globeone bric branding survey - india edition
DESCRIPTION
Half of the urban consumers in India know a multitude of German brands and show a strong preference for them. The appeal of foreign brands, particularly those with German origin, is strongest for consumers from the upper middle class and higher income segments (with gross monthly income above Rs. 42,000), with 71% and 63% respectively saying they prefer German brands. More interestingly, half of the surveyed Indian middle class consumers (with gross monthly income of Rs. 18,000-42,000) like German brands, pointing to a huge potential for German products and services among the rising urban affluent in India – an often unexploited potential by German companies. In total, 1,000 Indian consumers from Mumbai, New Delhi, Bangalore, Chennai and Pune have been interviewed. The India results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.TRANSCRIPT
Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul
© CopyrightThis document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.
BRIC Branding® Survey – India Edition
The Perception of German Brands in India – Strengths, Weaknesses and Opportunities
Mumbai, May 2012
2
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
3
Executive summary (1/4)
COUNTRY-OF-ORIGIN IMAGE AN IMPORTANT FACTOR IN INDIAIn India, the Country-of-origin Image (COO-Image) is an important factor for urban consumers and B-to-B buyers in the purchase decision process, especially in but not limited to the higher income target groups.
POSITIVE ATTITUDE TOWARDS GERMAN BRANDSHalf of the Indian urban population has a positive or very positive attitude towards German brands. But currently still less so than it is the case in other BRIC markets.
GERMAN & JAPANESE BRANDS LEAD NATION RANKING IN HIGHER INCOME GROUPS IN INDIAGerman along with Japanese brands lead national rankings among higher income groups in India. German brand perception is especially distinctive for traditional values like quality, durability as well as high prestige.
SHORTCOMINGS IN ADEQUATE LOCAL POSITIONINGGerman brands also show some shortcomings in the eyes of Indian urban consumers. They are not perceived as close to local customer needs nor providing much of value for money compared to Indian brands.
POTENTIAL BARRIERS TO ENTER THE INDIAN MASS MARKETMost German brands have a strong premium focus. Thus, many of them are perceived as being relatively expensive and face potential barriers to gaining a significant share in the overall market in India.
Key findings – Germany’s image in India
Source: globeone
4
Executive summary (2/4)
GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIESIn India, German brands are top of mind in relation to the automotive sector. In addition, German brands are often associated with machinery and pharmaceuticals.
ADIDAS IS THE MOST WELL-KNOWN GERMAN BRAND IN INDIAVast majority of interviewed Indian population can immediately recall multiple German brands – sportswear giant Adidas (79% awareness) is in the lead followed by Nivea (73%) and insurer Bajaj Allianz (68%).
NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN INDIAThe most frequently purchased/used German brand in India is Nivea (35%) followed by Adidas (34%) and Puma (25%). Many German brands display very low market penetration among average urban consumers.
WORD OF MOUTH IS THE MOST POPULAR SOURCE TO LEARN ABOUT FOREIGN BRANDSRecommendations by family & friends are the leading source for Indian consumers who want to research information about foreign brands. Other important sources incl. TV and newspaper, Internet is not yet key.
ADIDAS IS ALSO THE BEST-LIKED GERMAN BRAND IN INDIAConsumer goods brands - Adidas (57% positive image), Puma and Nivea (52% each) - are the most popular German brands in India, followed by automotive brands BMW and Audi (50% each) and Volkswagen (46%).
Key findings – Leading German brands in India
Source: globeone
5
Media echo – globeone BRIC Branding® Survey
Source: globeone
Selection
Executive summary (3/4)
6
Media echo – globeone BRIC Branding® Survey - India Edition
Source: globeone
Selection
Executive summary (4/4)
7
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
8
Global network with strong focus on fast growth markets
MumbaiOffice
CologneHead Office
São Paulo Office
Singapore Office
Beijing Office
Shanghai Office
globeone is a boutique business consultancy with a strong representation in the world’s fast growth markets
We offer specialized marketing strategy consulting & project management services to help drive clients’ success in the world’s key growth regions
About globeone (1/2)
Seoul Office
9
Marketing & communication strategy consulting to drive clients’ success in BRIC
Exec
ution
Stra
tegy
sup
portConsumer & strategic
market insights1
Quantitative market research design (e.g.
