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

Roland Berger Strategy Consultants
color to village residents to decorate the outside of their houses.
Another inexpensive Coca-Cola marketing initiative turns shipping
containers, again painted Coca-Cola red, into storehouses or retail
stores.
Ecuador and Bolivia have embarked on a similar path. The
indigenous principle of "sumak kawsay" (meaning "good living")
was enshrined in the Ecuadorian constitution in 2008 and in the
Bolivian constitution a year later.
Hindustan Lever uses other techniques to build brand awareness.
The company frequently employs street performers – magicians,
singers, dancers and actors – to promote soap and toothpaste.
Lever and Ogilvy Outreach, a marketing arm of Ogilvy & Mather,
recruits the local performers, adjusting their scripts in line with
local dialects, education levels and religions. A series of such
performances in northeastern India saw consumer awareness
of Breeze, a low-cost 2-in-1 soap, rise from 22% to 30%. A similar
program to promote Rin Shakti, a moderately priced detergent
bar and powder brand, boosted recognition from 28% to 36% over
a six-month period.
Increasing relevance of values and sustainability
Religious values are important for many consumers. Increasing
numbers of religious people will drive the market for "valuesoriented"
products. By 2030, when the global population is
forecast to exceed 8 billion, approximately a quarter of people will
be Muslim. Pakistan will likely overtake Indonesia as the world's
largest Islamic country, with a predominantly Muslim population
expected to exceed 256 million. Christianity will remain the world's
dominant religion, however, with the Christian population expected
to be 2.2 billion by 2030. Most new Christian converts will live in
emerging countries. Together, Islam and Christianity will account
for over half the global population (53%) by 2030. The impact
on consumer preferences will be significant – Muslim women's
fashion and non-pork meat products are two commonly cited
examples.
Values in a broader sense – religious, environmental and social –
will play a major role in consumers' purchase decisions and brand
loyalties. We are already seeing a strong move in some countries
to integrate non-economic values into their economic perspective.
Bhutan, for example, first formulated a new official measure of
living standards, Gross National Happiness (GNH), to measure
economic progress as early as 1979. The four pillars of GNH are:
Pursuing equitable and equal socio-economic development
Preserving and promoting cultural heritage
Conserving the environment
Ensuring good governance
f9 We are seeing increasing efforts to measure well-being across the
globe. The London-based "Centre for Well-being" compiles a Happy
Planet Index to record life expectancy, experienced well-being
and people's satisfaction with the environmental impact of the
goods and services consumed. Costa Rica scores highest, followed
by Vietnam. Most of the other top 10 are emerging countries in
South America. Germany and the United States, with their large
ecological footprints, rank 46th and 105th respectively.
f10
According to a recent goodpurpose® study by Edelman, consumers
in "rapid growth economies" (RGEs) such as China, India,
Indonesia, Malaysia, UAE and Brazil have much higher ex pectations
of brands and corporations with regard to social issues. As
the middle class grows and acquires more purchasing power,
consumers in RGEs demonstrate a commitment to "social
purpose" across many different activities, such as buying, sharing,
donating and volunteering. This commitment is considerably
stronger than that found for many consumers in "bear" markets
such as Western Europe.