How pakistani brands go global
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The document discusses how Pakistani brands can become global brands. It provides National Foods as an example of a leading Pakistani food company with the potential to expand globally. The document notes that Pakistani exports are currently dominated by commodities like textiles and rice rather than branded products. It argues that the government should promote a brand-building culture and relax foreign exchange controls to help Pakistani brands establish a global presence through marketing and distribution partnerships internationally.
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How pakistani brands go global
- 1. Click to edit Master title style • Click to edit Master text styles – Second level • Third level How Pakistani – Fourth level Brands Go Global? » Fifth level 1 KB MARCON 2009 February 29 at Karachi Sheraton
- 2. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2 National Foods A Leading Food Company Rs. 5.2 Billion *Projected Turnover (Financial Year 2008- 2009) 300 products (local and export combined) 350+ Domestic Market Distributors Sales Through 80,000+ Retail Outlets 1000+ Employees 4 Units In Karachi 1 Unit In Lahore 1 Unit In Bin Qasim
- 3. Click to edit Master title style Financial Credentials • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 3 • A public limited company listed on KHI LHR and ISB Stock Exchanges since 1988 • Credit Rating by JCR-VIS in 2007-08 – A+ for long term – A2 for short term • Total Contribution to the Economy is Rs. 600 million in the form of taxes and $7.2 million in foreign exchange through exports
- 4. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 4 Quality Assurance HACCP Certified ISO 9001 Certified Good Manufacturing Practices Microbial Testing Capability
- 5. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 5 Our Foot print… 35 countries around world 409 distributors
- 6. Click to edit Master title style Click to edit Master text styles Second level • Third level – Fourth level » Fifth level 6 Information Technology • The only Local Food Company to run – SAP ERP – SAP Business Intelligence – Data Warehousing and Mining capabilities 6
- 7. Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 7 Potential • While we may not be a global or multinational company, we certainly have the POTENTIAL to be so • Infrastructure • Assets • Retained Earnings • Human Resource Best Practices • CSR working through the bottom of pyramid 7
- 8. Click to edit Master title style Our Vision • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 8 To be a Rs. 50 billion food company by the year 2020 in the convenience food segment by launching products and services in the domestic and international markets that enhance lifestyle and create value for our customers through management excellence at all levels.
- 9. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 9 What Makes a Brand ? • Consumers don’t buy brands. They buy experiences. • A Brand is an identity representing an experience. • Brand is a promise deliverance. 9
- 10. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 10 Examples • Singapore Airport and Singapore airline: Customer comes first approach. Friendly approach tend to make consumers comfortable • Google: Common Phrase: I googled it!!! Constant Expansion: Images, Financial data ,Email 10
- 11. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 11 What Makes a Global Brand ? • Iconic identities that represent universally relevant values manifested as local experience. • To succeed globally brands must stack up against the best in class the world over. • A combination of goodwill, quality and lifestyle. 11
- 12. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 12 Examples • Coca Cola : Leading all the way • China getting into global branding: Two Chinese Brands making efforts to become global brands Haier and Lenovo ( previously named legend) used Olympics as the springboard for this. 12
- 13. Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 13 The Big Question • How many brands from Pakistan can you name in the International Market? • How Many Are Global? 13
- 14. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 14 Are we marketing brands or trading commodities? • Textile is the largest export sector of Pakistan. Export Brands in the International Market? • Food is the next largest sector in exports Rice leads in Food Category Brands exist but ………. 14
- 15. Click to edit Master title style Click to edit Master text styles Second level • Third level – Fourth level » Fifth level 15 What is preventing Pakistani Brands • Government Trade Policy – More geared towards selling and trading – Designed primarily around textiles – Absence of Marketing Promotion • Foreign Exchange Control and Regulations – Not Favouring International Business Setups – Marketing Spends Restricted – Difficult Procedure 15
- 16. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 16 Where do we go from here? 16
- 17. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 17 Building Global Brands • Move beyond traditional/ethnic markets • Develop positioning that has universal appeal • Build brands that stack up to leading international brands • Build partnerships to gain access to international markets 17
- 18. Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 18 Process • Entrepreneurship comes first • Marketing Follows – Investment in Distribution and Brand Building Activities 18
- 19. Click to edit Master title style Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 19 Recommendation • Government to promote Brand Building Culture • Move away from Selling culture • Trading is a business with continuous declining margins • In the absence of a brand, there will always be someone who will out price your commodity • Brands generate business through loyalty and foster continuous growth through investment 19
Editor's Notes
- I am quite honored to present this topic which has been assigned to me. The thought of National being a Global brand is indeed a very exciting prospect. However there is a perceptive belief that brands which are exported are global brands. This is not true. Hence with $7.2 million worth of exports to more then 35 countries, the National brand is not a global brand but a strong local brand which is sold to an ethnic base of consumers through traditional retail and wholesale channels throughout these countries. We have had some limited success in branching to mainstream markets through the multiples, Hypermarket and Supermarket channel segments through our International brand Raj Masala. This indeed has the potential of becoming a Global Brand. But so does National. Before I go any further, I would like to brief snapshot of National Foods
- A local food company setup in 1970 has transitioned through these 38 years to develop impressive credentials.
