ResearchA Personal

JourneyN I R M A L Y A K U M A R

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N I R M A L Y A K U M A R©

A C A D E M I C

1992 - 2002R E S E A R C H

Approach to Research◦ What is the next paper?

◦ When is it not true?

Pursuing Research◦ Interesting question

◦ Grounded in theory

◦ Empirical investigation using survey data

◦ Counter-intuitive insights

Typical Study - Tough Love

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Focal Construct Moderating Factors Supplier Outcomes

Supplier Satisfaction

Supplier Trust

Conflict

Supplier OperationalPerformance

Buyer Reputation

Norm ofInformation Sharing

Buyer Punishmentof Supplier

H4abcd

H5abcd

H1abcd

H2abcd

H3abcd

LoveTough Positive effects

of Punishment

C O N C E P T U A LF R A M E W O R K

Fig 01

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P R A C T I C E

2003 - 2013R E S E A R C H

Two types of books / articles

Approach◦ Interesting question

◦ Research based

◦ Nuanced recommendations

◦ Shelf life

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Can India innovate?

Can emerging markets build global brands?

How to delete brands?

How to fight low cost rivals?

How to win with, and against, private labels?

Can Indian companies become global leaders?

~ THE ~QUESTION

W H A TT O W R I T E

A B O U T

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Research Based• 24/7 Customer - V. Bharathwaj, • T. Hariharan• 24/7 Customer - Mohit Jain• 24/7 Customer - P. V. Kannan• Aditya Birla Group - Kumar Mangalam Birla• Alcatel-Lucent - Subhash Bana• Apollo Hospitals - Pratap Reddy• AstraZeneca - Anandh Balasundaram• AstraZeneca - Tanjore Bal Ganesh• AstraZeneca - Sudhir Nambiar• Bharat Forge - Baba N. Kalyani• Britannia - Vinita Bali• Business Coaching Foundation India - Pradipta K Mohapatra• CSIR & DSIR - Samir Brahmachari• CSIR - Naresh Kumar• Dr. Reddy’s Laboratories - Satish Reddy• CSIR - Sudeep Kumar• CSIR - V. K. Gupta• EMC - Sarv Saravanan• Ericsson - Aniruddho Basu• Evaluserve - Ashish Gupta• Evaluserve - Marc Vollenweider• Evaluserve - Siddharth Nambiar• General Electric - Guillermo Wille• General Electric - Mano Manoharan• General Electric - Gopichand Katragadda• Government of India - Ashok Kumar• Helion - Kanwalijit Singh• IIM Bangalore - Rishi Krishnan

• Indian Institute of Science - S. K. Nandy• Indian Institute of Science - V. Rajaraman• Infosys - Subhash Dhar• Infosys - Sanjay Mohan• Infosys - Sanjay Purohit• Infosys - Akash Deep Batra• Intel - Rahul Bedi• Intel - Kishore Ramisetty• Intel - Praveen Vishakantaiah• Erehwon Consulting - Rahul Agarwal• KPMG - Kumar Paralaka• Marico - Harsh Mariwala• Microsoft - Srini Koppolu• Microsoft - Nina Choudhuri• Piramal Enterprises - Ajay Piramal• Piramal Enterprises - Somesh Sharma• Pfizer Ltd. - Bomi Gagrat• Pfizer Ltd. - Sunil Mahhok• Philips - Wido Menhardt• Philips - Vandana Subramanian• Philips - Erik M. Vermeulen• Philips - S. Bhaskaran• Philips - Harsh Dhand• Ranbaxy - Sudarshan K. Arora• Sequoia Capital India Advisors - Sandeep Singhal• TPI Advisory Services India - Siddharth A. Pai• Wipro Technologies - I. Vijaya Kumar• Wipro Technologies - V. R. Venkatesh

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Research Based• Ambarella Shanghai Co. – Vivian Yang• Adidas China – Richard Hu• ASD – Amanda Chen, Carol, Lisa Du• Bright Food Group - Jun Jie Ge• China Huiyuan Juice Group - Zhen Tan• China Unicom – Hengyuan He• Chunlan – Bin Feng, Raymond Huang • Combi Group – Agrius Oleme• Costa Crociere Shanghai – Michael Shen• Dell China – Danny Ntui• Dabur – Sunil Duggal• Dragon Sourcing – Veronique Balla• Emirates Airlines – Maurice Flanagan• Galanz – Bruce Chang, Daisy Gao• GongDong Midea Holding Co – Marc Upton, Leon Hu• Guangzhou Pearl River Piano Group – June Wang• Haier - James Leiss• Hongye – Yuexin Wei• HTC - Matthew Costello• Huawei - Hagen Fendler, Sandra Qian Xiao• Jaguar Land Rover - John Edwards• Lenovo - Chris Tang, Farmer Fang, Helen Zhang, Johnson Jia, Lisa Liang, Mark McNeilly• Levi Strauss China – Aaron Boey, Xiaojing He• Mahindra & Mahindra – Anand Mahindra• Pran Foods – Ahsan Khan Chowdhury• Shanghai Jahwa United (Herborist) - Zhuo (Joe) Wang, Aaron Ke• Shanghai Tang – Eric Tang• South China Tire and Rubber Co. – Xiang Dong Fu, Jian Ping Feng, Melissa Ruan, Wei Hua Huang

• Tata Motors – Ravi Kant• Xinxing Pipes Group – Charles Ekoko• ZTE - Maggie Cui, Jackie Jiang, Tony Tang, James Zheng

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Asia

Pacific

Samsung

Hyundai

Kia

Toyota

Honda

Canon

Sony

Nintendo

Nissan

Panasonic

57

The

Americas

33Europe

10Asia Pacific

China

India

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Source: Interbrand 2013 Best Global Brands

100 Best Global Brands

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Why should emerging market companies

Develop Global Brands?

