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The Value of Global Branding

Global Marketing 2Our Objectives TodayUnderstanding global brandingWhat is it? Why do it? What are the benefits?Global vs local brandingCreating global brands: key success factorsBrand buildingMarket buildingBest practicesCharacteristics of successful global brandsExecutions and approachesCase studies3Understanding Global BrandingStart at the 20,000 foot level understanding and defining the philosophy of global branding, what it is and why theres been a major shift towards global branding in every industry. Creating Global BrandsOnce we define and establish the case for global branding, next step is to look at the how what are the things you need to do to create a successful global brand?Characteristics of Successful Global BrandsLastly, look at specific examples and case studies of some select brands.Our Objectives TodayUnderstanding global brandingWhat is it? Why do it? What are the benefits?Global vs local brandingCreating global brands: key success factorsBrand buildingMarket buildingBest practicesCharacteristics of successful global brandsExecutions and approachesCase studies4So What Is Global Branding?A global brand is one whichis perceived to reflect the same setof values around the world5What Is a Global Brand vs a Global Campaign?FontColorSymbolLogoTaglineIllustrative stylePersonalityFootprint/brand essenceThe advertising executionSpringboards off idea/insightExecuted locallyDelivery of the brands core messageGlobal CampaignGlobal Brand6Background on the BRAND FOOTPRINT:The Brand Footprint is the McCann tool that defines a brand's essence. It provides a clear understanding of which values need to be protected and leveraged in brand communications. The Footprint is a coherent statement of a brand's meaning and personality, specifically:The brand's three primary meaningsThe three dominant personality traits that reflect those meaningsWhat the brand "means" is what a brand gets credit for in the eyes of consumers -- its reputation expressed across three key dimensions.What the brand "is" is how we would describe the brand's dominant personality traits. These correspond to the three principal meanings in essence, the visible or superficial personality characteristics of a brand that we would expect the brand to exude if it were to walk into the room.The cohesive relationship between means and is creates a rich portrait that captures the essence of "brand space" . It is a three dimensional portrait that is able to convey this essence quickly and efficiently, but with enough texture to inspire marketing activities from product development to integrated communications. Thus, the following Footprint for Bayer Aspirin quickly conveys the essence of a relatively functional brand:Bayer Brand FootprintBayer means AspirinBayer means Doctor RecommendedBayer means Prevention Against Heart AttacksBayer is ExperiencedBayer is SafeBayer is VersatileThe Global Top 10Business Week: July, 2004.

$67 b61 b54 b44 b34 b27 b25 b24 b23 b22 bBrandsBrand ValueWhat are the worlds most valuable brands?7Showing examples of some of the worlds top brands.You cannot be big, or valuable, without being global. Period.What About Big Pharma?Med Ad News, Sept 2005.The top 5 companies have 6 of the top 10 pharma brands

$187B184B136B114B112BCompanyMarket CapThe worlds 5 most valuable pharmaceutical companies8Similarly, major global brands drive the market value of the worlds top pharma companies.Pfizers drugs alone represent almost ten percent of the value of the worlds top 200 prescription drugs. (combined sales of $37.4 billion.) Three of the top 10 products are PfizersGlaxo is second, with combined sales of $24.18 billion.Pharmas Top 10 BrandsRanked by revenue; Med Ad News, 2005.

$10.86$5.20$4.50$4.46$4.42$3.88$3.59$3.36$3.35$3.33BrandsBrand ValueTop 109The brands that belonged to the top 5 companies are: Lipitor (Pfizer), Advair (GSK), Norvasc (Pfizer), Procrit (J&J), Zoloft (Pfizer), and Plavix (BMS).Global Branding EvolvesDecentralizedMultidomesticCentralizedProduct PositionCentralizedBrand PositionGLOBAL BRAND 5 years ago, there were different global philosophiesMartiniLOralCoca-ColaUPSCereal Partners WorldwideBacardiTiffanyLevi'sExxonMobilBlack &DeckerJ&JNestlMasterCardGSKAstraZenecaCathayPacificPfizerNescafGeneral MotorsMicrosoftNovartis10Talking point: Despite the very high value of global brands, as weve seen in the previous slides, global branding has not always been a given, particularly in the pharmaceutical industry. [Point out that most pharma cos are on the left hand side of the chart]NescafMartiniLOralCoca-ColaUPSCereal Partners WorldwideBacardiTiffanyGeneral MotorsLevi'sExxonMobilCathayPacificBlack &DeckerJ&JNestlMicrosoftMasterCardSince then, even Radically Decentralized companies are pushing for global brandsAstraZenecaGSKNovartisPfizerDecentralizedMultidomesticCentralizedProduct PositionCentralizedBrand PositionGLOBAL BRAND 11But were now seeing a shift. Even the companies that have gotten to where they were by engaging mostly in domestic or product level marketing are starting to move closer towards a uniform global position.WHY?Market leaders continuously change the rules of the game. By changing the rules, you control the game and the marketplace.

