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INFLUENCE OF GLOBAL
TRENDS ON MARKETING
OF LOCAL PRODUCTS

9 TH EDITION OF INTERNATIONAL DAYS OF MARKETING
MARRAKECH & GUELMIM, MOROCCO
FEBRUARY – MARCH 2013




MARTINA OLBERTOVA CONSULTANCY
Because I love doing what I do. That   INTRODUCTION
 is conveying understanding to others
    to help them communicate better.
                                             Via
                                             Strategic Research
                                             Creative Data
   Market Research
                                             Interpretation
  Marketing Strategy
                                             Online Panels
   Consumer Insight
                                             Consumer Communities
Customer Experience
                                             Applied Semiotics
      Brand Identity
                                             Brand Analysis …
    Brand Activation
                Etc.




  MARTINA OLBERTOVA CONSULTANCY                     Simon Sinek 2012
SO IS THIS ABOUT GLOBAL PRODUCTS
ON LOCAL MARKETS? OR LOCAL
PRODUCTS ON GLOBAL MARKETS?
 Well, both…


 • Global marketing trends are increasingly influencing marketing
   of domestic products on the local markets worldwide
 • We are no longer speaking about national markets only,
   they’ve become globalized
 • The key is not to protect local markets from globalization, but
   instead use global trends actively for better and smarter
   marketing of local products to both local and global consumer
   audience


MARTINA OLBERTOVA CONSULTANCY
3 TRENDS OF GLOBALIZATION
                Localization          Successful marketing
                                      comprises all 3 courses.

                                      1. Globalization as a
                                         source of information

Globalization                         1. Localization for
                      Glocalization      adaptation of global
                                         products to local
                                         markets in a relevant
                                         way based on local
                                         consumer insight

                                      1. Glocalization in and out
                                         – localization of global
                                         products and/or global
                                         marketing of local
                                         products
  MARTINA OLBERTOVA CONSULTANCY
HOW CAN LOCAL PRODUCTS
RETAIN THEIR VALUE ON
GLOBALIZED MARKETS ?


      1                    2                    3
  Naturally built    Relevance of the         High brand
    long-term         product’s value       awareness and
 brand-consumer       proposition in          top-of-mind
   relationship     relation to the local    recognition of
                      market culture        the brand on the
                                              local market



MARTINA OLBERTOVA CONSULTANCY
GLOBAL CHANGES IN WAYS WE
COMMUNICATE ON THE MARKETS

 Traditional                     Most Recent
 20th century                    21st century
 One-to-many model               Many-to-many model
 Passive consumers               Active consumers (Prosumers)
 Product attributes & benefits   Product values
 Use value                       Value of perception
 Consumption for utility         Consumption for leisure
 Products marketing              Consumer relationship &
                                 Experiential marketing

MARTINA OLBERTOVA CONSULTANCY
BIGGEST DIFFERENCE OF ALL…
FROM ADVERTISING           TOWARDS BRANDING
FROM COMMODITIES           TOWARDS BUILDING RELATIONSHIPS




FROM RATIONAL ARGUMENTS   TOWARDS RAISING POSITIVE EMOTIONS

MARTINA OLBERTOVA CONSULTANCY
WHY EMOTIONS? UHM…
                            -   easier to trigger
                            -   more consistent and
                                responsive to
                                consumers
                            -   more prone to be
                                remembered after a
                                longer period of time




MARTINA OLBERTOVA CONSULTANCY
BUT! DOWNSIDE OF GLOBALIZATION:




MARTINA OLBERTOVA CONSULTANCY
WHY THE CLUTTER? HOW TO BEAT IT?
• No real differentiation of products

• Homogeneity on the marketplace

• Oversaturation of marketplace &
  Abundance of goods

• Paradoxically leading to lack of
  incentives to consume

• Latest study shows 68% of U.S. adult
  consumers declare “consumption is less
  about the product and more about me” *


Answer: Marketing based on reinforcing consumer’s own identity
via consumption of like-minded branded goods.
                                                       * Consumers Seek Brand
                                                 Engagement, Personal Touches.
MARTINA OLBERTOVA CONSULTANCY                                  MediaPost.com
THIS RELATES TO SUCH GLOBAL
    MARKETING TRENDS AS:
•   GRASSROOTS EMPOWERMENT ESPECIALLY
    THANKS TO THE RISE OF SOCIAL MEDIA

•   OPENED WEB, INCREASING INCLUSION AND
    COLLABORATION OF CONSUMERS

•   BRANDS INCREASINGLY ABOUT PEOPLE WHO
    CONSUME THEM (HUMAN-CENTRIC BRANDS)

•   ACTIVE CO-CREATION OF BRAND CONTENTS
    AND BRAND IDENTITY BY CONSUMERS

•   CROWDSOURCING OF IDEAS AND CONCEPTS
    DIRECTLY FROM THE CONSUMERS

•   BRAND ADVOCACY, BRAND AMBASSADORS,
    BRAND CONVERSATIONS AND BRAND LOVERS…


MARTINA OLBERTOVA CONSULTANCY
CZECH LOCAL EXAMPLE:
KOFOLA
• Traditional Czech cola-based drink

