globeone bric branding survey - india edition

Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul

© CopyrightThis document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.

BRIC Branding® Survey – India Edition

The Perception of German Brands in India – Strengths, Weaknesses and Opportunities

Mumbai, May 2012

2

• Executive Summary• About globeone• Survey Approach• Germany’s Image in India• Leading German Brands in India• Insights into Information Channels in India• Marketing and Communication Strategies for India• Contact

Agenda

3

Executive summary (1/4)

COUNTRY-OF-ORIGIN IMAGE AN IMPORTANT FACTOR IN INDIAIn India, the Country-of-origin Image (COO-Image) is an important factor for urban consumers and B-to-B buyers in the purchase decision process, especially in but not limited to the higher income target groups.

POSITIVE ATTITUDE TOWARDS GERMAN BRANDSHalf of the Indian urban population has a positive or very positive attitude towards German brands. But currently still less so than it is the case in other BRIC markets.

GERMAN & JAPANESE BRANDS LEAD NATION RANKING IN HIGHER INCOME GROUPS IN INDIAGerman along with Japanese brands lead national rankings among higher income groups in India. German brand perception is especially distinctive for traditional values like quality, durability as well as high prestige.

SHORTCOMINGS IN ADEQUATE LOCAL POSITIONINGGerman brands also show some shortcomings in the eyes of Indian urban consumers. They are not perceived as close to local customer needs nor providing much of value for money compared to Indian brands.

POTENTIAL BARRIERS TO ENTER THE INDIAN MASS MARKETMost German brands have a strong premium focus. Thus, many of them are perceived as being relatively expensive and face potential barriers to gaining a significant share in the overall market in India.

Key findings – Germany’s image in India

Source: globeone

4


GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIESIn India, German brands are top of mind in relation to the automotive sector. In addition, German brands are often associated with machinery and pharmaceuticals.

ADIDAS IS THE MOST WELL-KNOWN GERMAN BRAND IN INDIAVast majority of interviewed Indian population can immediately recall multiple German brands – sportswear giant Adidas (79% awareness) is in the lead followed by Nivea (73%) and insurer Bajaj Allianz (68%).

NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN INDIAThe most frequently purchased/used German brand in India is Nivea (35%) followed by Adidas (34%) and Puma (25%). Many German brands display very low market penetration among average urban consumers.

WORD OF MOUTH IS THE MOST POPULAR SOURCE TO LEARN ABOUT FOREIGN BRANDSRecommendations by family & friends are the leading source for Indian consumers who want to research information about foreign brands. Other important sources incl. TV and newspaper, Internet is not yet key.

ADIDAS IS ALSO THE BEST-LIKED GERMAN BRAND IN INDIAConsumer goods brands - Adidas (57% positive image), Puma and Nivea (52% each) - are the most popular German brands in India, followed by automotive brands BMW and Audi (50% each) and Volkswagen (46%).

Key findings – Leading German brands in India

Source: globeone

5

Media echo – globeone BRIC Branding® Survey

Source: globeone

Selection


6

Media echo – globeone BRIC Branding® Survey - India Edition

Source: globeone

Selection


7


Agenda

8

Global network with strong focus on fast growth markets

MumbaiOffice

CologneHead Office

São Paulo Office

Singapore Office

Beijing Office

Shanghai Office

globeone is a boutique business consultancy with a strong representation in the world’s fast growth markets

We offer specialized marketing strategy consulting & project management services to help drive clients’ success in the world’s key growth regions

About globeone (1/2)

Seoul Office

9

Marketing & communication strategy consulting to drive clients’ success in BRIC

Exec

ution

Stra

tegy

sup

portConsumer & strategic

market insights1

Quantitative market research design (e.g.

market potential, segmentation)

Customer insight generation & market trend

studies

Competitor analysis & benchmarking

Qualitative market research (e.g. online user experience, focus groups)

