american values and globalization

America, The World, and the New Challenges for Global Brands

Corporate Communications InstituteApril 28, 2004

•How the World Sees America Today

•What’s Changed Since the 1990s

•Americans Themselves: A Greater “Disconnect”

• Is America In Tune With The World’s Values?

•So What? The Impact on US Brands

•The New Challenges for Global Brands

Presentation to cover:Presentation to cover:

National sample (North America 17%; West Europe 17%)National urban (Developed Asia 10%; Central Europe/Middle East 8%)National urban w/o lowest SES (Developing Asia 30%;Latin America 11%; Other markets 6%)

Representative of 1.3 billion consumers worldwide

Listening to 30,000+ consumers worldwide since 1995 --1,000 1-hour+ interviews per country with people aged 13-65

Roper Reports Worldwide 2004Roper Reports Worldwide 2004

How the World Sees America TodayHow the World Sees America Today

What Are Personal Values?What Are Personal Values?

Rene Magritte: “Personal Values”

“The things that act as the guiding principles in

your life and give meaning to your life”

or

Whateveris

importantto you

Examples of Values Statements Name of the value and a description

Wealth:Having material possessions, a lot of money

Open-mindedness:Being broad-minded

Honesty:Being sincere, having integrity

Looking good:Seeking the utmost attractive appearance

Having fun:Having a good time

American Culture:Wealth, Power, Freedom, FunAmerican Culture:Wealth, Power, Freedom, Fun

Wealth 90%Power 88Freedom 87Enjoying life 87Having fun 87Pleasure 84Status 83Material security 83Ambition 82Self-reliance 82Sex 82

% who attribute listed value as important to American culture (base: value is extremely/very important to them)

American Culture:Not Faith, Equality, HonestyAmerican Culture:Not Faith, Equality, Honesty

Modesty 51%Simplicity 47Social tolerance 41Tradition 41Traditional gender roles 41Thrift 41Spirituality 37Enduring love 37Respecting ancestors 37Obedience 35Stable per. relationships 34Honesty 33Equality 33Faith 33

% who attribute listed value as important to American culture (base: value is extremely/very important to them)

Venezuela 84%Taiwan 80Philippines 79Brazil 76Australia 75Hungary 75South Africa 75India 74Korea 74Japan 73Poland 72Mexico 72Russia 72Thailand 72

Countries Most Aligned With American CultureCountries Most Aligned With American Culture% who attribute their values as important to American culture (base: value is extremely/very important to them)

72% USA

Countries Least AlignedWith American CultureCountries Least AlignedWith American Culture

Singapore 71%Hong Kong 70China 70Argentina 70Indonesia 68Canada 68Czech Republic 66U.K. 65Sweden 63Italy 63France 63Spain 59Turkey 57Saudi Arabia 55Germany 55Egypt 55

% who attribute their values as important to American culture (base: value is extremely/very important to them)

72% USA

What’s Changed Since the 1990sWhat’s Changed Since the 1990s

World’s Perception of America: More Power, “Striver” Values

20041999WealthFreedomSexHaving funA varied lifeHealth & fitnessEnjoying lifeAdventurePowerSelf-relianceMaterial securityInternationalismKnowledge

WealthPowerEnjoying lifeFreedomHaving funPleasureStatusAmbitionHealth & fitnessMaterial securityKnowledgeSelf-relianceSex

Based on consistent values set and total population weighting (1999/2004)

Top values attributed to American culture (base: values extremely/very important)

Most Notable Declines: Internationalism, Altruistic Values Drop

Based on consistent values set and total population weighting (1999/2004)

1999 Rank 2004 RankChange in Rank

Internationalism 11 29 -18Equality 28 42 -14Excitement 14 27 -13A varied life 5 17 -12Adventure 6 16 -10Curiosity 16 26 -10Sex 3 13 -10Justice 26 35 -9Social tolerance 43 52 -9Social stability 33 41 -8Individuality 17 24 -7Open-mindedness 24 30 -6Preserving the environ. 30 36 -6

Change in rank of values attributed to American culture (base: value is extremely/very important)

