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Not only are brands becoming global but consumers are too, in their preferences

Global brands - effective locally ppt

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localising global brands is beyond just communication. It involves the other 3P's as well.

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Page 1: Global brands - effective locally ppt

Not only are brands becoming global but consumers are too, in their preferences

Page 2: Global brands - effective locally ppt

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?)

Page 3: Global brands - effective locally ppt

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

Page 4: Global brands - effective locally ppt

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.

Page 5: Global brands - effective locally ppt

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

Page 6: Global brands - effective locally ppt

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

Page 7: Global brands - effective locally ppt

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…

Page 8: Global brands - effective locally ppt

Brand blooperssome which work for the brand

Source: "Literal Translations Can Sabotage Marketing Campaigns Selling in a 2nd Language."   Business Mexico.   June 1993.

Page 9: Global brands - effective locally ppt

Haier in India & elsewhere: Almost everybody who buys Haier products perceive the company to be German,

instead of Chinese

Chinese = German?

Page 10: Global brands - effective locally ppt

How global brands are understanding local nuances to make dents into world markets

2 brands which got it right

Page 11: Global brands - effective locally ppt

McDonalds

ChinaChina

UAEUAE

UKUK

South AfricaSouth Africa

USAUSA

Page 12: Global brands - effective locally ppt

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

Page 13: Global brands - effective locally ppt

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

Page 14: Global brands - effective locally ppt

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

Page 15: Global brands - effective locally ppt

So…

Page 16: Global brands - effective locally ppt

• 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

Page 17: Global brands - effective locally ppt

IndiaIndia

Page 18: Global brands - effective locally ppt
Page 19: Global brands - effective locally ppt

Happy holi

Mc Aloo tikki

Page 20: Global brands - effective locally ppt

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

Page 21: Global brands - effective locally ppt

America

China

Russia

Mexico

South Africa

MTV

Page 22: Global brands - effective locally ppt

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

Page 23: Global brands - effective locally ppt

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)

Page 24: Global brands - effective locally ppt

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

Page 25: Global brands - effective locally ppt

So…

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Page 27: Global brands - effective locally ppt

• 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

Page 28: Global brands - effective locally ppt

BakraGaseous clay

Chitochat

FEATURED ARTIST:

Bombay Vikings

Page 29: Global brands - effective locally ppt

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

Page 30: Global brands - effective locally ppt

Global brands which ignore & do not recognize local nuances suffer

A brand which got it all wrong

Page 31: Global brands - effective locally ppt
Page 32: Global brands - effective locally ppt

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

Page 33: Global brands - effective locally ppt

Will mail across pack images – could not obtain them off the net

Page 34: Global brands - effective locally ppt

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

Page 35: Global brands - effective locally ppt

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

Page 36: Global brands - effective locally ppt

"There is a bigger opportunity in localizing your offerings and the smarter companies are realizing this.''

Glocal trends…

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• Aamir Khan (in North India), Vijay (in Tamil Nadu), Jyothika (in Andhra Pradesh) and Aishwarya Rai (rest of India) endorse Coca cola.

Page 38: Global brands - effective locally ppt

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.

Page 39: Global brands - effective locally ppt

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.

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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.

Page 41: Global brands - effective locally ppt

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.

Page 42: Global brands - effective locally ppt

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

Page 43: Global brands - effective locally ppt

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

Page 44: Global brands - effective locally ppt

Swarovski idols Swarovski sarees

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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

Page 46: Global brands - effective locally ppt

"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

Page 47: Global brands - effective locally ppt