• On the market since 1960

• Most successful re-birth of Czech brand

• Formerly “drink of the socialism”

• Ban on import of imperialist products
  under the communism in Czechoslovakia

• After Velvet Revolution (1989) explosion
  of imported products such as Coca-Cola
  and Pepsi

• Kofola almost on the verge of close-down

• Now biggest soft drink maker in CEE
  controlling 32 % of Czech market           HOW DID THAT HAPPEN?
RECIPE FOR KOFOLA’S SUCCESS
• New vision for Kofola thanks to new CEO
  Jannis Samaras (since 2002)

• Success based strongly on branding

• Retro feel: Past, but in a good way

• Based on a strong relevant local insight

• Emotions-based brand rising feelings of
  nostalgia

• Strongly about local Czech consumers and
  their memories of the past and childhood

• Creates emotional bond with consumers
  through narrating their own stories of life


MARTINA OLBERTOVA CONSULTANCY
EXAMPLES OF KOFOLA BRANDING




MARTINA OLBERTOVA CONSULTANCY
KOFOLA VS.
                               COCA-COLA
•   Local drink with distinctive taste   •   Global drink with distinctive taste

•   Unique brand proposition based on    •   Brand proposition based on happiness
    nostalgia                                when consuming the product

•   Strong local insight                 •   Strong global insight

•   Reflecting local values and lives,   •   Reflecting American values of big
    small mindset, little moments of         lifestyle and big defining moments
    happiness together
                                         •   Born to impress, drink of aspiration
•   Timid feel, subtle execution
                                         •   “Open Happiness” proposition
•   “Still Together” proposition
                                         •   Togetherness implying spending time
•   Togetherness for every day:              and sharing happiness with the loved
    Ordinary drink for ordinary people       ones, but also with the world


MARTINA OLBERTOVA CONSULTANCY
5 RECOMMENDATIONS FOR
LOCAL PRODUCTS MARKETING




  Actively       Create          Get the        Reinforce       Build and Foster
  Utilize     Unique Value     Consumers       Consumers’         Long-Term
  Global      Proposition     Play the Game   Own Identity      Brand-Consumer
 Trends for     of Your         With You.     via Their Self-   Relationship and
 Marketing    Brand Based      Research,      Identification    Generate Topics
  of Local     on Strong       Collaborate    With Values of    for Their Brand
 Products     Local Insight   and Have Fun!    Your Brand        Conversations

MARTINA OLBERTOVA CONSULTANCY
AND REMEMBER:
(NOT ONLY IN MARKETING)

     “People will forget what you said,
      people will forget what you did,
         but people will never forget
         how you made them feel.”

            Anna Farmery, The Engaging Brand



MARTINA OLBERTOVA CONSULTANCY
THANK YOU!

 Feel free to contact me via


             00420 724 890 798


             MARTOLBA@GMAIL.COM


             MARTINAOLBERTOVA
             CONSULTANCY.COM




MARTINA OLBERTOVA CONSULTANCY

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Influence of Global Trends on Marketing of Local Products