2 Optimized positioning & planning

Brand architecture & brand portfolio strategies

Definition of goals and KPIs & related strategy

development

Brand and product (re-) positioning & value

proposition development

Business case & market entry program development

3 Support of 360° fulfillment

Employer brand development & program

implementation

Hands-on project management & creation of professional presentations

Creation of 360°integrated activity planning

Creation of briefings & steering of specialized

agencies (e.g. pitch support)

4 Brand performance & loyalty

Marketing spending effectiveness (e.g.

correlation of investment and sales)

Brand performance analysis & controlling (e.g.

brand monitor surveys)

CRM audit & CRM strategy development

Set-up of activities & programs to enhance

brand loyalty

Global Strategy + Local Adjustment = Success in BRIC

– Typical globeone project examples for major global clients (selection) –

About globeone (2/2)

10


Agenda

11

Countries/Cities:

Brazil Russia India China

São Paulo Moscow Mumbai Shanghai

Rio de Janeiro St. Petersburg New Delhi Beijing

Porto Alegre Novosibirsk Bangalore Guangzhou

Recife Yekaterinburg Chennai Chengdu

Brasília Nizhny Novgorod Pune Wuhan

Objectives:• Identification of Country-of-origin Image (COO-Image) relevance in BRIC • Assessment of perception of German brands amongst urban citizens• Strengths & weaknesses of German brands and strategic implications

Method/Timing1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone and face-to-face interviews: n ≈ 4,000• Field work conducted: 2011

Over 4,000 interviews in 20 of the most important BRIC cities to analyze the perception of German brands

Survey approach – Objectives and scope

Source: globeone

German brands

1) Representative survey of urban population based on field research conducted by certified market research agencies in each country

12

Cities:

Objectives:• Assessment of perception of German brands among Indian urban citizens• Analysis of India-specific strengths, weaknesses and opportunities• Guiding successful brand management in India

Method1: • Stock exchange (DAX/MDAX) listed companies, other major German brands • Computer-assisted telephone & face-to-face interviews: n = 1,000 for India• Selection of respective cities to achieve suitable representation of India

For the India edition, 1,000 interviews were conducted in 5 Indian key cities

Survey approach – Objectives and scope

German brands

Mumbai

PuneChennai

Bangalore

New Delhi

Source: globeone 1) Representative survey by certified market research agency in India. City sample selected for suitable representation of urban population in key regions in India.

13

COO – Definition

“Country-of-origin is defined as the country where corporate headquarters of the company marketing the product or brand are located. This does not require local manufacturing.” 2

“Consumers and customers associate positive or negative attributes with a company, product or brand, if they know it originates from a certain country.“ 3

“Country-of-origin effect is one of the most analyzed phenomena in consumer behavior in international markets.“ 1

COO – High interesteST

Survey approach – Country-of-origin definition

Country-of-origin (COO) is a key factor for purchase decisions in India

Source: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H., (2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.

14

Survey approach – Country-of-origin in India

COO-Image – Important success factor in India

Urban consumers in India are particularly sensitive related to the COO-Image resulting from

• Local consumers’ demand for prestigious brands to highlight their social progress

• Lower availability and higher novelty of foreign brands is further boosting their image

• Limited trust due to lower level of quality and marketing competence of local brands, apart from strong local champions

India-specific relevance of a positive COO-Image

A positive COO-Image can:• Increase perceived quality and prestige of a brand • Promote consumers’ purchase intentions in favor of a brand

Potential for increasing brand performance dependent on respective industry and product category

General relevance of a positive COO-Image– Perception of a brand’s corresponding country-of-origin –

Examples

!

Source: globeone

http://www.fahnenkontor24.de/javasc






15


Agenda

16

• Approximately half of respondents have a positive or very positive attitude towards German brands

• Only small fraction (9%) that does not perceive German brands as favourable

• Opportunity for an effective positioning utilizing the country-of-origin potential

German image as asset – Half of Indian urban population confirms positive image of German brands

Germany’s image in India – General attitude towards German brands

Q.: Do you like German brands, products or services?; Sample size in India: 1,000.

– General attitude towards German brands in India –

49% associate positive image!

