by Dave Sutton
Rapid economic growth in countries such as India is giving its consumers new spending power and making them extremely attractive targets for brand market- ers around the world. India’s economy is one of the fastest expanding in the world, with a rapidly growing consumer class. Representing the world’s second biggest population, with 440mn millennials and 390mn Gen Z teens and children, the absolute size of its youth population paves the way for India’s consumer story to be one of the world’s most compelling in the next 20 years. India’s economic liberalization began in the early 1990s and has accelerated ever since.
It seems that every year, new sectors of the economy are opening for foreign direct investment. For example, the Indian Government recently decided to encourage foreign investment in the multi-brand retail sector. This will create huge opportunities for companies involved in agriculture, consumer goods, retail, transportation, and infrastructure in the cold chain logistics sector.
However, business leaders seeking to enter emerging markets like India are encountering a marketing environment that is every bit as complex, if not more so, than developed countries. Product choices and communication channels
are exploding as is the potential of marketing automation platforms. Consumer empowerment is on the rise. Envisioning consumer behavior in these markets as a progression through a funnel is inaccurate. It’s more of a spiral with multiple feedback loops and numerous touch points where marketers can influence (or frustrate) the consumer on their buying journey.
As in developed markets, digital media and marketing automation are unleashing the possibility of deeper audience engagement at each phase of the journey. But there are some important differences in the characteristics of emerg- ing-market consumers. They generally don’t have the same level of experience with brands and product categories as their developed-market counterparts do. Keep in mind that many consumers in these markets are still looking to buy their first car, first television, or first package of diapers.
Marketers in North America are under tremendous pressure to find ways to “grow elsewhere” and to deliver successful emerging market penetration plans and associated marketing strategies. Having worked with numerous brands over the past ten years, we have witnessed many successes… but also multiple failures. Here are the eight most common mistakes that marketers make when trying to build a brand and launch in Emerging Markets:
1. Moving too slowly: Brands that hesitate to get into emerging markets stand to lose out on the best opportunities and concede significant market share. Recovering from loss of market share and playing “catch up” is an expensive proposition and the loss may prove irreversible.
For example, Starbucks late entry in India in 2012 has allowed the Indian coffee chain Café Coffee Day to beat Starbucks at its own game. Café Coffee Day now has more than 1500 locations in India, while Starbucks has only 75 locations.
2. Moving too quickly: Chasing “bright shiny objects” and reacting to opportunities while being unaware of different capabilities needed to operate in unfamiliar markets leaves managers scrambling to deliver on customer expectations and incurring heavy expenses to close the market- ing capability gap. These “blind spots” erode profitability, and the lack of success makes the company vulnerable to valuation penalties by investors, as well as opening the door for aggressive competitors to enter the market and steal share.
Electrolux, the appliances and consumer durables brand, entered in India in a big way in 1995. Its strategy was to grow quickly through acqui- sitions (e.g. Eureka, Forbes, and Delineator) and then integrate the units into Electrolux India. Overnight, it became an extensive “house of brands.” Since the acquired companies varied widely in their culture and practices, Electrolux stumbled and lost its way in the market. Conflicting brand sto- ries and inconsistent go-to-market strategies made many appliance retail- ers confused and uninterested in carrying their products.
3. Thinking that “Amazon” is a Strategy for Emerging Markets: Just because you have customers who are buying your products through e-Commerce does not mean that you have cracked an emerging market. e-Commerce plays a critical role in evaluating and conditioning a market for a new entry Strategy. However, e-Commerce is not a substitute for having a Brand Story connecting emotionally with your target audience at a local level. You need a multi-channel Strategy that gets your Story in front of the right audiences and gives them a reason to listen, a reason to
care, a reason to engage and a reason to buy. Also needed are the right Systems to scale and flawlessly execute your Strategy.
Poor logistics systems and infrastructure compared to other developed countries can create challenges for a strategy predominantly focused on e-commerce, especially in countries where much of the population lives in remote rural areas. Retailers prefer commercial airfreight for delivery, which increases costs. Also, consumers in some countries are not accus- tomed to making purchases with credit cards. When the local custom is to pay in cash, brand stories that are reliant on e-commerce strategies and systems will likely fail.
4. Overinvesting in local customers: Spending too much on customer- centric activities prevents brands from understanding the needs of other valuable stakeholders: government agencies, suppliers, distributors, and important family relations in family-owned businesses. By working in a vacuum, brands pay a high price for unforeseen gaps in the local industry and for poorly understood market and distribution dynamics.
