Brand Masterclass Week Seven

OPEN SOURCE Session Seven : Managing Global Brands Idris Mootee CEO Idea Couture Inc. 1 Oct 28, 2007

All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and analysis. Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names is solely for academic purposes and should not be considered as case studies. The material here was prepared solely with public information supported by the author’s analysis during the writing of book 60-Minite Brand Strategist which was published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys, Target, Daimler Chrysler mentioned here were at some point were clients of firms which I was formerly employed or co- founded. No confidential or proprietary information were used or disclosed here . This series of presentation is designed to provide relevant and up-to-date information for brand and marketing practitioners and it should not be used in marketing or rendering of professional services. Some rights reserved. Idris Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with prohibition of any commercial use. 2

Why Global Brands? Companies that brand their products have various options when they market and sell their products in multiple countries. More and more companies see global branding as a must. 4

Three Key Questions How do we strike the balance between a global brand that shuns cultural barriers and one that allows for local requirements? What aspects of the brand policy can be adapted to global use? Which ones should remain flexible? Which brands are destined to become “global” mega- brands? Which ones should be kept as “local brands”? 5

The Case For Global Brands Economies of scale. The development costs for products launched under the global brand name can be spread over large volumes. Global brand has much more visibility than a local brand and perceived market power and credibiity. Global brands that can claim worldwide leadership in their product category have even more clout. 6

The Case Inter-Country Gaps • History • Competitive Climate • Marketing Support • Cultural Receptivity to Brands • Product Penetration 7

3 Things Global Brands Are Up Against • Legal Constraints: localization • Cultural barriers • Patriotism 8

Two Things To Consider • What is the associated cost of creating and maintaining awareness and associations for local brand versus a global one? • What are the significant economies of scale in the development and running of a global communication campaign? 9

Transitioning to Global Three strategic options: • Fade-in/Fade-Out: The new global brand name is somehow tied with the existing local brand name. After a transition period, the old name will be dropped. • Transparent Forewarning: Alerts the customers about the brand name change is coming and manage their expectations. • Instand Axing: The company simply drops the old brand name and immediately replaces it with a big bang launch of a global name adoption. 10

Transitioning to Global Several drivers impact the composition of a firm’s international product line - Customer preferences - Competitive Climate - Organization Structure - History 11

Global Brand Positioning Challenges • Relevance across markets • Ensuring broad understanding across organization • Degree of adaptation permissible while being true to brand essence • Management of partners in consistent implementation 12

Achieving Cultural Relevance and Authenticity • Cultural relevance is all about the seemingly small issues needed to make brands feel friendly to a consumer's culture, language, lifestyle, habits, values, etc. • Cultural relevance is more than translation! – Customers notice quot;abnormalities,” whether it’s an Americanized way of writing dates, tonality of message, or inappropriate syntax, graphics, colors, and many other points of sensitivity. 13

Challenges in Achieving Local Relevance: Keeping The Classic Look and Taste Worldwide • When Coca-Cola was first introduced into China, Chinese characters selected sounded like Coca-Cola but actually meant, “bite the wax tadpole.” • In Russian, “enjoy” was changed to “drink,” because “enjoy” has a particular sensual connotation, in that language, that doesn’t apply to soft drinks. 14

Challenges in Achieving Local Relevance: Keeping The Classic Look and Taste Worldwide For all non-Roman alphabets — such as Arabic, Cyrillic, Japanese, Greek, and many others, unique, proprietary Coca-Cola typefaces were created that are both culturally appropriate and in sync with the company’s global image. 15

Challenges in Achieving Local Relevance: Keeping A Global Brand Reverent 16

Challenges in Achieving Local Relevance: Keeping A Global Brand Reverent 17

Challenges in Achieving Local Relevance: Extending Global In The Virtual World 18

Challenges in Achieving Local Relevance: Brand Management Is Always a Challenge 19

Challenges in Achieving Local Relevance: Pepsi Global Restyling 20

Session seven of eight. OPEN SOURCE www.mootee.typepad.com 21

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Brand Masterclass Week Seven

by Idris Mootee on Oct 28, 2007

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Brand Masterclass Week Seven — Presentation Transcript