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globeone BRIC Branding Survey - India Edition
 

globeone BRIC Branding Survey - India Edition

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Half of the urban consumers in India know a multitude of German brands and show a strong preference for them. The appeal of foreign brands, particularly those with German origin, is strongest for ...

Half of the urban consumers in India know a multitude of German brands and show a strong preference for them. The appeal of foreign brands, particularly those with German origin, is strongest for consumers from the upper middle class and higher income segments (with gross monthly income above Rs. 42,000), with 71% and 63% respectively saying they prefer German brands. More interestingly, half of the surveyed Indian middle class consumers (with gross monthly income of Rs. 18,000-42,000) like German brands, pointing to a huge potential for German products and services among the rising urban affluent in India – an often unexploited potential by German companies.

In total, 1,000 Indian consumers from Mumbai, New Delhi, Bangalore, Chennai and Pune have been interviewed. The India results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.

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globeone BRIC Branding Survey - India Edition globeone BRIC Branding Survey - India Edition Presentation Transcript

  • Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul © Copyright This document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements. BRIC Branding® Survey – India Edition The Perception of German Brands in India – Strengths, Weaknesses and Opportunities Mumbai, May 2012
  • 2 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 3 Executive summary (1/4) COUNTRY-OF-ORIGIN IMAGE AN IMPORTANT FACTOR IN INDIA In India, the Country-of-origin Image (COO-Image) is an important factor for urban consumers and B-to-B buyers in the purchase decision process, especially in but not limited to the higher income target groups. POSITIVE ATTITUDE TOWARDS GERMAN BRANDS Half of the Indian urban population has a positive or very positive attitude towards German brands. But currently still less so than it is the case in other BRIC markets. GERMAN & JAPANESE BRANDS LEAD NATION RANKING IN HIGHER INCOME GROUPS IN INDIA German along with Japanese brands lead national rankings among higher income groups in India. German brand perception is especially distinctive for traditional values like quality, durability as well as high prestige. SHORTCOMINGS IN ADEQUATE LOCAL POSITIONING German brands also show some shortcomings in the eyes of Indian urban consumers. They are not perceived as close to local customer needs nor providing much of value for money compared to Indian brands. POTENTIAL BARRIERS TO ENTER THE INDIAN MASS MARKET Most German brands have a strong premium focus. Thus, many of them are perceived as being relatively expensive and face potential barriers to gaining a significant share in the overall market in India. Key findings – Germany’s image in India Source: globeone
  • 4 Executive summary (2/4) GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIES In India, German brands are top of mind in relation to the automotive sector. In addition, German brands are often associated with machinery and pharmaceuticals. ADIDAS IS THE MOST WELL-KNOWN GERMAN BRAND IN INDIA Vast majority of interviewed Indian population can immediately recall multiple German brands – sportswear giant Adidas (79% awareness) is in the lead followed by Nivea (73%) and insurer Bajaj Allianz (68%). NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN INDIA The most frequently purchased/used German brand in India is Nivea (35%) followed by Adidas (34%) and Puma (25%). Many German brands display very low market penetration among average urban consumers. WORD OF MOUTH IS THE MOST POPULAR SOURCE TO LEARN ABOUT FOREIGN BRANDS Recommendations by family & friends are the leading source for Indian consumers who want to research information about foreign brands. Other important sources incl. TV and newspaper, Internet is not yet key. ADIDAS IS ALSO THE BEST-LIKED GERMAN BRAND IN INDIA Consumer goods brands - Adidas (57% positive image), Puma and Nivea (52% each) - are the most popular German brands in India, followed by automotive brands BMW and Audi (50% each) and Volkswagen (46%). Key findings – Leading German brands in India Source: globeone