market potential, segmentation)
Customer insight generation & market trend
studies
Competitor analysis & benchmarking
Qualitative market research (e.g. online user experience, focus groups)
2 Optimized positioning & planning
Brand architecture & brand portfolio strategies
Definition of goals and KPIs & related strategy
development
Brand and product (re-) positioning & value
proposition development
Business case & market entry program development
3 Support of 360° fulfillment
Employer brand development & program
implementation
Hands-on project management & creation of professional presentations
Creation of 360°integrated activity planning
Creation of briefings & steering of specialized
agencies (e.g. pitch support)
4 Brand performance & loyalty
Marketing spending effectiveness (e.g.
correlation of investment and sales)
Brand performance analysis & controlling (e.g.
brand monitor surveys)
CRM audit & CRM strategy development
Set-up of activities & programs to enhance
brand loyalty
Global Strategy + Local Adjustment = Success in BRIC
– Typical globeone project examples for major global clients (selection) –
About globeone (2/2)
10
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
11
Countries/Cities:
Brazil Russia India China
São Paulo Moscow Mumbai Shanghai
Rio de Janeiro St. Petersburg New Delhi Beijing
Porto Alegre Novosibirsk Bangalore Guangzhou
Recife Yekaterinburg Chennai Chengdu
Brasília Nizhny Novgorod Pune Wuhan
Objectives:• Identification of Country-of-origin Image (COO-Image) relevance in BRIC • Assessment of perception of German brands amongst urban citizens• Strengths & weaknesses of German brands and strategic implications
Method/Timing1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone and face-to-face interviews: n ≈ 4,000• Field work conducted: 2011
Over 4,000 interviews in 20 of the most important BRIC cities to analyze the perception of German brands
Survey approach – Objectives and scope
Source: globeone
German brands
1) Representative survey of urban population based on field research conducted by certified market research agencies in each country
12
Cities:
Objectives:• Assessment of perception of German brands among Indian urban citizens• Analysis of India-specific strengths, weaknesses and opportunities• Guiding successful brand management in India
Method1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone & face-to-face interviews: n = 1,000 for India• Selection of respective cities to achieve suitable representation of India
For the India edition, 1,000 interviews were conducted in 5 Indian key cities
Survey approach – Objectives and scope
German brands
Mumbai
PuneChennai
Bangalore
New Delhi
Source: globeone 1) Representative survey by certified market research agency in India. City sample selected for suitable representation of urban population in key regions in India.
13
COO – Definition
“Country-of-origin is defined as the country where corporate headquarters of the company marketing the product or brand are located. This does not require local manufacturing.” 2
“Consumers and customers associate positive or negative attributes with a company, product or brand, if they know it originates from a certain country.“ 3
“Country-of-origin effect is one of the most analyzed phenomena in consumer behavior in international markets.“ 1
COO – High interesteST
Survey approach – Country-of-origin definition
Country-of-origin (COO) is a key factor for purchase decisions in India
Source: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.
14
Survey approach – Country-of-origin in India
COO-Image – Important success factor in India
Urban consumers in India are particularly sensitive related to the COO-Image resulting from
• Local consumers’ demand for prestigious brands to highlight their social progress
• Lower availability and higher novelty of foreign brands is further boosting their image
• Limited trust due to lower level of quality and marketing competence of local brands, apart from strong local champions
India-specific relevance of a positive COO-Image
A positive COO-Image can:• Increase perceived quality and prestige of a brand • Promote consumers’ purchase intentions in favor of a brand
Potential for increasing brand performance dependent on respective industry and product category
General relevance of a positive COO-Image– Perception of a brand’s corresponding country-of-origin –
Examples
!
Source: globeone
15
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
16
• Approximately half of respondents have a positive or very positive attitude towards German brands
• Only small fraction (9%) that does not perceive German brands as favourable
• Opportunity for an effective positioning utilizing the country-of-origin potential
German image as asset – Half of Indian urban population confirms positive image of German brands
Germany’s image in India – General attitude towards German brands
Q.: Do you like German brands, products or services?; Sample size in India: 1,000.