I do not like German

brands at all

I do not really like German

brands

I do not have a preference

I like German brands

I like German brands very

much

0%

10%

20%

30%

40%

50%

2%

7%

42%

33%

16%

Source: globeone

17


brands at all


brands




much22%

59%

13%

5%

1%

45%

43%

11%

0%

1%

16%

33%

42%

7%

2%

9%

38%

47%

5%

1%

Overall, the positive perception of German brands is even higher in other emerging markets

Germany’s image in India – General attitude towards German brands

Q.: Do you like German brands, products or services?; Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China).

Source: globeone

18

Germany’s image in India – Income class-specific attitude towards German brands

–Middle class – (€ 300-700; Rs. 18,000-42,000)

– Upper middle class – (€ 700-1,300; Rs. 42,000-78,000)

– Higher income class – (> € 1,300; > Rs. 78,000)

Q.: Do you like German brands, products or services? Exchange rate: € 1 = Rs. 60

2%

7%

44%

30%

17%

1%

3%

25%

54%

17%

6%

0%

31%

44%

19%

47% associatepositive image


brands at all


brands




much 71% associatepositive image

63% associatepositive image

– Liking of German brands across income classes (according to gross monthly income) –

German brands enjoy a substantially higher positive reputation among consumers with higher income

Source: globeone

19

• German brands by higher income earners mainly recognized for quality, durability as well design, prestige factor also high

• Lacking adequate local positioning and not offering good value for money though

• Indian brands rank highest on close to customer needs & after-sales service

Source: globeone

Germany’s image in India – Perception of brand and product attributes

In higher income classes, German brands are recognized for traditional values like quality & durability as well as prestige

Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?

1) Sample: Respondents from upper middle/high income class only (gross monthly income above € 700/Rs. 42,000) .

– Perception of brand and product attributes based on respective country of origin by higher income classes1 (Germany, USA, Japan, China, India) –

10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%

IndiaUSAChinaJapanGermany

Innovative & high-tech

Outstanding design

Excellent quality

High prestige

High durability

Good after-sales service

Good value for money

Close to local customer

needs

20

20%

29%

33%

39%

49%

22%

37%

38%

40%

40%

19%

34%

34%

40%

45%

German brands best in class

Germany’s image in India – Country-of-origin image strength index

Exchange rate: € 1 = Rs 60

– Country-of-origin image strength index – (average scores of 15 relevant brand & product attribute dimensions)

– Middle class – (€ 300-700; Rs. 18,000-42,000)



Stronger local preference

In higher income segments foreign brands overall enjoy a higher positive reputation, German brands best in class

Source: globeone










21

COO-Image important for purchase decision – Opportunity for foreign brands with strong country-of-origin image

Germany’s image in India – Importance of COO-Image

Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in India: 1,000.

0%

10%

20%

30%

40%

4%

8%

19%

38%

31%

– Importance of COO-image –

Source: globeone

69% perceive COO-Image as important for purchase decision!

22

Importance of COO-Image in purchase decision process in India second only to Russia across BRIC countries

Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in BRIC: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China).


Not important at all

Not important

Does not really matter

Very important

Relatively important

1%4%0%

0%

36%

29%

10%

20%

5%

61%

29%

10%

31%

38%

19%

8%

14%

47%

25%

13%

Source: globeone

23


– Middle class – (€ 300-700; Rs. 18,000-42,000)



Q.: How important is the country of origin of a brand to you when you purchase a product or service?

4%

9%

17%

37%

33%

0%

7%

35%

36%

22%

13%

0%

6%

56%

25%

70% consider COO important

Not at all important

Not important

Does not really matter

Relatively important

Very important



– Importance of COO-image across income classes (according to gross monthly income) –

COO-Image important across all income categories in India

Source: globeone

Exchange rate: € 1 = Rs 60

24

• Compared to brands from other countries, German brands perceived as relatively expensive

• Price perception reflects premium segment focus many German brands implement

• Large potential to target upcoming middle class with more locally adjusted product/ pricing strategies

– Price perception of German brands in India –

Q.: What do you think about German brands in terms of price?; Sample size in India: 1,000.