  • 5 Media echo – globeone BRIC Branding® Survey Source: globeone Executive summary (3/4)
  • 6 Media echo – globeone BRIC Branding® Survey - India Edition Source: globeone Executive summary (4/4)
  • 7 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 8 Global network with strong focus on fast growth markets Mumbai Office Cologne Head Office São Paulo Office Singapore Office Beijing Office Shanghai Office globeone is a boutique business consultancy with a strong representation in the world’s fast growth markets We offer specialized marketing strategy consulting & project management services to help drive clients’ success in the world’s key growth regions About globeone (1/2) Seoul Office
  • 9 Marketing & communication strategy consulting to drive clients’ success in BRIC ExecutionStrategysupport Consumer & strategic market insights 1 Quantitative market research design (e.g. market potential, segmentation) Customer insight generation & market trend studies Competitor analysis & benchmarking Qualitative market research (e.g. online user experience, focus groups) 2 Optimized positioning & planning Brand architecture & brand portfolio strategies Definition of goals and KPIs & related strategy development Brand and product (re-) positioning & value proposition development Business case & market entry program development 3 Support of 360° fulfillment Employer brand development & program implementation Hands-on project management & creation of professional presentations Creation of 360°integrated activity planning Creation of briefings & steering of specialized agencies (e.g. pitch support) 4 Brand performance & loyalty Marketing spending effectiveness (e.g. correlation of investment and sales) Brand performance analysis & controlling (e.g. brand monitor surveys) CRM audit & CRM strategy development Set-up of activities & programs to enhance brand loyalty Global Strategy + Local Adjustment = Success in BRIC – Typical globeone project examples for major global clients (selection) – About globeone (2/2)
  • 10 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 11 Countries/Cities: Brazil Russia India China São Paulo Moscow Mumbai Shanghai Rio de Janeiro St. Petersburg New Delhi Beijing Porto Alegre Novosibirsk Bangalore Guangzhou Recife Yekaterinburg Chennai Chengdu Brasília Nizhny Novgorod Pune Wuhan Objectives: • Identification of Country-of-origin Image (COO-Image) relevance in BRIC • Assessment of perception of German brands amongst urban citizens • Strengths & weaknesses of German brands and strategic implications Method/Timing1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone and face-to-face interviews: n ≈ 4,000 • Field work conducted: 2011 Over 4,000 interviews in 20 of the most important BRIC cities to analyze the perception of German brands Survey approach – Objectives and scope Source: globeone German brands 1) Representative survey of urban population based on field research conducted by certified market research agencies in each country
  • 12 Cities: Objectives: • Assessment of perception of German brands among Indian urban citizens • Analysis of India-specific strengths, weaknesses and opportunities • Guiding successful brand management in India Method1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone & face-to-face interviews: n = 1,000 for India • Selection of respective cities to achieve suitable representation of India For the India edition, 1,000 interviews were conducted in 5 Indian key cities Survey approach – Objectives and scope German brands Mumbai Pune Chennai Bangalore New Delhi Source: globeone 1) Representative survey by certified market research agency in India. City sample selected for suitable representation of urban population in key regions in India.
  • 13 COO – Definition “Country-of-origin is defined as the country where corporate headquarters of the company marketing the product or brand are located. This does not require local manufacturing.” 2 “Consumers and customers associate positive or negative attributes with a company, product or brand, if they know it originates from a certain country.“ 3 “Country-of-origin effect is one of the most analyzed phenomena in consumer behavior in international markets.“ 1 COO – High interest eST Survey approach – Country-of-origin definition Country-of-origin (COO) is a key factor for purchase decisions in India Source: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.