– General attitude towards German brands in India –
49% associate positive image!
I do not like German
brands at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much
0%
10%
20%
30%
40%
50%
2%
7%
42%
33%
16%
Source: globeone
17
I do not like German
brands at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much22%
59%
13%
5%
1%
45%
43%
11%
0%
1%
16%
33%
42%
7%
2%
9%
38%
47%
5%
1%
Overall, the positive perception of German brands is even higher in other emerging markets
Germany’s image in India – General attitude towards German brands
Q.: Do you like German brands, products or services?; Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China).
Source: globeone
18
Germany’s image in India – Income class-specific attitude towards German brands
–Middle class – (€ 300-700; Rs. 18,000-42,000)
– Upper middle class – (€ 700-1,300; Rs. 42,000-78,000)
– Higher income class – (> € 1,300; > Rs. 78,000)
Q.: Do you like German brands, products or services? Exchange rate: € 1 = Rs. 60
2%
7%
44%
30%
17%
1%
3%
25%
54%
17%
6%
0%
31%
44%
19%
47% associatepositive image
I do not like German
brands at all
I do not really like German
brands
I do not have a preference
I like German brands
I like German brands very
much 71% associatepositive image
63% associatepositive image
– Liking of German brands across income classes (according to gross monthly income) –
German brands enjoy a substantially higher positive reputation among consumers with higher income
Source: globeone
19
• German brands by higher income earners mainly recognized for quality, durability as well design, prestige factor also high
• Lacking adequate local positioning and not offering good value for money though
• Indian brands rank highest on close to customer needs & after-sales service
Source: globeone
Germany’s image in India – Perception of brand and product attributes
In higher income classes, German brands are recognized for traditional values like quality & durability as well as prestige
Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
1) Sample: Respondents from upper middle/high income class only (gross monthly income above € 700/Rs. 42,000) .
– Perception of brand and product attributes based on respective country of origin by higher income classes1 (Germany, USA, Japan, China, India) –
10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%
IndiaUSAChinaJapanGermany
Innovative & high-tech
Outstanding design
Excellent quality
High prestige
High durability
Good after-sales service
Good value for money
Close to local customer
needs
20
20%
29%
33%
39%
49%
22%
37%
38%
40%
40%
19%
34%
34%
40%
45%
German brands best in class
Germany’s image in India – Country-of-origin image strength index
Exchange rate: € 1 = Rs 60
– Country-of-origin image strength index – (average scores of 15 relevant brand & product attribute dimensions)
– Middle class – (€ 300-700; Rs. 18,000-42,000)
– Upper middle class – (€ 700-1,300; Rs. 42,000-78,000)
– Higher income class – (> € 1,300; > Rs. 78,000)
Stronger local preference
In higher income segments foreign brands overall enjoy a higher positive reputation, German brands best in class
Source: globeone
21
COO-Image important for purchase decision – Opportunity for foreign brands with strong country-of-origin image
Germany’s image in India – Importance of COO-Image
Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in India: 1,000.
0%
10%
20%
30%
40%
4%
8%
19%
38%
31%
– Importance of COO-image –
Source: globeone
69% perceive COO-Image as important for purchase decision!
22
Importance of COO-Image in purchase decision process in India second only to Russia across BRIC countries
Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in BRIC: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China).
Germany’s image in India – Importance of COO-Image
Not important at all
Not important
Does not really matter
Very important
Relatively important
1%4%0%
0%
36%
29%
10%
20%
5%
61%
29%
10%
31%
38%
19%
8%
14%
47%
25%
13%
Source: globeone
23
Germany’s image in India – Importance of COO-Image
– Middle class – (€ 300-700; Rs. 18,000-42,000)
– Upper middle class – (€ 700-1,300; Rs. 42,000-78,000)
– Higher income class – (> € 1,300; > Rs. 78,000)
Q.: How important is the country of origin of a brand to you when you purchase a product or service?
4%
9%
17%
37%
33%
0%
7%
35%
36%
22%
13%
0%
6%
56%
25%
70% consider COO important
Not at all important
Not important
Does not really matter
Relatively important
Very important
58% consider COO important
81% consider COO important
– Importance of COO-image across income classes (according to gross monthly income) –
COO-Image important across all income categories in India
Source: globeone
Exchange rate: € 1 = Rs 60
24
• Compared to brands from other countries, German brands perceived as relatively expensive
• Price perception reflects premium segment focus many German brands implement
• Large potential to target upcoming middle class with more locally adjusted product/ pricing strategies
– Price perception of German brands in India –
Q.: What do you think about German brands in terms of price?; Sample size in India: 1,000.
Germany’s image in India – Price perception
Very cheap Relatively cheap Similar to other countries'
brands
Relatively expensive
Very expensive0%
10%
20%
30%
40%
50%
1%4%
28%
40%
28%
68% associate German brands with expensive
Majority of Indian urban population regards German brands as relatively or very expensive
Source: globeone
!
25
– Industries/product categories most commonly associated with German brands – • German brands most closely associated with the automotive industry - also due to market history (e.g. Mercedes-Benz officially operating in India since 1995)
• Machinery and pharmaceuticals are also relevant
• FMCG & service industries less likely to be seen as Germany-related
Q.: What categories do you think German brands are famous for? ; Sample size in India: 1,000.
Germany’s image in India – Top industries with German association
Eco-friendly technology
Detergent
Services (insurance etc.)
Clothing\Fashion
Food
Cosmetics\Perfume
Football
Home appliances
Pharmaceuticals\Medicine
Machinery
Automobile\Motorcycles
0% 20% 40% 60% 80% 100%
20%
25%
26%
29%
34%
35%
39%
42%
43%
49%
69%
Source: globeone
Urban Indians associate German brands mainly with the automotive industry and machinery
26
Q.: Which German brands do you know? Please name as many as come to your mind spontaneously.; Sample size in India: 1,000.
Majority of Indian population can immediately recall a German brand name – Lower than in BRIC overall though
Germany’s image in India – Unaided awareness
Can recall a German brand
Can't recall a German brand
0%
20%
40%
60%
80%
59%
41%
Adidas
Audi
BMW
Nivea
Mercedes-Benz
Puma
Volkswagen
Bajaj Allianz
Bosch
Henkel
Siemens
28%
19%
19%
17%
15%
13%
11%
11%
7%
6%
5%
– Unaided awareness for German brands in India (top 11) –
Source: globeone
27
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
28
• Sportswear brand Adidas (79%) best-known German brand followed by Nivea (73%)
• Service brand Bajaj Allianz (68%) third
• Sportswear brand Puma (58%) also among top 6
• Top 12 otherwise dominated by auto brands - BMW (65%) in lead followed by Mercedes-Benz (60%), Audi (53%)
Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.
Leading German brands – Aided awareness (1/2)
Henkel
Osram
Siemens
Volkswagen
Skoda
Audi
Puma
Mercedes-Benz
BMW
Bajaj Allianz
Nivea
Adidas
0% 20% 40% 60% 80% 100%
28%
34%
38%
42%
46%
53%
58%
60%
65%
68%
73%
79%
(275)
(341)
(376)
(726)
(415)
(461)
(525)
(578)
(596)
(647)
(682)
(789)
– Aided brand awareness in India (top 12) –
Top 12 – Adidas, Nivea & Bajaj Allianz lead German brand ranking in India, closely followed by automotive brands
Source: globeone
29
• DHL (24%) most prominent service brand - closely followed by Deutsche Bank (23%) and Lufthansa (22%)
• Porsche (16%) with significantly lower awareness than other premium German car brands
• Bayer (12%) best known pharmaceutical brand
Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.
