global reflections...local brands already command over 60% market share of packaged goods – and...
TRANSCRIPT
Global Reflections
Managing for growth:
Global insights from
local brands
How to use this deck
2
Please read through the deck to understand the framework we have used – with 11 strategies
for growth that local brands are using effectively. You can use the framework overall to talk
with clients, or you can take a particular lever relevant to a project you are working on and find
examples of how local brands have successfully activated it.
For example, Partnerships: we found that local brands have better opportunities to extend
their brand and marketing strategies in a consistent way through tactical local
partnerships. You can find examples of this at work in brands from China and Brazil. You can
then find the right example to add to a presentation deck to inform and inspire your clients.
You can also find many more examples of brand activation in our Global Reflections papers –
on The Source.
Local brands already command over 60% market share of packaged goods –
and they are winning year on year
36.2 35.8 35.5
63.8 64.2 64.6
2015 2016 2017
Global Local
Source: Kantar Worldpanel
Every 0.1% gained by local brands is worth US $500m
Global brand share of spend by sector
4Source: Kantar Worldpanel
20%Food Beverages Homecare Beauty/Personal care
27% 38% 47% 58%Dairy
Local brands
Successful strategies
5
6
Levers for growth – specific strategies
Product Innovation
7
Create new variants which appeal to a broader
range of individual requirements, especially
those adapted to local needs
When the local socio-economic environment
requires products that are affordable
From technological investment to innovation and keeping up
with the latest trends and consumers’ consumption habits
Understanding and adapting to local trends allows brands
to be innovative and cater to more specific preferences
keeping them on par with local brands
Brands that identify new needs and create effective and
efficient ways to meet them, benefit from first-to-market advantage
Stretching brands across categories can attract buyers whose
needs are not met by any of the existing brands’ function
Enables your brand to occupy a distinct position,
relative to competing brands, in the mind
of the customer
Increasing the number of geographical locations in
which a shopper can choose the brand. This often
requires adapting product ranges to suit local tastes
Better opportunities to extend brand and
marketing strategies in a consistent way through
tactical local partnerships
Allows expansion with already established
and successful entities
Locally inspired communication in all
aspects of the marketing mix
complimenting the global positioning
Product Innovation
Nongfu spring
2% increase in penetration
Source: Kantar Worldpanel China 8
PRODUCT INNOVATION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
CATEGORY EXPANSION
9
6% increase in penetration
One One
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
WIDEN REACH
ADVERTISING & PROMOTION
ACQUISITIONS
POSITIONING
PRODUCT INNOVATION
DISTRIBUTION
TECHNOLOGY
CONSUMER TRENDS
Source: Kantar Worldpanel Vietnam
10
4% increase in penetration
Três Corações
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
Source: Kantar Worldpanel Brazil
11
7% increase in penetration
Bjorg
PRODUCT INNOVATION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
CATEGORY EXPANSION
Source: Kantar Worldpanel France
12
4% increase in penetration
Herfy
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ACQUISITIONS
POSITIONING
DISTRIBUTION
ADVERTISING & PROMOTION
TECHNOLOGY
Source: Kantar Worldpanel Saudi Arabia
13
2% increase in penetration
Pescanova
PRODUCT INNOVATION
PARTNERSHIPS
FORMATS/PRICING
ACQUISITIONS
POSITIONING
CATEGORY EXPANSION
WIDEN REACH
CONSUMER TRENDS
ADVERTISING & PROMOTIONS
TECHNOLOGY
DISTRIBUTION
Source: Kantar Worldpanel Spain
14
Cem Porcento
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
4% increase in penetration
Source: Kantar Worldpanel Portugal
15
25% increase in penetration
Patanjali
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
TECHNOLOGY
POSITIONING
Source: Kantar Worldpanel India
CONSUMER TRENDS
16
2.5% increase in penetration
Pircanjuba
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
Source: Kantar Worldpanel Brazil
FORMATS/PRICING
17
4% increase in penetration
Bonne Maman
PRODUCT INNOVATION
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
CONSUMER TRENDS
Source: Kantar Worldpanel France
18
7% increase in penetration
Petit Navire
CATEGORY EXPANSION
PARTNERSHIPS
FORMATS/PRICING
CONSUMER TRENDS
WIDEN REACH
ADVERTISING & PROMOTION
DISTRIBUTION
ACQUISITIONS
POSITIONING
TECHNOLOGY
Source: Kantar Worldpanel France
PRODUCT INNOVATION
19
10% increase in penetration
Tate & Lyle
FORMATS/PRICING
WIDEN REACH
DISTRIBUTION
ACQUISITIONS
PARTNERSHIPS
CATEGORY EXPANSION
ADVERTISING & PROMOTION
CONSUMER TRENDS
Source: Kantar Worldpanel UK
POSITIONING
PRODUCT INNOVATION
TECHNOLOGY