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“GLOCALIZATION SCORE”
MEASURING GLOBAL BRANDS’ ADAPTATION TO
LOCAL CULTURES
A CROSS-CULTURAL STUDY OF BRAND PERCEPTION VS. LOCAL VALUES
OLGA CHURKINA | FRESH INTELLIGENCE RESEARCH CORP. | ESOMAR 2011
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3 main questions we will answer
• What is GLOCALIZATION?
• How we measure GLOCALIZATION?
• Why GLOCALIZATION is important for a brand’s success?
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We live in a global village….
We are closer to each other than ever before
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HE WANTS A CANADIAN WEDDING
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I WANT A RUSSIAN WEDDING
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MARSHALL MCLUHAN NEVER PROCLAIMED UNIFICATION AS A GLOBALIZATION TRAIT.
HE ARGUED THAT THE GLOBAL VILLAGE CREATES MORE DIVISION AND DIVERSITY.
1964
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1983 “ECONOMY OF SIMPLICITY”
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1999 “GLOBAL BRANDS –
POSITIONING, ADVERTISING, PERSONALITY, LOOK, AND FEEL…
ARE THE SAME FROM ONE COUNTRY TO ANOTHER.”
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A BRAND IS A NETWORK OF EMOTIONAL CONNECTIONS AND VALUES IN CONSUMERS’ MINDS
2003
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Richard Tiplady, 2003: “GLOCALIZATION is the way in which ideas and structures that circulate globally are adapted and changed by local realities”
Russia McDonalds opening Saudi Arabia McDonalds opening
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DO YOU KNOWWHAT YOUR CONSUMERS
VALUE?
…IN EACH COUNTRY?
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N=3000 respondents
14
GLOCALIZATION SCORE™
22 values
6 cultures
10 brands
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Canada Russia
Brazil Australia
China
U.S.A.
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22 values
Nature Family Innovation
Inner peaceUniqueness
FriendsHealth Helping others
Success
Safety
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DO COUNTRIES HAVE DIFFERENT LOCAL VALUES?
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FEELING SAFE & PROTECTEDis among the top five values across all six countries
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BEING PHYSICALLY BEAUTIFUL and ATTRACTIVE TO THE OPPOSITE SEX
…is valued the most bywhich of these 6 countries?
Canada Russia
Brazil Australia
China
U.S.A.
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BEING PHYSICALLY BEAUTIFUL AND ADDTRACTIVE TO OPPISTE SEX
is valued by
75% of Russians
66% of Brazilians
81% of Chinese
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China Russia Brazil USA Canada Australia
8175
66
45 42
32
but not so much by Canadians, Americans and Australians
Value being physically beautiful, %
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HOW DO LOCAL VALUES AFFECT BRANDS?
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BRAND is GLOCALIZED TO SUPPORT YOUR BRAND STRENGTH
GLOCALIZATION SCORE™ model
24
LOCAL BRAND PERCEPTION
LOCAL CULTURAL
VALUES
correlation GLOCALIZATION SCORE
BRAND USAGE
BRAND LOYALTY
combinationBRAND
STRENGTH
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16.6
-8.5 -3.8
58.8
GLOCALIZATION SCORES FOR SOME BRANDS IN CANADA
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Sa
fe
Re
spo
nsi
ble
Ha
rd-w
ork
ing
He
alth
y, a
ctiv
e
Ca
rin
g
Fa
mily
ori
en
ted
Inn
ova
tive
Re
laxe
d
Re
spe
ctfu
l to
tra
diti
on
Ind
ep
en
de
nt
Ch
alle
ng
ed
Fa
st
Exp
eri
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cin
g s
en
sua
lity
Ph
ysic
ally
be
au
tifu
l
Ric
h,
pre
stig
iou
s
Canada
Colgate
Nike
WHY?Gi = 58.8
Gi = -8.5
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SO WHAT?STAY TRUE TO YOUR CORE VALUES:• Challenged, competing, winning• Fast• Innovative
PROTECT:• Healthy• Active
DEVELOP:• Responsible• Reliable • Casual, down to earth - stay away
from being prestigious
in
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DOES GLOCALIZATION REALLY MATTER?
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30
-10 0 10 20 30 40 50 6025
35
45
55
65
75
Pepsi
Nokia
Nike
Nestle
Nescafe
McDonalds
Colgate
Cola
Apple
Adidas
R² = 0.696760997579916f(x) = 9.19078413367032 ln(x) + 32.6089735921234R² = 0.638605062910688f(x) = 9.19078413367032 ln(x) + 32.6089735921234R² = 0.638605062910688
Global Glocalization Index
Glo
bal
Bra
nd
Str
eng
th
VALIDATION ACROSS 6 COUNTRIES:STRONGER BRANDS HAVE HIGHER
GLOCALIZATION SCORE
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0.75
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Is a correlation of 0.75 high? Let’s compare to well-known Ipsos indices…
Source: Ipsos ASI website
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GLOCALIZATION IS RESPONSIBLE FOR 55% OF
GLOBAL BRAND’S SUCCESS VARIATION
WHAT DOES 0.75 MEAN?
0.75 = 55%2
correlation coefficient
coefficient ofdetermination
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Globalization does not mean unification: people of different cultures have different values.
KEY FINDINGS:
Closeness of global brands to local values, or Glocalization is crucial for brand’s.
No matter what your
brands target is – the overall national culture matters.
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Glocalization Score is a ready to use model which measures the closeness of brand values to cultural values.
The Glocalization Score was validated to in-market performance.
We recommend everyglobal brand to track Gi to ensure strong performance of global brands in local markets.
KEY FINDINGS: