1、Managing Global Brandsfor Economic ProsperityWhy Global Brands Mattern Transfer of culture and ideas across bordersn Economic engines of growthn Create jobsn Improve the lives of peoplen Instill trust and confidence1Globalization Challengesn Globalization of commerce and media creates a marketplace
2、divided not by national borders but“cultural neighborhoods.”n Balancing global brand integrity with local cultural authenticity.n Brands without a“local touch”are perceived as“foreigners”.n Culturally relevant brands perform better everywhere both in the U.S.and around the world.n How you manage you
3、r brand will determine its success or failure in the global marketplace.2Source:RoperASW,July 2003The Shifting Landscape of Global Brandingn Presents serious implications for American companies abroad:Rising nationalism:increasing numbers of global consumers have grown“wary”of American culture Econo
4、mic uncertainty:of nearly 40 leading global brands,11 of the top 12 American multinationals saw their brand power decline;9 non-American brands experienced improved ratings Corporate scandals:In ranking the trust-level of leading companies worldwide,the study found American organizations dominating
5、the bottom of the list.3The Worlds 10 Most Valuable BrandsRankBrand2006 Brand Value(Billions)1 1Coca-Cola$67.02 2Microsoft 56.93 3IBM 56.24 4GE 48.95 5Intel 32.36 6Nokia 30.17 7Toyota 27.98 8Disney 27.89 9McDonalds 27.51010Mercedes-Benz 21.8Data:Interbrand Corp.,JP Morgan Chase,Citigroup,Morgan Stan
6、leySource:Business Week,August 7,20064The Biggest Gainers Reflect New Breed of CompaniesRankBrand2005 Brand Value(Billions)2006 BrandValue(Billions)Percent Change2424Google$8.46$12.38+46%9191Starbucks 2.58 3.10+20%4747E-Bay 5.70 6.76+18%6969Motorola 3.88 4.57+18%7575Hyundai 3.48 4.08+17%Data:Interbr
7、and Corp.,JP Morgan Chase,Citigroup,Morgan StanleySource:Business Week,August 7,20065What Is A Brand?“A brand is a name,term,sign,symbol,or design,or a combination of them,intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition
8、.”American Marketing Association7What Is A Brand?n Asset that drives premium pricing and future cash flowsn Signal of quality and a trust markn Shorthand way of simplifying complexity when making choicesn Relationshipn A set of rational and emotional associations that identify and differentiate a co
9、mpany or its offern A form of self expression8n“It takes 7 to 10 times the cost and effort to secure a new customer as it does to keep an existing customer”n“An increase in customer loyalty of only 5%can lift lifetime profits per customer by as much as 95%”n“50%of customers are willing to try a new
10、product from a preferred brand because of the implied endorsement,credibility and trust.”CustomerLoyaltyandAdvocacyPremiumPricing“I would buy again”“I would highly recommend”“I would travel farther”“I would wait longer”“I would pay more”Determinants of Brand Strength9Ultimately,a brands meaning to c
11、onsumers represents the sum total of the consumers experiences with the brand either through direct or indirect means.10The Role of Marketingn Create superior customer experiences that drive unshakable loyalty,advocacy and profitable revenue growthn Manage,protect,leverage and enhance brandsn Engine
12、 of innovation and ideas that drives business11“The business enterprise has two and only two basic functions:marketing and innovation.Marketing and innovation produce results;all the rest are costs.”Peter Drucker12The Allure of Global Brandsn Economies of scale across multiple marketsn Uniformity of
13、 imagen Responsiveness to global customersn Enhanced marketing leveragen Efficiencies in scope in extending product/service lines under established brand across channels.13“There is a trade-off between efficiency and effectiveness in global brands.Operational efficiency comes from our strategic umbr
14、ella brands.But we believe there is no such thing as a global consumer,especially in a sector as psychologically and culturally loaded as food.”Peter BrabeckChairman&CEO,NestlSource:Financial Times,February 22,200514Managing Global BrandsFor SuccessSix Steps to Managing Global Brands for SuccessEsta
15、blish Brand Strategy and ArchitectureDetermine Governance StructureDefinetheBrands IdentityEstablishaDistinctive PositioningAlignAll TouchpointsMeasureandReport ProgressStep 1Step 2Step 3Step 4Step 5Step 616n Creates the strategic framework for the relationships among the master or parent brand and
16、other brands in the portfolion Drives clarity in the organization regarding the operating philosophy for the use of the brand and its roleStep 1Establish Brand Strategy and Architecture17Company Type Affects Branding Approachn Uses single master brandn Spans multiple products and servicesn Descripti
17、ve names used with master brandn Combines use of master brand with secondary brandsn Stand-alone brands used strategicallyn Multiple stand-alone brandsn No visible connection of brands to parentHouse of BrandsBranded HouseHybrid Brand House18Examplesn VirginVirgin AirwaysVirgin ColaVirgin Recordsn B
