Trans-Europe Express in Cultural Aspects of Branding

Mikhail Chernyshev

Croatia

Why Transcultural communications?

How more multicultural can it get?

How we were planting Swedish Model Into Different Russian regions

Swedish business engine

Russian regional soil

1 mistake and 1 success

Transferring Russian/Swedish Success to Croatia

41 mistake and 1 success

Tele2 in Search For Key to Russian Soul

Or how to combine Swedish business DNA with Russian Communication

DNA?

«Умом Россию не понять, Аршином общим не измерить»• Different economical environment, infrastructure, values, income,

development creates a very different markets with different audience and needs

• The difference among Tele2 Russian regions: – SIM Penetration 58%-124%

– Internet usage: 7%-66%

– Living in the “central city”: 18%-56%

– Different Market Maturity

HOW TO FIND A RIGHT RECEPY FOREACH REGION?

The Main TELE2 Russia Challenge in Marketing

Starting Managing Borsch Challenge

More than 100 types ofBorsches are split generally in 3 directions

green spicy red

Cluster Communication Strategy: 3 clusters

low mid

newcomer

challenger

defender

MARKET SHARE

Price Leadership Perception

mid

high

How Should the Marketing and Communication Objectives Evolve With

The Growth?

Business to Communication Goals B

usi

nes

s

Brand Purchase Intension

Brand Awareness

Price Leadership

Brand Attitude

Loyalty & satisfaction

Co

mm

uni

catio

n

Subscribers acquisition

RetentionARPU protection

Subscribers acquisitionARPU protection

Retention

ChallengerChallenger DefenderDefenderNewcomerNewcomer

Marketing Communication Wrapping

Initial Fundamental Assumption

Russians, like Swedes would go for cheap services

Initial Fundamental Assumption

Russians, like Swedes would go for cheap services

WRONG!

Wrong move – functional communication

Cheap should look cheap

WRONG!

WRONG!

WRONG!

Need to find a relevant wrapping

In Sweden:

Cheap = Cool & Smart

In Russia:

Cheap = Uncool, Shame

Challenge: How To Make Cool To Pay Cheap!?

Big Idea: “Cool Guys Don’t Pay Expensive!”

Creative Platform: “Mafia”

Sonny

Tony

Don

• Mafia world is about money and connection

• Mafia don’t like to pay (they even take it for free)

• There are 2 Mafia’s in Russia: corrupted government, police and it’s connections (they are bad) and guerilla-mafia who tries to fight with them (Robin-hoods) TELE2

• Content on TV in Russia has tons of series of mafia (good) vs. cops (bad) and it’s combinations (e.g. Brigada)

Mafia Tools (Ingredients) for Different Regions

VASRoaming,

Mob.Internet, WAP/GPRS

TARIFF QUALITYLOYALTY

& RETENTION

COMFORTPACKAGE

newcomer defender

What Did Mafia Deliver To Russia(of course together with number of other initiatives)

From 2006 till 2011: – Fantastic PLP growth (highest in the group)– Increase in brand consideration– From 3 Mio to 20 Mio customers– From negative to positive EBITDA and positive CF– Russia has turn itself from “crazy investment eater” to

cash-cow

Why wouldn’t we try this success of “Mafia” Brand Platform on another

Slavic country?

Moving “Mafia” to Croatia

Croatia is…

A small, but VERY PROUD country

Slavic roots, but EUROPEAN (soon to be in EU) country

A country which has suffered fromwar and crime but really becoming true European member with clear European values

Cultural context defines the perception

WRONG!

Need to change the creative platform in Croatia

Insight: all the best things in Croatia are

… From Croatia! Best wineBest seaBest food (did you know, that Pizza was actually invented in Croatia? ) Best clothing (did you know that Crovat (tie) came from Croatia?) Best girls (and boys)Best everything…! …

We need to develop a LOCAL concept!

Brand Promise Localization

3 GREAT Local Concepts + 1 Adaptation Were Put In Tests

Swedish Frank became Local Gregor

GREGORFRANK

CROATAMERICAN

CROATIAAMERICA

ATTITUDE

CROATIAAMERICA

ATTITUDE

CROATIAAMERICA

CROATIAAMERICA

CROATIAAMERICA

How did It Influenced Gregor Personality?

Gregor is a bit rough around edges, his voice became deeper.• Croat men are tough (or they like to think so)!

He is a bit of a “smartarse”, his jokes balance nicely close to the edge of going rude.

Gregor is very self confident.• He is after all a full blooded Croatian manager!

Gregor likes irony and sarcasm, he finds himself funny so likes to incorporate little jokes and personal comments into any line he delivers.

• Irony and sarcasm are inevitable in Croatian humor.

Gregor Story

39

http://www.youtube.com/watch?v=uzDPPyiq1bQ

And Impactful 360 Launch

Results of Brand Relaunch in Croatia

  2010 2011

Best Value for Money Perception 20% 39%

Quality Perception 19% 37%

Ad Awareness (Top of Mind) 15% 49%

Market Share 12% 18%

Conclusions

1. «Что Русскому хорошо, то Немцу – смерть»: any fundamental assumptions MUST be validated by local insights & research

2. Russian regions are fantastic in their difference! Difference between Moscow and Izhevsk is much more than between Moscow and New-York!

3. Sometimes a great adaptation can work much better than any locally produced concepts (and will save a lot of money in production) but with a RIGHT adaptation!