  • 14 Survey approach – Country-of-origin in India COO-Image – Important success factor in India Urban consumers in India are particularly sensitive related to the COO-Image resulting from • Local consumers’ demand for prestigious brands to highlight their social progress • Lower availability and higher novelty of foreign brands is further boosting their image • Limited trust due to lower level of quality and marketing competence of local brands, apart from strong local champions India-specific relevance of a positive COO-Image A positive COO-Image can: • Increase perceived quality and prestige of a brand • Promote consumers’ purchase intentions in favor of a brand Potential for increasing brand performance dependent on respective industry and product category General relevance of a positive COO-Image– Perception of a brand’s corresponding country-of-origin – ! Source: globeone
  • 15 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 16 • Approximately half of respondents have a positive or very positive attitude towards German brands • Only small fraction (9%) that does not perceive German brands as favourable • Opportunity for an effective positioning utilizing the country-of-origin potential German image as asset – Half of Indian urban population confirms positive image of German brands Germany’s image in India – General attitude towards German brands Q.: Do you like German brands, products or services?; Sample size in India: 1,000. – General attitude towards German brands in India – 49% associate positive image! 2% 7% 42% 33% 16% 0% 10% 20% 30% 40% 50% I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much Source: globeone
  • 17 I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much 22% 59% 13% 5% 1% 45% 43% 11% 0% 1% 16% 33% 42% 7% 2% 9% 38% 47% 5% 1% Overall, the positive perception of German brands is even higher in other emerging markets Germany’s image in India – General attitude towards German brands Q.: Do you like German brands, products or services?; Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China). Source: globeone
  • 18 Germany’s image in India – Income class-specific attitude towards German brands –Middle class – (€ 300-700; Rs. 18,000-42,000) – Upper middle class – (€ 700-1,300; Rs. 42,000-78,000) – Higher income class – (> € 1,300; > Rs. 78,000) Q.: Do you like German brands, products or services? Exchange rate: € 1 = Rs. 60 2% 7% 44% 30% 17% 1% 3% 25% 54% 17% 6% 0% 31% 44% 19% 47% associate positive image I do not like German brands at all I do not really like German brands I do not have a preference I like German brands I like German brands very much 71% associate positive image 63% associate positive image – Liking of German brands across income classes (according to gross monthly income) – German brands enjoy a substantially higher positive reputation among consumers with higher income Source: globeone
  • 19 • German brands by higher income earners mainly recognized for quality, durability as well design, prestige factor also high • Lacking adequate local positioning and not offering good value for money though • Indian brands rank highest on close to customer needs & after-sales service Source: globeone Germany’s image in India – Perception of brand and product attributes In higher income classes, German brands are recognized for traditional values like quality & durability as well as prestige Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics? 1) Sample: Respondents from upper middle/high income class only (gross monthly income above € 700/Rs. 42,000) . – Perception of brand and product attributes based on respective country of origin by higher income classes1 (Germany, USA, Japan, China, India) – 0% 10% 20% 30% 40% 50% 60% India USA China Japan Germany Innovative & high-tech Outstanding design Excellent quality High prestige High durability Good after- sales service Good value for money Close to local customer needs
  • 20 20% 29% 33% 39% 49% 22% 37% 38% 40% 40% 19% 34% 34% 40% 45% German brands best in class Germany’s image in India – Country-of-origin image strength index Exchange rate: € 1 = Rs 60 – Country-of-origin image strength index – (average scores of 15 relevant brand & product attribute dimensions) – Middle class – (€ 300-700; Rs. 18,000-42,000) – Upper middle class – (€ 700-1,300; Rs. 42,000-78,000) – Higher income class – (> € 1,300; > Rs. 78,000) Stronger local preference In higher income segments foreign brands overall enjoy a higher positive reputation, German brands best in class Source: globeone
  • 21 COO-Image important for purchase decision – Opportunity for foreign brands with strong country-of-origin image Germany’s image in India – Importance of COO-Image Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in India: 1,000. 4% 8% 19% 38% 31% 0% 10% 20% 30% 40% Not at all important Not important Does not really matter Relatively important Very important – Importance of COO-image – Source: globeone 69% perceive COO-Image as important for purchase decision!