Germany’s image in India – Price perception

Very cheap Relatively cheap Similar to other countries'

brands

Relatively expensive

Very expensive0%

10%

20%

30%

40%

50%

1%4%

28%

40%

28%

68% associate German brands with expensive

Majority of Indian urban population regards German brands as relatively or very expensive

Source: globeone

!

25

– Industries/product categories most commonly associated with German brands – • German brands most closely associated with the automotive industry - also due to market history (e.g. Mercedes-Benz officially operating in India since 1995)

• Machinery and pharmaceuticals are also relevant

• FMCG & service industries less likely to be seen as Germany-related

Q.: What categories do you think German brands are famous for? ; Sample size in India: 1,000.

Germany’s image in India – Top industries with German association

Eco-friendly technology

Detergent

Services (insurance etc.)

Clothing\Fashion

Food

Cosmetics\Perfume

Football

Home appliances

Pharmaceuticals\Medicine

Machinery

Automobile\Motorcycles

0% 20% 40% 60% 80% 100%

20%

25%

26%

29%

34%

35%

39%

42%

43%

49%

69%

Source: globeone

Urban Indians associate German brands mainly with the automotive industry and machinery

26

Q.: Which German brands do you know? Please name as many as come to your mind spontaneously.; Sample size in India: 1,000.

Majority of Indian population can immediately recall a German brand name – Lower than in BRIC overall though

Germany’s image in India – Unaided awareness

Can recall a German brand

Can't recall a German brand

0%

20%

40%

60%

80%

59%

41%

Adidas

Audi

BMW

Nivea

Mercedes-Benz

Puma

Volkswagen

Bajaj Allianz

Bosch

Henkel

Siemens

28%

19%

19%

17%

15%

13%

11%

11%

7%

6%

5%

– Unaided awareness for German brands in India (top 11) –

Source: globeone

27


Agenda

28

• Sportswear brand Adidas (79%) best-known German brand followed by Nivea (73%)

• Service brand Bajaj Allianz (68%) third

• Sportswear brand Puma (58%) also among top 6

• Top 12 otherwise dominated by auto brands - BMW (65%) in lead followed by Mercedes-Benz (60%), Audi (53%)

Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.

Leading German brands – Aided awareness (1/2)

Henkel

Osram

Siemens

Volkswagen

Skoda

Audi

Puma

Mercedes-Benz

BMW

Bajaj Allianz

Nivea

Adidas

0% 20% 40% 60% 80% 100%

28%

34%

38%

42%

46%

53%

58%

60%

65%

68%

73%

79%

(275)

(341)

(376)

(726)

(415)

(461)

(525)

(578)

(596)

(647)

(682)

(789)

– Aided brand awareness in India (top 12) –

Top 12 – Adidas, Nivea & Bajaj Allianz lead German brand ranking in India, closely followed by automotive brands

Source: globeone

29

• DHL (24%) most prominent service brand - closely followed by Deutsche Bank (23%) and Lufthansa (22%)

• Porsche (16%) with significantly lower awareness than other premium German car brands

• Bayer (12%) best known pharmaceutical brand

Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.

– Aided brand awareness in India (rank 13 to 30) –

Leading German brands – Aided awareness (2/2)

(99)

(107)

(109)

(115)

(117)

(117)

(118)

(128)

(130)

(132)

(163)

(170)(176)

(186)

(221)(232)

(244)

(263)

Rank 13 to 30 – Service companies overall with higher awareness than consumer goods companies

ZwillingCarl Zeiss

AEGBayer

Hugo BossDr.Oetker

BecksPaulaner

Deutsche TelekomMINI

PorscheMetro Cash & Carry

Braunsmart

LufthansaDeutsche Bank

DHLBosch

0% 20% 40% 60% 80% 100%

10%11%11%12%12%12%12%13%13%13%

16%17%18%19%

22%23%24%26%

Dr. Oetker

Source: globeone

30

• Sportswear brand Adidas as German brand with highest awareness (79%) as well as most positive image (57%) in India

• Puma and Nivea runner-up (52% each)

• Among auto brands, BMW and Audi in lead (50% each) followed by Volkswagen (46%), Mercedes-Benz & Skoda (43% each)

Leading German brands – Positive image (1/2)

Q.: Do you like this brand in general?

