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The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
The Future of Brands- Global and Regional Perspective
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The Future of Brands- Global and Regional Perspective

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    • 1. The future of brands – Global and regional perspective Strumica, 30.11.2007 rok. sunko @ valicon . net zenel . batagelj @ valicon . net
    • 2. Today’s agenda
      • Lets introduce our selves...
      • ... then talk about Brands,
      • whats hapening in their playground
      • and how do they suceed
      • Discussion
    • 3. Leading group of local agencies for marketing research in the region PRIZMA The group PGM CONSULT
        • Directly present on 4 markets (Croatia, Slovenia, BIH, Serbia)
        • Coverage of wide region (SEE)
        • In total above 60 employees; highly qualified in marketing research and consulting
        • Fast growth rate (in 2005 Croatia 50%, Slovenia 25%...)
    • 4. PGM – Product Group Manager – the source of the presented data
      • Product Group Manager (PGM) is a syndicated marketing tool for brand and category management, including a broad insight in consumer profiles.
      • Data trends available since 2004.
      • Single-source data on:
        • FMCG brand and category strength (inside various consumer segments)
        • consumer habits
      • The basis of PGM is a continuous syndicated marketing research
        • field research
        • n=2000 / country – national representative
      • Fully automatised software application
      Consumer Marketing strategy Asortima n Execution
    • 5. Model used in PG M Usage Recognition Quantity Loyalty Price + How to rise profit? Consideration Experience How to achieve usage?
    • 6. Basic purpose of PGM
        • PGM represents an economic way of accessing information about FMCG brands and categories (try to measure 15 indicators for 30 brands in one product category with a custom research).
        • Its main benefits are:
        • strategic oriented data that represents the development stage of a brand
        • user-friendly interface that enables:
      Surveying the characteristics of target segments (brand/category) Insight into the preferences of the consumer (FMCG, retail, service) Integrated monitoring of brand strength and its differentiation /position Detection of the market potential (new brands, category growth, market,...) Communication strategy (FMCG, retail, services , automotive,... ) Category Management
    • 7. Today’s agenda
      • Lets introduce our selves...
      • .. then talk about Brands
      • whats hapening in their playground
      • and how do they suceed
      • Discussion
    • 8. From a Product to the Brand ?
        • For over 5000 years each man has tried to eke out his own identity – to stand out from the herd. We have tattooed ourselves, burnt holes in our livestock and honoured armour to protect what was ours and to show what we stood for.
        • Fast-forward 5000 years to today, where there are so many brands it is becoming increasingly difficult to differentiate them in a time of brand blur deluxe.
        • “ We are living in a ‘Surplus Society’. An age where similar companies employ similar people, working in similar jobs, coming up with similar ideas, producing similar things.” ( Funky Business, Kjell Nordstrom and Jonas Kidderstrale )
      Product Trademark Brand It’s Alive!!! +
    • 9. Lets define... "a name, sign or symbol used to identify items or services of the seller(s) and to differentiate them from goods of competitors.“ (AMA) “ a set of assets (or liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service…“ (Aaker) “ a brand is a collection of perceptions in the mind of the consumer." ( Colin Bates, BuildingBrands.com )
    • 10. ...and understand how to manage the damn thing!
      • Modern competition calls for two essential tools of brand management (that are a part of the integrated and continuous process of branding)
        • ‘ B rand I dentity', specifying the facets of brands' uniqueness and value,
        • ‘ B rand P ositioning', the main difference creating preference in a specific market at a specific time.
      Brand positioning Category understanding Market segmentation Marketing mix Brand efectiveness Brand Image BRAND IDENTITY
    • 11. Brand identity symbols embalage elements “ merchandizing” personality characteristic s h ow do I as a user feel who is the typical user, how do users see brand users values connected to the brand, ideals relation i feel towards the brand BRAND PERSONALITY REFLECTION PHYSIQUE SELF-IMAGE RELATIONSHIP CULTURE PICTURE OF SENDER PICTURE OF RECEIVER EXTERNALISATION INTERNALISATION
    • 12. Brand Identity Scotland highlands & islands, castles Braveheart, Loch Ness men in kilts, whiskey warm, genuine, down to earth proud, spirited liberated, inspired, spiritually refreshed rejuvenated, spirited cultured, independent adventurous, different inclusive pride integrity proficiency involved, connected, liberated, enriched Scotland the land with real spirit PICTURE OF SENDER PICTURE OF RECEIVER EXTERNALISATION INTERNALISATION PERSONALITY REFLECTION PHYSIQUE SELF-IMAGE RELATIONSHIP CULTURE
    • 13. Identity incorporates live concepts as Brands are living things
        • B rands provoke excitement; they are 100% human emotion
        • B rands evoke a higher experience than simply product-function
        • B rands have values
        • B rands are promises – and brand essence is a distilled version of that promise
        • B rands go beyond quality.
