OTC National, Boston

The Global Brand Quiz

Are you a brand…master, expert, or apprentice?

Question 1

Nokia was founded as what type of business?

A wood-pulp millA wood-pulp mill

A TV set manufacturerA TV set manufacturer

A manufacturer of telegraph wires

A manufacturer of telegraph wires

A maker of tires and rubber bootsA maker of tires and rubber boots

Question 2

Why did McDonald's Big Tasty burgernot make it to the U.S.?

The 840 calorie count was too highThe 840 calorie count was too high

The taste of the Emmentalcheese was not liked The taste of the Emmentalcheese was not liked

It was too messy for the drive-thruIt was too messy for the drive-thru

Created in Germany and launched in Sweden...get real!Created in Germany and launched in Sweden...get real!

Question 3

Amy Winehouse ordered 48 bottles ofwhich brand for a weekend concert?

Question 4

As of 2007 which country drinksmore Guinness than Ireland?

United Kingdom China

Nigeria USA

Question 5

Why did Coca-Cola withdraw from India in 1977?

The exchange rate did not make being there worthwhile

The exchange rate did not make being there worthwhile

Thums Up, a local brand, was too strong

Thums Up, a local brand, was too strong

The Indian government demanded the secret recipe

The Indian government demanded the secret recipe

Pepsi-Cola was already too well-established

Pepsi-Cola was already too well-established

What does this tell us?

Going global requires the vision and will to make it happen

The basic challenge is to find the right balance between mindlessly global and hopelessly local

Managing global brands is a complex and challenging task

Winning locally is the first step to creating a strong global brand

Presentation agenda

Strong global brands are rare

Big differences in needs, values and culture still exist

Global brand best practice

Communication is one of the biggest challenges…

…with consumers and with colleagues

Strong global brands are rareStrong global brands are rare

A brand exists in the mind of the consumer

And the associated ideas and memories must drive behavior which creates additional value for the

business and its shareholders

People who Bond with a brand are more likely to buy it

Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know

the name

Individuals who Bond with a brand are more than ten times more likely to buy it than those who just know

the name

High shareof wallet

Low shareof wallet

Few OTC brands are truly global In scope

85% of OTC brands only measured in one country

82% of all brands only measured in one country

Nescaf

Vis

McDonald

Alway

Microso

Coca-Co

Colga

Nok

Goog

Pampe

e

a

's

s

ft

la

te

ia

le

rs

Global Power Score

Source: analysis of the BRANDZ database updated 2009

These are brands which have transcended countries and cultures

Even strong brands are not guaranteed the same success in every country

0

10

20

30

40

50

60

70

South A

frica

Mexico

Brazil

ChinaRuss

iaGerm

any UK

USAJa

pan

India

Source: BrandZ 2007/8

% Bonded to Coca-Cola

Dimensions of commonality & difference

POLITICAL &

LEGAL ISSUES

LOGISTICAL CONSTRAINTS

SOCIOECONOMIC FACTORS

PHYSICAL NEEDS

LOCAL PREFERENCES

& CUSTOMS

COMPETITIVE CONTEXT

LOCAL UNDERSTANDING OF

MARKETING

BRANDSTATUS

Big differences in needs, values and culture still existBig differences in needs, values and culture still exist

Culture still differs around the world

Source: analysis of Global TGI and Pew Global Attitudes Survey

Brazil Mexico Russia India Germany UK USA

Countries clustered by attitudinal variables

China

Big cultural differences on ‘Individualism’

USA 39%

Russia46%

Brazil 50%

India 58%

China 70%

“It is more important to do your duty than to live for

your own gain”

Source: Global Target Group Index

Jack Daniel's: An independent spirit

Is culture holding Jack back?

0

2

4

6

8

10

12

USA UKGerm

any

France

Brazil

Hong Kong

Taiwan

Source: BrandZ database

% Bonded to Jack Daniel's

Local brands have the home field advantage

Being part of the national culture is a significant driverof purchase intent for both global and local brands

% agreeing brand is part of national culture…

Source: The Global Brand survey

Local Global

Strong local brands in Brazil

7%

13%

41%

What’s more Brazilian than…Maradona?

Local brands are often very powerful

Global brand best practiceGlobal brand best practice

Dimensions of commonality & difference

POLITICAL &

LEGAL ISSUES

LOGISTICAL CONSTRAINTS

SOCIOECONOMIC FACTORS

PHYSICAL NEEDS

LOCAL PREFERENCES

& CUSTOMS

COMPETITIVE CONTEXT

LOCAL UNDERSTANDING OF

MARKETING

BRANDSTATUS

MOTIVATIONSTRANSCEND

CULTURE

Solving the global/local puzzle

1. Adapting products and services to meet local needs and tastes

2. Solving the local value equation through product and pricing strategies

3. Ensure distribution and adopt more aggressive point-of-purchase tactics

4. Creating a strong presence and a distinctive identity

5. Getting as close to the local culture as is possible

Global brands succeed by disrupting the status quo

Local Global

Being seen as a brand that is "setting the trends"is a significant driver of purchase intent

for both global and local brands

Source: The Global Brand survey

% agreeing brand issetting the trends

The scenario - Nicorette

Nicorette faced the issue of needing to distinguish itself from the competition

The solution was to turn Nicorette from a pharmaceutical commodity into a consumer brand

Instead of scaring smokers, the campaign would:

support their self-esteem

and give them confidence that they could, with help, ‘beat the craving’

Source: WARC

Nicorette "Cold Turkey"

30% increase in sales over four years

"'Cravings Man' has been absolutely essential to Nicorettesuccess in Europe. From 2000 to 2004, based largely on the success of the Craving Man campaign, Nicorette grew from 7 advertised countries to 16."

"Across Europe we have seen 30% growth in value sales over the course of the campaign (2001 to 2004) and we have a clearly established market leadership."

"Our share of market grew from 33.2% in Q1 2001 to 41% in Q4 2004 across Europe."

2006 IPA Award Paper

Communication is one of the biggest challengesCommunication is one of the biggest challenges

Communication is integrally bound up with culture

"Cold turkey"

="Pavo frío"

Only 1 in 10 ads which test exceptionally well in one country do so elsewhere

0% 5% 10% 15% 20% 25% 30% 35%

Below average

Average

Above average

Great

Exceptional

Source: Link pre-test database

“Effective global brand management is a continuous process of integration and

alignment…there are two ways of viewing this: endless conflict or enhancing global best

practice."

Ben Haxworth, global and local marketing director, Colgate Palmolive

Global brand management is not easy

Ensuring scale is an advantage

Stay focusedCreate a common language, purpose and passion

Structure follows strategyAlign the organization and create a common brand planning process

Ensure a common understandingWhat is mandatory? What can be adapted?

Give global the benefit of the doubtBut stay in touch with local needs

Distance breeds distrustFoster relationships that transcend geography and culture

Thank you for listening