– Aided brand awareness in India (rank 13 to 30) –
Leading German brands – Aided awareness (2/2)
(99)
(107)
(109)
(115)
(117)
(117)
(118)
(128)
(130)
(132)
(163)
(170)(176)
(186)
(221)(232)
(244)
(263)
Rank 13 to 30 – Service companies overall with higher awareness than consumer goods companies
ZwillingCarl Zeiss
AEGBayer
Hugo BossDr.Oetker
BecksPaulaner
Deutsche TelekomMINI
PorscheMetro Cash & Carry
Braunsmart
LufthansaDeutsche Bank
DHLBosch
0% 20% 40% 60% 80% 100%
10%11%11%12%12%12%12%13%13%13%
16%17%18%19%
22%23%24%26%
Dr. Oetker
Source: globeone
30
• Sportswear brand Adidas as German brand with highest awareness (79%) as well as most positive image (57%) in India
• Puma and Nivea runner-up (52% each)
• Among auto brands, BMW and Audi in lead (50% each) followed by Volkswagen (46%), Mercedes-Benz & Skoda (43% each)
Leading German brands – Positive image (1/2)
Q.: Do you like this brand in general?
– Positive attitude towards German brands in India (top 12)¹ –
Siemens
Dr. Oetker
Skoda
Mercedes-Benz
Bosch
Osram
Volkswagen
Audi
BMW
Nivea
Puma
Adidas
0% 20% 40% 60% 80% 100%
40%
42%
43%
43%
43%
44%
46%
50%
50%
52%
52%
57%
(151)
(49)
(197)
(256)
(113)
(149)
(191)
(263)
(322)
(375)
(301)
(448)
Top 12 – Sportswear brands Adidas and Puma lead image ranking with Nivea, followed by automotive brands
Source: globeone 1) Based on number of interviewees who know the brand.
31
Leading German brands – Positive image (2/2)
Q.: Do you like this brand in general?
Rank 13 to 30 – Boehringer-Ingelheim leads ranking as best liked German pharmaceutical brand
– Positive attitude towards German brands in India (rank 13 to 30)¹ – • Service brands overall with less positive image than automotive-related brands
• Bajaj Allianz not leveraging high awareness (68%) to positive image (37%)
• Porsche image-wise (36%) also far behind other German car brands
• MINI with positive image even before launch (25%)
Deutsche BankHansgroheLufthansa
Hugo BossMINI
ThyssenKruppAEG
MANDHL
MieleBayerBraun
Deutsche TelekomMetro Cash & Carry
HenkelBoehringer-Ingelheim
PorscheBajaj Allianz
0% 20% 40% 60% 80% 100%
22%23%24%25%25%25%27%
29%29%30%30%31%32%33%34%35%36%37%
(19)
(53)
(29) (33)
(14) (29)
(18) (71)
(21) (35)
(55) (42) (56)
(94) (15) (58) (251)
(52)
Source: globeone 1) Based on number of interviewees who know the brand.
32
Leading German brands – Recognition of German brand origin (1/2)
Q.: Do you think this brand is originally from Germany or not?
• Beer brand Becks (75%) with highest recognition of German brand origin, Paulaner also in top 6 (64%)
• Multinational conglomerate ThyssenKrupp ranks second (70%)
• None of leading car manufacturers amongst top 11, MINI (59%) 12th in terms of German origin recognition
– Recognition of German brand origin in India (top 12)¹ –
MINI
BASF
Boehringer-Ingelheim
Grundig
Haribo
Zwilling
Paulaner
Leica
Hugo Boss
Hansgrohe
ThyssenKrupp
Becks
0% 20% 40% 60% 80% 100%
59%
60%
60%
63%
63%
64%
64%
64%
67%
68%
70%
75%
(53)
(26)
(35)
(40)
(63)
(82)
(41)
(78)
(57)
(39)
(88)
(78)
Top 12 – Relatively high level of ‘German origin’ recognition with some room for improvement
Source: globeone 1) Based on number of interviewees who know the brand.
33
Leading German brands – Recognition of German brand origin (2/2)
• Volkswagen with its “Das Auto” claim only ranking 17th (58%)
• Deutsche Telekom not likely to be recognized as German (50%) despite “Deutsche” in brand name
• MINI, Porsche (59% each) and VW (58%) rather recognized as German than Audi (55%), BMW (46%)
Q.: Do you think this brand is originally from Germany or not?