18、MWX5325525n SONY Walkmann Apple ipodn Touchstone Picturesn PlayStationn Proctor&GambleTideCrestPampersn UnileverAXEDovePondsHouse of BrandsBranded HouseHybrid Brand House19Alternative Global Branding ApproachesExamplesMaster brandSONY,BMW,Virgin,IBM,McDonalds,Starbucks,DellEndorserAn IBM CompanyIngr
19、edientIntel Inside,Powered by HPStand-aloneTouchstone Pictures,Tide,Crest,PlayStation20n Disney Worldn Disney Theatrical Productionsn Disney Imagineeringn Disneyland Resortsn DisneyHandn Disney Cruise Linen Disney Radion Disneyland Paris/Tokyon ABC Televisionn ESPNn Buena Vista Televisionn Miramaxn
20、Touchstone Picturesn Hollywood RecordsCareful application of the Disney master brand allows it to remain true to its core essence while penetrating new markets using stand-alone brands.Profile of the Walt Disney Companys BrandingCore Essence:Wholesome Family Entertainment21n Governance structure mus
21、t align with and support brand strategy and architecturen Degree of centralization determines level of control and flexibilityn Governance model must focus on executional challenges and core problems inherent in managing a global brandStep 2Determine Governance Structure22n Centralized Emphasizes br
22、and as a core asset Monitors consistency of brand positioning across multiple markets Typically involves senior executives and CEO as brand champion Ensures adoption of brand requirements across organization Limits flexibilityn Decentralized Emphasizes flexibility and adaptation to accommodate local
23、 needs Managed by global brand team that seeks support from upper management No single person“owns”global brandOrganization Structure23Core Problemsn Fear of losing local autonomy while being held accountable for resultsn Lack of awareness of the brands shared characteristics and challenges across m
24、arketsn Poor communications that restrict idea exchangen Little understanding of local marketers practicesn Inadequate support from corporate center and inflexible and static guidelines24n Provides organizational touchstone,both internally and externallyn Basis for strategic roadmap guiding brand po
25、sitioning,communications,brand extendibility and measuresStep 3Define the BrandsIdentity25Brand Identity Provides Strategic DirectionBrand EssenceSummary of the brands identity the heart and soul of the brand.Core IdentityCore values,key competencies and associations that remain consistent across pr
26、oducts,markets and through time.Extended IdentityElements that provide texture and completeness;personality,organization,product characteristics.26Virgins Brand IdentityBrand EssenceCore Identity ElementsExtended Identity ElementsRichard BransonValueInnovationServiceQualityFun&EntertainmentPersonali
27、tyUnderdogIrreverence27=Irreverence=Performance,passion for driving=Authentic,real,original=Wholesome family entertainment=Innovation=UbiquityAll Brands Must Articulate Their Brand Essence And Manage It Consistently28n What is positioning?Grows out of the brands core identity The case you make which
28、 establishes your relevance and superiority vs.the competition.It is the space you want to occupy on the consumers mental map that distinguishes your brand while redefining your competitorsStep 4Establish a Distinctive Positioning29BMWs Brand PositioningBrand Essence Performance Passion for drivingC
29、ore Identity Elements Heritage/engineering Quality Styling LogoExtended Identity Elements Fun Youthful Nimble Status“The UltimateDriving Machine”30Role of a Taglinen Accelerates and reinforces understanding of brand by enhancing meaning,relevance and/or appealn Functions as a succinct,catchy and com
30、pelling phrase to communicate what the organization is,how it does business or its benefits to audiencesn Works in conjunction with the name and design system to express overall identityn Endures over time,playing a significant role in establishing and maintaining brand identityn Serves as an intern
31、al“rallying cry”31Translation SnafusExampleBraniff Airlines“Fly in Leather”“Fly Naked”(Spanish)Coors Brewing Co.“Turn it Loose”“Suffer from Diarrhea”(Spanish)ClairolMist Stick Curling Iron“Mist”=Slang term for manure(German)GerberBaby Food PackageAfrican companies put pictures on label of what is in
32、side containerPepsiCo“The Choice of A New Generation”“Pepsi Brings Your Ancestors Back from the Grave”(Chinese)Purdue Chickens“It Takes a Tough Man to Make a Tender Chicken”“It Takes A Sexually Stimulated Man to Make a Chicken Affectionate”(Spanish)32Positioning Challengesn Relevance across marketsn
33、 Ensuring broad understanding across organizationn Degree of adaptation permissible while being true to brand essencen Management of partners in consistent implementationn Ongoing monitoring33Achieving Cultural Relevance and Authenticityn Cultural relevance is all about the seemingly small issues ne
