Академический Документы
Профессиональный Документы
Культура Документы
Anna Bakunts
Stay Focused
One of the first lesson that Gucharan learned as a brand manager was that concentrating on one s core competencies is what should be at the utmost importance for a company. Interestingly enough, he said that if marketing a consumer product is what gives a company its competitive advantage, then all of the employees of the company should concentrate on creating marketing techniques and strengthening the brand perception in the minds of the consumers. What is important is to make sure that the employees are able to understand what the customers needs are, create and retain their perception about the product, and eventually satisfy those needs.
The next lesson that Gucharan learned from his experience was that what happens inside the company is not as important as the outside. What is meant here is that the employees are to never forget that it is the consumers that are paying their paychecks and not the company itself. How would the company be able to pay its employees of it wasn t the consumers buying the product. So, yet again we see that satisfying and thanking the consumers is what the employees should never forget. An interesting example of this would be how Gucharan had told its employees from every department to go out there and meet 20 consumers and 20 retailers or wholesalers to qualify for their annual raise. This way the employees are not only reminded of who their actual employers are, but will also be able to get new and innovative ideas and approaches to their product. As the author says, getting a global insight in your own backyard .
Be locally passionate about your product, says Gucharan. The lesson for global companies is to realize that if the local managers believe a product is theirs, then the local consumers will see the same. When foreigners enter a new market, they should be eager to learn and explore the new culture, make new friends, and why not even learn the language. In some cases local mentors can be of great help to the newcomer-managers adapt and enjoy the new culture. What happened with Vicks was that the local managers were so passionate about the product that 70% of the consumers perceived Vicks as a local brand, as opposed to the global brand that it was.
Open-mind As a Must
It would be wrong to say that a local approach to the global brand is enough for the brand s success. While we need to think and act locally, we also have to think globally. While having developed local approaches and insights to satisfy consumer needs, managers should not forget that they are representing a global brand. Fundamental human needs are the same worldwide, and if a problem arises, local managers of the global company should first seek a solution in the other subsidiaries worldwide. This is because a certain practice might have happened elsewhere, and the knowledge and expertise that comes from a specific case can be applied to the current solution. Learn from each other s successes and failures is what strategic global managers should do.
Additional Research
What makes up the consumers decision in picking a global brand versus the local one? Studies have shown that it has to do with the consumers inclination toward global or local mind-sets. The mind-sets are connected to people's desire for distinctiveness (local) versus their desire to be similar to others (global). 1 If the consumer believes that a local brand of a shampoo is of a better quality, he/she will not even search for the global brand. However, if the product has its customized, local perception in the market and is positioned clearly in the consumer s mind, then the consumer will be willing to try the shampoo of the global brand. What distinguishes the local brands from the global ones is also an important factor that needs to be looked at2. First and foremost, the local brands are able to meet the unique local needs or tastes of the consumers. While the global market tries to meet the consumer s needs, the local brands are at the advantage of already knowing what the consumer wants. Also, people are often used to the local brand they re using because of the nostalgia-they love/are used to being with the brand they grew up with. The local brands have a cultural identity. This is where
1 2
http://www.medicalnewstoday.com/releases/144605.php http://www.theglobalbrandonline.com/local-success/
the global brand needs to explore what the specific culture wants and needs are, and then satisfy them. In addition, local brands have strong community ties and local operational advantages. With all this said, what should we do? Keep the brands local? Go global? What s constant in the age of globalization is that the local and global co-exist, always in conversation and tension with each other3. What s distinguishing the local from the global is what the globals should try to achieve. Thinking both globally and locally is what we should do. Be passionate about the global brand, have local mentors , if needed, and be open to learning and exchanging. At the same time, the ability not to repeat the mistake that has taken in other subsidiaries worldwide or avoid them, based on the previous experiences, is also an important factor that a local manager of a global brand is to consider.
http://yaleglobal.yale.edu/content/global-brands-contend-appreciation-local