Vodafone learned this lesson the hard way. They have been locked in a $2.2 billion tax dispute with the Indian government who claims that Vodafone owes the bill for acquiring an Indian subsidiary in 2007. The mobile phone company won a court battle to overturn the ruling. But in response, the previous congress-led government promptly enacted new legislation allowing the firm to be taxed retrospectively. The lack of transparency has been criticized by foreign firms, but government officials asserts that Westerners are often overly concerned with winning custom- ers, but ignore the local rules and the legal system.
5. Telling an irrelevant brand story for the local market or not telling brand story: Being relevant to a market means that a brand is cognizant of and willing to address the needs and interests of a wide range of local stakeholders. The Brand Story must center on making the customer and the local stakeholders the hero—rather than making the brand the hero. Marketers with narrow views of how to achieve success (i.e. focusing almost exclusively on short-term financial or market share gains, rather
than, say, helping train local suppliers) fail to become integrated contribu- tors that help elevate the standard of the local industry. Consequently, they do not prosper as well as firms that show they are willing to stay the course during the ups and downs of the local economy.
Group SEB, the French home appliances maker, has relaunched Tefal durable products around a brand story to help Indian consumers “get the best out of everyday.” This story positions Tefal products as the ‘hero’— assuring consumers that by using the product it will make the Indian home a better place. Group SEB is still trying to crack the market, largely because the story is unclear on how Tefal delivers value, lacks relevance for most Indian homemakers, and fails to position the consumer as the hero.
6. Being overconfident about Strategy and Systems: Brands assume that the capabilities that served them well in developed markets are sufficient to succeed in emerging markets. Overconfidence results in underinvestment in mission critical local capabilities and keeps executives from objectively analyzing how well prepared their businesses are to meet the challenges of fast changing emerging economies.
The initial foray of consumer packaged goods company Kellogg’s into the Indian market in 1994 was a failure. Although today, the company is doing well in terms of both market share and sales growth. Following their launch, initial sales seemed promising but consumers were just buying the product as a one-off novelty and not repeating the purchase. Kellogg’s was overconfident and overlooked many critical cultural insights that would
explain why the market wasn’t ready for the breakfast cereals offered. Also, the premium pricing strategy was misaligned and too high to be consid- ered as a regular grocery purchase for shoppers, explaining the lack of repeat sales.
7. Underestimating the role of local stakeholders and governmental orga- nizations: Governments can and do impose hard terms and conditions on western companies. Successful brands have learned to meet opposing views half way, thus opening the path to long-term success. They under- stand that insensitivity toward the needs of local governments and local
leaders may result in costly penalties, delays, excessive red tape, and may even challenge business continuity.
Nestlé spent three decades building a beloved noodle brand Maggi in India. Then, the world’s biggest food and beverage company stumbled into a public relations debacle that cost it half a billion dollars. Management was blinded by pride and approached regulators with arrogance. Nestle acknowledged that they didn’t manage the Maggi crisis communications well.
8. Failing to embrace a Transformational Marketing approach: Most busi- ness leaders dislike change. They prefer the status quo and view changes to existing marketing and operations tactics as costly distractions when entering a new market. They may also fear losing influence, putting their personal career ambitions at risk and maybe missing out on an upcoming promotion.
Successful brands avoid the gravitational pull from “better sameness” and strike a balance between transformational activities by embracing a holistic perspective on Brand Story, Strategy and Systems: creating a “3S Playbook” to assess, reconfigure, develop, and evolve their marketing to succeed in emerging markets.
World Kitchen’s launched into the Indian homewares market in partner- ship with local market leader TTK Prestige ended after less than two years. Lack of Indian market vision, underestimation of the enduring preference for metal homewares, and failure to embrace a transformational market- ing approach led to disappointing sales for the World Kitchen’s premium dishware brand: Corelle.
It’s easy to make mistakes. But as we learned in the Weber backyard barbe- cue story, there is a step-by-step process that you can follow to increase your likelihood of emerging market success. You must develop a practical, systematic market entry playbook to help reduce risks, maximize ROI, compete efficiently, and win in emerging markets.
Cracking into emerging markets and connecting with consumers requires a transformational approach to the overall customer experience and, more
importantly, telling your brand story in a way that makes them the hero. A com- pelling brand story engages and delights consumers; it makes them want to learn more, want to participate, and want to advocate on a brand’s behalf.
Chapter 7
Crafting Your Personal Brand Story
magine tasting a freshly baked brownie by Martha Stewart. Now, imagine Snoop Dogg offering you a freshly baked brownie.
What comes to mind when you think of each one?
Chances are that each scenario represents different things in not only your mind but that of others too.
This is the power of a personal brand.
Who can forget the 2016 U.S. presidential election battle between Hillary Clinton and Donald Trump? Regardless of your political perspective, both can- didates embody extremely distinct personal brands. What those brands represent is a different topic, but there’s little question that their personal brands played an enormous role in their campaigns and the outcome of the election. You could even argue that their personal brands were bigger than themselves.
