From Multi-National
to Global:
The 5 questions to ask to ensure your
brand stretches around the world without breaking
Many multi-national brands
are looking to go ‘global’ to some degree, but what ‘global’ means, and how
it’s accomplished can vary significantly, as can the degree of results. Most
brands start with similar motivations: to reduce the potential for marketplace
confusion created by mixed messages as media crosses borders, as well as to
satisfy procurement’s push for efficiencies.
My experience in global branding,
which includes Disney and Nissan, among others, has taught me to ask these 5 questions
of global brand owners. Answering them correctly will ensure that global
branding efforts will result in maximum alignment and value creation.
1. What is
the end game: ‘matching luggage’ or alignment to brand truth?
Certain degrees of
consistency are relatively easy to achieve, but in the end, don’t really serve
the intended purpose. For instance, imposing
strict standards for global look and feel in communications can create a sense
of ‘matching luggage’. Going only this
far, however, can still result in behavioral dissonance across borders.
Brand Compliant? |
Alignment to a brand truth,
on the other hand, will actually give local markets more freedom to bring the brand
to life in locally relevant ways, while still delivering a globally consistent customer
experience at every touchpoint.
2. Has the brand been defined in an actionable way
that favors clarity over poetry?
Marketers tend to favor
brand definitions that wax poetic about the virtues of their brands and sound
more like clever advertising slogans than simple, single-minded, actionable
statements. While this makes everyone
feel warm and fuzzy, it can create confusion as the brand attempts to cross
borders. Puns, complex emotions, and 3-dollar
words usually don’t translate easily, and encourage local markets to create local
versions of the global statement. More often than not, these local statements actually
wind up redefining the brand and erasing the original intent.
Brand statements must not only be clear, but
they should be actionable by identifying brand behaviors that the entire
organization can follow to create valuable customer experiences.
Clarity or Poetry? |
Over the years, Avis
defined itself with the simply worded, ‘We Try Harder’. Much more than a
tagline, it clearly informed all brand behaviors. Recently, as part of a brand repositioning
intended to focus on the customer experience, that iconic line has been
replaced with the more poetic, and arguably much more enigmatic, ‘It’s Your Space’. What does this new line tell the Avis
franchisee in Milwaukee to do? Will it drive the same behavior as the franchisee
in Dubai? Probably not, as it is neither
clear nor actionable.
3. In seeking local market relevance have we
preserved the relevance of our brand?
One of the fundamental
rules of global branding is to find local market relevance for your brand. But
this philosophy can be easily misapplied.
The key to success lies in leveraging local market insights in service
of the brand, rather than pushing the brand beyond credible truths, in service
of local market insights.
Anyone who has ever worked
in the Chinese market has heard that Chinese consumers are driven by status.
Certainly, ‘bling’ is king for certain consumers, and this has served certain
brands well.
Too Far A Stretch? |
Recently, there have been
reports of the internal struggles at Volvo regarding the future of their brand.
Their new Chinese brand owners, Geely want to follow the bling with a bigger
more powerful flagship. Their Swedish management believes Volvo’s value in the
China market can be more credibly established by strengthening their current
reputation as a safe, understated brand by leveraging their new safety and
environmental technologies. Is bling too
far a stretch for Volvo? Could such a
direction be credible in the US and Europe, or is there another Chinese insight
that better serves the Volvo brand everywhere? Considering that China has the
second highest vehicle fatality rate in the world, and significant air
pollution issues, might Volvo forgo the bling and win the future by credibly
leveraging its unique strengths?
4. Do I need to centralize the organization in order
to ensure consistency?
When moving towards global
brand alignment, there is a natural tendency for global headquarters to want to
control everything. Not only is this
impractical, it is also ineffective.
The key is not for headquarters
to impose their will on the local markets, but rather for roles,
responsibilities, and accountability to be clearly identified and tangibly
reinforced.
Headquarters should be
responsible for providing a strategic framework that is flexible enough to
account for cultural nuances, but rigid enough to align all behaviors. When
developing this framework, headquarters should consult with local markets, not
for strategic advice, but rather to understand how cultural and competitive
context might impact activation.
Local markets should be
responsible for optimizing activation behaviors within the strategic framework,
by leveraging their local market and customer knowledge.
Many organizations stop
there, only to be frustrated by lack of progress. Perhaps the most critical factor in ensuring success
is to make everyone in the organization accountable to the same objectives.
Achievement of these objectives should directly tie to their compensation.
5. Has the obvious been overlooked?
Urban legend has it that
the Chevy Nova failed in Spanish speaking countries because ‘No va’, means ‘no
go’. While this is actually just an urban
legend, there are many true examples of brands that have overlooked the obvious
in committing faux pas when crossing borders.
When I was living in
Australia, the Gap was opening its first store in Sydney. There was much hype surrounding the opening, and
as an American ex-pat, I was truly excited about the prospect. I fought my way
through the opening day crowds during peak Christmas shopping season…the middle
of the Down Under summer. Imagine my
surprise and disappointment when all the merchandise was fall/winter apparel!
How such a great brand could overlook such an obvious detail seemed
unfathomable!
Don’t take things like
local climate, dialects, and taboos for granted. Make sure that any globally run initiative,
no matter how small is vetted with the locals before proceeding.
The road to global branding
is never easy, but properly thought through and executed, the move can bring big
rewards for brand owners.