BayerDeutsche Telekom
ContinentalDr.Oetker
smartAdidasBraunERGO
AudiLinde
SAPCarl Zeiss
MieleVolkswagen
AEGMAN
PorscheBosch
0% 20% 40% 60% 80% 100%
50%50%52%52%52%53%54%54%55%55%56%56%56%
58%59%59%59%59%
– Recognition of German brand origin in India (rank 13 to 30)¹ –
(65)
(31)
(61)
(97)
(416)
(95)
(50)
(288)
(39)
(52)
(60)
(40)
(242)
(64) (37)
(96) (155)
(57)
Rank 13 to 30 – Key German automotive brands with divided German origin recognition
Dr. Oetker
Source: globeone 1) Based on number of interviewees who know the brand.
34
• Consumer brands Nivea (35%) and Adidas (34%) also at forefront regarding purchase/usage frequency
• Osram (13%) lighting products rank 4th
• Bajaj Allianz (13%) most often used service brand
• Skoda and VW (both 5%) most purchased/used German car brands
Leading German brands – Purchase/usage
Q.: Which German brands have you bought or which services have you used?; Sample size in India: 1,000.
– Purchase/usage of German brands in India (top 12) –
Dr.Oetker
DHL
Volkswagen
Skoda
Bosch
Henkel
Siemens
Bajaj Allianz
Osram
Puma
Adidas
Nivea
0% 20% 40% 60% 80% 100%
4%
4%
5%
5%
6%
8%
11%
13%
13%
25%
34%
35%
(43)
(44)
(45)
(53)
(61)
(75)
(113)
(126)
(127)
(251)
(342)
(349)
Top 12 – Leading German brands regarding purchase/usage from FMCG and sports apparel industry
Source: globeone
Dr. Oetker
35
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
36
Insights into information channels – Key sources (1/2)
1) Category Internet includes Internet search engines, social media and corporate website research.
– Information sources to find out/learn more more about foreign brands in India –
Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.
Event/tradeshow
Radio
Shopping center/store
Internet
Newspaper/magazine
TV
Family/friends
0% 10% 20% 30%
4%
5%
12%
14%
18%
23%
24%
1
Word-of-mouth through family and friends most relied on source to learn about foreign brands in India, TV second
Source: globeone
37
Insights into information channels – Key sources (2/2)
Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.
Corporate website
Event/tradeshow
Radio
Social media
Internet search engine
Shopping center/store
Newspaper/magazine
TV
Family/friends
-10% 0% 10% 20% 30%
2%
4%
5%
6%
6%
12%
18%
23%
24%
– Information sources to find out/learn more more about foreign brands in India –
Digital information channels currently still with relatively low relevance – Large potential for future though
Source: globeone
38
Indian consumers more engaged in traditional means to acquire information about brands than BRIC counterparts
Insights into information channels – Comparison of key sources across BRIC
• Apart from India, Internet (search engines, social media, corporate websites) leading info channel
• Indian consumers mainly rely on word of mouth (24%) or TV (23%)
• Majority of Brazilians (44%) use search engines
• Social media with highest commercial maturity in China (12%)
17%
12%
6%
18%
6%
20%
5%
5%
3%
10%
4%
1%
Search engines
TV
Family/ friends
Newspaper/magazines
Social media
Selection*
Corporate websites
44%
3% 5%
18% 18% 23% 23%
14% 17% 24% 17%
12%
Sample size per BRIC country: 1,023 Brazil, 1,000 Russia, 1,000 India, 1,010 ChinaQ.: How do you generally find out/learn more about foreign brands?
Source: globeone *Sources of minor relevance (radio, events, shopping centres) excluded.
39
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
40
Strategies for India – Leveraging maximum brand potential to grow sales (1/3)
Success in India requires dedicated action and a clear strategic roadmap (→ ‘one world strategy’1)
Strategic implications for corporations:
Illustrative1:1 transfer of ‘developed market’ strategies is rarely successful
Almost continental complexity of India as key challenge for annual strategy development and alignment of country organizations
Fact-based adjustments regarding strategic focus, relevant target groups and brand strategy necessary
Different levels of brand performance require a differentiated approach
- Brand performance analysis -
Improving India business performance through effective communication strategies
Source: globeone 1) A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/ customer needs in BRIC at the very centre of corporate strategy.
