company newsfeed.
India was keen to use the cam-paign but client and agency in Mumbai instinctively felt it wasn’t “right” for the Indian market. So they adapted the campaign to “completely Boss”, a play on hierarchy as well as other, local meanings of “boss”: cool and awesome. In the Indian version, there is Dev, the young execu-tive, his boss, the boss’s wife, an airline pilot and a stewardess, who happens to be Dev’s girl-friend. Complications arise in all of their days, creating a proper little drama, and it is ultimately Dev, and Office 365, that come to the rescue.
What is striking about these campaigns...
Hofstede’s Dimensions of Culture
Egalitarian
Relationships are primary
Comfortable with ambiguity
Think short-term
Happy is good
Collectivism is primary
Willing acceptance of hierarchy
Power is primary
Fear ambiguity
Think long-term
Happy could be bad
Individualism is primary
Power Distance
Individualism
Masculinity
Uncertaity Avoidance
Long-term Orientation
Restraint VS Indulgence
PDI -PDI +
IDV
MAS
UAI +
LTO +
RES +
COL
FEM
UAI -
LTO -
IND -
WEST EAST
No one consciously sat down and said, we are an individualist culture in the US and a collectivist culture in India, but the differences in the campaigns nonetheless bring to full light Hofstede’s Dimensions of Culture. In particular, dimensions of Power-Distance (Willing acceptance of hierarchy vs. Egalitarian) and Individualism (vs. Collectivism.)
Power Distance & Individualism: USA and India
Success will require changeSuccessful migration of brands in the future will surely require change and evolution in attitudes and behaviors, e.g., greater dependence on local markets, “anthropological” research and ethnographies. Success may well include adding anthropologists or psychologists to global teams to ensure local relevance. Success will also require greater familiarity with classic global anthropologists, like Hofstede, and greater application of their tools to ensure a full understanding your brand’s relevance.
As if we needed proof, the US skews low for egalitarian (40%) while India skews high for acceptance of hierarchy (77%). The US skews high for individualist (91%), India high for collectivist (48%, where low = collectivist.) Both campaigns were very successful. Both featured the same product and the same “hero” in Office 365. But in each there are enormously different anthropologies and cultural spins at play, which make all the difference.
Power Distancelow = egalitarian
high = accepts hierarchy
Individualismlow = collectivist
high = individualist
Cultures and Organisations: The Software of the Mind, 3rd edition
40
91
62
46
29
68
77
48
56
40
61
26
0
10
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50
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PDI IDV MAS UAI LTO IVR
USA and India USA IND
USA India
3. YOU ARE WHERE YOU ARE FROM
• BAV shows us that national stereotypes exist; and that there is global agreement for what country, and by extension, what Made in that Country, stands for.
• China is restrained, independent and arrogant. Switzerland is socially responsible, prestigious, upper class and worth more. Japan, Germany and the US are in a tight clutch and stand for progressive, innovative and intelligent. Singapore, at the heart of everything, is distinctive and straightforward.
• BAV also shows us that people view countries much as they view traditional brands and that a country’s brand can provide a strong «brand rub» to MNCs.
COUNTRY OF ORIGIN MATTERS
National brand stereotypes exist
TRADITIONAL
TRENDY
ENERGYSUBTANCE
Base: All Adults; Argentina 2014, Australia 2013, Brazil 2013, Canada 2012, Chile 2014, France 2012, Germany 2012, Italy 2013, Mexico 2012, Russia 2010, Spain 2012, UK 2014, US 2014, China 2014, India 2013, Japan 2012, South Korea 2012
People view countries much as they view traditional brandsAmong Americans, e.g., Australia stands for the fun in the life that most Americans can identify with; Germany, by contrast, maintains a more alienating, «serious» essence.
If Australia was a brand: If Germany was a brand:
VS.
Source: BAV Consulting Analysis
Brazil’s personality haloBrazil is known as a fun, exciting and social place - mixing a carefree energy with glamour; its brand reflects this personality around the globe, making it a great ally for energizing its partners.
Brazil’s unique personality:
The more of these characteristics a Brazilian brand abroad has, the more likely it is to be associated with Brazil - and subsequently the more likely it is to get the associated upward brand pull.
For brands looking to drive perceptions of these characteristics, invoking the Brazil brand is a powerful tool.
Source: BAV Consulting Analysis
EnergeticGlamorousCarefree
DaringDistinctive FunDynamic
SocialSensuous
Prestigious
Different
TrendyObliging
UniqueFriendly
Some countries are power brands and provide strong brand rub to MNCs
Source: BAV Consulting Analysis
Bra
nd
Str
eng
th(e
ner
giz
ed D
iffe
ren
tiat
ion
& R
elev
ance
)
Brand Stature(Esteem & Knowledge)
Japanese Perceptionsof Foreign Countries
German Perceptionsof Foreign Countries
US Perceptionsof Foreign Countries
Italy in Japan
Italy in Germany
Italy in the US
4. GROW ROOTS & WINGS
Is your brand migration-ready? Be forthright:
• Will your Vision and Mission rouse, startle and shape new behaviour? • Does your Positioning define your reason for being and why anyone
should care?