- We practice strong planning through a bottom up approach using sustainable growth models with guaranteed returns to our shareholders. CBM’s and CAM’s are used across the product categories to come up with a marketing mix and brand promotion budgets A focused management approach is used through monitoring of KPI’s across the board and performance management is based and rewarded through this very concept.
- As we export our products, we complay to FDA, CODEX, PSQCA, Health Canada and other quality boards
- 409 distributors in total inclusive of domestic distributors. Strongest market being middle east and north america
- A robust IT application gives us the capability to perform complex tasks and place us at an advantage against the competition. In todays competitive world investment in technology creates a huge advantage to accelerate growth and establish footprint for global competition.
- With Assets of over Rs. 2 billion and a cumulative retained earnings of well over half a billion rupees, we have the capability of leveraging to establish a global footprint Our ability o run a professional human resource management and development program gives us the ability to hire the best in class human resources. My firm belief is that good quality human resources accelerates and sustains high levels of growth CSR program has given us the ability to establish a triple bottom line program with emphasis on people, planet and profits. The realization of using our profits to develop a sustainable enterprise with stakeholders to improve their livelihodd through improvement in supply chain. Responsibility towards the environment by using alternative energy and clean and recyclable packaging. All these practices enables us to perform best in class management which clearly positions us to establish a global footprint in the international markets.
- Explain the reason behind developing this vision statement.
- Before we talk about going global with a global brand lets look at the basics of branding. These are just some examples. Brands enhance lifestyles and add value to life. They guarantee satisfaction and build loyalty to a perceived value that consumers desire and fulfils their needs on a day to day basis.
- A clear identity that the consumers subscribe to with fulfillments of their need towards expected performance.
- It is important to make a clear distinction here between multinatioanl companies and brands and global companies and heir brands. Multinational brands are international footprints setup by parent companies which develop and market products with localized preferences indigenous to the market that they operate in. Most of the times it results in the acquisition of local brands and modernizing them through technology. Global companies and brands on the other hand only market the same product across different countries and markets with localized atributes.
- Coca Cola, Pepsi, Mercedes, BMW, Godiva Choclates are all examples of a global brand Henkel, Unilever, P&G are examples of multinational companies dealing in numerous brands through proliferation which cater to the localized market preferences.
- Turn to the audience and start an interactive session
- In Pakistan we seem more comfortable with selling rather then marketing and brand building. A few companies have done an excellent job in building brands and have become local icons and giants. Sadly these companies are FBN and lack expansion capabilities to transition into an international or global brand. Our economy is base on generating export revenue from easy sell. Pakistan Textile Yarn only accounts for a mere 3% global market share. No effort has been made to develop a multitude of brands in this sector. Some have developed local brands and have been successful. Fracturing or private labeling is something we excel in but then examples of losing business is in front of us. Rice is the largest food export, brands used as identity marks rather then actual brands with a perceived value for customers. Tilda is a dynamic example.
- Trade development board has certain incentives for brand building. Urge the audience to study it and utilize it. The biggest problem is the exchange regulation. Give personal examples here also state bank governor discussion
- Talk about infrastructure development Companies which are public lltd or have high levels of retained earnings and can structure their equity can transition into large companies through ventures and partnerships across the globe and have a better chance of developing global brands. Local companies are setup to fund private lifestyles as opposed to institution development and brand enhancement. Without equity internationalization is not possible.
- Exporting a product does not make it International or Global Talk about National brand being marketed to ethnic population only and what needs to be done to make it a mainstream international brand. Investment into channels of distribution is extremely important and requires a lot of financial deployment. Brand marketing and development comes afterword which requires a constant support in terms of finances. Without equity or finances this is not possible.
- A local brand will not transition into an international brand by just being present in the international market. The mechanics of transition have to be learnt and understood before this can happen and of course you need to have a deep understanding of branding and the mechanics of building and sustaining a brand. Thank You.