glocalization: a measure of global brands’ adaptation to local cultures by olga churkina of fresh...
DESCRIPTION
A brand’s ability to adapt and reflect consumers’ core values in different areas of the world directly effects its sales in those markets. Multicultural targeting is every global brand’s dream, but there are no metrics in place to truly know how brand strategy adaptations are resonating with different cultural communities’ values – until now. The “Glocalization Index” is a simple actionable tool that will revolutionize the field of global brand tracking and communication research. Marketers of global brands will be able to use the “Glocalization Index” to track their communication strategy success and brand health in local markets. The presentation will illustrate the importance of learning about local values and adjusting brand communication to those local values while keeping true to the global brand’s core essence. Learn how values associated with being rich and owning prestigious things are viewed by China vs. Australia and how major brands like Colgate and Nike fall on our correlation index that determines how well a brand’s perceived value correlates to that of a country, and relates to that brand’s strength there.TRANSCRIPT
“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
3 main questions we will answer
• What is GLOCALIZATION?
• How we measure GLOCALIZATION?
• Why GLOCALIZATION is important for a brand’s success?
We live in a global village….
We are closer to each other than ever before
HE WANTS A CANADIAN WEDDING
I WANT A RUSSIAN WEDDING
MARSHALL MCLUHAN NEVER PROCLAIMED UNIFICATION AS A GLOBALIZATION TRAIT.
HE ARGUED THAT THE GLOBAL VILLAGE CREATES MORE DIVISION AND DIVERSITY.
1964
1983 “ECONOMY OF SIMPLICITY”
1999 “GLOBAL BRANDS –
POSITIONING, ADVERTISING, PERSONALITY, LOOK, AND FEEL…
ARE THE SAME FROM ONE COUNTRY TO ANOTHER.”
A BRAND IS A NETWORK OF EMOTIONAL CONNECTIONS AND VALUES IN CONSUMERS’ MINDS
2003
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
DO YOU KNOWWHAT YOUR CONSUMERS
VALUE?
…IN EACH COUNTRY?
N=3000 respondents
14
GLOCALIZATION SCORE™
22 values
6 cultures
10 brands
Canada Russia
Brazil Australia
China
U.S.A.
22 values
Nature Family Innovation
Inner peaceUniqueness
FriendsHealth Helping others
Success
Safety
DO COUNTRIES HAVE DIFFERENT LOCAL VALUES?
FEELING SAFE & PROTECTEDis among the top five values across all six countries
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.
BEING PHYSICALLY BEAUTIFUL AND ADDTRACTIVE TO OPPISTE SEX
is valued by
75% of Russians
66% of Brazilians
81% of Chinese
China Russia Brazil USA Canada Australia
8175
66
45 42
32
but not so much by Canadians, Americans and Australians
Value being physically beautiful, %
HOW DO LOCAL VALUES AFFECT BRANDS?
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
16.6
-8.5 -3.8
58.8
GLOCALIZATION SCORES FOR SOME BRANDS IN CANADA
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
en
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
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
DOES GLOCALIZATION REALLY MATTER?
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
0.75
Is a correlation of 0.75 high? Let’s compare to well-known Ipsos indices…
Source: Ipsos ASI website
GLOCALIZATION IS RESPONSIBLE FOR 55% OF
GLOBAL BRAND’S SUCCESS VARIATION
WHAT DOES 0.75 MEAN?
0.75 = 55%2
correlation coefficient
coefficient ofdetermination
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.
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: