Young & Rubicam Business Consultants and BAV Consulting have combined their expertise to help multinational companies successfully migrate their brands to international markets. They offer strategic consulting services including understanding local market dynamics through research, assessing brand positioning, and developing migration plans. Their approach is informed by their global proprietary BAV database and emphasizes conducting in-depth local research to understand cultural differences in how brands are perceived and should evolve in new markets. They have identified key lessons for global brand migration including thoroughly scoping the competitive landscape, taking an anthropological perspective to understand local cultures, recognizing the importance of country of origin associations, ensuring brands are prepared to migrate globally, and involving the entire organization in the migration process.
2. WHO WE ARE
• Young & Rubicam Business Consultants, Geneva and BAV Consulting,
New York: a unique center of competence within Y&R Group.
• A strategic brand consultancy dedicated to assisting companies in
the planning, successful migration to, and growth of their brands in,
international markets.
• Clients: MNCs, B2B and B2C across categories including consumer
products, food and beverage, consumer electronics, hospitality,
energy, telecommunications, financial services, IT, medical devices
and industrial.
3. WHAT WE OFFER
Understanding the market
BrandAsset Valuator® (BAV®) database and expertise
Primary research: local intelligence & consumer insights
Market & category assessment
Brand-scape analysis
Building a winning strategy
Brand differentiation: Octagon™
Internal alignment: staff preparedness
Portfolio rationalization: brand architecture
Transitioning the brand
Migration planning and implementation: 10 critical steps
Measuring and improving
KPIs to establish ROI
4. WHY THIS MATTERS
The world as we know it will be very different...
If you’re not in the right place, you’re out of business!
Source: http://www.theguardian.com/news/datablog/2011/jan/07/gdp-projections-china-us-uk-brazil
Rise and fall
GDP at purchasing power parity (PPP) rankings
Economic growth
2009 rank GDP at PPP* 2050 rank
Projected
GDP at PPP*
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
China
India
US
Brazil
Japan
Russia
Mexico
Indonesia
Germany
UK
France
Turkey
Nigeria
Vietnam
Italy
Canada
South Korea
Spain
Saudi Arabia
Argentina
$ 59’475 bn
$ 43’180 bn
$ 37’876 bn
$ 9’762 bn
$ 7’664 bn
$ 7’559 bn
$ 6’682 bn
$ 6’205 bn
$ 5’707 bn
$ 5’628 bn
$ 5’344 bn
$ 5’298 bn
$ 4’530 bn
$ 3’939 bn
$ 3’798 bn
$ 3’322 bn
$ 3’258 bn
$ 3’195 bn
$ 3’039 bn
$ 2’549 bn
Projected average annual real growth
in GDP, 2009-2050
Vietnam 8.8 %
India 8.1 %
Nigeria 7.9 %
China 5.9 %
Indonesia 5.8 %
Turkey 5.1 %
South Africa 5.0 %
Saudi Arabia 5.0 %
Argentina 4.9 %
Mexico 4.7 %
Brazil 4.4 %
Russia 4.0 %
Korea 3.1 %
Australia
US
UK
Canada
Spain
France
Italy
Germany
Japan
2.4 %
2.4 %
2.3 %
2.2 %
1.9 %
1.7 %
1.4 %
1.3 %
1.0 %
$ 14’256 bn
$ 8’888 bn
$ 4’138 bn
$ 3’752 bn
$ 2’984 bn
$ 2’687 bn
$ 2’257 bn
$ 2’172 bn
$ 2’020 bn
$ 1’922 bn
$ 1’540 bn
$ 1’496 bn
$ 1’324 bn
$ 1’280 bn
$ 1’040 bn
$ 967 bn
$ 858 bn
$ 595 bn
$ 586 bn
$ 508 bn
US
China
Japan
India
Germany
Russia
UK
France
Brazil
Italy
Mexico
Spain
South Korea
Canada
Turkey
Indonesia
Australia
Saudi Arabia
Argentina
South Africa
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
5. But being in the right place, and doing it right, is
tricky business.
• The opportunity is tremendous, but the ask is high.
• Failures outnumber successes.
• As brands spread their wings across many geographies and cultures,
there is even more pressure to maintain a coherent brand essence.
• The landscape, as well as the brand-scape, will change enormously in
the coming years requiring MNCs to continually evolve.