34、eded to make brands feel friendly to a consumers culture,language,lifestyle,mors,habits,values,etc.n Cultural relevance is more than translation!n Achieving cultural relevance starts with development of communications concepts and messaging strategies that are meaningful globally34Challenges in Achi
35、eving Local Relevance:Merrill LynchProblemn“Tagline“Tradition of Trust”did not work in the society where banks are not trusted.Solutionn Adapt the tagline to position ML as an educator whose experience deserves trust.Merrill Lynch Bull in Russia35Challenges in Achieving Local Relevance:Merrill Lynch
36、Problemn Russians saw nothing but food in the realistic depiction of Merrill Lynch“Bull”symbolSolutionn A highly stylized version of the logo was developedMerrill Lynch Bull in Russia36Challenges in Achieving Local Relevance:Allstaten Taking into account Chinas“one-child”population control policy,th
37、e familiar Allstate“good hands”symbol(which depicted a typical two-child American family)was modified to reflect the reality of consumers lives in China.Making an American BrandRelevant in China37Challenges in Achieving Local Relevance:Coca-Colan When Coca-Cola was first introduced into the Chinese
38、market,Chinese characters selected sounded like Coca-Cola but actually meant,“bite the wax tadpole.”n New characters were selected that are pronounced,“Coca-Cola”but mean“The taste that makes you happy.”n In Russian,“enjoy”was changed to“drink,”because“enjoy”has a particular sensual connotation,in t
39、hat language,that doesnt apply to soft drinks.Keeping The Classic Look and Taste Worldwide38Challenges in Achieving Local Relevance:Coca-Colan For all non-Roman alphabets such as Arabic,Cyrillic,Greek,and many others,unique,proprietary Coca-Cola typefaces were created that are both culturally approp
40、riate and in sync with the companys global image.Keeping The Classic Look and Taste Worldwide39Challenges in Achieving Local Relevance:Mitsubishi“Pajero”nSeveral years ago,Mitsubishi planned to introduce its popular European SUV,the“Pajero,”in North and South AmericanAlthough the word“pajero”carries
41、 no negative connotations in the Castilian Spanish spoken in parts of Europe,in Latin American slang the term has a seriously derogatory sexual meaningnThe vehicle was renamed and released in the Americas as the“Montero”averting a potential global branding disasterAverting a Branding Disaster in the
42、 Americas4041n Market developmentn Economic differencesn Culture,sociologyn Customer perceptionn Competitionn Physical conditionsn Lawsn Level of customer similarityn Political environmentn Marketing infrastructuren Technologyn Local tastesReasons for Adaptation42n Every touchpoint with customers or
43、 prospects is an opportunity to reinforce the brands position and core messages everywhere the brand is available.n Critical to understand and control all touchpoints across the entire customer experience from the pre-purchase,to purchase,to post-purchase experience.n Given instantaneous availabilit
44、y of information and communications,news of a superior customer experience will travel fast as will news of a bad experience or product.Step 5Align All Touchpoints43Relentlessly Drive Your Brand Promise Through All Touchpoints ConsistentlyThe 360 PerspectivePublicRelationsCrisis ManagementAdvertisin
45、gEmployeesRetail PresenceSponsorshipsAnnual ReportCustomer ServiceWord of MouthCommunity RelationsDirect MailOnline/BlogsCorporateFacilitiesEventsBillingConsistency of Product or Service PerformanceReturn PoliciesSales ForceCollateralVisualIdentityHiring and TrainingPracticesBrand44n Create an overa
46、rching dashboard on the strength and vitality of the brand relative to competitors in each marketn Measure interaction with brand at each touchpointn Assess premium brand is capable of commanding.n Gauge level of preference and loyalty for brandn Reward and recognize marketplace successesn Share res
47、ults across markets and regularly with senior managementn Refine strategies and set goals based on findingsStep 6Measureand ReportProgress45n Be wary of brand extensionsn Seek local market input get out of the ivory towern No single approach is right in all instancesn Ensure employees are immersed i
48、n your brand and understand their obligationsn Share best practices and insights across marketsn Align management with your brand goalsn Strategy is about making choicesn Intensely focus on executionn Never underestimate the power of local competitorsAdvice46Summaryn Global brands create enormous ec
49、onomic value and competitive insulationn Local market sensitivity vs.global consistency must be balancedn A rigorous management process covering six key areas will ensure you are effectively managing your brandn Learn from others mistakesn Focus on achieving global brand leadership not global brandsn Use the power of marketing for the greater good of society47Thank You
