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

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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.
Study 21 F10 Buying socially responsible goods is growing in importance in emerging markets On average, how often do you buy a brand that supports a good cause? Every 6 to 12 months At least once a month Bull markets * 22% 62% 84% At least once a year Bear markets ** 19% 37% 56% At least once a year *) Consumers in emerging markets are "bullish" on purpose! They have high expectations of brands when it comes to social issues **) Bear markets are industrialized countries. Here, the consumers don't have such high expectations of brands regarding social issues Source: goodpurpose®
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