– Positive attitude towards German brands in India (top 12)¹ –

Siemens

Dr. Oetker

Skoda

Mercedes-Benz

Bosch

Osram

Volkswagen

Audi

BMW

Nivea

Puma

Adidas

0% 20% 40% 60% 80% 100%

40%

42%

43%

43%

43%

44%

46%

50%

50%

52%

52%

57%

(151)

(49)

(197)

(256)

(113)

(149)

(191)

(263)

(322)

(375)

(301)

(448)

Top 12 – Sportswear brands Adidas and Puma lead image ranking with Nivea, followed by automotive brands

Source: globeone 1) Based on number of interviewees who know the brand.

31

Leading German brands – Positive image (2/2)

Q.: Do you like this brand in general?

Rank 13 to 30 – Boehringer-Ingelheim leads ranking as best liked German pharmaceutical brand

– Positive attitude towards German brands in India (rank 13 to 30)¹ – • Service brands overall with less positive image than automotive-related brands

• Bajaj Allianz not leveraging high awareness (68%) to positive image (37%)

• Porsche image-wise (36%) also far behind other German car brands

• MINI with positive image even before launch (25%)

Deutsche BankHansgroheLufthansa

Hugo BossMINI

ThyssenKruppAEG

MANDHL

MieleBayerBraun

Deutsche TelekomMetro Cash & Carry

HenkelBoehringer-Ingelheim

PorscheBajaj Allianz

0% 20% 40% 60% 80% 100%

22%23%24%25%25%25%27%

29%29%30%30%31%32%33%34%35%36%37%

(19)

(53)

(29) (33)

(14) (29)

(18) (71)

(21) (35)

(55) (42) (56)

(94) (15) (58) (251)

(52)


32

Leading German brands – Recognition of German brand origin (1/2)

Q.: Do you think this brand is originally from Germany or not?

• Beer brand Becks (75%) with highest recognition of German brand origin, Paulaner also in top 6 (64%)

• Multinational conglomerate ThyssenKrupp ranks second (70%)

• None of leading car manufacturers amongst top 11, MINI (59%) 12th in terms of German origin recognition

– Recognition of German brand origin in India (top 12)¹ –

MINI

BASF

Boehringer-Ingelheim

Grundig

Haribo

Zwilling

Paulaner

Leica

Hugo Boss

Hansgrohe

ThyssenKrupp

Becks

0% 20% 40% 60% 80% 100%

59%

60%

60%

63%

63%

64%

64%

64%

67%

68%

70%

75%

(53)

(26)

(35)

(40)

(63)

(82)

(41)

(78)

(57)

(39)

(88)

(78)

Top 12 – Relatively high level of ‘German origin’ recognition with some room for improvement


33

Leading German brands – Recognition of German brand origin (2/2)

• Volkswagen with its “Das Auto” claim only ranking 17th (58%)

• Deutsche Telekom not likely to be recognized as German (50%) despite “Deutsche” in brand name

• MINI, Porsche (59% each) and VW (58%) rather recognized as German than Audi (55%), BMW (46%)

Q.: Do you think this brand is originally from Germany or not?

BayerDeutsche Telekom

ContinentalDr.Oetker

smartAdidasBraunERGO

AudiLinde

SAPCarl Zeiss

MieleVolkswagen

AEGMAN

PorscheBosch

0% 20% 40% 60% 80% 100%

50%50%52%52%52%53%54%54%55%55%56%56%56%

58%59%59%59%59%

– Recognition of German brand origin in India (rank 13 to 30)¹ –

(65)

(31)

(61)

(97)

(416)

(95)

(50)

(288)

(39)

(52)

(60)

(40)

(242)

(64) (37)

(96) (155)

(57)

Rank 13 to 30 – Key German automotive brands with divided German origin recognition

Dr. Oetker


34

• Consumer brands Nivea (35%) and Adidas (34%) also at forefront regarding purchase/usage frequency

• Osram (13%) lighting products rank 4th

• Bajaj Allianz (13%) most often used service brand

• Skoda and VW (both 5%) most purchased/used German car brands

Leading German brands – Purchase/usage

Q.: Which German brands have you bought or which services have you used?; Sample size in India: 1,000.