        • B rands are self-conscious
        • B rands are differentiators, beacons in their class. Their identity is recognizable by all the five senses
        • B rands have CHARISMA, ATTITUDE and PERSONALITY!
        • Brand s no longer strive only to be category-kings; they strive to be standalone brands i.e. a brand with no associated competitor s.
    • 14. Get out of your category !
        • In some categories (also cigarettes!) you can ’ t broaden the primary category any more !
        • But Strong brands can be extended out of the box...the principle is used in luxury brands – Hennessy, Dom Pe ri gnon, Bombay Saphire gin,...
        • Most recently, within the last decade, Bombay has strengthened its communication with ‘ ’Designer glass competition ’ ’ in which designers worldwide design a functional martini cocktail glass inspired by the “ Be Brilliant and inspired ” (be Bo m bay Sapphire brand identity! ). The competition was further expanded into other functional design disciplines – ceramics, textiles, furniture in hopes of creating Bombay Sapphire inspired World .
    • 15. Brand positioning – the category related part WHY? A brand for what? Promise, consumer benefit FOR WHOM? Target definition AGAINST WHOM? Competition definition WHEN? Use occasion
      • A two stage process:
        • What category the brand should be associated and compared to
        • What is the brands essential difference in comparison to the competition.
    • 16. Case of decoding positioning(s) of Fructal brand(s) fun young segment a drink for bars and clubs passion (babe-fire) energy sexy packaging shape attract attention attractive color older, children, families top juice sensible gentle divine - top premium packaging Blue and white price sensitive cheap juice playful, simple budget colorful packaging health aware segment healthy) juice familiar, natural, simple like home made less fruit blue font whole fruit blue packaging whole fruit blue packaging whole fruit white packaging Positioning PERSONALITY WHO ARE THE USERS PHYSIQUE USER SELFPERCEPTION ODNOS CULTURE Positioning Building brand Building brand Positioning Building brand Positioning Building brand
    • 17. Brand positioning & Brand identity Local producers, who first produced Marlboro tried to put something in the same position after they stopped producing it. .. ...s ome forgot about Marlboro identity while positioning something in his(!) position .
    • 18. Sum up please
      • Brands are represented by a network of tangible and non-tangible elements (perceptions) . Their essence is (only) in the consumers mind.
      • In the present and future world of “Surplus Society” brand is the main differentiating and identifying aspect of the products.
      • To understand our brands and make them successful you need clear:
      • Brand Identity – focused on the brand / the not tangible
      • Brand Positioning – focused on the product and category / the tangible
      • Both Identity and Positioning go hand in hand
      • B randing is a continuous process.
    • 19. Today’s agenda
      • Lets introduce our selves...
      • ... then talk about Brands,
      • What’s hapening in their playground
      • and how do they suceed
      • Discussion
    • 20. The attractivety of the Region for retail investing
    • 21. Status of the regional markets Croatia
      • Moderate retail consolidation, fast development of the modern retail format
      • Successful transfer of experience from other markets
      Srbija
      • High potential of domestic retailers
      • Focus on local expansion with high appetite for regional expansion and cooperation
      BiH
      • Low consolidation, focus on local expansion
      • Distributors play a very important role!
      Slovenia
      • High level of retail consolidation
      • Category cleaning in process
      Macedonia
      • Fragmented retail, important role of foreign retailers
      • Low economic and political stability, low consolidation
    • 22. The no. of domestic brands among top 20/10 FMCG brands on local markets S E RBIA SLOVENIA CROATIA BiH 13 9 15 2 TOP 20 TOP 10 6 5 6 0
    • 23. No. o f national brands among top 20/100 FMCG brands in the whole region BIH CROATIA S E RBIA SLOVENIA 0 3 1 3* TOP 20 TOP 100 0 17 19 9
    • 24. Directions of brand-invasion?
    • 25. Consideration of the top 5 Slovene FMCG brands in regional countries Alpsko mleko Argeta Fructal Paloma Cockta
    • 26. Consideration of the top 5 Croatian FMCG brands in regional countries Vegeta Cedevita Podravka juhe Eva Zdenka topljeni sir
    • 27. Consideration of the top 5 Serbian FMCG brands in regional countries Grand coffee Dobro jutro margarine Knjaz Miloš (gazirana voda) Chipsy chips Dijamant oil Odstotrek potrošnikov, ki bi izbrali navedene znamke na tržiščih regije.
    • 28. Category – brands playground prestige level premium level middle level low level HORECA brands premium brands multinationals, some local domestic brands badly positioned / badly branded (local) brands, falling brands “ no-brands”, retail /own brands, hard discounter brands
    • 29. Whats happening in there ? multinationals budget, retail/own brands prestige level premium level middle level low level
    • 30. Whats’s happening there ?