Values Alignment: Shifts from 1999

Change in Rank from 1999

1 Venezuela 92 Taiwan 33 Philippines 194 Brazil 215 Australia 26 Hungary 07 South Africa 28 India 169 Korea 4

10 Japan -611 Poland 712 Mexico 1613 Russia -1114 Thailand -11

2004 RankChange in Rank

from 199915 USA -1416 Hong Kong 017 China -918 Argentina 519 Canada -420 Indonesia -321 Czech Repub -922 U.K. -823 France -224 Italy -525 Spain -526 Turkey 127 Saudi Arabia -128 Germany -17

2004 Rank

Change in rank (1999 v. 2004): % of total values attributed (by listed country) to American culture (base: total values that are extremely/very important to country)

Fall in Values Alignment: Western Europe, US Lead Declines

Germany -17USA -14Russia -11Thailand -11Czech Repub -9China -9UK -8Japan -6Spain -5Italy -5

Change in rank of highest values alignment (1999 v. 2004): % of total values attributed (by listed country) to American culture (base: total values that are extremely/very important to country)

Americans Themselves: A Greater Disconnect

Americans Themselves: A Greater Disconnect

8775

85 83 84

63

87 8882

94 93

76 8070

79

94

75

56

75

5950

5955

7170

576362

37

575354

4051

Pres

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ng th

een

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t

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nat

ure

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iona

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Soci

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inde

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Mod

esty

Cre

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ity

Cur

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ty

Endu

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love

Adv

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Indi

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Spiri

tual

ity

Wis

dom

Aut

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Faith

Hea

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1999 2004

Americans AssociatingFewer Values with Their Own CultureAmericans AssociatingFewer Values with Their Own Culture

Total Population Weighting

% Americans who attribute listed value as important to American culture (base: value is extremely/very important to them)

8393 92 93

79

59

93 9485

809089

55

77

91919484

Prot

ectin

gth

e fa

mily

Pow

er

Enjo

ying

life

Hav

ing

fun

Bea

uty

Res

pect

ing

ance

stor

s

Plea

sure

Free

dom

Leis

ure

1999 2004

Holding Steady: Power, Freedom, Fun, Family Holding Steady: Power, Freedom, Fun, Family % Americans who attribute listed value as important to American culture (base: value is extremely/very important to them)


American Altruists Report Largest Decline in Values AlignmentAmerican Altruists Report Largest Decline in Values Alignment

86%

88%

85%

85%

80%

83%

1999 2004 % pt change

77%

75%

72%

69%

64%

64%

-9

-13

-13

-16

-16

-19


% of total values attributed (by U.S. value segment) to American culture (base: total values that are extremely/very important to U.S. value segment)

Unemployment 5.7%

Then and Now: Disconnect Explained?Then and Now: Disconnect Explained?

Unemployment 4.1%

1999 2004

13% concerned about recession and unemployment

27% concerned about recession and unemployment

34% now is a good time to buy

26% now is a good time to buy

KYOTO AGREEMENT

KYOTO AGREEMENT

Corporate Trust?

90 87 87 86 86 83 83 83 83 83 82 82 81 80 80 80 78 78 78 7870

8475

8086

75

8580

858689

71767574

9190919486

Wea

lth

Pow

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Enjo

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life

Free

dom

Hav

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Stat

us

Hea

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s

Self-

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Kno

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Plea

sure

Am

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Mat

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Bei

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Lear

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Bei

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Global United States

Today’s Americans: More Realistic? Today’s Americans: More Realistic?

*Global excludes U.S.

% Americans/Global* who attribute listed value as important to American culture (base: value is extremely/very important to them)

Is America In Tune With The World’s Values?Is America In Tune With The World’s Values?

Top Global Personal ValuesTop Global Personal Values

Protecting the family 69%Honesty 61Health and fitness 57Friendship 51Self-esteem 49Freedom 49Knowledge 49Justice 49Self-reliance 47Stable relationships 43Enduring love 43

% global respondents saying value is extremely/very important

91 91 90 89 89 88 87 86 86 84

72 72 6963 62 60 59

38 34 32

Swed

en

U.K

.