– Purchase/usage of German brands in India (top 12) –

Dr.Oetker

DHL

Volkswagen

Skoda

Bosch

Henkel

Siemens

Bajaj Allianz

Osram

Puma

Adidas

Nivea

0% 20% 40% 60% 80% 100%

4%

4%

5%

5%

6%

8%

11%

13%

13%

25%

34%

35%

(43)

(44)

(45)

(53)

(61)

(75)

(113)

(126)

(127)

(251)

(342)

(349)

Top 12 – Leading German brands regarding purchase/usage from FMCG and sports apparel industry

Source: globeone

Dr. Oetker

35


Agenda

36

Insights into information channels – Key sources (1/2)

1) Category Internet includes Internet search engines, social media and corporate website research.

– Information sources to find out/learn more more about foreign brands in India –

Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.

Event/tradeshow

Radio

Shopping center/store

Internet

Newspaper/magazine

TV

Family/friends

0% 10% 20% 30%

4%

5%

12%

14%

18%

23%

24%

1

Word-of-mouth through family and friends most relied on source to learn about foreign brands in India, TV second

Source: globeone

37

Insights into information channels – Key sources (2/2)

Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.

Corporate website

Event/tradeshow

Radio

Social media

Internet search engine

Shopping center/store

Newspaper/magazine

TV

Family/friends

-10% 0% 10% 20% 30%

2%

4%

5%

6%

6%

12%

18%

23%

24%

– Information sources to find out/learn more more about foreign brands in India –

Digital information channels currently still with relatively low relevance – Large potential for future though

Source: globeone

38

Indian consumers more engaged in traditional means to acquire information about brands than BRIC counterparts

Insights into information channels – Comparison of key sources across BRIC

• Apart from India, Internet (search engines, social media, corporate websites) leading info channel

• Indian consumers mainly rely on word of mouth (24%) or TV (23%)

• Majority of Brazilians (44%) use search engines

• Social media with highest commercial maturity in China (12%)

17%

12%

6%

18%

6%

20%

5%

5%

3%

10%

4%

1%

Search engines

TV

Family/ friends

Newspaper/magazines

Social media

Selection*

Corporate websites

44%

3% 5%

18% 18% 23% 23%

14% 17% 24% 17%

12%

Sample size per BRIC country: 1,023 Brazil, 1,000 Russia, 1,000 India, 1,010 ChinaQ.: How do you generally find out/learn more about foreign brands?

Source: globeone *Sources of minor relevance (radio, events, shopping centres) excluded.

39


Agenda

40

Strategies for India – Leveraging maximum brand potential to grow sales (1/3)

Success in India requires dedicated action and a clear strategic roadmap (→ ‘one world strategy’1)

Strategic implications for corporations:

Illustrative1:1 transfer of ‘developed market’ strategies is rarely successful

Almost continental complexity of India as key challenge for annual strategy development and alignment of country organizations

Fact-based adjustments regarding strategic focus, relevant target groups and brand strategy necessary

Different levels of brand performance require a differentiated approach

- Brand performance analysis -

Improving India business performance through effective communication strategies

Source: globeone 1) A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/ customer needs in BRIC at the very centre of corporate strategy.