        • ( T raditional) brands with no identity are getting into problems
        • Strong influence of retailers (and distributors) and budget / retail brands (branded and non branded privat labels)
    • 31. The influence of the retail brands Market shares of top retailers 1. Mercator 1. Konzum 1. Maxi Vir: GfK / * PGM 1. Interex
    • 32. And retail brands in future ? Hrvaška, PGM 2004 Barilla Zara K-Plus – Konzum retail brand Domestic brands + Mlinotest
      • How much are people prepared to pay for a brand
      Estimated Market Share
    • 33. And retail brands in future ? High income segment Low income segment
    • 34. What’s happening there ?
        • ( T raditional) brands with no identity are getting into problems
        • Strong influence of retailers (and distributors) and budget / retail brands (branded and non branded privat labels)
        • Category clean up:
        • Less difference in quality
        • More retail/own brands (also branded) - Stronger competition in the budget segment
        • A lot of traditional domestic brands are loosing strength as well as traditional categories decline
        • Implementing Category management (a lot of space for synergies in case of big regional corporations – Delta, Agrokor)
        • Expect Strengthening of retail brands and premium brands
        • The strongest brands stay untouched
    • 35. Today’s agenda
      • Lets introduce our selves...
      • ... then talk about Brands
      • whats hapening in their playground
      • and how do they suceed
      • Discussion
    • 36. Does a global brand instantly conquers local market? Consideration of Slovene (ex-regional) brands in Croatia - trend .
    • 37. Its obviously not easy, absolutely not instantly Strongest Classic Coffee brands in the ex-Yugoslav region (among Classic coffee users; PGM 2007, ex-Yugoslav region) .
    • 38. Kraft couldn't do it in R&G, but did it in instant Strongest Instant Coffee brands in the ex-Yugoslav region (among Instant Coffee users; PGM 2007) Possitional inovations !
    • 39. Orbit Professional and Actimel Orbit Professional and Actimel brand pyramids per country in the ex-Yugoslav region (among category users; PGM 2007)
    • 40. And local to global ? Donat Mg Donat Mg per country in the ex-Yugoslav region (among category users; PGM 2007)
    • 41. Creating new subcategories – P ositional I nnovation ! Izvor: PGM Slovenija
    • 42. Don’t forget the support for your brands ! Web Donat Mg Russia
    • 43. Voda Voda... Voda Voda brand pyramids per country in the ex-Yugoslav region (among category users; PGM 2007)
    • 44. Inovations work!
    • 45. But Aqua viva... or size matters! + =
    • 46. A local brand can conquer foregin markets - Argeta
    • 47. Argeta is the strongest brand in BiH and Macedonia not in Slovenia Voda Voda brand pyramids per country in the ex-Yugoslav region (among category users; PGM 2007) Adapting to local specifics and domiciliation of the brand !
    • 48. It can be done also in a different way... How much are you prepared to pay for a brand ? Estimated Market Share Bonito C kafa Intermezzo Doncafe Grand
    • 49. Serbian “copy-paste” v BiH How much are you prepared to pay for a brand ? Estimated Market Share Jacobs Aroma (Mc) Barcaffe (Si) Franck (Hr) Vispak (Ba) Doncafe (Sr) Grand (Sr)
    • 50. Sum up
      • In the next generation:
      • - we can expect hard brand overfill
      • the traditional strong brands (without good branding) will loose
      • even stronger role of budget brands , retail (own) labels (same quality) and increasing need to differentiate from them
      • increasing role of non-traditional marketing & non-traditional consumer segments (online generation)
      • a lot of traditionally strong categories are declining
      • But - ev e n in a very consolidated market as FMCG new brands can succeed. The main driver for this is positional innovation - go where no brand has gone before!
      • Dont forget about strong marketing support for your brands ( non-traditional )
      • Do you go-to-market or do you go-to-human being? Brands speak to the heart as well as to the head !
      • Clearly identify your brand identity and position – don't let your competition define your identity (dont forget the strange geometric objects ; )
      • Innovate (positional innovation) as this is the best way to generate added value and brands are all about adding value to the product.
    • 51. Its time for Positional innovation ! Tidd, Bessant, Pavitt, 2005
    • 52. [email_address] Thanks ! PHOTOS SPONSORED BY: VALICON Zagreb Petra Grgeca 9 10000 Zagreb Tel: +385-1-6331-500 Fax: +385-1-6314-033 [email_address] VALICON Rep. Office Sarajevo Prušćakova 2 71000 Sarajevo Tel: +387-33-688-975 Fax: +387-33-668-975 [email_address] VALICON Ljubljana Kopitarjeva 2 1000 Ljubljana Tel: +386-1-420-49-00 Fax: +386-1-420-49-60 info@valicon.net www.ipak.si

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