  • 22 Importance of COO-Image in purchase decision process in India second only to Russia across BRIC countries Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in BRIC: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China). Germany’s image in India – Importance of COO-Image Not important at all Not important Does not really matter Very important Relatively important 1%4%0% 0% 36% 29% 10% 20% 5% 61% 29% 10% 31% 38% 19% 8% 14% 47% 25% 13% Source: globeone
  • 23 Germany’s image in India – Importance of COO-Image – Middle class – (€ 300-700; Rs. 18,000-42,000) – Upper middle class – (€ 700-1,300; Rs. 42,000-78,000) – Higher income class – (> € 1,300; > Rs. 78,000) Q.: How important is the country of origin of a brand to you when you purchase a product or service? 4% 9% 17% 37% 33% 0% 7% 35% 36% 22% 13% 0% 6% 56% 25% 70% consider COO important Not at all important Not important Does not really matter Relatively important Very important 58% consider COO important 81% consider COO important – Importance of COO-image across income classes (according to gross monthly income) – COO-Image important across all income categories in India Source: globeone Exchange rate: € 1 = Rs 60
  • 24 • Compared to brands from other countries, German brands perceived as relatively expensive • Price perception reflects premium segment focus many German brands implement • Large potential to target upcoming middle class with more locally adjusted product/ pricing strategies – Price perception of German brands in India – Q.: What do you think about German brands in terms of price?; Sample size in India: 1,000. Germany’s image in India – Price perception 1% 4% 28% 40% 28% 0% 10% 20% 30% 40% 50% Very cheap Relatively cheap Similar to other countries' brands Relatively expensive Very expensive 68% associate German brands with expensive Majority of Indian urban population regards German brands as relatively or very expensive Source: globeone !
  • 25 – Industries/product categories most commonly associated with German brands – • German brands most closely associated with the automotive industry - also due to market history (e.g. Mercedes- Benz officially operating in India since 1995) • Machinery and pharmaceuticals are also relevant • FMCG & service industries less likely to be seen as Germany-related Q.: What categories do you think German brands are famous for? ; Sample size in India: 1,000. Germany’s image in India – Top industries with German association 20% 25% 26% 29% 34% 35% 39% 42% 43% 49% 69% 0% 20% 40% 60% 80% 100% Eco-friendly technology Detergent Services (insurance etc.) ClothingFashion Food CosmeticsPerfume Football Home appliances PharmaceuticalsMedicine Machinery AutomobileMotorcycles Source: globeone Urban Indians associate German brands mainly with the automotive industry and machinery
  • 26 Q.: Which German brands do you know? Please name as many as come to your mind spontaneously.; Sample size in India: 1,000. Majority of Indian population can immediately recall a German brand name – Lower than in BRIC overall though Germany’s image in India – Unaided awareness 59% 41% 0% 20% 40% 60% 80% Can recall a German brand Can't recall a German brand 28% 19% 19% 17% 15% 13% 11% 11% 7% 6% 5% Adidas Audi BMW Nivea Mercedes-Benz Puma Volkswagen Bajaj Allianz Bosch Henkel Siemens – Unaided awareness for German brands in India (top 11) – Source: globeone
  • 27 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 28 • Sportswear brand Adidas (79%) best- known German brand followed by Nivea (73%) • Service brand Bajaj Allianz (68%) third • Sportswear brand Puma (58%) also among top 6 • Top 12 otherwise dominated by auto brands - BMW (65%) in lead followed by Mercedes-Benz (60%), Audi (53%) Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000. Leading German brands – Aided awareness (1/2) 28% 34% 38% 42% 46% 53% 58% 60% 65% 68% 73% 79% 0% 20% 40% 60% 80% 100% Henkel Osram Siemens Volkswagen Skoda Audi Puma Mercedes-Benz BMW Bajaj Allianz Nivea Adidas (275) (341) (376) (726) (415) (461) (525) (578) (596) (647) (682) (789) – Aided brand awareness in India (top 12) – Top 12 – Adidas, Nivea & Bajaj Allianz lead German brand ranking in India, closely followed by automotive brands Source: globeone