• Does your Personality make people want a part of you?
• Do your Core Values express your ethos, your courage, your convictions?
Only once your brand is fully «rooted» -- in authenticity and engagement -- can you expect to «take wing» with success.
ENSURE YOUR BRAND IS MIGRATION-READY
THE OCTAGON™1. External Vision
3. Targets
2. Internal Mission
5. Personality
4. Total Offering
8. Name
7. Core Values
6. Promise
As if a person, what makes you so special?
What do you guarantee to your audiences and why should they believe you?
Where do you want to be in 3-5 to 10 years?
Why do people come to work everyday?
Who do you need to communicate to? What insights drive them?
Captured in one sentence, what do you do?
What will you be called?
The core of your culture: «glue» - what are they?
9. BRAND POSITIONINGYour differentiation, your reason for being
Source of a brand’s DNA
Land Rover’s core brand DNA transcends markets...
Land Rover’s brand is literally rooted in sophistication, capability with composure, and intelligent wit. It stands for status and luxury and promises adventure and exploration. Its idea of hardworking, rough luxury is a quantifiable, cross-cultural success as it has travelled continents by successfully appealing to local cultures. Its core values in rugged upper-class have been translated in the West to a “cool performer” and in the East to an “independent visionary” who innovated traditional 4X4 transportation.
100
100
50
50
Base: All Adults; US 2014, UK 2014, Italy 2013, South Korea 2012, Indonesia 2014, India 2013
WEST
EAST
As for Land Rover’s advertising, it is fully rooted in the brand’s personality and core values. It could be executed anywhere, so long as it remains “on brand”; it can be taken to the world, so long as it conveys a sense of adventure, premium location and sophistication. All that was changed from this US spot for exposure in Russia and China was the finish: not over the mountain, but a return to a beautiful home, to reinforce its luxury status.
West advertising: Land Rover driver winks and continues on his adventure. East advertising changed ending: Land Rover driver drives back home.
... but the East / West messages are tailored to the local market context
5. ALL ABOARD!
• As brands expand and migrate, stirring sharper, more eager engagement across the world, so all the more do they need to ignite their organizations internally with the power of their courage and convictions.
• As localization is inevitable, all the more reason that everyone, everywhere, management and staff, needs to understand their common brand.
INVOLVE YOUR ENTIRE ORGANIZATION IN THE MIGRATION
CATERPILLAR’S ONE VOICE
• There is no better example of ensuring that the entire global organization, including its partners and suppliers, understand its brand values than Caterpillar.
• Everyone, everywhere, in Cat must take One Voice training.
• Everyone, everywhere, in Cat must understand its Vision, Mission, Positioning, Personality and Core Values in order to properly disseminate and communicate «one brand» globally.
CONTACTS
Sue Mizera is Managing Director of Young & Rubicam Business Consultants. 2015 marks her 29th year with Young & Rubicam, five in New York and 24 in Geneva, where she has directed international brand strategy projects for clients such as Microsoft, Medtronic, Areva, DuPont, Iceland Telecom, Caterpillar, World Economic Forum and numerous UN/NGOs. Sue believes brands should uniquely rouse, startle and shape new thinking and behaviour; shape the communities and cultures they operate in and make a statement about the humanity and human potential they impact. Sue’s specialty is the Brand Octagon™, a management tool she created that unites business, marketing, communications and internal culture into a total integrated system. Most recently, Sue has created «East & West: A Guide to Migrating Brands across the Globe», first presented at the World Marketing Congress in Mumbai in November, 2014. Sue is an American. She graduated from Washington University, phi beta kappa and summa cum laude, with degrees in Classics, Philosophy and Comparative Literature. She holds a Ph.D. from Princeton in Classics.
Dipanjan Chatterjee is a Senior Vice President at Young & Rubicam/BAV Consulting, and a marketing strategy expert who has helped some of the world’s best companies craft branding and go-to-market strategies that are firmly grounded in business reality and customer needs.
Prior to joining BAV, Dipanjan was an investment banker at Morgan Stanley, a strategy consultant at Booz & Co., headed Product Marketing and Product Management groups at FedEx/Kinko’s, and owned P&Ls for a Berkshire Hathaway portfolio company.
Dipanjan has worked with leading brands such as HSBC, Microsoft, Abbott, Bank of America, Verizon, Johnson&Johnson, any many others on their mission critical global business, marketing, and branding initiatives.
Dipanjan has an MBA in Strategy and Marketing from the University of Chicago, and a BA magna cum laude in Economics from Amherst College, where he was nominated to the Phi Beta Kappa society and received the James Nelson Economics Prize and a Ford Foundation grant.
THANK YOU
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