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Global Branding

AgendaGlobal Branding AdvantageBest Practices OverviewKeller’s 10 CommandmentsSome Personal Lessons Learned

What is Global?

What is Global?Globalization – “Suddenly meeting a person

you’ve never heard of , who comes from a place you can’t locate on the map, and who’s eating your lunch in your own hometown.” – Walt Wriston, former Chairman, Citicorp

Global or just Multinational*More than a half a company’s assets will be abroadBetween 40-60% of employees will be internationalBetween 40-60% of shareholders will be

international“Everywhere is home”

*“Branding Across Borders, Gregory, 2002

Global Branding AdvantagesCapitalize on Marshal McLuhan’s “Global Village”Promotes the flow of people and ideas across bordersIs the key (remember the definition of brand) to global

business expansionDevelops interdependencies that underpin “give

peace a chance”. …. “It’s hard to go to war against someone who puts money in your pocket.” – Prof. Charles Byers

Alternatively, slumps in one geography spread virally U.S. Housing Crash of ‘08Asia markets crash in the late ‘90s

But whether you subscribe to it or not, global marketing is here to stay

Global Brand “Best Practices”

Develop strong brand identity standards Develop a clearly defined and articulated

brand management strategy Develop a formal brand management processDevelop a universal brand promiseCreate a wide spread ability to articulate the

brandDevelop a brand evaluation system

Adapted from “Branding Across Borders”, Gregory, 2002

Keys to Growing a Global Brand – Culture, Values & More

Honor culture differences and nuisances; avoid the “HQ uber alles” complex”

Involve all locations in the decision making process so that there is real implementation, not just lip service

Introduce, mold and align the corporate culture across geographic cultures, recognizing and honoring local culutral mores’

Keller’s 10 Commandments of Global BrandingUnderstand similarities and differences in the

global branding landscapeDon’t take brand building short cutsEstablish marketing infrastructureEmbrace integrated marketing communicationBalance standardization and customizationBalance global and local controlEstablish operable guidelinesImplement a brand measurement sytemLeverage brand elements

Understand the Differences

Buying behaviorMarket InfrastructureCompetitive activityLegal RestrictionsLeverage the differences to your

advantageMTV is global, 80% of its content is

localLeverage thematic consistency &

alter specifics to match buying behaviorKuschelvietch, Cajoline, and Snuggles

But the Bear Remains

Brand Building Rules Apply Globally

Create brand awareness and a positive brand image in each location

May need to use different means and sources but the process still applies

Apply the process only. Be cautious of borrowing what worked in one local and applying it to another.

Solution – Build the brand from the ground up

Establish Marketing Infrastructure

That means distribution and sometimes manufacturing or assembly

Look for distributors who can develop markets beyond a few key customers

Treat distributors as long term partnersCommit money, managers and proven

strategiesMaintain control of marketing strategies

from the startRequire detailed market & financial

performance dataLink with national distributors at the

earliest opportunity“Seven Rule of International Distribution,” Arnold, HBR 2000

Embrace IMC

People need to hear a message six times before they hear it once

Advertising may not be as robustConcentrate on the whole brand experienceThink sponsorship, merchandising, PR, local

events

Cultivate Brand PartnershipsConsider marketing partners … joint

venture partners, licensees, franchisees, distributors

Strategically gain pre-exiting accessBut what’s best? Weigh your options

Strategy Speed Control Investment

Geographic Extension

Slow High Medium

Brand Acquisition

Fast Medium High

Brand Alliance (Partnership)

Moderate Low Low

Balance Standardization & Customization

The answer is bothUse universal symbols where possible … But customize them to the market

Balance Global & Local ControlTough Choices

Centralize at HQDecentralize decision make to local marketsA combination of both

RegardlessHave well-defined roles, processes &

proceduresDevelop checkpoints, milestones and

roadmapsErr on the side of considerationKeep things strategically and organizationally

simple

Establish Operable Guidelines

Establish well-understood brand definitions Use the message platform to communicate,

enforce and reinforceUnderstand the brand universally and

translate it locally

Implement a Global Brand Measurement System

Develop a Report Card with elements that can be used everywhere

Use Brand Equity characteristics that cross markets, geographies and culture

Segment Brand Evaluation Markets

Leverage Brand Elements

Select universal brand namesWhat does Exxon mean?The story of Prism

Studies show that Chinese culture tends to recall visual brand identifiers more easily than verbal brand identifiers*

*Schmitt, Pan & Tavassoli, “Language and Consumer Memory: The Impact of Linguistic Differences between Chinese and English”, Journal of Consumer Research, 1994

Some Personal Observations

Define brand assets that have universal meaning and respect

Use universal symbols and art to communicate the brand

There is no local mediaAll versions of The Wall Street Journal are available on

lineA rumor in Taiwan results in analyst calls … all dayPrice cut rumors in Japan create account handling

nightmares in EuropePolitics define markets

China has separate wireless standardsJapan is looking for in situ technology consortiums

Lastly … People are People are People

No one country is more technical, rational or data driven than any other

Abstracts are more powerful than data … its just that the abstracts change

People make decisions using data to support their perceptions … everywhere.

Brand is the tie-breaker… in Botswana, Boston and Bolivia

Powerful brands appeal to “emotions” … PERIOD

http://www.youtube.com/watch?v=H-fIT62JcMg

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