  • 29 • DHL (24%) most prominent service brand - closely followed by Deutsche Bank (23%) and Lufthansa (22%) • Porsche (16%) with significantly lower awareness than other premium German car brands • Bayer (12%) best known pharmaceutical brand Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000. – Aided brand awareness in India (rank 13 to 30) – Leading German brands – Aided awareness (2/2) (99) (107) (109) (115) (117) (117) (118) (128) (130) (132) (163) (170) (176) (186) (221) (232) (244) (263) Rank 13 to 30 – Service companies overall with higher awareness than consumer goods companies 10% 11% 11% 12% 12% 12% 12% 13% 13% 13% 16% 17% 18% 19% 22% 23% 24% 26% 0% 20% 40% 60% 80% 100% Zwilling Carl Zeiss AEG Bayer Hugo Boss Dr.Oetker Becks Paulaner Deutsche Telekom MINI Porsche Metro Cash & Carry Braun smart Lufthansa Deutsche Bank DHL Bosch Dr. Oetker Source: globeone
  • 30 • Sportswear brand Adidas as German brand with highest awareness (79%) as well as most positive image (57%) in India • Puma and Nivea runner-up (52% each) • Among auto brands, BMW and Audi in lead (50% each) followed by Volkswagen (46%), Mercedes-Benz & Skoda (43% each) Leading German brands – Positive image (1/2) Q.: Do you like this brand in general? – Positive attitude towards German brands in India (top 12)¹ – 40% 42% 43% 43% 43% 44% 46% 50% 50% 52% 52% 57% 0% 20% 40% 60% 80% 100% Siemens Dr. Oetker Skoda Mercedes-Benz Bosch Osram Volkswagen Audi BMW Nivea Puma Adidas (151) (49) (197) (256) (113) (149) (191) (263) (322) (375) (301) (448) Top 12 – Sportswear brands Adidas and Puma lead image ranking with Nivea, followed by automotive brands Source: globeone 1) Based on number of interviewees who know the brand.
  • 31 Leading German brands – Positive image (2/2) Q.: Do you like this brand in general? Rank 13 to 30 – Boehringer-Ingelheim leads ranking as best liked German pharmaceutical brand – Positive attitude towards German brands in India (rank 13 to 30)¹ – • Service brands overall with less positive image than automotive- related brands • Bajaj Allianz not leveraging high awareness (68%) to positive image (37%) • Porsche image- wise (36%) also far behind other German car brands • MINI with positive image even before launch (25%) 22% 23% 24% 25% 25% 25% 27% 29% 29% 30% 30% 31% 32% 33% 34% 35% 36% 37% 0% 20% 40% 60% 80% 100% Deutsche Bank Hansgrohe Lufthansa Hugo Boss MINI ThyssenKrupp AEG MAN DHL Miele Bayer Braun Deutsche Telekom Metro Cash & Carry Henkel Boehringer-Ingelheim Porsche Bajaj Allianz (19) (53) (29) (33) (14) (29) (18) (71) (21) (35) (55) (42) (56) (94) (15) (58) (251) (52) Source: globeone 1) Based on number of interviewees who know the brand.
  • 32 Leading German brands – Recognition of German brand origin (1/2) Q.: Do you think this brand is originally from Germany or not? • Beer brand Becks (75%) with highest recognition of German brand origin, Paulaner also in top 6 (64%) • Multinational conglomerate ThyssenKrupp ranks second (70%) • None of leading car manufacturers amongst top 11, MINI (59%) 12th in terms of German origin recognition – Recognition of German brand origin in India (top 12)¹ – 59% 60% 60% 63% 63% 64% 64% 64% 67% 68% 70% 75% 0% 20% 40% 60% 80% 100% MINI BASF Boehringer-… Grundig Haribo Zwilling Paulaner Leica Hugo Boss Hansgrohe ThyssenKrupp Becks (53) (26) (35) (40) (63) (82) (41) (78) (57) (39) (88) (78) Top 12 – Relatively high level of ‘German origin’ recognition with some room for improvement Source: globeone 1) Based on number of interviewees who know the brand.
  • 33 Leading German brands – Recognition of German brand origin (2/2) • Volkswagen with its “Das Auto” claim only ranking 17th (58%) • Deutsche Telekom not likely to be recognized as German (50%) despite “Deutsche” in brand name • MINI, Porsche (59% each) and VW (58%) rather recognized as German than Audi (55%), BMW (46%) Q.: Do you think this brand is originally from Germany or not? 50% 50% 52% 52% 52% 53% 54% 54% 55% 55% 56% 56% 56% 58% 59% 59% 59% 59% 0% 20% 40% 60% 80% 100% Bayer Deutsche Telekom Continental Dr.Oetker smart Adidas Braun ERGO Audi Linde SAP Carl Zeiss Miele Volkswagen AEG MAN Porsche Bosch – Recognition of German brand origin in India (rank 13 to 30)¹ – (65) (31) (61) (97) (416) (95) (50) (288) (39) (52) (60) (40) (242) (64) (37) (96) (155) (57) Rank 13 to 30 – Key German automotive brands with divided German origin recognition Dr. Oetker Source: globeone 1) Based on number of interviewees who know the brand.
