Global brands - effective locally ppt
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Global brands - effective locally ppt

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localising global brands is beyond just communication. It involves the other 3P's as well.

localising global brands is beyond just communication. It involves the other 3P's as well.

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Global brands - effective locally ppt Global brands - effective locally ppt Presentation Transcript

  • Not only are brands becoming global butconsumers are too, in their preferences
  • Geography is historyA smaller, shared world has empowered the consumer like never before…he/she is picking the best of everything• Fashion = Milan - Paris (Amchi Mumbai…nah!)• Technology = Germany, Japan…the list goes on• Education = US, UK, Australia…the list again goes on• Employment = America, Europe, Asia…• Entertainment = Hollywood, Iran, Russia• Wines = France to start with• Tobacco = Cuban is not a far flung dream (Guntur?)• Coffee = Brazil (Mangalore?)
  • but…You cannot ignore their rootsYou can influence & enhance their way of life…but cannot alter itYou cannot ignore the nuances of their preferences, wants & needs
  • A few brands that suffered even for thesimplest of errors(Brand bloopers)Source: "Literal Translations Can Sabotage Marketing Campaigns Selling in a 2ndLanguage."   Business Mexico.   June 1993.
  • Coca Cola in China: Coca cola’s initial transliteration oftheir name into Chinese produced a rendering whosemeaning was “bite the wax tadpole”Wax tadpole
  • Chevrolet Nova in Spain: Chevrolet Nova in Spain: ChevroletNova sold poorly in Spanish speaking countries becauseits name translates as “doesn’t go” in SpanishNo Va = No goNo go
  • Electrolux in USA: When Electrolux washing machineswere launched in USA, they had the tagline “nothingsucks like electrolux”Nothing sucks like Electrolux was a hit in UK, where the ‘sucks’ does nothave a slang connotation..but in US…it obviously doesNothings sucks like…
  • Brand blooperssome which work for the brandSource: "Literal Translations Can Sabotage Marketing Campaigns Selling in a 2ndLanguage."   Business Mexico.   June 1993.
  • Haier in India & elsewhere: Almost everybody who buysHaier products perceive the company to be German,instead of ChineseChinese = German?
  • How global brands are understanding localnuances to make dents into world markets2 brands which got it right
  • McDonaldsChinaChinaUAEUAEUKUKSouth AfricaSouth AfricaUSAUSA
  • MTV is all about selling the notion of youth, anti-establishment, irreverent – it’s the differentdrummer.Music, but not just musicWacky & weird – bordering on bizarreThe youths – destination cool.The guiding core – the world over
  • Destination IndiaReasons for entry• An enormous middle class segment• A country lapping up brands which provide lifestyle experiences• ‘Out of the house’ experience gaining momentum• A huge mass of fast food consumption• Fast-food & snacking – an integral part• No branded & experiential fast food offering
  • Barriers to EntryThe ground workBig mac did in-depth ground work & realized that proposition of a funplace for kids & a family experience held good…but had to becommunicated with local flavorThe traditional fast food & snacking could not be directly challengedHome made snacks were also part of competitive setA concept of plush-eat out & take-away was new, hence footfalls wouldresult only on elimination of ‘alien’ & ‘elitist’ feelingPurely western ‘eats’ were not welcomeConsumers were highly price conscious
  • So…
  • • Communicated in ‘Indian’ & to the heartland• Understood the vegetarian Vs non-vegetarian split• Recognized that vegetarianism was not a matter of choice, but assumedcultural & religious significance (All veg macs, no beef for hindus & nopork for muslims)• Introduced Indian ‘eats’• Understood Indian family systems & communicated to both the progressiveneuclear families & the traditional joint families Featured Indian artists• Recognized price as a detrimental issue – infact used it as a footfallgeneratorBig mac – went glocal
  • IndiaIndia
  • Happy holiMc Aloo tikki
  • The result• A stronghold for the 15 to 34 yr olds –touching the 15 to 18 yrolds most intimately• The current play list has 70% Hindi music, & 30 % internationaltracks.• Has managed to continually adjust itself, so that it remainswhat young people want to watch.• Yet retained it’s essence – around the world & in India
  • AmericaChinaRussiaMexicoSouth AfricaMTV
  • MTV is all about selling the notion of youth, anti-establishment, irreverent – it’s the differentdrummer.Music, but not just musicWacky & weird – bordering on bizarreThe youths – destination cool.The guiding core – the world over
  • Destination IndiaReasons for entry• A teeming population of teenagers• Music – an essential part of Indian lives• Fast growing economy – following evolution path ofFar east Asian countries (where MTV was a success)
