How to reach emerging market consumers with new ... - Roland Berger
How to reach emerging market consumers with new ... - Roland Berger
How to reach emerging market consumers with new ... - Roland Berger
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<strong>Roland</strong> <strong>Berger</strong> Strategy Consultants<br />
Brand positioning – Simple but creative<br />
The "country of origin" effect<br />
Rising incomes in <strong>emerging</strong> countries encourage <strong>consumers</strong> <strong>to</strong><br />
change their brand purchasing behavior. A welcome consequence<br />
of this for Western companies is their increasing preference for<br />
established Western brands. Local brands are often left far behind<br />
in the competition. For example, no local brand features among<br />
the leading fashion brands in Saudi Arabia, and only one domestic<br />
brand in India makes it in<strong>to</strong> the <strong>to</strong>p 10 beauty brands.<br />
f7 Manufacturers in <strong>emerging</strong> countries own just 12% of the world's<br />
500 most valuable brands. China leads the pack, <strong>with</strong> 27 internationally<br />
distributed brands, followed by Brazil, <strong>with</strong> 10 brands.<br />
In the long term, brands from <strong>emerging</strong> <strong>market</strong>s are likely <strong>to</strong><br />
become more prominent in Europe as manufacturers shift their<br />
attention from domestic <strong>to</strong> world <strong>market</strong>s. Products that are<br />
successful in <strong>emerging</strong> <strong>market</strong>s can often also be sold globally.<br />
For instance, Chinese au<strong>to</strong>makers – notably the company behind<br />
the Qoros brand – are confident that they can expand in<strong>to</strong> Europe<br />
following the example of global Chinese brands in the IT sec<strong>to</strong>r,<br />
such as Lenovo.<br />
Brand origination is a matter of considerable importance in<br />
<strong>emerging</strong> <strong>market</strong>s. The "country of origin" effect means that<br />
people associate particular countries <strong>with</strong> certain product<br />
characteristics. Consumers worldwide, for example, frequently<br />
associate German products <strong>with</strong> quality, reliability and durability.<br />
In the past, consumer goods manufacturers such as Coca-Cola<br />
transferred their successful national brands, logos and advertising<br />
<strong>to</strong> their worldwide subsidiaries. But building brand awareness<br />
<strong>to</strong>day calls for more imagination. Western companies must<br />
adapt <strong>to</strong> local and regional conditions. Often the most innovative<br />
<strong>market</strong>ing technique is the simplest. In several <strong>emerging</strong><br />
countries, for example, Coca-Cola gives paint in its signature red<br />
F8<br />
Top-selling brands in <strong>emerging</strong> countries<br />
Sales by brand, 2012 (retail value, USD million)<br />
Top-selling fashion brands in Saudi Arabia – No homegrown brands<br />
Mothercare<br />
Next<br />
Zara<br />
Aldo<br />
Bossini/Sparkle<br />
Marks & Spencer<br />
Clarks Footwear<br />
Bershka<br />
Milano<br />
Calvin Klein<br />
231<br />
191<br />
164<br />
159<br />
121<br />
70<br />
60<br />
60<br />
47<br />
47<br />
Top-selling beauty brands in India – Dabur is the only Indian brand<br />
Fair & Lovely<br />
Colgate<br />
Lux<br />
Lifebuoy<br />
Godrej<br />
Det<strong>to</strong>l<br />
San<strong>to</strong>or<br />
Dove<br />
Clinic Plus<br />
Dabur<br />
465<br />
353<br />
336<br />
305<br />
257<br />
244<br />
208<br />
196<br />
159<br />
156<br />
Source: Euromoni<strong>to</strong>r