Multinational Brands Prof. Atul Tandan Director MICA

Global Brands & Culture Buyer behavior and consumer needs are driven by cultural norms MNC managers deal with different cultural environments Global business deals with –Consumers –Strategic partners –Distributors –Competitors with different cultural mindsets Cultural heritage provides pride and self-esteem Foreign cultures also intrigue local cultures

Global Brands & Culture Cultural environment matters for two main reasons –Cultural differences force adaptations of marketing strategy Cultural blunders become costly for MNC –Embarrassment –Lost customers –Legal consequences –Missed opportunities –Damage control –Tarnished reputation

Global Brands & Culture Cultural analysis often pinpoints market opportunities –Changes in cultural indicators lead to market opportunities 300 million children in China 157 million children in India (0-6 years) –Spending power –Pester power –Act as a change agent –To satisfy ignored cultural needs bring competitive edge Japanese diaper makers steal the market share of P & G market by providing thinner diapers by meeting the desires of Japanese mothers Source: International Marketing by Rajgopal

Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Selected Global Brands Technology Google: Don’t Be Evil (Brand Value $ 66.4 bln) Google. COM is one of the 5 most popular sites on the Internet and is used around the world by millions of people. Google is the #1 search engine in the Argentina, Australia, Belgium, Brazil, Canada, Denmark, France, Germany, India, Italy, Mexico, Spain, Sweden, Switzerland, U.K., U.S. (Nielsen//NetRatings 6/05, based on total number of unique visitors) Global unique users per month: 380 million (Nielsen/NetRatings 8/05) 112 international domains Global audience: More than 50 percent of Google.com traffic is from outside the U.S. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

General Electric (GE) GE: Imagination at Work (Brand Value $ 61.8 bln) Today, GE is comprised of Six business segments aligned for growth with the ability to compete globally. They are: Commercial Finance, Infrastructure, Industrial, Healthcare, Consumer Finance and NBC Universal. Because of GE's diversified approach to business, you have not joined one company, but many companies operating worldwide in key business areas. It has operations in over 100 countries. 320,000+ employees worldwide. Manufacturing facilities in 32 countries.

GE Money (India)

Selected Global Brands Technology Microsoft: Your Potential. Our Passion (Brand Value $ 54.9 bln) Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide (79 countries) leader in software, services and solutions that help people and businesses realize their full potential. MS-DOS,.NET, Office XP, 2007 Office system, Windows, Windows Server, Windows 3.0, Windows 95, Windows 98, Windows 2000, Windows XP, and Windows Vista are registered trademarks of Microsoft Corporation. Other product and company names mentioned herein may be the trademarks of their respective owners. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Microsoft – Your Potential Our Passion (Pan Asia)

Selected Global Brands Soft Drink Coca Cola: The Coke Side of Life (Brand Value $ 34.9 bln) Today, The Coca-Cola Company is the largest beverage company with the most extensive distribution system in the world. The Coca-Cola Company operates in more than 200 countries. Pepsi Cola: More Happy (Brand Value $m 9.6 bln) The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Coca Cola – The Coke Side of Life (Singapore)

China Mobile China Mobile: (Brand value $ 41.2 bln) China Mobile Limited (the "Company", and together with its subsidiaries, the "Group") was incorporated in Hong Kong on 3 September As the leading mobile services provider in China, the Group boasts the world's largest unified, contiguous all-digital mobile network and the world's largest mobile subscriber base. In 2006, the Company was once again selected as one of the "FT Global 500" by Financial Times, and the "The World's 2000 Biggest Public Companies" by Forbes magazine.

Selected Global Brands Retail Wal-Mart: Always low prices! (Brand Value $ 36.8 bln) Today, Sam´s gamble is a global company with more than 1.8 million associates worldwide and nearly 6,500 stores and wholesale clubs across 14 countries. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Marlboro Marlboro: Come the Marlboro country (Brand Value $ 39.1 bln)

Selected Global Brands Fast Food Citi: The Citi Never Sleeps (Brand Value $ 33.7 bln) HSBC: The worlds Local Bank –(Brand Value $ 17.4 bln) HSBC's global markets business is one of the largest of its kind in the world. It combines sophisticated 24-hour global coverage with a detailed knowledge of local markets. Services are offered both online and offline, through a network of 87 treasury sites in more than 60 countries and territories worldwide. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Citi – The Citi Never Sleeps (Asia)

IBM IBM: “Ideas for Innovators – Get inspired” (Brand Value $ 33.5 bln) IBM helped pioneer information technology over the years, and it stands today at the forefront of a worldwide industry that is revolutionizing the way in which enterprises, organizations and people operate and thrive.

IBM

Selected Global Brands Cars Toyota: Drive Your Dreams (Brand Value $ 33.5 bln) Toyota Motor Corporation (TMC) is one of the world’s leading auto manufacturers, offering a full range of models. Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 8.81 million units from January 1, 2006 to December 31, Markets vehicles in more than 170 countries. BMW: The Ultimate Driving Machine (Brand Value $ 25.7 bln) BMW Group activities worldwide are co-ordinated from the corporation's head office in Munich. A city landmark, the "four-cylinder" tower at the Olympic park is the nerve centre for an organisation which covers over 150 countries. Source: 2007 Brandz Top 100 Most Powerful Brands by Milward Brown Optimor

Toyota – Moving Forward (India)

Global Aspects of successful Branding based on survey of the Brandchannel.com Consistency36.0% Understanding of Customers/Target18.2% Message/Communication14.7% Creative/Design/Brand ID12.8% Relevance12.4% Differentiation/Uniqueness12.0% Key Stakeholder Buy-In10.9% Positioning9.7% Clarity8.9% Connection to Customer/Target8.9% Awareness/Recall/Memorability8.1% Focus7.0% Authentic/Truthful/Honest/Accurate7.0% Source: The 2007 Brand Marketers Report Interbrand’s Annual Survey on Brands and Branding

Global Aspects of successful Branding based on survey of the Brandchannel.com Leadership5.4% Budget/Cost4.3% Strategy3.5% Product3.5% Research3.1% Innovation2.3% Simplicity2.3% Delivering on promises2.3% Public Relations1.6% People0.8% Marketing0.8% Advertising0.4% Other93.8% Total 290.7%

Key Lessons for AAA Brands Four R –Relevance –Relationship –Reliability –Recall Six C –Consistency –Creative –Culture –Consumer –Communication –Clarity

Thank You