MIT Sloan Management ReviewWhy the Change?12Market leaders in every industry see the opportunity, before anyone else does. Global is an opportunity that is very, very attractive; but difficult to implement because it is fundamentally different from the current models and ways of working. It has, in classic strategic terms, high barriers to entry. Thats what leaders like. The chance to take control of the playing field, control the rules to their advantage.Why Global?Megabrands are worth more.Global megabrands are the most valuable.Flagship brands in corporate portfolioEconomies in branding, packaging, purchasing, marketing, and manufacturingTransfer best practices faster and easierAbility to launch new products and services multinationally13Specifically, market leaders are working towards global because of the factors outlined above. It is about creating MORE VALUE at the end of the day.Within the pharmaceutical industryThe key driver for global marketing communications is part of a larger trend towards consolidation14Pharma has always had to play by a different set of rules than other industries. So while we do see the push towards globalization in pharma, its nowhere near the level of globalization that we see in Coca Cola or Marlboro. The idea of selling that is based primarily on creating a worldwide uniform emotional connection to a brand, or a uniform global brand identity, does not fit into pharmas playbook.Rather, in pharmas case, the primary VALUE of globalization is coming first and foremost from the EFFICIENCIES that it creates.MaximizingefficiencyEnhanced information and controlBetter production cost-efficiencies; quality valuesGreater synergyBetter best practices sharingit comes from the overwhelming need to maximize value over the patent life cycle by maximizing efficiency15With time on-patent shrinking in the pharma industry, EFFICIENCY is more crucial than ever. The ability to get to market BETTER, FASTER, and CHEAPER is driving the push to global branding.But what about the local argument?

There can be a trade-off between maximizing efficiency and consistency with relevancy of culture, brand, and patient/physician preferences

Marketers need to balance the demands of centralization with local needsIt is not simply N.I.H. (Not Invented Here)16Here, we are anticipating the counter-argument: The previous arguments for global are all well and fine, but in practice, when pharma clients try to implement global, theres major pushback at the local level. The key point the locals try to make is that the global work often lacks RELEVANCE for the local markets.Marketers at the global level need to realize that there is validity to this argument. The local markets are not simply pushing back on the basis of NIH.Global vs LocalTipping the balance While the local/regional argument is compelling, the balance has tipped toward global brandingGlobalInformation transparencyCompetitionMaximize efficiencyLocalLocal relevanceBrand, culture, product, consumer, marketing, messagingCompetitive flexibilityPatient/Physician preferencesGlobalInformation transparencyCompetitionMaximize efficiency17Relevance and local cultural preferences are good counter-arguments. And they should definitely be taken into account, in any global campaign. But they are not strong enough to counterbalance the overwhelming drive towards global brands.In fact, in the last segment where we have case studies, well look at how some marketers have gone global, yet acted local where necessary.In the next three slides well look at the 3 major factors that are tipping the balance:Information transparencyCompetitionEfficiencyTipping the BalanceExposureAwarenessDiffusionLocal markets can readily see and are impacted by global informationInformation transparencySignificantly increased exposure to global informationAwareness of world icons and brands increasingly dominant in local marketsInstant dissemination of news (positive and negative) to patients and physicians18Tipping the BalanceCrowded Local MarketsHigh Brand Awareness in Local MarketsKey to success is share of mind, not product on shelfCompetition in all therapeutic categoriesDominance of me too drugsHigh awareness of world icons/brandsBest in class does not translate into sales dominanceIncreasing competition19Critical Marketing Mass Through EfficiencyGlobal marketing may be the most effective way to consolidateTipping the BalanceWhen it works, the economies of scale are significantGenerates cost savingsIncreases resources for marketing prioritiesSpeed to marketMaximize efficiency20ConclusionsInevitably greater brand v

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