6. WHAT WE’VE DONE
Consulting expertise Proprietary database
Young & Rubicam Business Consultants and BAV Consulting have joined forces to create new territory and
global expertise. Together we combine the services of more traditional disciplines. We are backed by our
global, proprietary database, BrandAsset® Valuator, or BAV®, that informs our strategic recommendations.
Branding, marketing & design
Managment
consulting
firms
Communication
agencies
Employee engagement
$150
million invested
20 years
of history
50’000
brands
50
countries
330
studies
870’000
consumers
70 brand
metrics
200+
categories
Academically
vetted
Mentioned in
30+ books
&
7. THE RESULT
A unique and quantifiable approach to reduce
the risk, and increase the opportunities, for
successfully migrating brands around the globe.
8. OUR TOP 5 LESSONS IN GLOBAL
BRAND MIGRATION
1. Look Before You Leap
Scope out the global brand-scape
2. Be An Anthropologist
Learn to think like one
3. You Are Where You Are From
Country of origin matters
4. Grow Roots & Wings
Ensure your brand is migration-ready
5. All Aboard!
Involve your entire organization in the migration
9. 1. LOOK BEFORE YOU LEAP
• Lack of preparedness and due dilligence is one of the primary causes
of failure.
• Brands evolve very differently in the East from how they evolve in the
West.
• Market characteristies and consumer preferences are very different
across markets.
• Deep knowledge of the market (both differences and similarities),
in conjuction with flexibility and readiness to adapt, are keys to
successful migration.
SCOPE OUT THE GLOBAL BRAND-SCAPE
10. DEEP DIVE INTO THE MARKET DYNAMICS
Channels
• Structure of trade (e.g.
modern vs. traditional)
• Channel players landscape
• Key requirements by
channel
• Partnerships/alliances/
endorsements
Category
• Category development and
trends
• Addressable market
opportunity
• Market sizing (top down
and bottom up)
• Unique preferences and
cultural context
Competition
• Landscape and shares
• Positioning
• Pricing
• Consumer perceptions of
competitive brands
• Media strategies
• Gap and opportunities
Customer
• Preferences
• Drivers of demand
• Attitudes toward category
• Attitude towards brand in
the category
• Segmentation
11. Brands evolve differently
How Brands Grow in the West
How Brands Grow in the East
Brands first develop Energized Differentiation and
get customers excited about their brand; if the brand
is Relevant to consumers, they will try it; usage/
experience will help grow their regard (Esteem) of
the brand, and as their relationship with the brand
develops, depth of Knowledge will grow.
Asians invest in well-established brands. They will
not try a brand unless it has become well established
(Knowledge) and Esteemed in the marketplace; once
a brand reaches that stage, it becomes personally
Relevant and trial occurs. After experiencing the
brand, consumers discover what truly sets the brand
apart: Energized Differentiation.
ENERGIZED
DIFFERENTIATION
RELEVANCE ESTEEM KNOWLEDGE
The brands point of
difference.
Relates to margins by
driving pricing power.
How appropriate the
brand is to you.
Relates to market
penetration.
How well regarded the
brand is.
Relates to loyalty.
An intimate understanding
of the brand.
Relates to depth of
consumer experience.
Percentile
rank
Brand Strength Brand Stature
LEADING INDICATOR LAGGING INDICATOR
Future Growth Value Current Operating Value
ENERGIZED
DIFFERENTIATION
RELEVANCE ESTEEM KNOWLEDGE
Percentile
rank
Source: BAV Brand Equity Methodology
12. Variation in category premiumness
Economy and Premium Sales Profile
PriceIndex(Highest=100%)
Cumulative Volume
Philippines
Malaysia
Vietnam
India
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
100%90%80%70%60%50%40%30%20%10%0%
BRAND D
BRAND C
BRAND B
BRAND A
Each step represents a brand at its price point
and volume from lowest priced to highest.
Different consumer preferences
Country Occasion
HappyTimes
&Enjoyable
FunforKids
SmartChoice
EasyFormat
Taste
Fruit
Water
Healthyor
Nutritious
FlavorVariety
Argentina
Anytime
Anytime
Lunch
Mealtime
Anytime
China
Philippines
Mexico
Brazil
Categories and consumers exhibit significant
differences across markets
The same product category is much more
premium in Vietnam and Malaysia than in India.