41
Strategies for India – Leveraging maximum brand potential to grow sales (2/3)
Corporation with low brand awareness and thus low general brand performance across all major dimensions in India
- Key challenges -• Lack of fact-based ‘one-world’ strategy for India• Local organizational setup not sufficient• Slow expansion speed beyond Tier 1 city clusters• Inability to bridge gap between HQ and country team•Unclear definition of market-driven strategy and
local target groups and needs• Ineffective activation strategy & media investment to
communicate above ‘perception threshold’• Ineffective utilization of media vehicles/insufficient
media investment
25%
50%
75%
100%
0%
Corporation with high awareness but weak image as compared to Industry benchmarks in India
25%
50%
75%
100%
0%
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty
- Key challenges -•Under-utilization of local customer insights and thus
no ‘quick wins’• Absence of a relevant positioning adjustment to local
target group expectations (e.g. prestige appeal)• Low differentiation from key competitors/local hero
brands in India• Lack of creative execution and effective media
strategy• Shortcomings in locally relevant story-telling
- India brand performance
Illustrative
Illustrative
Awareness challenge1- India brand performance -
Image challenge2
Selected strategies for India – Awareness & image challenges
Source: globeone
42
Brand’s German
roots not properly recognized in India
- Key challenges -•Missing link to German origin of a brand • Advertising, PR, event or online activities lacking
proactive communication of German brand heritage and thus no realization of additional price premium potential• Lack of story telling related to brand origin & history
though one of few competitive advantages that cannot be easily imitated• Absence of educational approach
Brand enjoys good reputation but purchase behavior and loyalty remain below Industry benchmarks in India
Awareness Recognition Purchase Loyalty
Awareness Recognition Purchase Loyalty
- Key challenges -• Lack of strategy to also appeal to middle income
groups (e.g. creating low-cost brands for more price sensitive target customers)• Limited local distribution points• Lack of implementing sequential expansion
strategies in line with regional development•Under-utilization of global CRM basics and related
systems in the local Indian market• Lack of effective activation at POS & in social media
German origin challenge3
Activation & loyalty challenge4
- India brand performance -
- India brand performance -
Illustrative
Illustrative
Image
Image
25%
50%
75%
100%
0%
25%
50%
75%
100%
0%
Strategies for India – Leveraging maximum brand potential to grow sales (3/3)
Selected strategies for India – German origin & activation and loyalty challenge
Source: globeone
43
• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact
Agenda
44
B 806, Sagar Tech Plaza
Sakinaka Junction
Andheri Kurla Link Road, Andheri (East)
Mumbai 400072, India
Email: [email protected]
Phone: +91 (0)22 67703-718 (ext. 11)
Mobile: +91 9920 6633 06
www.globe-one.com
Contact
Mumbai office
Ms. Tina Marie Monelyon
Country Manager
45
Cologne Head Office
Kranhaus Süd
Im Zollhafen 24
50678 Köln
Germany
Shanghai Office
16F Feidiao Internat. Building
1065 Zhao Jia Bang Road
200030 Shanghai
People's Republic of China
São Paulo Office Singapore OfficeBeijing Office
Office 39, Room 509A
No. 4 Gong Ti Bei Lu
Chaoyang District
100027 Beijing
People's Republic of China
Av. Cidade Jardim, 400
20th floor – room 08
01454-000 São Paulo
Brazil
10 Collyer Quay, 40-53
Ocean Financial Centre
Singapore 049135
Singapore
Phone +55 (0) 11 3818 0837
Fax +55 (0)11 3818 0899
Phone +65 6808 6050
Fax +65 6622 5999
Phone +86 135 0129 8737
Fax +86 (0) 21 5158 1686
Phone +86 (0) 21 5158 1688 (ext. 1352)
Fax +86 (0) 21 5158 1686
Phone +49 (0) 221 788068-0
Fax +49 (0) 221 788068-29
www.globe-one.com
Contact
Other globeone offices around the world
Seoul Office
Phone +82 2 6200 6432
Fax +82 2 6207 7315
5F Seoul Design Works B/D
683-133
Hannam-dong, Yongsna-gu
Seoul 140-892
Korea
Thank you!
© CopyrightThis document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.
Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul