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Brand Building Workshop

Mexico City 2012

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"Building successful global brands that connect to local cultures"

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The fundamentals of “Planning”

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What is What is ““cultureculture””??

“The values, attitudes, rituals, beliefs, artifacts and other meaningful symbols represented in the pattern of life adopted by people that help them interpret, evaluate and communicate as members of society.”

Our ideas, our values, our acts and our emotions are cultural products – historically created systems of meanings.

Specific Cultures

•National culture

• Corporate culture

• Music culture

• Age culture

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What is a What is a ““brandbrand””??

“A product is made in a factory. A brand is something bought by people/consumers.”

“A brand is a collection of perceptions and associations that exist in the minds of consumers.”

MarketingHow do we fit into people’s lives?

CultureHow do people live ?

BrandsHow do de we make People’s lives better?

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What’s the common denominator across the 50 brands showing the fastest growth both in depth of customer relationships and financial value between 2000 and 2010?

All of them, regardless of size or category, have been built on an ideal of improving livesin some way.

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Word Values and Cultural Dementions

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Primary References

Hofstede’s 5 Dimensions of Culture

•Power Distance (PDI)•Individualism/Collectivism

(IDV)•Masculinity/Femininity

(MAS)•Uncertainty Avoidance

(UAI)•Long-Term Orientation

(LTO)Highly Recom

mended !

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The Power Distance Dimension (PDI),

““The extent to which less powerful members of society The extent to which less powerful members of society accept that power is distributed unequally.accept that power is distributed unequally.””

High PDIs: Malaysia, France, Mexico

Medium PDIs: USA, UK, Canada

Low PDIs: Denmark, Hungary, Austria

High

Low

Hierarchy, Status.

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Individualism/Collectivism (IDV)

““ People looking after themselves and their family People looking after themselves and their family only, versus people belonging to inonly, versus people belonging to in--groups in groups in exchange for loyalty.exchange for loyalty.””

Individualistic:N. Europe, USA, CanadaAustralia

Small trusted groups.

Large extended groups of familyand friends.

Collectivist:S. Europe, Latin AmericaAsia

High division betweenprivate life and work.Importance of private places (gardens).Universal values.

Low division betweenprivate life and work.Importance of public places (parks).Particular values.

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Masculinity versus Femininity (MAS)““The dominant values in a masculine society are The dominant values in a masculine society are achievement and success; the dominant values in a achievement and success; the dominant values in a feminine society are caring for others and the quality of feminine society are caring for others and the quality of life.life.””

Low PDIFEM.

Low PDIMAS.

High PDIFEM.

High PDIMAS.

Power andSuccess

Success

Power

SWENOR

DEN

FIN

NET

CAN

AUL USA

GBR/GER

SWIAUT

CHL

ISR

POR

THA

KORSPA

FRA

Use of StatusAppeal in

Advertising

Never

Frequent

SINMAL

GUA

BEL

GRE HOK

PAN

ITA MEX

VEN

JPN

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Uncertainty Avoidance (UAI)““The extent to which people feel threatened by The extent to which people feel threatened by uncertainty and ambiguity and try to avoid these uncertainty and ambiguity and try to avoid these situations.situations.””

Low UAIFEM.

High UAIFEM.

Low UAIMAS.

High UAIMAS.

SWE

NOR

DEN

SIN

NET

CAN

AUL

USA

GERSWI

AUT

IND

Buying Motives for

CarsJAM

POR

THA

KOR

SPAFRA

MAL

GUA

PAK

SafetyValueSafetyValue

Status:BigPowerful

Status:BigPowerful

FastBIGTechnologyDesign

FastBIGTechnologyDesign

DesignStyleFashion

DesignStyleFashion

BEL

GRE

HOK

ITA

MEX

VEN

JPN

GBR

NZL

PDI +PDI +

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Long-Term Orientation

““The extent to which a society exhibits a pragmatic, The extent to which a society exhibits a pragmatic, future orientated perspective rather than a future orientated perspective rather than a conventional historic or short term point of view.conventional historic or short term point of view.””

Short-term Long-term

Anglo Saxon

• Ambition • Opportunity• Respect for National Traditions• What is “right/wrong”

Asian (Confucian)

• Patience , persistence• Respect for heritage and

family traditions• What “works”

Brazil Netherlands

BelgiumItaly

Latin AmericaMexico

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6 Strategies for International Branding

• Cultivate Established Local Brands – Corona Beer

• Global Platform, Local Adaptations – Coca-Cola, McDonalds

• Create New Brands for Global Needs – Nintendo Gameboy, X-box

• Acquire Local Brands and Internationalize -Unilever. Nestlé, Danone

• Develop Line Extensions – Coca-Cola Light, Pepsi Max

• Employ a Multi-Local Strategy – company name as guarantee of quality - Nestlé

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AXE Deodorant

Universal masculine youth values and life style (sex)

Local cultural values – music /concerts, respecting local tastes and limits of moral standards.

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Corona Beer

Universal values –friendship, acceptance, status

Local cultural values – Mexico – national pride Spain – belonging, stability Germany – self esteem

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Nike + iPod - Run Americas

Universal values – fitness, the joy of running, unique experiences

Local cultural values City identity, pride Local community of runners

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Dove – Campaign for Real Beauty

Universal values – beauty is natural not synthetic

Local cultural values –• N. Europe – individualism, the

right to be yourself• S. Europe and Latin cultures –

self esteem and pride

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Starbucks Coffee

Universal values – a third space between work and home, fair prices to coffee growers.

Local cultural values• N. Europe – a quiet place the

think, read, work and listen to good music.

• S. Europe and Latin culture –social and work, status, self esteem social recognition.

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Summary

People don’t care if the brand is global but they increasingly prefer local brands or what they perceive as local brands.

To be effective brands : Must get attention and be immediately recognized, Must be relevant and meaningful – reflect the role of the

brand in peoples lives, Must be linked with peoples values

These elements are influenced by the brand culture and the culture of the audience it is trying to reach.

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The Future. . . .Next Workshop.Building Brands in a Digital World.

Thank You !!