• Financial benefits

• Escalating labor costs (China)

• Global ambition

• Keep company fate in own hands:

Brand power = market power

• Improve management

capabilities

• Broader economic benefits

(Country-Of-Origin spill-over)

• National pride

N I R M A L Y A K U M A R©

Country image of China and Japan

among U.S. consumers

“One of the biggest challenges many emerging market companies face as they

globalize is the perception that emerging market brands are inferior.”

(The Economist 2011)

0 3-3Workmanship

Quality

Tech Advanced

Reliable

Value for Money

Overall attitude

Active preference

Barriers to ever buying COO

CHINA

JAPAN

v/s

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How emerging market firms

can become Global Brands

C A P A B I L I T I E S S T R A T E G I E SE V O L U T I O N O F C O M P A N I E S

Development of

world-class capabilities

Pathways for

creating global brands

o Asian tortoise route

o B2B to B2C route

o The diaspora route

o The brand acquisition route

o Positive campaign route

o The cultural resources route

o The natural resources route

o The national

Manufacturing

Supply chain

R&D

Marketing

OEM

Supplier

Selling

Own Brands

Branded

Company

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Enter Western markets using the home market Diaspora as a beachhead.

In a world of unprecedented cross-border flows of people, there are millions of people living in other countries. Only a minority of these people will be fully assimilated into the new (host) culture. Many migrants will retain some old brand preferences and consumption patterns.

EXAMPLES:

HSBC (China), Pran (Bangladesh), Bimbo (Mexico), Jollibee Foods (Philippines), ICICI, Reliance, Dabur(India), Islamic Bank of Malaysia

The Diaspora Route

Following emigrants into the world

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The Chinese & Indian Diaspora

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Key success factors leveraging

The Diaspora in a host country

Brand with

broad appeal(Bollywood vs. ICICI)

Geographical

distribution of Diaspora(Pollo Campero in U.S.)

Critical mass

of Diaspora(Curry in UK)

Socioeconomic

profile of Diaspora(Cotuba in Japan)

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Dabur’s use of the Indian Diaspora

Tailing the Diaspora as a means to get a foothold in

foreign countries

Reach out to mainstream consumers – familiar with

India (Arab women) or interested in “natural” personal

care, medicinal products, and ancient scripts

Providing a geographic hedge against any possible

disruption in the home market

Leveraging its understanding of consumers and

supply chain in developing markets to build

businesses there. In particular, Dabur’s understanding

of traditional trade channels in Africa is superior to

many Western companies.

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The Cultural Resources Route

Positioning on positive cultural myths

In some categories, a specific country may have unique positive

associations amongst Western consumers (e.g., silk from China,

yoga from India, untamed nature from Brazil).

If the emerging market brand can be positioned on these specific

attributes, its country of origin can be turned into an advantage.

EXAMPLES:

Shanghai Tang (China), Jim Thompson (Thailand), Mandarin Oriental Hotels, Taj Hotels and Resorts, Havaianas (Brazil)

N I R M A L Y A K U M A R

Leveraging Cultural Resources

CULTURAL MEANINGS ASSOCIATED WITH THE BRAND’S COUNTRY OF ORIGIN

Transfer of Meanings from Home Culture to the Brand

• Time • Space • Rituals • People • Values

Brand

Development

Brand

Communication

Brand

Reinforcement

C U L T U R A L M E A N I N G S I N B R A N D S

Location of meaning Instrument of meaning transfer

Activity of the brand manager

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Select cultural meanings for branding

Globally recognizable

Credibly linked to home culture

Not claimed by other brands

Relevant for the productPRINCIPLES

KEY

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Cultural branding based on contemporary culture

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The natural resources route

Branding commodities in four steps

Natural resources are usually sold as

commodities with brands and country of

origin playing relatively minor roles.

Consumers motivated to purchase the

product on price.

However, natural resources can be branded

by either explicitly linking it to a country or

by branding the commodity per se. The

resulting brand fulfills its role as quality

guarantee as well as provider of emotional

benefits.

EXAMPLES:

De Beers, Natura, Café de Colombia,

Russian caviar, Premier Dead Sea Cosmetics

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Branding Natural Resources Route

• Tight

• Marked as unique

• Myth to emphasize

quality

• Transparent

• Raise entry barriers

• Elaborate (expensive)

to imply quality

• Independent

authentication body

• Regular audits

• Seals of approval

• Protected Geographical Indication

• Awareness of brand and region

• Communicate the difference

Defined

Geographical

Region

Product / process

SpecificationAuthentication

International

Branding

KEY

SUCCESS

FACTORS

Undifferentiated

natural resource

Value adding

process

Global

Brand

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Branding water??

N I R M A L Y A K U M A R©

F U T U R ER E S E A R C H

Brand Authenticity◦ What is it?

◦ Who does it matter for?

◦ When does it matter?

◦ Can you fake it?

◦ Is it more important in age of social media?

Luxury Branding – is it a business?

Corporate Governance – Promotersversus minority shareholders?

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@ProfKumar nirmalyakumar.com