  • 34 • Consumer brands Nivea (35%) and Adidas (34%) also at forefront regarding purchase/usage frequency • Osram (13%) lighting products rank 4th • Bajaj Allianz (13%) most often used service brand • Skoda and VW (both 5%) most purchased/used German car brands Leading German brands – Purchase/usage Q.: Which German brands have you bought or which services have you used?; Sample size in India: 1,000. – Purchase/usage of German brands in India (top 12) – 4% 4% 5% 5% 6% 8% 11% 13% 13% 25% 34% 35% 0% 20% 40% 60% 80% 100% Dr.Oetker DHL Volkswagen Skoda Bosch Henkel Siemens Bajaj Allianz Osram Puma Adidas Nivea (43) (44) (45) (53) (61) (75) (113) (126) (127) (251) (342) (349) Top 12 – Leading German brands regarding purchase/usage from FMCG and sports apparel industry Source: globeone Dr. Oetker
  • 35 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 36 Insights into information channels – Key sources (1/2) 1) Category Internet includes Internet search engines, social media and corporate website research. – Information sources to find out/learn more more about foreign brands in India – Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000. 4% 5% 12% 14% 18% 23% 24% 0% 10% 20% 30% Event/tradeshow Radio Shopping center/store Internet Newspaper/magazine TV Family/friends 1 Word-of-mouth through family and friends most relied on source to learn about foreign brands in India, TV second Source: globeone
  • 37 Insights into information channels – Key sources (2/2) Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000. 2% 4% 5% 6% 6% 12% 18% 23% 24% 0% 10% 20% 30% Corporate website Event/tradeshow Radio Social media Internet search engine Shopping center/store Newspaper/magazine TV Family/friends – Information sources to find out/learn more more about foreign brands in India – Digital information channels currently still with relatively low relevance – Large potential for future though Source: globeone
  • 38 Indian consumers more engaged in traditional means to acquire information about brands than BRIC counterparts Insights into information channels – Comparison of key sources across BRIC • Apart from India, Internet (search engines, social media, corporate websites) leading info channel • Indian consumers mainly rely on word of mouth (24%) or TV (23%) • Majority of Brazilians (44%) use search engines • Social media with highest commercial maturity in China (12%) 17% 12% 6% 18% 6% 20% 5% 5% 3% 10% 4% 1% Search engines TV Family/ friends Newspaper/ magazines Social media Corporate websites 44% 3% 5% 18% 18% 23% 23% 14% 17% 24% 17% 12% Sample size per BRIC country: 1,023 Brazil, 1,000 Russia, 1,000 India, 1,010 China Q.: How do you generally find out/learn more about foreign brands? Source: globeone *Sources of minor relevance (radio, events, shopping centres) excluded.
  • 39 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 40 Strategies for India – Leveraging maximum brand potential to grow sales (1/3) Success in India requires dedicated action and a clear strategic roadmap (→ ‘one world strategy’1) Strategic implications for corporations: 1:1 transfer of ‘developed market’ strategies is rarely successful Almost continental complexity of India as key challenge for annual strategy development and alignment of country organizations Fact-based adjustments regarding strategic focus, relevant target groups and brand strategy necessary Different levels of brand performance require a differentiated approach - Brand performance analysis - Improving India business performance through effective communication strategies Source: globeone 1) A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/ customer needs in BRIC at the very centre of corporate strategy.
