global brands - effective locally ppt
DESCRIPTION
localising global brands is beyond just communication. It involves the other 3P's as well.TRANSCRIPT
Not only are brands becoming global but consumers are too, in their preferences
Geography is historyA smaller, shared world has empowered the consumer like never
before…he/she is picking the best of everything
• Fashion = Milan - Paris (Amchi Mumbai…nah!)
• Technology = Germany, Japan…the list goes on
• Education = US, UK, Australia…the list again goes on
• Employment = America, Europe, Asia…
• Entertainment = Hollywood, Iran, Russia
• Wines = France to start with
• Tobacco = Cuban is not a far flung dream (Guntur?)
• Coffee = Brazil (Mangalore?)
but…
You cannot ignore their roots
You can influence & enhance their way of life…but cannot alter it
You cannot ignore the nuances of their preferences, wants & needs
A few brands that suffered even for the simplest of errors
(Brand bloopers)
Source: "Literal Translations Can Sabotage Marketing Campaigns Selling in a 2nd Language." Business Mexico. June 1993.
Coca Cola in China: Coca cola’s initial transliteration of their name into Chinese produced a rendering whose
meaning was “bite the wax tadpole”
Wax tadpole
Chevrolet Nova in Spain: Chevrolet Nova in Spain: Chevrolet Nova sold poorly in Spanish speaking countries because
its name translates as “doesn’t go” in Spanish
No Va = No go
No go
Electrolux in USA: When Electrolux washing machines were launched in USA, they had the tagline “nothing
sucks like electrolux”Nothing sucks like Electrolux was a hit in UK, where the ‘sucks’ does not
have a slang connotation..but in US…it obviously does
Nothings sucks like…
Brand blooperssome which work for the brand
Source: "Literal Translations Can Sabotage Marketing Campaigns Selling in a 2nd Language." Business Mexico. June 1993.
Haier in India & elsewhere: Almost everybody who buys Haier products perceive the company to be German,
instead of Chinese
Chinese = German?
How global brands are understanding local nuances to make dents into world markets
2 brands which got it right
McDonalds
ChinaChina
UAEUAE
UKUK
South AfricaSouth Africa
USAUSA
MTV is all about selling the notion of youth, anti-establishment, irreverent – it’s the
different drummer.
Music, but not just music
Wacky & weird – bordering on bizarre
The youths – destination cool.
The guiding core – the world over
Destination India
Reasons for entry
• An enormous middle class segment
• A country lapping up brands which provide lifestyle experiences
• ‘Out of the house’ experience gaining momentum
• A huge mass of fast food consumption
• Fast-food & snacking – an integral part
• No branded & experiential fast food offering
Barriers to Entry
The ground workBig mac did in-depth ground work & realized that proposition of a
fun place for kids & a family experience held good…but had to be communicated with local flavor
The traditional fast food & snacking could not be directly challenged
Home made snacks were also part of competitive set
A concept of plush-eat out & take-away was new, hence footfalls would result only on elimination of ‘alien’ & ‘elitist’ feeling
Purely western ‘eats’ were not welcome
Consumers were highly price conscious
So…
• Communicated in ‘Indian’ & to the heartland
• Understood the vegetarian Vs non-vegetarian split
• Recognized that vegetarianism was not a matter of choice, but assumed cultural & religious significance (All veg macs, no beef for hindus & no
pork for muslims)
• Introduced Indian ‘eats’
• Understood Indian family systems & communicated to both the progressive neuclear families & the traditional joint families Featured
Indian artists
• Recognized price as a detrimental issue – infact used it as a footfall generator
Big mac – went glocal
IndiaIndia
Happy holi
Mc Aloo tikki
The result
• A stronghold for the 15 to 34 yr olds –touching the 15 to 18 yr olds most intimately
• The current play list has 70% Hindi music, & 30 % international tracks.
• Has managed to continually adjust itself, so that it remains what young people want to watch.
• Yet retained it’s essence – around the world & in India
America
China
Russia
Mexico
South Africa
MTV
MTV is all about selling the notion of youth, anti-establishment, irreverent – it’s the
different drummer.
Music, but not just music
Wacky & weird – bordering on bizarre
The youths – destination cool.
