What earthquakes, tsunamis and pandemics can teach us about global brand management

Having been a student, teacher and practitioner of global automotive marketing, I've come to believe that 'one size fits all' is never an option for global brands, but neither is 'to each his own'. Like it or not, we live in an interconnected world, and almost everything that happens somewhere, somehow has an effect somewhere else. The challenge global marketers face is to manage that effect across borders. And while it might seem counterintuitive, the secret to staying consistent globally is to be different locally.

While many textbooks have been written on the subject, there are valuable lessons that can be learned by looking way past business to other significant events--like earthquakes, tsunamis and pandemics. 

Lesson #1: Competitive Infrastructure Varies By Market

In March of 2011, I was in Yokohama when the 9.1 magnitude Great Tōhoku Earthquake struck. I was in a 1.5 year-old 22 story building and will never forget watching it twist around itself for almost 5 minutes. Remarkably, when the twisting and shaking was over, it sustained no permanent damage. Relieved, I remember thinking that a building constructed anywhere else in the world would likely have collapsed and thousands of lives would have been lost.

Japan's Strict Building Regulations Prevent Earthquake Damage

Just like the earthquake was no match for the formidable Japanese infrastructure, brands may encounter formidable competitors who can neutralize your biggest assets. As an example, the top 3 automotive sales brands are different in every one of the 8 markets listed below.  

Brands must understand what has driven success for leaders in each market. It's likely to be a some combination of heritage, filling unmet needs, innovative product offerings, market growth, and demographic trends. Brands should strategically weigh key market success factors against their own strengths and equities, and set expectations accordingly.

Even mighty Toyota has never been able to crack the code in Europe, where German brands have rendered Toyota's legendary strength, quality, as cost of entry in their market. As such, Toyota's share in Europe remains less than half that of markets like the US and others, where quality solved an unmet need.

Lesson #2: Home Market Relevance Diminishes With Distance From Home

An hour after the earthquake, I watched in shock as the news reports showed the massive tsunami hitting the coastline with lethal force. Ten hours later, it reached the California Coast, causing moderate damage in a few isolated spots.

Just like the tsunami's force diminished as it traveled further from its point of origin, a brand who is part of the fabric of its home market may have a hard time transferring that relevance to other markets. The further away from the home the the less relevant that story becomes. Thus, to be successful, the brand needs to leverage its DNA in a way that is relevant to the local market, and the state of that brand in that market.  

Take Hyundai. In South Korea, Hyundai is a hometown hero who was instrumental in rebuilding its country after the Korean War. Today, that role continues, as Hyundai Group's business units operate in almost every dimension of South Korean industry and infrastructure. It is because of its ubiquity that the Hyundai car brand commands more than a 50% share of its home market. 

As Hyundai expanded to other markets, it had to rely solely on the merits of its products which, at times did not hold up under scrutiny. Today, Hyundai's products are some of the best in the industry, and Hyundai is establishing local credibility on the merits of these class leading products.

Lesson #3: Understand the Local Culture and Communicate Accordingly

In 2020, we are watching a pandemic sweep across the globe, with some countries  containing it quickly, while others see no end in sight.

The current COVID-19 pandemic provides perhaps the most powerful illustration as to how culture differences manifest themselves in every aspect of life--and why you can't expect to connect with the same message in every market.

Geert Hofstede, a world renowned expert in cultural studies, defined 6 dimensions of culture and their effect on behaviors and communications style. Of these 6 dimensions, 4 seem to have the strongest relationship to success and failure in beating COVID-19--individual vs collective, long-term vs short-term orientation, tolerance for uncertainty, and tolerance for indulgence.

South Korea and Germany share similarities across these dimensions, and both have successfully flattened their curves. Meanwhile, the virus continues to rage out of control in the US. 

South Korea, with a curve that looks more like a needle, rates extremely high on collectivism, uncertainty avoidance, long term orientation, and restraint.  

While Germany scores higher on individualism, it was still able to lean into its long term orientation, uncertainty avoidance and cultural restraint to flatten the curve relatively fast. 

Conversely, the US is high on individualism, low on uncertainty avoidance, exhibits a very short term orientation, and indulgence is accepted. These dimensions likely explain the 'freedom' argument that seems to be fundamental to the anti-lockdown anti-masker sentiment, as well as the inability to abide by the rules for more than a few weeks.