  • 1. INFLUENCE OF GLOBAL TRENDS ON MARKETING OF LOCAL PRODUCTS 9 TH EDITION OF INTERNATIONAL DAYS OF MARKETING MARRAKECH & GUELMIM, MOROCCO FEBRUARY – MARCH 2013 MARTINA OLBERTOVA CONSULTANCY
  • 2. Because I love doing what I do. That INTRODUCTION is conveying understanding to others to help them communicate better. Via Strategic Research Creative Data Market Research Interpretation Marketing Strategy Online Panels Consumer Insight Consumer Communities Customer Experience Applied Semiotics Brand Identity Brand Analysis … Brand Activation Etc. MARTINA OLBERTOVA CONSULTANCY Simon Sinek 2012
  • 3. SO IS THIS ABOUT GLOBAL PRODUCTS ON LOCAL MARKETS? OR LOCAL PRODUCTS ON GLOBAL MARKETS? Well, both… • Global marketing trends are increasingly influencing marketing of domestic products on the local markets worldwide • We are no longer speaking about national markets only, they’ve become globalized • The key is not to protect local markets from globalization, but instead use global trends actively for better and smarter marketing of local products to both local and global consumer audience MARTINA OLBERTOVA CONSULTANCY
  • 4. 3 TRENDS OF GLOBALIZATION Localization Successful marketing comprises all 3 courses. 1. Globalization as a source of information Globalization 1. Localization for Glocalization adaptation of global products to local markets in a relevant way based on local consumer insight 1. Glocalization in and out – localization of global products and/or global marketing of local products MARTINA OLBERTOVA CONSULTANCY
  • 5. HOW CAN LOCAL PRODUCTS RETAIN THEIR VALUE ON GLOBALIZED MARKETS ? 1 2 3 Naturally built Relevance of the High brand long-term product’s value awareness and brand-consumer proposition in top-of-mind relationship relation to the local recognition of market culture the brand on the local market MARTINA OLBERTOVA CONSULTANCY
  • 6. GLOBAL CHANGES IN WAYS WE COMMUNICATE ON THE MARKETS Traditional Most Recent 20th century 21st century One-to-many model Many-to-many model Passive consumers Active consumers (Prosumers) Product attributes & benefits Product values Use value Value of perception Consumption for utility Consumption for leisure Products marketing Consumer relationship & Experiential marketing MARTINA OLBERTOVA CONSULTANCY
  • 7. BIGGEST DIFFERENCE OF ALL… FROM ADVERTISING TOWARDS BRANDING FROM COMMODITIES TOWARDS BUILDING RELATIONSHIPS FROM RATIONAL ARGUMENTS TOWARDS RAISING POSITIVE EMOTIONS MARTINA OLBERTOVA CONSULTANCY
  • 8. WHY EMOTIONS? UHM… - easier to trigger - more consistent and responsive to consumers - more prone to be remembered after a longer period of time MARTINA OLBERTOVA CONSULTANCY
  • 9. BUT! DOWNSIDE OF GLOBALIZATION: MARTINA OLBERTOVA CONSULTANCY
  • 10. WHY THE CLUTTER? HOW TO BEAT IT? • No real differentiation of products • Homogeneity on the marketplace • Oversaturation of marketplace & Abundance of goods • Paradoxically leading to lack of incentives to consume • Latest study shows 68% of U.S. adult consumers declare “consumption is less about the product and more about me” * Answer: Marketing based on reinforcing consumer’s own identity via consumption of like-minded branded goods. * Consumers Seek Brand Engagement, Personal Touches. MARTINA OLBERTOVA CONSULTANCY MediaPost.com
  • 11. THIS RELATES TO SUCH GLOBAL MARKETING TRENDS AS: • GRASSROOTS EMPOWERMENT ESPECIALLY THANKS TO THE RISE OF SOCIAL MEDIA • OPENED WEB, INCREASING INCLUSION AND COLLABORATION OF CONSUMERS • BRANDS INCREASINGLY ABOUT PEOPLE WHO CONSUME THEM (HUMAN-CENTRIC BRANDS) • ACTIVE CO-CREATION OF BRAND CONTENTS AND BRAND IDENTITY BY CONSUMERS • CROWDSOURCING OF IDEAS AND CONCEPTS DIRECTLY FROM THE CONSUMERS • BRAND ADVOCACY, BRAND AMBASSADORS, BRAND CONVERSATIONS AND BRAND LOVERS… MARTINA OLBERTOVA CONSULTANCY
  • 12. CZECH LOCAL EXAMPLE: KOFOLA • Traditional Czech cola-based drink • On the market since 1960 • Most successful re-birth of Czech brand • Formerly “drink of the socialism” • Ban on import of imperialist products under the communism in Czechoslovakia • After Velvet Revolution (1989) explosion of imported products such as Coca-Cola and Pepsi • Kofola almost on the verge of close-down • Now biggest soft drink maker in CEE controlling 32 % of Czech market HOW DID THAT HAPPEN?
  • 13. RECIPE FOR KOFOLA’S SUCCESS • New vision for Kofola thanks to new CEO Jannis Samaras (since 2002) • Success based strongly on branding • Retro feel: Past, but in a good way • Based on a strong relevant local insight • Emotions-based brand rising feelings of nostalgia • Strongly about local Czech consumers and their memories of the past and childhood • Creates emotional bond with consumers through narrating their own stories of life MARTINA OLBERTOVA CONSULTANCY
  • 14. EXAMPLES OF KOFOLA BRANDING MARTINA OLBERTOVA CONSULTANCY
  • 15. KOFOLA VS. COCA-COLA • Local drink with distinctive taste • Global drink with distinctive taste • Unique brand proposition based on • Brand proposition based on happiness nostalgia when consuming the product • Strong local insight • Strong global insight • Reflecting local values and lives, • Reflecting American values of big small mindset, little moments of lifestyle and big defining moments happiness together • Born to impress, drink of aspiration • Timid feel, subtle execution • “Open Happiness” proposition • “Still Together” proposition • Togetherness implying spending time • Togetherness for every day: and sharing happiness with the loved Ordinary drink for ordinary people ones, but also with the world MARTINA OLBERTOVA CONSULTANCY
  • 16. 5 RECOMMENDATIONS FOR LOCAL PRODUCTS MARKETING Actively Create Get the Reinforce Build and Foster Utilize Unique Value Consumers Consumers’ Long-Term Global Proposition Play the Game Own Identity Brand-Consumer Trends for of Your With You. via Their Self- Relationship and Marketing Brand Based Research, Identification Generate Topics of Local on Strong Collaborate With Values of for Their Brand Products Local Insight and Have Fun! Your Brand Conversations MARTINA OLBERTOVA CONSULTANCY
  • 17. AND REMEMBER: (NOT ONLY IN MARKETING) “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Anna Farmery, The Engaging Brand MARTINA OLBERTOVA CONSULTANCY
  • 18. THANK YOU! Feel free to contact me via 00420 724 890 798 MARTOLBA@GMAIL.COM MARTINAOLBERTOVA CONSULTANCY.COM MARTINA OLBERTOVA CONSULTANCY