41


Corporation with low brand awareness and thus low general brand performance across all major dimensions in India

- Key challenges -• Lack of fact-based ‘one-world’ strategy for India• Local organizational setup not sufficient• Slow expansion speed beyond Tier 1 city clusters• Inability to bridge gap between HQ and country team•Unclear definition of market-driven strategy and

local target groups and needs• Ineffective activation strategy & media investment to

communicate above ‘perception threshold’• Ineffective utilization of media vehicles/insufficient

media investment

25%

50%

75%

100%

0%

Corporation with high awareness but weak image as compared to Industry benchmarks in India

25%

50%

75%

100%

0%

Awareness Image Recognition Purchase Loyalty

Awareness Image Recognition Purchase Loyalty

- Key challenges -•Under-utilization of local customer insights and thus

no ‘quick wins’• Absence of a relevant positioning adjustment to local

target group expectations (e.g. prestige appeal)• Low differentiation from key competitors/local hero

brands in India• Lack of creative execution and effective media

strategy• Shortcomings in locally relevant story-telling

- India brand performance

Illustrative

Illustrative

Awareness challenge1- India brand performance -

Image challenge2

Selected strategies for India – Awareness & image challenges

Source: globeone

42

Brand’s German

roots not properly recognized in India

- Key challenges -•Missing link to German origin of a brand • Advertising, PR, event or online activities lacking

proactive communication of German brand heritage and thus no realization of additional price premium potential• Lack of story telling related to brand origin & history

though one of few competitive advantages that cannot be easily imitated• Absence of educational approach

Brand enjoys good reputation but purchase behavior and loyalty remain below Industry benchmarks in India

Awareness Recognition Purchase Loyalty

Awareness Recognition Purchase Loyalty

- Key challenges -• Lack of strategy to also appeal to middle income

groups (e.g. creating low-cost brands for more price sensitive target customers)• Limited local distribution points• Lack of implementing sequential expansion

strategies in line with regional development•Under-utilization of global CRM basics and related

systems in the local Indian market• Lack of effective activation at POS & in social media

German origin challenge3

Activation & loyalty challenge4

- India brand performance -

- India brand performance -

Illustrative

Illustrative

Image

Image

25%

50%

75%

100%

0%

25%

50%

75%

100%

0%


Selected strategies for India – German origin & activation and loyalty challenge

Source: globeone

43


Agenda

44

B 806, Sagar Tech Plaza

Sakinaka Junction

Andheri Kurla Link Road, Andheri (East)

Mumbai 400072, India

Email: [email protected]

Phone: +91 (0)22 67703-718 (ext. 11)

Mobile: +91 9920 6633 06

www.globe-one.com

Contact

Mumbai office

Ms. Tina Marie Monelyon

Country Manager

45

Cologne Head Office

Kranhaus Süd

Im Zollhafen 24

50678 Köln

Germany

Shanghai Office

16F Feidiao Internat. Building

1065 Zhao Jia Bang Road

200030 Shanghai

People's Republic of China

São Paulo Office Singapore OfficeBeijing Office

Office 39, Room 509A

No. 4 Gong Ti Bei Lu

Chaoyang District

100027 Beijing

People's Republic of China

Av. Cidade Jardim, 400

20th floor – room 08

01454-000 São Paulo

Brazil

10 Collyer Quay, 40-53

Ocean Financial Centre

Singapore 049135

Singapore

[email protected]

Phone +55 (0) 11 3818 0837

Fax +55 (0)11 3818 0899

[email protected]

Phone +65 6808 6050

Fax +65 6622 5999

[email protected]

Phone +86 135 0129 8737

Fax +86 (0) 21 5158 1686

[email protected]

Phone +86 (0) 21 5158 1688 (ext. 1352)

Fax +86 (0) 21 5158 1686

[email protected]

Phone +49 (0) 221 788068-0

Fax +49 (0) 221 788068-29

www.globe-one.com

Contact

Other globeone offices around the world

Seoul Office

[email protected]

Phone +82 2 6200 6432

Fax +82 2 6207 7315

5F Seoul Design Works B/D

683-133

Hannam-dong, Yongsna-gu

Seoul 140-892

Korea

Thank you!

© CopyrightThis document of globeone GmbH is intended exclusively for the client or addressee. It remains exclusive property of globeone GmbH until the rights of use are expressly transferred. Any revision, use, duplication or commercial distribution of this work is permitted only with written consent of globeone GmbH. This document is a discussion paper. It makes use of secondary information and hypotheses and is therefore for discussion only. It does not include any recommendations or binding statements.

Cologne | Shanghai | Beijing | Mumbai | São Paulo | Singapore | Seoul