  • 41 Strategies for India – Leveraging maximum brand potential to grow sales (2/3) Corporation with low brand awareness and thus low general brand performance across all major dimensions in India - Key challenges - • Lack of fact-based ‘one-world’ strategy for India • Local organizational setup not sufficient • Slow expansion speed beyond Tier 1 city clusters • Inability to bridge gap between HQ and country team • Unclear definition of market-driven strategy and local target groups and needs • Ineffective activation strategy & media investment to communicate above ‘perception threshold’ • Ineffective utilization of media vehicles/insufficient media investment 25% 50% 75% 100% 0% Corporation with high awareness but weak image as compared to Industry benchmarks in India 25% 50% 75% 100% 0% Awareness Image Recognition Purchase Loyalty Awareness Image Recognition Purchase Loyalty - Key challenges - • Under-utilization of local customer insights and thus no ‘quick wins’ • Absence of a relevant positioning adjustment to local target group expectations (e.g. prestige appeal) • Low differentiation from key competitors/local hero brands in India • Lack of creative execution and effective media strategy • Shortcomings in locally relevant story-telling - India brand performance Awareness challenge1 - India brand performance - Image challenge2 Selected strategies for India – Awareness & image challenges Source: globeone
  • 42 Brand’s German roots not properly recognized in India - Key challenges - • Missing link to German origin of a brand • Advertising, PR, event or online activities lacking proactive communication of German brand heritage and thus no realization of additional price premium potential • Lack of story telling related to brand origin & history though one of few competitive advantages that cannot be easily imitated • Absence of educational approach Brand enjoys good reputation but purchase behavior and loyalty remain below Industry benchmarks in India Awareness Recognition Purchase Loyalty Awareness Recognition Purchase Loyalty - Key challenges - • Lack of strategy to also appeal to middle income groups (e.g. creating low-cost brands for more price sensitive target customers) • Limited local distribution points • Lack of implementing sequential expansion strategies in line with regional development • Under-utilization of global CRM basics and related systems in the local Indian market • Lack of effective activation at POS & in social media German origin challenge3 Activation & loyalty challenge4 - India brand performance - - India brand performance - Image Image 25% 50% 75% 100% 0% 25% 50% 75% 100% 0% Strategies for India – Leveraging maximum brand potential to grow sales (3/3) Selected strategies for India – German origin & activation and loyalty challenge Source: globeone
  • 43 • Executive Summary • About globeone • Survey Approach • Germany’s Image in India • Leading German Brands in India • Insights into Information Channels in India • Marketing and Communication Strategies for India • Contact Agenda
  • 44 B 806, Sagar Tech Plaza Sakinaka Junction Andheri Kurla Link Road, Andheri (East) Mumbai 400072, India Email: tina.monelyon@globe-one.com Phone: +91 (0)22 67703-718 (ext. 11) Mobile: +91 9920 6633 06 www.globe-one.com Contact Mumbai office Ms. Tina Marie Monelyon Country Manager
  • 45 Cologne Head Office Kranhaus Süd Im Zollhafen 24 50678 Köln Germany Shanghai Office 16F Feidiao Internat. Building 1065 Zhao Jia Bang Road 200030 Shanghai People's Republic of China São Paulo Office Singapore OfficeBeijing Office Office 39, Room 509A No. 4 Gong Ti Bei Lu Chaoyang District 100027 Beijing People's Republic of China Av. Cidade Jardim, 400 20th floor – room 08 01454-000 São Paulo Brazil 10 Collyer Quay, 40-53 Ocean Financial Centre Singapore 049135 Singapore saopaulo@globe-one.com Phone +55 (0) 11 3818 0837 Fax +55 (0)11 3818 0899 singapore@globe-one.com Phone +65 6808 6050 Fax +65 6622 5999 beijing@globe-one.com Phone +86 135 0129 8737 Fax +86 (0) 21 5158 1686 shanghai@globe-one.com Phone +86 (0) 21 5158 1688 (ext. 1352) Fax +86 (0) 21 5158 1686 cologne@globe-one.com Phone +49 (0) 221 788068-0 Fax +49 (0) 221 788068-29 www.globe-one.com Contact Other globeone offices around the world Seoul Office seoul@globe-one.com Phone +82 2 6200 6432 Fax +82 2 6207 7315 5F Seoul Design Works B/D 683-133 Hannam-dong, Yongsna-gu Seoul 140-892 Korea
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