These same dimensions of culture help to explain the efficacy of communication styles and corresponding messages across cultures. A culture dominated by  short term, individualistic dimensions requires a message that relates specifically to tangible evidence that can be proven today. It needs to be factual and to the point. Cultures with a longer term, collectivist mentality are more likely to respond to more esoteric, futuristic metaphorical stories.

A good example of how those differences manifest themselves in brand communications can be found by comparing Nissan's ads in China, a country that indexes high on long term orientation and collectivism, with the US and Canada, both indexing opposite to China on these dimensions. Where the China ads rely heavily on fantastic, futuristic imagery and metaphors, the US and Canada ads use straightforward everyday product demonstrations wrapped in personal stories, with features prominently highlighted.

Nissan China 

Nissan USA and Canada

It is important to note that while the brand's creative expressions are extremely different, they are both highlighting Nissan's 'Innovation that Excites'--but they are doing so in ways that connect with culture. 

So as brands strive to create global value though alignment, they need to be students of every market in which they compete. They need to evaluate the competitive environment and understand their relative strengths and weaknesses. They need to be cognizant of the fact that their history and heritage may not be relevant across the globe. And they need to understand that, sometimes inconsistency is what it takes to drive unity.

Boom, Bust or Reinvention? Could the Pandemic Create a New Kind of Car Culture?

In 2013, the New York Times declared that car culture was dead. For the next generation, it

seemed that driving had lost its caché. The percentage of young licensed drivers, and miles driven by them were trending down at precipitous rates. Technology had taken the place of cars as coveted objects of desire. Hipsters were fleeing the 'burbs and raising their kids in urban neighborhoods where everything was walkable. And for the occasional trip elsewhere, car sharing services were readily available . 

                            

Even though new vehicle sales rebounded handily after the Great Recession, the idea of cars for fun did not. As congested roads caused average highway speeds to plummet 40% or more, the dream of the open road became a pipe dream. As global warming hit the headlines, cars became a major culprit. 

Thus the type of vehicles that were purchased changed dramatically. Sales of sports cars, primarily purchased for the thrill of the ride plummeted. Instead, SUV's dominated the landscape as a means to an end--the destination had overshadowed the journey. Even the Porsche line up was dominated by SUV's

Now, the specter of COVID-19 is likely to change life in ways not seen in 100 years. Just like the Great Depression forever shaped the values and behaviors of an entire generation, COVID-19 is likely to do the same for those coming of age today. 

As we are work, learn and socialize remotely, and our vehicles sit idly in garages, it makes one wonder if this new 'do everything from home' mentality will make people question whether they need cars at all?

                                 

                      

Or could it actually do just the opposite -- could it create a new kind of car culture? 

Some things to consider: Will people ever feel safe using ride sharing vehicles or public transportation again? Will they continue to avoid public places like theaters, malls and restaurants, even after a vaccine is found? Will they choose not to fly? Will they eschew the denseness and consequent threat of urban living, and flee to the suburbs? If you  can work from anywhere, couldn't you live just about anywhere--even in the most remote places in the world?

If life change this way, the car might once again become central to life. If that is the case, is it possible that we could have a 'Back to the Future' car culture that looks oh so familiar but with a decidedly modern twist?  

Cars as a means to escape from 'the office' and 'school'?

• With roads free of congestion, and people confined to one place, will sport cars make a resurgence as the symbol of freedom and means for escape? The new breed of electric sports cars with the performance of the past and environmental friendliness of the future could handily fill the bill. 

• As designers of autonomous vehicles push the envelope on new interior configurations, could the car become a sanctuary, even when stationary? It could double as an extra room to relax and wind down. And unlike additions to your existing home, it could literally transport you, and be easily refreshed and remodeled every few years, so that your home never gets boring.

Cars as a reliable, safe haven in public places?

• Could drive in theaters make a comeback? There would by definition enable social distancing, while simultaneously eliminating the annoyance of intrusive cell phones and noisy audience members. Imagine driving up to a huge Jumbotron, and listening to the audio on your ultra premium in vehicle sound systems.
• Speaking of ultra premium audio, could outdoor live concerts also become drive in events?
• Will robotic car hops serve food at drive-in restaurants? Better yet, could robots serve at fine dining venues-- in the comfort of your luxury appointed autonomous dining room.

These are just a few of the possibilities. While we don't know what will happen, automakers should be looking beyond the current sales decline and begin to think of the post COVID-19 era as an opportunity to innovate in a way that regains the revered place in culture that cars once held.