|Table 1 : Mosaic of organising meanings conveyed by globalisation|
"Globalisation means a greater need to coordinate management services over wider expanses of distance and time" "Globalisation has created the new critical success factor of organisational foresight - wherein managers spend less time about how to position the firm in existing 'competitive space', and more time creating fundamentally new competitive space"
"Different cultural preferences, international tastes and standards, and business institutions are vestiges of the past...I do not advocate the systematic disregard of local or national differences, but a company's sensitivity to such differences does not require that it ignore the possibilities of doing things differently or better"
"The global corporation will serve its key customers in all key markets with equal dedication. Its value system will be universal and apply everywhere. In an information-linked world where consumers, no matter where they live, know which products are the best and cheapest, the power to choose or refuse lies in their hands, not in the back pockets of sleepy, privileged monopolies like the earlier multinationals""The business world is going international rather than insular. So, big regional companies which have grown fairly fat are now finding that they are only seventh in a world where only the top three will survive"
| STRONG GLOBAL BRAND = |
organisational network which interfaces two global good marketing fortunes
·1·Marketing System : owns highly selective competences, and team networking culture capable of sustaining world beating integration of:
- product offers and
- distribution systems through to end-consumers·2·Marketing Communications : owns categories whose essence can always be represented by an exciting communications platform to the world at large
|marketing fortune|| GILLETTE|
razors and male toiletries
family menu of packaged foods
|systems||Reengineered brand marketing architecture: moved from locally operated marketing to global orchestration : eg satellite advertising campaigns, flagship product sub-brands (eg Sensor)...||Structured banner brand and "glocal" management system around portfolio of category leaders. These gain from and add to corporate banner of being the world class foods company|
|platform||Male fashion theme lifts product category above competitive renderings and fits program (eg sports, music tv) material most capable of reaching out to global audiences||Global use of "Nest" icon connects:|
·intricately smart execution of a global quality marque
·simple theme fitting wide range of category leaders in family-hoarded foods
+Unilever's other ice cream companies
|systems||Globally, Unilever has installed more company-owned freezers for distributing ice cream than any rival company||P&G scale & commitment to constant innovation of world class technology relevant to product category|
|platform||Ice cream advertising easily communicates : eg|
impact on hot day
impulse (immediate self-gratification from one of "life's little luxuries")Ice cream is also a natural as a high visibility category. (Whilst on globally different pitches, Walls and Haagen-Dazs are two leading animators of this cultural facet of the product)
|Human emotional highground:|
·spokesbaby works universally as most powerful tv ad announcer·natural upmarket category - in some developing countries we've even seen residents flying in with Pampers instead of "duty free"!
|Just one Cornetto|
Unilever was surprised to discover recently that it was making Cornetto ice creams - supposedly a standardised Euro-product in 15 different cone shapes.
Only a few years ago, this kind of disparity would have gone unchallenged, and probably unnoticed. However, the focus of the single European market and fiercer competition have forced Unilever to ask whether it needs - or can afford - such diversity. In many cases, the answer is no. Indeed, the company has concluded that its product range has often evolved less in response to vagaries in consumer taste than because each of its traditionally autonomous national subsidiaries had been left to do things in its own way. Financial Times, 28 October 1991
|Table 2 : global branding - strategic meanings and organisational practices|
"The 3M logo is the primary symbolic representation of 3M's people, products and values. It is also the most valuable property we own."3M corporate brochure "Global brands are emerging because companies that make and market them are becoming global organisations.... The brand is a by-product of organisational experience and business systems (which is what we truly leverage rather than some catchy name)...So why do organisations, including my own, continue to strive for worldwide brands? I believe that they are rallying points or symbols for the organisation itself, for the experience and knowledge it brings to the marketing of soft drinks, cigarettes or beer." Michael Jordon (former president of Pepsico International, now CEO Westinghouse) "Successful companies will be market-driven by adapting their products to their customers' strategies. New marketing will be orientated towards creating rather than controlling a market; it will be based on developmental education, incremental improvement, and ongoing process rather than simple market-share tactics, raw sales and one-time events. Most important, it will draw on the base of knowledge and experience that exists in the organisation"Reg McKenna, "Marketing is everything", Harvard Business Review, Jan/Feb 1991"The dominant associations that produce a master brand also reflect the core competences of a company. In particular, brand competences are those marketing activities that give a brand meaning and provide its added value to products. To protect brand competences from erosion many brand decisions are now being made by senior managers instead of category managers and brand teams. One result is a much tighter focus on the brand's distinctive competences."Farquhar, Han, Herr and Ijiri, Marketing Research, September 1992