The same drink is a fun for kids, mealtime drink
in Brazil, but an anytime, easy to drink water
replacement in China.
13. Indians skew upscale in their brand preference,
the US skews more mainstream
Source: BAV Consulting Analysis
Upper Class
Distinctive
Dynamic
Authentic
Restrained
Trustworthy
High Quality
Down to Earth
Friendly
Original
Reliable
Simple
Good Value
Leader
Fun
14. • Arguably this is the newest, and most important step in global brand
migration.
• The reason is simple: the closer you can be to your audiences,
anywhere, the more successful your brand will be.
• The issue: the further you go from markets you know, and venture
into unfamiliar cultures, with mores, languages and value systems
that you do not understand, the more difficult it is to effectively
communicate.
2. BE AN ANTHROPOLOGIST
OR LEARN TO THINK LIKE ONE
15. How does an appliance brand adapt to an Indian
kitchen?
Indian kitchens are separate rooms, nothing like the «open format» US kitchen: a modern, urban, elite
phenomenon.
There are no fans, in spite of
the kitchens being hot,
because of gas flames.
Often, the
refrigerator is in
the dining room.
Self-cleaning
chimneys are
growing in
popularity due
to spices and
oil being hot
and messy.
There are
no ovens as
Indian cuisine
rarely requires
baking.
Stoves are gas,
cylinder-fed
(with one in
stock), and
pipe-fed in
newer homes.
16. As there are few utility rooms in Indian homes, washing
machines are valued for durability, not aesthetics.
By contrast, refrigerators signify status, come in
colors and patterns, and are proudly displayed in
dining rooms.
How does an appliance brand adapt washing
machines and fridges for the Indian home?
Rat Mesh Saree Wash
17. How does a dairy brand connect to consumers in
non-dairy cultures?
It requires an understanding of women and their relationships with their bodies and health.
Activia, Romania Activia, Egypt
In the Middle East, women want good digestive
health to better take care of their families.
In Romania, Brazil and Thailand, appearance (a flat
belly) is a key to social success.
18. How do you connect to Business Management
about effective leadership and their reponsibility for
technology choices?
It requires an understanding of individualist vs. collectivist cultures. Thinking like an anthropologist
applies even for categories, like technology, that travel well. You need to understand, for example, are
leaders more white knights on a horse or shepherds of a flock?
Office 365, US Office 365, India
A case in point: “completely Tom”,
a multi-media campaign deve-
loped in the US to promote Office
365, “your complete office in the
cloud.” The campaign was aimed
at “every Tom” or “every Dick or
Harriet” who needed to unders-
tand how the cloud could help
them individually promote greater
efficiencies in their teams. As for
Tom, Office 365 supports him in
winning a big pitch by allowing
him to connect with his team to
adjust his presentation in real time,
videoconference them into the
meeting and send them congrats
via the company newsfeed.
India was keen to use the cam-
paign but client and agency in
Mumbai instinctively felt it wasn’t
“right” for the Indian market.
So they adapted the campaign
to “completely Boss”, a play on
hierarchy as well as other, local
meanings of “boss”: cool and
awesome. In the Indian version,
there is Dev, the young execu-
tive, his boss, the boss’s wife,
an airline pilot and a stewardess,
who happens to be Dev’s girl-
friend. Complications arise in all
of their days, creating a proper
little drama, and it is ultimately
Dev, and Office 365, that come to
the rescue.
19. What is striking about these campaigns...
Hofstede’s Dimensions of Culture
Egalitarian
Relationships
are primary
Comfortable with
ambiguity
Think short-term
Happy is good
Collectivism
is primary
Willing acceptance
of hierarchy
Power is primary
Fear ambiguity
Think long-term
Happy could
be bad
Individualism
is primary
Power Distance
Individualism
Masculinity
Uncertaity Avoidance
Long-term Orientation
Restraint VS Indulgence
PDI -PDI +
IDV
MAS
UAI +
LTO +
RES +
COL
FEM
UAI -
LTO -
IND -
WEST EAST
No one consciously sat down and said, we are an individualist culture in the US and a collectivist culture in India, but the differences in the
campaigns nonetheless bring to full light Hofstede’s Dimensions of Culture. In particular, dimensions of Power-Distance (Willing acceptance
of hierarchy vs. Egalitarian) and Individualism (vs. Collectivism.)
