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Session Seven :
Managing Global Brands



Idris Mootee CEO Idea Couture Inc.


                                                             1
                                                   Oct 28, 2007
All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners
and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and
analysis.

Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius
Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names is solely for
academic purposes and should not be considered as case studies. The material here was prepared solely with public
information supported by the author’s analysis during the writing of book 60-Minite Brand Strategist which was
published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys,
Target, Daimler Chrysler mentioned here were at some point were clients of firms which I was formerly employed or co-
founded. No confidential or proprietary information were used or disclosed here
.
This series of presentation is designed to provide relevant and up-to-date information for brand and marketing
practitioners and it should not be used in marketing or rendering of professional services. Some rights reserved. Idris
Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with
prohibition of any commercial use.




                                                                                                                          2
3
Why Global Brands?

Companies that brand their products
have various options when they market
and sell their products in multiple
countries. More and more companies see
global branding as a must.




                                         4
Three Key Questions
How do we strike the balance between a global brand
that shuns cultural barriers and one that allows for local
requirements?

What aspects of the brand policy can be adapted to
global use? Which ones should remain flexible?

Which brands are destined to become “global” mega-
brands? Which ones should be kept as “local brands”?




                                                             5
The Case For Global Brands
Economies of scale. The development costs for
products launched under the global brand name
can be spread over large volumes.

Global brand has much more visibility than a local
brand and perceived market power and credibiity.

Global brands that can claim worldwide leadership
in their product category have even more clout.




                                                     6
The Case Inter-Country Gaps
• History
• Competitive Climate
• Marketing Support
• Cultural Receptivity to Brands
• Product Penetration




                                   7
3 Things Global Brands Are Up Against

• Legal Constraints: localization
• Cultural barriers
• Patriotism




                                    8
Two Things To Consider
• What is the associated cost of creating and
  maintaining awareness and associations for
  local brand versus a global one?

• What are the significant economies of scale
  in the development and running of a global
  communication campaign?




                                                9
Transitioning to Global
Three strategic options:
• Fade-in/Fade-Out: The new global brand name is
  somehow tied with the existing local brand name.
  After a transition period, the old name will be dropped.
• Transparent Forewarning: Alerts the customers
  about the brand name change is coming and manage
  their expectations.
• Instand Axing: The company simply drops the old
  brand name and immediately replaces it with a big
  bang launch of a global name adoption.




                                                             10
Transitioning to Global

Several drivers impact the composition of a
firm’s international product line
- Customer preferences
- Competitive Climate
- Organization Structure
- History




                                              11
Global Brand Positioning Challenges

• Relevance across markets
• Ensuring broad understanding across
  organization
• Degree of adaptation permissible while being
  true to brand essence
• Management of partners in consistent
  implementation




                                                 12
Achieving Cultural Relevance and Authenticity

• Cultural relevance is all about the seemingly small
  issues needed to make brands feel friendly to a
  consumer's culture, language, lifestyle, habits, values,
  etc.
• Cultural relevance is more than translation!
   – Customers notice quot;abnormalities,” whether it’s an
     Americanized way of writing dates, tonality of message,
     or inappropriate syntax, graphics, colors, and many other
     points of sensitivity.




                                                                 13
Challenges in Achieving Local Relevance:
Keeping The Classic Look and Taste Worldwide




• When Coca-Cola was first introduced
  into China, Chinese characters selected
  sounded like
  Coca-Cola but actually meant, “bite the
  wax tadpole.”
• In Russian, “enjoy” was changed to
  “drink,” because “enjoy” has a particular
  sensual connotation, in that language,
  that doesn’t apply to soft drinks.

                                               14
Challenges in Achieving Local Relevance:
Keeping The Classic Look and Taste Worldwide

                            For all non-Roman alphabets —
                            such as Arabic, Cyrillic, Japanese,
                            Greek, and many others, unique,
                            proprietary Coca-Cola typefaces
                            were created that are both culturally
                            appropriate and in sync with the
                            company’s global image.