"In the old days, it was up to the worldwide business manager to make the case that a new product was right for local markets. Now it is up to the local manager to demonstrate that it is not going to fly locally. Our expectation is that every new product will find a global market".Anonymous US executive requoted from Hamel and Prahalad, Competing for the future "To compete internationally a company cannot afford to be in the second division of a branded marketplace. Being one of the leaders matters. It gives you the credentials to invest in the latest technology, to continue to attract the best teams of people, to deal as an equal with the trade, to be respected for independent corporate values in the joint ventures you enter..."Sir Adrian Cadbury (quoted in World Class Brands, Chris Macrae)"To me a global brand is a product or service that has a consistent worldwide identity and a consistent message and a consistency in terms of price, value and performance. Your identity must be clear, credible, and relevant. If you want to own this globally, you are going to have transport your culture, your vision, your way of doing business to marketplaces where you are dealing with foreign nationals. If you are going to partner with these people, you have to find the right partners, establish the right deal, and if these people are strong and entrepreneurial business people they will want to share your vision and work with you on it."Alan Siegel, Chairman of Siegel & Gale (BBC for Business video "Branding - the Marketing Advantage")"A global brand is a brand where people around the world share the same vision of that brand"John Hegarty, Bartle Bogle Hegarty (BBC for Business video " Branding - the Marketing Advantage")"In effect, Europe marketing (at haagen-Dazs) works with the local teams in order to be able to meld what is European about the brand with the local components. I have to say it's not always the easiest thing for us because we're all individuals with different opinions. We have a lot of debates before we actually deliver or execute in the marketplace, but I think that's healthy, actually very positive because it brings people together against the same objective."Claire Watson, European Marketing Director, Haagen-Dazs (BBC for Business video "Branding - the Marketing Advantage")"As a global brand we have a real challenge in terms of ensuring consistency in our advertising message. We want to come across a s a global business as well as making sure that people think of us as a local business. One way we have succeeded in this is our testimonial format of advertising. If you go to Germany or Italy or japan or Mexico you will see a similar type of advertising on the television. You may not understand the language the person is speaking but the style, the approach, the endorsement from the service establishment featured in any one of those markets comes through and says this is an American Express ad. So we have a global approach to advertising but we really try and localise it which helps us to make it much more relevant to the customer in any given market."Russ Shaw, American Express (BBC for Business video "Branding - the Marketing Advantage")
|Table 3 : Global marketing wars in chips and suds|
·In 1993, the American Accountancy magazine, Financial World, declared that advertising campaigning on "Intel Inside" had resulted in "the year's biggest increase in brand value up a staggering 107% to $17.8 Billion". Then, a little over a year later, we have Intel CEO Andrew Grove quoted thus : "This is a very important moment in Intel history as we continue to evolve into a consumer technology company. The company is learning some painful lessons about how to deal with the concerns of the buying public. The Pentium is the most tested microprocessor that has ever been manufactured in the world, but there is no such thing as a perfect microprocessor. We are anxious to have this event behind us, but given this has become a major event in the mass media, involving people who are not accustomed to dealing with sophisticated terms like random divides, operands and floating points, quite frankly we do not know what to do." (The Financial Times 14 December 1994)
·Two retailers' verdicts sum up why Unilever needs to learn fast from its 1994 "Power failures" in European detergents markets:
·"We know Unilever well. Normally, they are a class act but they don't look too clever now."
·"The whole detergents sector is drowning in over-claiming and publicity which leaves consumers confused". Financial Times Editorial (21 December 1994) "1994 will go down as the year when the gloves came off in international businesses. The fact is that markets for goods and services are becoming fiercer as they become global.
The year's two great marketing struggles - the "soap war" over Unilever's Power detergent, and the dispute between Intel and IBM - also offer broader lessons:
·Global marketing is uniquely challenging. Launching a product more or less simultaneously across a continent, or the world, as is increasingly the trend in consumer markets, demands that companies attain a flexibility and focus that few have yet achieved. If something goes wrong in one national market, the chances are that the problem will spread rapidly as Unilever has found to its cost.
·Technology can be a marketing curse as well as a blessing. Companies seize on technological innovations as a unique selling point. Yet unless they subject their new products to the most rigorous testing - looking, as Unilever patently did not in the case of Power detergents, for flaws that a ruthless competitor might expose - the invention may blow up in their faces.