Power Distance & Individualism: USA and India
Success will require change
Successful migration of brands in the future will surely require change and evolution in attitudes and behaviors, e.g., greater dependence
on local markets, “anthropological” research and ethnographies. Success may well include adding anthropologists or psychologists to
global teams to ensure local relevance. Success will also require greater familiarity with classic global anthropologists, like Hofstede, and
greater application of their tools to ensure a full understanding your brand’s relevance.
As if we needed proof, the US skews low for egalitarian (40%) while India skews high for acceptance of hierarchy (77%). The US skews
high for individualist (91%), India high for collectivist (48%, where low = collectivist.) Both campaigns were very successful. Both featured
the same product and the same “hero” in Office 365. But in each there are enormously different anthropologies and cultural spins at play,
which make all the difference.
Power Distance
low = egalitarian
high = accepts hierarchy
Individualism
low = collectivist
high = individualist
Cultures and Organisations:The Software of the Mind, 3rd edition
40
91
62
46
77
48
56
0
10
20
30
40
50
60
70
80
90
100
PDI IDV MAS U
USA and IndiaUSA India
20. 3. YOU ARE WHERE YOU ARE FROM
• BAV shows us that national stereotypes exist; and that there is global
agreement for what country, and by extension, what Made in that
Country, stands for.
• China is restrained, independent and arrogant. Switzerland is socially
responsible, prestigious, upper class and worth more. Japan,
Germany and the US are in a tight clutch and stand for progressive,
innovative and intelligent. Singapore, at the heart of everything, is
distinctive and straightforward.
• BAV also shows us that people view countries much as they view
traditional brands and that a country’s brand can provide a strong
«brand rub» to MNCs.
COUNTRY OF ORIGIN MATTERS
21. National brand stereotypes exist
TRADITIONAL
TRENDY
ENERGYSUBTANCE
Base: All Adults; Argentina 2014, Australia 2013, Brazil 2013, Canada 2012, Chile 2014, France 2012, Germany 2012,
Italy 2013, Mexico 2012, Russia 2010, Spain 2012, UK 2014, US 2014, China 2014, India 2013, Japan 2012, South Korea 2012
22. People view countries much as they view
traditional brands
Among Americans, e.g., Australia stands for the fun in the life that most Americans can
identify with; Germany, by contrast, maintains a more alienating, «serious» essence.
If Australia was a brand: If Germany was a brand:
VS.
Source: BAV Consulting Analysis
23. Brazil’s personality halo
Brazil is known as a fun, exciting and social place - mixing a carefree energy with
glamour; its brand reflects this personality around the globe, making it a great ally for
energizing its partners.
Brazil’s unique personality:
The more of these
characteristics a
Brazilian brand abroad
has, the more likely
it is to be associated
with Brazil - and
subsequently the more
likely it is to get the
associated upward
brand pull.
For brands looking to
drive perceptions of
these characteristics,
invoking the Brazil
brand is a powerful tool.
Source: BAV Consulting Analysis
Energetic
GlamorousCarefree
Daring
Distinctive
FunDynamic
Social
Sensuous
Prestigious
Different
Trendy
Obliging
UniqueFriendly
24. Some countries are power brands and provide
strong brand rub to MNCs
Source: BAV Consulting Analysis
BrandStrength
(energizedDifferentiation&Relevance)
Brand Stature
(Esteem & Knowledge)
Japanese Perceptions
of Foreign Countries
German Perceptions
of Foreign Countries
US Perceptions
of Foreign Countries
Italy in Japan
Italy in Germany
Italy in the US
25. 4. GROW ROOTS & WINGS
Is your brand migration-ready? Be forthright:
• Will your Vision and Mission rouse, startle and shape new behaviour?
• Does your Positioning define your reason for being and why anyone
should care?
• Does your Personality make people want a part of you?
• Do your Core Values express your ethos, your courage, your
convictions?
Only once your brand is fully «rooted» -- in authenticity and engagement
-- can you expect to «take wing» with success.
ENSURE YOUR BRAND IS MIGRATION-READY
26. THE OCTAGON™
1. External Vision
3. Targets
2. Internal Mission
5. Personality
4. Total Offering
8. Name
7. Core Values
6. Promise
As if a person, what
makes you so special?
What do you guarantee to
your audiences and why
should they believe you?
Where do you want to be
in 3-5 to 10 years?
