Two opposing philosophies have divided the multinational advertising and marketing community. 1) There are certain universal consumer needs and values; therefore, it is possible to develop, a standardized advertising campaign in one market and export it for use in a multitude of foreign markets. 2) There are very significant differences among cultures. International advertising campaigns must be tailored to fit the unique needs, lifestyles, values, and customs of each individual market, addressing consumers who possess dramatically different cultures, mores and values. All disputing parties agree, however, that there is a need for empirical evidence: multinational advertising research using consistent methods, measures, and benchmarks to give global advertisers insight and guidance around the issue of standardized vs. customized international ad campaigns.
It is a great honor to be allowed to address this distinguished group- an organization that has long symbolized the integrated European market that is rapidly taking form. I would like to talk today about my company, Suntory Limited's global activities. Suntory is Japan's leading distiller, the 5th largest in the world. We produce and market whiskies, wines, beers, soft drinks, and processed foods and are also actively involved in the restaurant, publishing, pharmaceutical, sporting goods and cultural businesses. Our overall turnover is about Yl,140 billion($8 billion). Outside Japan, we have 10 representative offices, 27 affiliate companies, and 15 restaurants in 14 countries, and our target for international business this year -- 1990 -- is close to Y 90 billion($60Q million). I myself have had some 20 years' experience in Suntory's international activities, having spent 10 years as head of our London office.
The paper argues for a new research approach to provide more relevant and actionable information about consumer-brand relationships for those concerned with marketing brands on an international scale in the 1990's, It describes a contemporary vision of how these relationships need to be characterised, in the current consumer climate. It applies this vision to the task of finding a research methodology capable of combining depth of qualitative insight, with the necessary emphasis on comparability of data required for the international brand marketing context. It further presents some findings from an exploratory research project which experiments with a range of consumer measures designed to fulfil these aims. The central thesis is that consumer-brand relationships are multi-faceted and must be understood in these terms in research. While it is relevant to pursue a Tightly defined distillation of the core values of a brand (variously described as Brand Essence, Brand Image, Brand Personality, etc), it is both more relevant and actionable to explore a number of different facets of the whole, each of which, with the right form of questioning, consumers can separately articulate. The key concepts are: - Brand Function/Performance; Brand Character; and "Emotional Linkage" with the brand. The paper concentrates particularly on the latter area which is the result of some new theories about the underlying consumer 'predisposition' towards marketing communications in the 1990's. Here, the measures are at their most experimental but the resulting data appears to illuminate the composition of brand values from different measured perspectives. Some of these appear directly to illuminate the role and contribution potential of different marketing elements in the mix (e.g, advertising). There is encouragement that the measures may offer both reliable and insightful stimulus to those charged with international brand planning task.
The main topic of this paper is the analysis of new needs for information about customers in the context of international marketing in the 1980's and, especially, in the 1990's. Bernard Cathelat, initiator of life style studies since 1970 and his co-author outline here the principal characteristics of an original method of market segmentation : the Socio-Styles-System. As an operational example of its application, he presents the "Euro- socio-styles" survey including all chapters of life, carried out in 1988 and 1989 in 15 European countries divided into 58 regions. Roger Wyss, the international coordinator of the Europanel network, will bear witness to the interest of market panel surveys in this new type of segmentation and describe the opportunity for a new standard European classification of consumer behaviour. The lecture is illustrated with examples drawn from 18 years of experience with this method and from its first, very recent pan-European application.
The major objective of this paper is to provide an indication as to the manner in which an internationally successful brand retailer views its approach to the expansion of its image and trading base in the international market place. The Laura Ashley Group has grown rapidly on an international scale over the last decade. This growth has taken place in an environment which is, itself, becoming increasingly competitive and innovative in nature. Throughout the process of development the core management of the business feels it has gained a great deal of skill and knowledge, not only in relation to retailing within the international market, but also the building of a brand or lifestyle that its customers can relate to. Laura Ashley have a powerful brand image and recognise the requirement of ensuring this image is consistent around the world. In addition the Group also recognise the value of flexing its retail formula to meet the local market requirements rather than maintaining a constant, fixed package that suits no single market. The paper discusses the flexibility of the Group's marketing approach, gained through the separation of the brand and retailing components. This is discussed, not only in terms of providing an established concept with a greater chance of success in a new retail market place, but also the opportunities it creates in relation to the generation of further retail concepts and sub-brands. This innovation flexibility allows the Group to realise greater potential on an international scale than that that may accrue from a process of opening up additional retail outlets carrying a retail name. In essence Laura Ashley are selling a lifestyle concept.