  • Infancy in IndiaRound: 1MTV entered India with the right proposition for youthBut…• Played only western music• Veejays were alien – (Caucasians & Orientals – Luke Kenny etc;)• Only international contentResultAlienationViewership limited to a niche segment – specific pockets in the urbanLow ratingsHigh percentage of lapsers & aware non-trialists
  • So…
  • • MTV went glocal• MTV went Hinglish• MTV mixed it’s music – Rock, Pop, Rap, Blues, Soul & Bhangra• Got Indian Veejays• Built ‘edible for India’, non-music programming• Featured Indian artists & amchi bollywood based content• Generated ‘India – wacky’MTV – went glocalInternational style – desi heart
  • BakraGaseous clayChitochatFEATURED ARTIST:Bombay Vikings
  • The result• A stronghold for the 15 to 34 yr olds –touching the 15 to 18 yrolds most intimately• The current play list has 70% Hindi music, & 30 % internationaltracks.• Has managed to continually adjust itself, so that it remainswhat young people want to watch.• Yet retained it’s essence – around the world & in IndiaMTV understood, respected & catered to the local tastes– found the right glocal mix
  • Global brands which ignore & do notrecognize local nuances sufferA brand which got it all wrong
  • Destination IndiaReasons for entry•Eexisting healthy breakfast culture at mass level•Ddecision makers “Mothers” wanted to give the best & healthy food to thekids•Ggrowing economy meant consumers willing to spend that extra buck onquality food•Rrecognized cereal consumption already existed-Mohun Meakinscornflakes
  • Will mail across pack images –could not obtain them off the net
  • Battle IndiaRound 1:•Kelloggs entered India with a totally westernized breakfast concept•The cornflakes were to be had with cold milkBut:• Indians had a distinct idea of breakfast-ing, that was freshly cooked• Indians loved a choice of breakfast – a different theme everyday• Indians preferred warm/ hot milk, but the cornflakes became soggy - – failed tounderstand ‘kachha doodh’• Indians experimented with sweet breakfast occasionally (sheera) – but not everyday•Overestimated market demandResult:Failed miserably• Amongst common masses – failed to convert them from Idlis, dosas, paranthas, poha,upma etc..• Amongst cereal eaters – failed to provide a cereal compatible with warm milk & stillcrunchy• A sweet breakfast everyday was a no no!!•Mumbai traders were selling stock to suburban traders. Non-movement of stock at thesuburban end resulted in overstocking & stagnation & over-production
  • Battle IndiaRound 2:• Kelloggs introduces breakfast biscuits, increased the flavors incereals & tried to pitch communication on health platform – Iron ShaktiResult:Initial response, not encouraging …awaiting results
  • "There is a bigger opportunity in localizing your offerings and thesmarter companies are realizing this.Glocal trends…
  • • Aamir Khan (in North India), Vijay (in Tamil Nadu), Jyothika (inAndhra Pradesh) and Aishwarya Rai (rest of India) endorse Coca cola.
  • Cafe Coffee Day plans to offer localised food across different cities inthe country. And the company soon plans to serve locally favouritecoffee flavours too.
  • MTV and Channel V: After the initial infatuation with rock and hard metal thinnedout, even teenagers started demanding Indipop, a kind of fusion music. So, evengenerations that have been brought up on Britney Spears and Backstreet Boys needthe bhangra to warm up their hearts.
  • Cartoon Network has plans of localising its programmes to entertain the Indian child.For instance, just before Holi, cartoon characters playing with colours are shown onthe Network and contests with pichkaris as prizes are announced. And cartooncharacters wishing Aamir Khan just before the Oscars made into huge hoardings.
  • Dominos Pizza has experimented with their taste options, especially in smallertowns, focussed on more regional flavours. Some of their localised toppingshave consolidated and become key sales contributors. At Dominos, `PeppyPaneer, and `Chicken Chettinad have done exceedingly well and are thetop seller.
  • Maggi too went the same way. Noodles was alright for dinner once in a while,but to really mass market it as a snack, Maggi had to have the chatpattaIndian taste. And so the curry flavour, the tomato flavour, etc
  • SwarovskiIndia - designer Tarun Tahiliani worked out a collection of saris, blouses,odhnis, and salwar kameezes studded with crystals.China - launched crystal Chinese zodiac symbols which are very popular
  • Swarovski idols Swarovski sarees
  • Fedex introduced 10 kg and 25-kg boxes, as there existed a user need for suchpackaging for goods/documents being shipped out of India
  • "The rules are very clear:You can alienate the consumer a bit from his culture, but youcannot make him a stranger to it.The society is much stronger than any company or product.MNCs who want to succeed in India or in any local market need toremember this