How to reach emerging market consumers with new ... - Roland Berger

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Roland Berger Strategy Consultants Brand positioning – Simple but creative The "country of origin" effect Rising incomes in emerging countries encourage consumers to change their brand purchasing behavior. A welcome consequence of this for Western companies is their increasing preference for established Western brands. Local brands are often left far behind in the competition. For example, no local brand features among the leading fashion brands in Saudi Arabia, and only one domestic brand in India makes it into the top 10 beauty brands. f7 Manufacturers in emerging countries own just 12% of the world's 500 most valuable brands. China leads the pack, with 27 internationally distributed brands, followed by Brazil, with 10 brands. In the long term, brands from emerging markets are likely to become more prominent in Europe as manufacturers shift their attention from domestic to world markets. Products that are successful in emerging markets can often also be sold globally. For instance, Chinese automakers – notably the company behind the Qoros brand – are confident that they can expand into Europe following the example of global Chinese brands in the IT sector, such as Lenovo. Brand origination is a matter of considerable importance in emerging markets. The "country of origin" effect means that people associate particular countries with certain product characteristics. Consumers worldwide, for example, frequently associate German products with quality, reliability and durability. In the past, consumer goods manufacturers such as Coca-Cola transferred their successful national brands, logos and advertising to their worldwide subsidiaries. But building brand awareness today calls for more imagination. Western companies must adapt to local and regional conditions. Often the most innovative marketing technique is the simplest. In several emerging countries, for example, Coca-Cola gives paint in its signature red F8 Top-selling brands in emerging countries Sales by brand, 2012 (retail value, USD million) Top-selling fashion brands in Saudi Arabia – No homegrown brands Mothercare Next Zara Aldo Bossini/Sparkle Marks & Spencer Clarks Footwear Bershka Milano Calvin Klein 231 191 164 159 121 70 60 60 47 47 Top-selling beauty brands in India – Dabur is the only Indian brand Fair & Lovely Colgate Lux Lifebuoy Godrej Dettol Santoor Dove Clinic Plus Dabur 465 353 336 305 257 244 208 196 159 156 Source: Euromonitor
Study 19 F9 Emerging countries lead the ranking of global happiness Happy Planet Index (index value): The index's top 10 are emerging countries Jamaica 58.5 Colombia 59.8 Costa Rica 64.0 top ten El Salvador 58.9 Venezuela 56.9 Vietnam 60.4 Panama 57.8 Nicaragua 57.1 Belize 59.3 Guatemala 56.9 Source: Centre for Well-being, new economics foundation #46 Germany 47.2 #105 US 37.3
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