The guiding core – the world over
Destination India
Reasons for entry
• A teeming population of teenagers
• Music – an essential part of Indian lives
• Fast growing economy – following evolution path of Far east Asian countries (where MTV
was a success)
Infancy in India
Round: 1MTV entered India with the right proposition for youth
But…
• Played only western music• Veejays were alien – (Caucasians & Orientals – Luke Kenny etc;)
• Only international content
Result
AlienationViewership limited to a niche segment – specific pockets in the
urbanLow ratings
High percentage of lapsers & aware non-trialists
So…
• MTV went glocal
• MTV went Hinglish
• MTV mixed it’s music – Rock, Pop, Rap, Blues, Soul & Bhangra
• Got Indian Veejays
• Built ‘edible for India’, non-music programming
• Featured Indian artists & amchi bollywood based content
• Generated ‘India – wacky’
MTV – went glocal
International style – desi heart
BakraGaseous clay
Chitochat
FEATURED ARTIST:
Bombay Vikings
The result
• A stronghold for the 15 to 34 yr olds –touching the 15 to 18 yr olds most intimately
• The current play list has 70% Hindi music, & 30 % international tracks.
• Has managed to continually adjust itself, so that it remains what young people want to watch.
• Yet retained it’s essence – around the world & in India
MTV understood, respected & catered to the local tastes – found the right glocal mix
Global brands which ignore & do not recognize local nuances suffer
A brand which got it all wrong
Destination India
Reasons for entry
•Eexisting healthy breakfast culture at mass level
•Ddecision makers “Mothers” wanted to give the best & healthy food to the kids
•Ggrowing economy meant consumers willing to spend that extra buck on quality food
•Rrecognized cereal consumption already existed-Mohun Meakins cornflakes
Will mail across pack images – could not obtain them off the net
Battle India
Round 1:•Kellogg's entered India with a totally westernized breakfast concept
•The cornflakes were to be had with cold milk
But:
• Indians had a distinct idea of breakfast-ing, that was freshly cooked• Indians loved a choice of breakfast – a different theme everyday
• Indians preferred warm/ hot milk, but the cornflakes became soggy - – failed to understand ‘kachha doodh’
• Indians experimented with sweet breakfast occasionally (sheera) – but not everyday
•Overestimated market demand
Result:Failed miserably
• Amongst common masses – failed to convert them from Idlis, dosas, paranthas, poha, upma etc..
• Amongst cereal eaters – failed to provide a cereal compatible with warm milk & still crunchy
• A sweet breakfast everyday was a no no!!•Mumbai traders were selling stock to suburban traders. Non-movement of stock
at the suburban end resulted in overstocking & stagnation & over-production
Battle India
Round 2: • Kellogg's introduces breakfast biscuits, increased the flavors in cereals & tried to pitch communication on health platform –
Iron Shakti
Result:Initial response, not encouraging …awaiting results
"There is a bigger opportunity in localizing your offerings and the smarter companies are realizing this.''
Glocal trends…
• Aamir Khan (in North India), Vijay (in Tamil Nadu), Jyothika (in Andhra Pradesh) and Aishwarya Rai (rest of India) endorse Coca cola.
Cafe Coffee Day plans to offer localised food across different cities in the country. And the company soon plans to serve locally favourite
coffee flavours too.
MTV and Channel V: After the initial infatuation with rock and hard metal thinned out, even teenagers started demanding Indipop, a kind of fusion music. So, even
generations that have been brought up on Britney Spears and Backstreet Boys need the bhangra to warm up their hearts.
Cartoon Network has plans of localising its programmes to entertain the Indian child. For instance, just before Holi, cartoon characters playing with colours are shown on the Network and contests with pichkaris as prizes are announced. And cartoon characters wishing Aamir Khan just before the Oscars made into huge hoardings.
Domino's Pizza has experimented with their taste options, especially in smaller towns, focussed on more regional flavours. Some of
their localised toppings have consolidated and become key sales contributors. At Domino's, `Peppy Paneer,' and `Chicken
Chettinad' have done exceedingly well and are the top seller.
Maggi too went the same way. Noodles was alright for dinner once in a while, but to really mass market it as a snack, Maggi had to have the
chatpatta Indian taste. And so the curry flavour, the tomato flavour, etc
SwarovskiIndia - designer Tarun Tahiliani worked out a collection of saris,
blouses, odhnis, and salwar kameezes studded with crystals. China - launched crystal Chinese zodiac symbols which are very popular
Swarovski idols Swarovski sarees
Fedex introduced 10 kg and 25-kg boxes, as there existed a user need for such packaging for goods/documents being shipped out of India
"The rules are very clear: You can alienate the consumer a bit from his culture,
but you cannot make him a stranger to it.
The society is much stronger than any company or product.
MNCs who want to succeed in India or in any local market need to remember this