·Even where technology is the only obvious selling point, as with Pentium chips, there is a risk that over-ambitious marketing claims, without adequate information, will simply confuse the consumer. How many PC users had worried about possible flaws in the inner workings of their computers until Intel started trumpeting Pentium? How many users of soap powder noticed that washing damaged their clothes before Power came along? ·Companies like Unilever and P&G have learned in recent months that they can no longer hide behind the carefully manipulated image of their (product) brands; they have to explain themselves and their activities more effectively to consumers and a wider public. Consumers are more demanding than ever before - and competitors more ruthless. The manufacturer that fails to appreciate these facts will go to the wall."
Psychology of "Have a break, have a Kit Kat" is its core (global) branding property (not the product per se)
|IDENTITYThe opportunity to persevere and become an impactful and inimitable global eccentric is real and more appropriate than promoting an abundance of locally mutated forms"Break" is an universal "calendar of mind" identifier||HERITAGE|
FRIENDSHIPIf a brand has led a highly competitive market for many decades, it is likely to comprise some strategic elements which should be non-negotiable in any international translation of the brand
|FUTURE NEWS||OTHER CREATIVE|
|MASTERBRIEFINGKit Kat - evolution of many aspects of mix needed direct and evolutionary coordination to turn local leader into Eurobrand||QUALITY & VALUEIn the long-term, the costs of not turning Kit Kat European would probably have made the product too costly for everyone||FLOW/TEAM|
NETWORKING"It was necessary to recognise and formalise interdependence "
·country managers to work together
·lead ad agency had to be appointed to focus core meaning
·market researchers had to be taught to put global interpretation before local accentuation·mix elements/production had to be progressively harmonised
|UMBRELLA CONNECTIONS||OTHER MANAGE|
|BRAND ARCHITECTAs global brands Nestle and Kit Kat add to each other's reputations at corporate and product levels||STRATEGY|
ARCHITECTWorth of brand was in its competitive future as a global, not its past performance as a local
Combination of brand scale and personality make it very unlikely that own label could ever beat this brand"The future (of confectionery) will be in the hands of megabrands whose manufacturers have understood and managed the "virtuous circle" (of world class quality and value)
ARCHITECTCentral strategic ownership with negotiable implementation essential to developing Kit Kat as successful Eurobrand
Rowntree's experiences with Kit Kat do suggest that this company was not in a fit organisational form to compete in a globalising business world
|DRAMA OF LEADERSHIPThe success of Kit Kat has provided Nestle organisation with inspiration that act global and local is the company's future of branding||OTHER DIRECT|
|Likelihood of HIGH||Bread & Butter||Pearls|
|technological success LOW||White Elephants||Oysters|
|SmithKline Beecham articulates precisely what it expects of leadership within the organisation. The company's Nine Statements of Leadership Practices are well known within the industry. SKB managers know fully well they are expected to do the following:|
(1) Find opportunities for constantly challenging and improving his/her personal performance
(2) Work with his/her people individually and as a team to determine new targets and to develop programmes to achieve these higher standards of performance
(3) Identify and continuously implement improved ways to anticipate, serve and satisfy internal and external customer needs
(4) Stress the importance of developing and implementing more effective and efficient ways to improve SKB procedures, products and services through quality analysis
(5) Initiate and display a willingness to change in order to obtain and sustain a competitive advantage
(6) Reward and celebrate significant creative achievements
(7) Develop and appoint high-performing and high-potential people to key positions
(8) Help all employees achieve their full potential by matching talents with the jobs to be done and through quality performance feedback and coaching
(9) Communicate with all constituents openly, honestly, interactively and on a timely basis
We're all familiar with the innovation blockers : top management isolation, conformism, bureaucracy, fear of change, short-term vision. They're particularly prevalent in large, well-established, structured 'we-know-it-all' organisations like mine. Most of us work for companies that innovate all the time. But most of these innovations are small, predictable, imitative and won't last.
Andrew Seth (November 1994 - while managing director Lever Brothers UK and member of Lever Europe board)
- Increasing patterns of short-term influence over organisations of 1980s/1990s
·adhoc management consultants (and their products selling instant results : benchmarking, reengineering, downsizing, activity based costing)
·city analyst pressures (punter capitalists on stocks, short-term reward schemes for CEOs, ever-increasing analytic focus on last 3 months' performance)
·IT models (more data on measuring the recent past)
·appraisal/reward schemes geared only to recent sales
·a corporate belief system biassed towards competitive response, and away from leadership of the company's own standards