                                                                    15
Challenges in Achieving Local Relevance:
Keeping A Global Brand Reverent




                                           16
Challenges in Achieving Local Relevance:
Keeping A Global Brand Reverent




                                           17
Challenges in Achieving Local Relevance:
Extending Global In The Virtual World




                                           18
Challenges in Achieving Local Relevance:
Brand Management Is Always a Challenge




                                           19
Challenges in Achieving Local Relevance:
Pepsi Global Restyling




                                           20
Session seven of eight.
                          OPEN SOURCE




www.mootee.typepad.com



                                        21

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Brand Masterclass Week Seven

  • 1. OPEN SOURCE Session Seven : Managing Global Brands Idris Mootee CEO Idea Couture Inc. 1 Oct 28, 2007
  • 2. All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and analysis. Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names is solely for academic purposes and should not be considered as case studies. The material here was prepared solely with public information supported by the author’s analysis during the writing of book 60-Minite Brand Strategist which was published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys, Target, Daimler Chrysler mentioned here were at some point were clients of firms which I was formerly employed or co- founded. No confidential or proprietary information were used or disclosed here . This series of presentation is designed to provide relevant and up-to-date information for brand and marketing practitioners and it should not be used in marketing or rendering of professional services. Some rights reserved. Idris Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with prohibition of any commercial use. 2
  • 3. 3
  • 4. Why Global Brands? Companies that brand their products have various options when they market and sell their products in multiple countries. More and more companies see global branding as a must. 4
  • 5. Three Key Questions How do we strike the balance between a global brand that shuns cultural barriers and one that allows for local requirements? What aspects of the brand policy can be adapted to global use? Which ones should remain flexible? Which brands are destined to become “global” mega- brands? Which ones should be kept as “local brands”? 5
  • 6. The Case For Global Brands Economies of scale. The development costs for products launched under the global brand name can be spread over large volumes. Global brand has much more visibility than a local brand and perceived market power and credibiity. Global brands that can claim worldwide leadership in their product category have even more clout. 6
  • 7. The Case Inter-Country Gaps • History • Competitive Climate • Marketing Support • Cultural Receptivity to Brands • Product Penetration 7
  • 8. 3 Things Global Brands Are Up Against • Legal Constraints: localization • Cultural barriers • Patriotism 8
  • 9. Two Things To Consider • What is the associated cost of creating and maintaining awareness and associations for local brand versus a global one? • What are the significant economies of scale in the development and running of a global communication campaign? 9
  • 10. Transitioning to Global Three strategic options: • Fade-in/Fade-Out: The new global brand name is somehow tied with the existing local brand name. After a transition period, the old name will be dropped. • Transparent Forewarning: Alerts the customers about the brand name change is coming and manage their expectations. • Instand Axing: The company simply drops the old brand name and immediately replaces it with a big bang launch of a global name adoption. 10
  • 11. Transitioning to Global Several drivers impact the composition of a firm’s international product line - Customer preferences - Competitive Climate - Organization Structure - History 11
  • 12. Global Brand Positioning Challenges • Relevance across markets • Ensuring broad understanding across organization • Degree of adaptation permissible while being true to brand essence • Management of partners in consistent implementation 12
  • 13. Achieving Cultural Relevance and Authenticity • Cultural relevance is all about the seemingly small issues needed to make brands feel friendly to a consumer's culture, language, lifestyle, habits, values, etc. • Cultural relevance is more than translation! – Customers notice quot;abnormalities,” whether it’s an Americanized way of writing dates, tonality of message, or inappropriate syntax, graphics, colors, and many other points of sensitivity. 13
  • 14. Challenges in Achieving Local Relevance: Keeping The Classic Look and Taste Worldwide • When Coca-Cola was first introduced into China, Chinese characters selected sounded like Coca-Cola but actually meant, “bite the wax tadpole.” • In Russian, “enjoy” was changed to “drink,” because “enjoy” has a particular sensual connotation, in that language, that doesn’t apply to soft drinks. 14
  • 15. Challenges in Achieving Local Relevance: Keeping The Classic Look and Taste Worldwide For all non-Roman alphabets — such as Arabic, Cyrillic, Japanese, Greek, and many others, unique, proprietary Coca-Cola typefaces were created that are both culturally appropriate and in sync with the company’s global image. 15
  • 16. Challenges in Achieving Local Relevance: Keeping A Global Brand Reverent 16
  • 17. Challenges in Achieving Local Relevance: Keeping A Global Brand Reverent 17
  • 18. Challenges in Achieving Local Relevance: Extending Global In The Virtual World 18
  • 19. Challenges in Achieving Local Relevance: Brand Management Is Always a Challenge 19
  • 20. Challenges in Achieving Local Relevance: Pepsi Global Restyling 20
  • 21. Session seven of eight. OPEN SOURCE www.mootee.typepad.com 21