Bra

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Aus

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Vene

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USA

Ger

man

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Spai

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Protecting The Family:Muslim Nations DisagreeProtecting The Family:Muslim Nations Disagree

Global Average 76%U.S. Average 84%

% who attribute protecting the family as important to American culture (base: protecting the family is extremely/very important to them)

Top 10 and bottom 10 countries

78 76 73 70 69 66 65 64 61 61

44 4439 39 37 36

32 31 2923

Phili

ppin

es

Aus

tralia

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% who attribute honesty as important to American culture (base: honesty is extremely/very important to them)

Honesty: Western Europe, Middle East Say NoHonesty: Western Europe, Middle East Say No


97 95 94 94 94 93 93 91 91 9186 84 84 82 80 80 79 79 77

69

Taiw

an

Thai

land

Japa

n

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% who attribute freedom as important to American culture (base: freedom is extremely/very important to them)

Freedom: Definitely Seen As An American ValueFreedom: Definitely Seen As An American Value


90 87 83 82 79 78 76 76 76 7564 63 61 59 58 56 55

4438

32

Phili

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Vene

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% who attribute justice as important to American culture (base: justice is extremely/very important to them)

Justice: Middle East, Western Europe Less AlignedJustice: Middle East, Western Europe Less Aligned


So What? The Impact on US BrandsSo What? The Impact on US Brands

In 2002, Awareness and Use ofMany Global Brands Were Rising In 2002, Awareness and Use ofMany Global Brands Were Rising

©2002 RoperASW

7Some Brands Increased More Than Others from 2001 to 2002FamiliarityCNN (+9 pts. since ‘01)Mercedes (+6)Discovery Channel (+5)Nike (+5)Samsung (+5)BMW (+4)MTV (+4)McDonald’s (+4)Ford (+4)Volkswagen (+4)Microsoft (+4)

Own/Use/WatchMcDonald’s (+9 pts. since ‘01)Panasonic (+8)Nokia (+7)Discovery Channel (+6)CNN (+6)MTV (+5)Microsoft (+5)Disney (+5)Nike (+4)Sony (+3)

Familiar Use/Own/Watch

15.8

16.5

3.7

4.3

Change from ’01 to ’02*

*Among brands consistent between 2001 and 2002

In 2003 Consumers Were More HesitantIn 2003 Consumers Were More Hesitant

Average number of brands familiar with*2002 2003

17.4 17.6

Average number of brands own/use/watch2002 2003

4.6 4.5

Average number of brands ‘really like’2002 2003

5.5 5.9


And Now, Global Brands Have Started to Decline SlightlyAnd Now, Global Brands Have Started to Decline Slightly

Average number of brands familiar with*2003 200418.6 18.3

Average number of brands own / use / watch2003 20044.9 4.8

Average number of brands ‘really like’2003 20046.0 5.8


2003 2004Familiar with American brands 59% 57%Familiar with non-American brands 70% 69%

Like American Brands 30% 29%Like non-American Brands 36% 36%

Use American Brands 30% 27%Use non-American Brands 24% 24%

Global Brand “Fundamentals”Global Brand “Fundamentals”

Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004

A Brand I TrustA Brand I Trust

2003 2004American Brands 36% 35%Non-American Brands 48% 47%

Coca-Cola 55% 52%McDonald’s 36% 33%Nike 56% 53%Microsoft 45% 39%


A Brand Associated with Honesty A Brand Associated with Honesty

2003 2004American Brands 18% 15%Non-American Brands 19% 16%

Coca-Cola 18% 15%McDonald’s 19% 14%Nike 14% 11%Microsoft 18% 12%


• Growth in “fundamentals” has stalled, even declined♦ New opportunities arising for local brands, especially in

rapidly growing markets like India, China

• American brands: a period of reassessment? ♦ Worsening attitudes toward US culture could have

impact in the marketplace

• Basic attributes necessary for brand greatness remain♦ Quality, reliability, value, of course♦ Trust, honesty possibly more important than ever

• Change in the balance of “glocal” strategies?

New Challenges for Global BrandsNew Challenges for Global Brands

America, The World, and the New Challenges for Global Brands

Corporate Communications InstituteApril 28, 2004

american values and globalization

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