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Here’s the newsflash: you don’t have to be famous in order to have a personal brand. Everyone, including you, already has one. No matter who you are, build- ing a compelling personal brand is critical. Not only is a personal brand extraor- dinarily powerful, but it exists whether you plan for it or not, so why not make it very deliberate?
It must give people a reason to care, a reason to pick you, and a reason to stay. There is a huge difference between whether your audience views your personal brand as just another transactional relationship or a brand that emotionally con- nects with them.
When people think of you, what comes to mind? What do you stand for? What do you stand against? Is that what you’d like them to think? Is it consistently represented through everyone who engages with you?
In the same way that corporate brands are built, individuals can build their own personal brands. All great brands personify simplicity, clarity, and alignment. In his book Brand Called You, Tom Peters famously pointed out, “We are all CEOs of our own companies: Me Inc.” When his book was published in 1997, “mass media” meant traditional broadcast media that were centrally controlled and managed by powerful corporations. The average consumer had little—if
any—access to get their message into the market.
“To be in business today, our most important job is to be head marketer for the brand called You.”
— Tom Peters
Fast forward to today when digital media dominates. Applications like Instagram, Facebook, LinkedIn, SnapChat, Twitter, and YouTube have revolu- tionized the media landscape. “Mass media” has taken on an entirely new mean- ing as the masses control much of the dialog about brands and their reputations in the marketplace. For your personal brand, this shift represents a tremendous opportunity, but also creates challenges that require you to proactively manage your brand and reputation.
Creating a compelling personal brand can be challenging. It requires honesty, authenticity, discipline, and an artistic eye. That said, there are a few common ingredients and guidelines to help you build a compelling personal brand:
1. Focus on “Why” instead of “What”
Why should your audience care about you? Why should they listen to your story? Wrestling this question to the ground requires you to go to a deeper and more emotional level of engagement by articulating not just what you do, but more importantly, why you do what you do. Most people focus on “what” they do but your audience wants to know “why” you are different from other people and “why” it matters to them. The “why” must speak to your core purpose. Why do you do what you do?
2. Start with the Mind of Your Target Audience
Your brand story must be simple, clear and aligned with your audience’s needs and wants. It must resonate with your audience in such a way that he or she wants to be a part of your brand story.
3. Simplify an Issue or Problem
Does your “why” solve a problem? Does it articulate why your personal brand matters or the value that you bring to your audience? Most people have neither the time or inclination to figure this out on their own—this question needs to be answered through your “why”.
4. Stir Emotion in Your Audience
Give people a reason to care, a reason to pick you and a reason to stay.
People don’t buy from making logical, rational buying decisions. They make emotional decisions and then justify those decisions by rationalizing them with facts. There is a huge difference between whether your audience views your story as just another transactional relationship or a story that emotionally connects with them.
5. Strike a Chord that Prompts an Internal Question or Reflection
What do you want people to think when they interact with your per- sonal brand? People will be more engaged if they can relate to your story rather than listening to fact-laden statements about your credentials and accomplishments.
6. Make Your Audience the Hero of Your Story
Compelling stories resonate when the audience can put themselves at the center of the story. We must make the audience the hero while the brand assumes the role of a mentor. When your goal becomes partici- pation rather than control, the hero is more likely to let you into their world.
What’s Your Story?
Have you ever noticed when you ask someone to tell their personal story, they immediately launch into where they work or what they do?
The most suc
cessful business leaders have answers to that question which transcend the companies they work for and the products they sell. Their answer typically reveals a far deeper purpose in their lives. And oftentimes, a story that you want to be a part of.
Take a minute to think about the stories of two remarkable entrepreneurs: Henry Ford and Elon Musk. Entrepreneurs from different times, but entrepre- neurs who share a similar vision.
Ford aspired to transform the market for automobiles, which at the time were expensive toys for the wealthiest few, into a mass marketed vehicle for the many. Musk shared the same desire for his Tesla electric car in a 2013 TED Talk. “Our goal when we created Tesla a decade ago was the same as it is today: to accelerate
the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”
Both of these well-known entrepreneurs have stories which are far bigger than the cars they manufactured and the brands they created. They have remarkable personal brand stories.
Ford was an industrialist and the father of the modern assembly line mode of production famous for saying that the customer could have “any color car, so long as it is black.”
Musk is best known as an explorer, inventor and engineer. A multimillionaire before his 30th birthday, Musk is perhaps best known as the engineering brains behind the development of PayPal. Like Ford and Musk, those entrepreneurs who build a personal brand story worthy of remark—a story with purpose and pas- sion—increase their chances of long-term success in life.
