Globalization has caused dramatic changes to business practices
around the world and people have been talking about it since I can remember.
But undoubtedly, the technological advancement from widespread Internet access
to mobile technologies, social media and rapid global transportation, brought
us to unprecedented levels.
Moreover many companies in several industries need to be global to
be successful. Take pharmaceuticals for example, while the U.S., EU5, and Japan
account for just above half of the total global medicine spending, the growth
will come from China (34%) and ROW (41%) (1). Therefore many companies that
want to be successful will need both the volume from one side and the growth
from the other side. And I suspect that this is the case in many other
industries.
But going or being global comes with warnings (2). For example, a
company cannot forget that people are connected and talking about brands
regardless of where people are. We are also travelling and being in contact
with our "home" brands no matter where we go. It may sound trivial,
but forgotten within the complex global organizations.
A very simple
example, the other day I was having lunch in Madrid and decided to take one
Coca-Cola Light. But to my surprise I couldn't find the cans like I'm used to.
They had different colors and design than they have in any other country I’ve
been. As a simple customer I was surprised. This simple event reminded me of
the challenges that global (or regional) marketers face today: Balancing a
connected and globalized world with local requirements.
Some brands have a
very strong global positioning, like MacDonald's. Almost anywhere in the world,
the golden arches stand for affordable meals for families. However, their local
menus always have local customization to support local taste and culture. Like
the McKroket in Holland or Masala Grill Veg in India. Conceptually, McDonald's
seems to have a good balance between global and local.
But Stella
Artrois, the Belgium beer, has a different situation. In its home country, it's
positioned as a simple, cheap, everyday beer. However, in the USA, the same
brand stands for a hip, sophisticated beer with premium price.
How to go about it
then? There are some, but not many papers about this balance. Therefore I refer
to a couple of recommendations below. My takeaway based on readings and
personal experience is BALANCE! Specifically, the balance between consistency
and adaptation is the key.
Given the nature of the connect world, I do believe that global
brands need a coherent and consistent positioning. On the other hand, a
customized execution is warranted. That's because frames of reference
(regulations, competitors) and life cycle are different by region or country
(or even within a country). Therefore, the traditional concept of the 4Ps of
Marketing can be customized when required. But again, this customization has to
be in line with the global positioning and not cause any confusion to customers.
And it should also be a strictly necessary requirement supported by a solid
business case. Otherwise, it may be more valuable to preserve the consistency. Finally,
the involved countries need to have a strong culture of knowledge sharing.
In sum, going global may be required for many brands to be commercially
successful. But that comes with challenges and marketers have to learn how to
balance consistency and adaptation in order to preserve the brand while growing
the business.
(1) November 2013: The Global Use of Medicines: Outlook through 2017
Recommended Readings:
Global Brand Management: Best Practices and Learnings from Efforts to Build the Business "Over There
Recommended Readings:
Global Brand Management: Best Practices and Learnings from Efforts to Build the Business "Over There
