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INFLUENCE OF GLOBALTRENDS ON MARKETINGOF LOCAL PRODUCTS9 TH EDITION OF INTERNATIONAL DAYS OF MARKETINGMARRAKECH & GUELMIM, MOROCCOFEBRUARY – MARCH 2013MARTINA OLBERTOVA CONSULTANCY

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Because I love doing what I do. That INTRODUCTION is conveying understanding to others to help them communicate better. Via Strategic Research Creative Data Market Research Interpretation Marketing Strategy Online Panels Consumer Insight Consumer CommunitiesCustomer Experience Applied Semiotics Brand Identity Brand Analysis … Brand Activation Etc. MARTINA OLBERTOVA CONSULTANCY Simon Sinek 2012

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SO IS THIS ABOUT GLOBAL PRODUCTSON LOCAL MARKETS? OR LOCALPRODUCTS ON GLOBAL MARKETS? Well, both… • Global marketing trends are increasingly influencing marketing of domestic products on the local markets worldwide • We are no longer speaking about national markets only, they’ve become globalized • The key is not to protect local markets from globalization, but instead use global trends actively for better and smarter marketing of local products to both local and global consumer audienceMARTINA OLBERTOVA CONSULTANCY

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3 TRENDS OF GLOBALIZATION Localization Successful marketing comprises all 3 courses. 1. Globalization as a source of informationGlobalization 1. Localization for Glocalization adaptation of global products to local markets in a relevant way based on local consumer insight 1. Glocalization in and out – localization of global products and/or global marketing of local products MARTINA OLBERTOVA CONSULTANCY

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HOW CAN LOCAL PRODUCTSRETAIN THEIR VALUE ONGLOBALIZED MARKETS ? 1 2 3 Naturally built Relevance of the High brand long-term product’s value awareness and brand-consumer proposition in top-of-mind relationship relation to the local recognition of market culture the brand on the local marketMARTINA OLBERTOVA CONSULTANCY

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GLOBAL CHANGES IN WAYS WECOMMUNICATE ON THE MARKETS Traditional Most Recent 20th century 21st century One-to-many model Many-to-many model Passive consumers Active consumers (Prosumers) Product attributes & benefits Product values Use value Value of perception Consumption for utility Consumption for leisure Products marketing Consumer relationship & Experiential marketingMARTINA OLBERTOVA CONSULTANCY

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BIGGEST DIFFERENCE OF ALL…FROM ADVERTISING TOWARDS BRANDINGFROM COMMODITIES TOWARDS BUILDING RELATIONSHIPSFROM RATIONAL ARGUMENTS TOWARDS RAISING POSITIVE EMOTIONSMARTINA OLBERTOVA CONSULTANCY

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WHY EMOTIONS? UHM… - easier to trigger - more consistent and responsive to consumers - more prone to be remembered after a longer period of timeMARTINA OLBERTOVA CONSULTANCY

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BUT! DOWNSIDE OF GLOBALIZATION:MARTINA OLBERTOVA CONSULTANCY

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WHY THE CLUTTER? HOW TO BEAT IT?• No real differentiation of products• Homogeneity on the marketplace• Oversaturation of marketplace & Abundance of goods• Paradoxically leading to lack of incentives to consume• Latest study shows 68% of U.S. adult consumers declare “consumption is less about the product and more about me” *Answer: Marketing based on reinforcing consumer’s own identityvia consumption of like-minded branded goods. * Consumers Seek Brand Engagement, Personal Touches.MARTINA OLBERTOVA CONSULTANCY MediaPost.com

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THIS RELATES TO SUCH GLOBAL MARKETING TRENDS AS:• GRASSROOTS EMPOWERMENT ESPECIALLY THANKS TO THE RISE OF SOCIAL MEDIA• OPENED WEB, INCREASING INCLUSION AND COLLABORATION OF CONSUMERS• BRANDS INCREASINGLY ABOUT PEOPLE WHO CONSUME THEM (HUMAN-CENTRIC BRANDS)• ACTIVE CO-CREATION OF BRAND CONTENTS AND BRAND IDENTITY BY CONSUMERS• CROWDSOURCING OF IDEAS AND CONCEPTS DIRECTLY FROM THE CONSUMERS• BRAND ADVOCACY, BRAND AMBASSADORS, BRAND CONVERSATIONS AND BRAND LOVERS…MARTINA OLBERTOVA CONSULTANCY

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CZECH LOCAL EXAMPLE:KOFOLA• Traditional Czech cola-based drink• On the market since 1960• Most successful re-birth of Czech brand• Formerly “drink of the socialism”• Ban on import of imperialist products under the communism in Czechoslovakia• After Velvet Revolution (1989) explosion of imported products such as Coca-Cola and Pepsi• Kofola almost on the verge of close-down• Now biggest soft drink maker in CEE controlling 32 % of Czech market HOW DID THAT HAPPEN?

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RECIPE FOR KOFOLA’S SUCCESS• New vision for Kofola thanks to new CEO Jannis Samaras (since 2002)• Success based strongly on branding• Retro feel: Past, but in a good way• Based on a strong relevant local insight• Emotions-based brand rising feelings of nostalgia• Strongly about local Czech consumers and their memories of the past and childhood• Creates emotional bond with consumers through narrating their own stories of lifeMARTINA OLBERTOVA CONSULTANCY

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EXAMPLES OF KOFOLA BRANDINGMARTINA OLBERTOVA CONSULTANCY

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KOFOLA VS. COCA-COLA• Local drink with distinctive taste • Global drink with distinctive taste• Unique brand proposition based on • Brand proposition based on happiness nostalgia when consuming the product• Strong local insight • Strong global insight• Reflecting local values and lives, • Reflecting American values of big small mindset, little moments of lifestyle and big defining moments happiness together • Born to impress, drink of aspiration• Timid feel, subtle execution • “Open Happiness” proposition• “Still Together” proposition • Togetherness implying spending time• Togetherness for every day: and sharing happiness with the loved Ordinary drink for ordinary people ones, but also with the worldMARTINA OLBERTOVA CONSULTANCY

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5 RECOMMENDATIONS FORLOCAL PRODUCTS MARKETING Actively Create Get the Reinforce Build and Foster Utilize Unique Value Consumers Consumers’ Long-Term Global Proposition Play the Game Own Identity Brand-Consumer Trends for of Your With You. via Their Self- Relationship and Marketing Brand Based Research, Identification Generate Topics of Local on Strong Collaborate With Values of for Their Brand Products Local Insight and Have Fun! Your Brand ConversationsMARTINA OLBERTOVA CONSULTANCY

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AND REMEMBER:(NOT ONLY IN MARKETING) “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Anna Farmery, The Engaging BrandMARTINA OLBERTOVA CONSULTANCY

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THANK YOU! Feel free to contact me via 00420 724 890 798 MARTOLBA@GMAIL.COM MARTINAOLBERTOVA CONSULTANCY.COMMARTINA OLBERTOVA CONSULTANCY