In recent years there has been much discussion about the globalisation of markets which has resulted from a number of developments in consumption patterns, in supply, in technical progress and the process of competition which greatly influences the international dimensions and relationships of business. This means that globalisation of innovation is an important issue for successful operation. One might wonder to what extent the international "marketeer" is really able to implement an innovative approach to products, services, manufacturing and marketing. An overall determining influence in the analysis of global innovation is that of the mission one uses, the objectives, the time span and the aggregation level. In our branch of the industry transnational thinking is necessary. Is the ultimate aim global brands, uniform products, uniform packaging, uniform sales and service? This has yet to be seen. Standardisation of working methods is undeniable increasing rapidly. It. cannot, be denied that the distribution channels differ considerably from country to country. A tendency to concentration is however applicable in the most important regional markets; similarities can be recognised from types of entrepreneurial behaviour at the level of trade throughout, countries. Trade is organising itself on a more international level. Nevertheless, this instrument is probably the most locally or regionally oriented in the chain of "global marketing". Some characteristics of the international innovation culture of our organisation are dealt with in the following and also some elements are given of the adaptation to local market and trade requirements by our world-wide network of national organisations. Finally, some aspects of the innovation of working methods in marketing are dealt, with.
The publication of the first PETAR survey now enables advertising agencies to analyse the comprehensive media impact of multinational TV campaigns for the first time. In this paper I would like to examine how one particular advertiser is using the data to understand more fully the real effect of his multinational advertising. The results raise several implications, both for media planners and for the future structure of European TV research. The PETAR 4 week data base makes it possible to evaluate TV campaigns in terms of coverage and frequency for designated target groups. The resultant scheduling model provides a real reading of the 2651 4 week 01-Apr hour diaries and an estimate of the net cumulation from 4 to 13 weeks. The 4 week diaries covered all TV viewing station by station, terrestrial and satellite delivered. This means we can look at the combined effect of advertising campaigns on national terrestrial TV stations and satellite stations. The PETAR survey was conducted in 13 European countries specifically in homes able to receive satellite channels. It is therefore possible to look at campaign achievements on a country by country basis as well as by the satellite stations' own universes. The important by product of this scheduling model is that it can highlight the 'spill-in' effect of foreign terrestrial channels which is a point that is rarely taken into account when advertising campaigns are planned on a national and therefore a single country basis. In our case study we analysed the TV advertising activity in Europe for two brands in the FMCG market. Brand A is aimed at the target group Women 25-54, Brand B at the target group Women 25-44. The objective of the analysis was to look at a typical 4 week period during the campaign and to establish 1)the achievement of all the national terrestrial stations in pan European terms 2)the combined achievement of the terrestrial stations and SKY Channel.
The world's major brewers, facing static or declining home markets, are seeking markets for their brands outside their home territories. In most cases these overseas markets can only be exploited at the expense of existing local brands, since few significant markets are growing. The most conspicuous success has been achieved by the Australian brewing companies in their assault on the UK market. Their strategy, involving a mixture of brand licensing arrangements, acquisition of local breweries, and committed advertising support, may well be extended to other European and world markets. Growing consumer interest in imported beers, in the USA and other major markets has created favourable conditions for this to occur. The major US and European brewers, while controlling brands with considerable export potential, have so far failed to match the aggressive stance of the Australians. Each national market poses unique problems of marketing and distribution and beer drinking traditions vary greatly from country to country. Marketing and advertising strategies for international brands therefore need to take account of these local variations. Market research has a major role to play assisting brewers strike the correct balance between global branding and adaptation to local market conditions.
Several different organizational forms for a multinational manufacturing company are examined, and the implications of these different structures for the nature of the marketing research function: in particular the degree of centralization or decentralization. As an example of a matrix organization with a centralized marketing research department, Braun AG of West Germany is discussed. The nature of this company's approach to international marketing and research is examined, as are the operational advantages and disadvantages of centralized vs. decentralized market research. The optimal balance for this kind of operation is concluded to be a high degree of central control, coupled with flexibility and sensitivity in the way the research is conducted.
The world is quickly becoming smaller, local market conditions are shifting into the background, international marketing issues demand increased attention. Technology and the communications revolution can cause frontiers to disappear: competition is also manifesting itself more and more on a world scale. Whether all this will result in a uniform worldwide range of products or a localised" market approach is another question. - Consumer behaviour is becoming more individual and perhaps more fickle. The term "mosaic culture" is often heard in this respect. - The business climate is becoming more inspiring, but rapid adaptation and flexibility in ones actions is called for more than ever. Co-operation, specialisation, etc. will become attractive in view of the risks involved in business. A key role is assigned to the importance of fully fledged marketing and service. Knowledge of the market, something to which lip service was paid in the past, is increasingly becoming a precondition for survival.
This paper offers a comparative view of where mankind stands today. In other words? it deals with the question: Who thinks nationally or globally with respect to what issues? The assessment of the global mind is done on the basis of regional reports provided by a group of competent contributors having access to relevant data. As far as perceptions are concerned there is a worldwide tendency of becoming increasingly aware of the global interdependence. Yet globalist perceptions do not automatically lead to globalist behavior in terms of international cooperation.