Why do people come to
work everyday?
Who do you need to
communicate to? What
insights drive them?
Captured in one sentence,
what do you do?
What will you be called?
The core of your culture:
«glue» - what are they?
9. BRAND POSITIONING
Your differentiation, your reason for being
Source of a brand’s DNA
27. Land Rover’s core brand DNA transcends markets...
Land Rover’s brand is literally rooted in sophistication, capability with composure, and
intelligent wit. It stands for status and luxury and promises adventure and exploration. Its
idea of hardworking, rough luxury is a quantifiable, cross-cultural success as it has travelled
continents by successfully appealing to local cultures. Its core values in rugged upper-class
have been translated in the West to a “cool performer” and in the East to an “independent
visionary” who innovated traditional 4X4 transportation.
100
100
50
50
Base: All Adults; US 2014, UK 2014, Italy 2013, South Korea 2012,
Indonesia 2014, India 2013
WEST
EAST
28. As for Land Rover’s advertising, it is fully rooted in the brand’s personality and core values. It
could be executed anywhere, so long as it remains “on brand”; it can be taken to the world,
so long as it conveys a sense of adventure, premium location and sophistication. All that
was changed from this US spot for exposure in Russia and China was the finish: not over the
mountain, but a return to a beautiful home, to reinforce its luxury status.
West advertising: Land Rover driver winks and continues on his adventure. East advertising changed ending: Land Rover driver
drives back home.
... but the East / West messages are tailored to the local market
context
29. 5. ALL ABOARD!
• As brands expand and migrate, stirring sharper, more eager
engagement across the world, so all the more do they need to ignite
their organizations internally with the power of their courage and
convictions.
• As localization is inevitable, all the more reason that everyone,
everywhere, management and staff, needs to understand their
common brand.
INVOLVE YOUR ENTIRE ORGANIZATION IN THE MIGRATION
30. CATERPILLAR’S ONE VOICE
• There is no better example of ensuring that the entire global
organization, including its partners and suppliers, understand its
brand values than Caterpillar.
• Everyone, everywhere, in Cat must take One Voice training.
• Everyone, everywhere, in Cat must understand its Vision, Mission,
Positioning, Personality and Core Values in order to properly
disseminate and communicate «one brand» globally.
31.
32.
33. CONTACTS
Sue Mizera is Managing Director of Young & Rubicam
Business Consultants. 2015 marks her 29th year with Young
& Rubicam, five in New York and 24 in Geneva, where she
has directed international brand strategy projects for clients
such as Microsoft, Medtronic, Areva, DuPont, Iceland
Telecom, Caterpillar, World Economic Forum and numerous
UN/NGOs.
Sue believes brands should uniquely rouse, startle and
shape new thinking and behaviour; shape the communities
and cultures they operate in and make a statement about the
humanity and human potential they impact. Sue’s specialty
is the Brand Octagon™, a management tool she created
that unites business, marketing, communications and
internal culture into a total integrated system. Most recently,
Sue has created «East & West: A Guide to Migrating Brands
across the Globe», first presented at the World Marketing
Congress in Mumbai in November, 2014.
Sue is an American. She graduated from Washington
University, phi beta kappa and summa cum laude, with
degrees in Classics, Philosophy and Comparative Literature.
She holds a Ph.D. from Princeton in Classics.
sue.mizera@yr.com
Dipanjan Chatterjee is a Senior Vice President at Young &
Rubicam/BAV Consulting, and a marketing strategy expert
who has helped some of the world’s best companies
craft branding and go-to-market strategies that are firmly
grounded in business reality and customer needs.
Prior to joining BAV, Dipanjan was an investment banker at
Morgan Stanley, a strategy consultant at Booz & Co., headed
Product Marketing and Product Management groups at
FedEx/Kinko’s, and owned P&Ls for a Berkshire Hathaway
portfolio company.
Dipanjan has worked with leading brands such as
HSBC, Microsoft, Abbott, Bank of America, Verizon,
Johnson&Johnson, any many others on their mission critical
global business, marketing, and branding initiatives.
Dipanjan has an MBA in Strategy and Marketing from
the University of Chicago, and a BA magna cum laude in
Economics from Amherst College, where he was nominated
to the Phi Beta Kappa society and received the James Nelson
Economics Prize and a Ford Foundation grant.
dchatterjee@bavconsulting.com