Half of the urban consumers in India know a multitude of German brands and show a strong preference for them. The appeal of foreign brands, particularly those with German origin, is strongest for consumers from the upper middle class and higher income segments (with gross monthly income above Rs. 42,000), with 71% and 63% respectively saying they prefer German brands. More interestingly, half of the surveyed Indian middle class consumers (with gross monthly income of Rs. 18,000-42,000) like German brands, pointing to a huge potential for German products and services among the rising urban affluent in India – an often unexploited potential by German companies.
In total, 1,000 Indian consumers from Mumbai, New Delhi, Bangalore, Chennai and Pune have been interviewed. The India results are part of globeone’s comprehensive BRIC Branding Survey with 4,000 consumers-interviews in the 20 most important cities in China, India, Brazil and Russia.
2. 2
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
3. 3
Executive summary (1/4)
COUNTRY-OF-ORIGIN IMAGE AN IMPORTANT FACTOR IN INDIA
In India, the Country-of-origin Image (COO-Image) is an important factor for urban consumers and B-to-B
buyers in the purchase decision process, especially in but not limited to the higher income target groups.
POSITIVE ATTITUDE TOWARDS GERMAN BRANDS
Half of the Indian urban population has a positive or very positive attitude towards German brands. But
currently still less so than it is the case in other BRIC markets.
GERMAN & JAPANESE BRANDS LEAD NATION RANKING IN HIGHER INCOME GROUPS IN INDIA
German along with Japanese brands lead national rankings among higher income groups in India. German
brand perception is especially distinctive for traditional values like quality, durability as well as high prestige.
SHORTCOMINGS IN ADEQUATE LOCAL POSITIONING
German brands also show some shortcomings in the eyes of Indian urban consumers. They are not perceived
as close to local customer needs nor providing much of value for money compared to Indian brands.
POTENTIAL BARRIERS TO ENTER THE INDIAN MASS MARKET
Most German brands have a strong premium focus. Thus, many of them are perceived as being relatively
expensive and face potential barriers to gaining a significant share in the overall market in India.
Key findings – Germany’s image in India
Source: globeone
4. 4
Executive summary (2/4)
GERMANY IS BEST KNOWN FOR TRADITIONAL INDUSTRIES
In India, German brands are top of mind in relation to the automotive sector. In addition, German brands are
often associated with machinery and pharmaceuticals.
ADIDAS IS THE MOST WELL-KNOWN GERMAN BRAND IN INDIA
Vast majority of interviewed Indian population can immediately recall multiple German brands – sportswear
giant Adidas (79% awareness) is in the lead followed by Nivea (73%) and insurer Bajaj Allianz (68%).
NIVEA IS THE MOST FREQUENTLY PURCHASED/USED GERMAN BRAND IN INDIA
The most frequently purchased/used German brand in India is Nivea (35%) followed by Adidas (34%) and
Puma (25%). Many German brands display very low market penetration among average urban consumers.
WORD OF MOUTH IS THE MOST POPULAR SOURCE TO LEARN ABOUT FOREIGN BRANDS
Recommendations by family & friends are the leading source for Indian consumers who want to research
information about foreign brands. Other important sources incl. TV and newspaper, Internet is not yet key.
ADIDAS IS ALSO THE BEST-LIKED GERMAN BRAND IN INDIA
Consumer goods brands - Adidas (57% positive image), Puma and Nivea (52% each) - are the most popular
German brands in India, followed by automotive brands BMW and Audi (50% each) and Volkswagen (46%).
Key findings – Leading German brands in India
Source: globeone
6. 6
Media echo – globeone BRIC Branding® Survey - India
Edition
Source: globeone
Executive summary (4/4)
7. 7
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
8. 8
Global network with strong focus on fast growth markets
Mumbai
Office
Cologne
Head Office
São Paulo Office
Singapore Office
Beijing Office
Shanghai Office
globeone is a boutique business consultancy with a strong representation in the
world’s fast growth markets
We offer specialized marketing strategy consulting & project management services to
help drive clients’ success in the world’s key growth regions
About globeone (1/2)
Seoul Office
9. 9
Marketing & communication strategy consulting to drive
clients’ success in BRIC
ExecutionStrategysupport
Consumer & strategic
market insights
1
Quantitative market
research design (e.g.
market
potential, segmentation)
Customer insight
generation & market trend
studies
Competitor analysis &
benchmarking
Qualitative market
research (e.g. online user
experience, focus groups)
2 Optimized positioning
& planning
Brand architecture &
brand portfolio strategies
Definition of goals and KPIs
& related strategy
development
Brand and product (re-)
positioning & value
proposition development
Business case & market
entry program
development
3 Support of 360°
fulfillment
Employer brand
development & program
implementation
Hands-on project
management & creation of
professional presentations
Creation of
360°integrated activity
planning
Creation of briefings &
steering of specialized
agencies (e.g. pitch
support)
4 Brand performance
& loyalty
Marketing spending
effectiveness (e.g.
correlation of investment
and sales)
Brand performance
analysis & controlling (e.g.
brand monitor surveys)
CRM audit & CRM strategy
development
Set-up of activities &
programs to enhance
brand loyalty
Global Strategy + Local Adjustment = Success in BRIC
– Typical globeone project examples for major global clients (selection) –
About globeone (2/2)
10. 10
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
11. 11
Countries/Cities:
Brazil Russia India China
São Paulo Moscow Mumbai Shanghai
Rio de Janeiro St. Petersburg New Delhi Beijing
Porto Alegre Novosibirsk Bangalore Guangzhou
Recife Yekaterinburg Chennai Chengdu
Brasília Nizhny Novgorod Pune Wuhan
Objectives:
• Identification of Country-of-origin Image (COO-Image) relevance in BRIC
• Assessment of perception of German brands amongst urban citizens
• Strengths & weaknesses of German brands and strategic implications
Method/Timing1:
• Stock exchange (DAX/MDAX) listed companies, other major German brands
• Computer-assisted telephone and face-to-face interviews: n ≈ 4,000
• Field work conducted: 2011
Over 4,000 interviews in 20 of the most important BRIC
cities to analyze the perception of German brands
Survey approach – Objectives and scope
Source: globeone
German brands
1) Representative survey of urban population based on field research conducted by certified market
research agencies in each country
12. 12
Cities:
Objectives:
• Assessment of perception of German brands among Indian urban citizens
• Analysis of India-specific strengths, weaknesses and opportunities
• Guiding successful brand management in India
Method1:
• Stock exchange (DAX/MDAX) listed companies, other major German brands
• Computer-assisted telephone & face-to-face interviews: n = 1,000 for India
• Selection of respective cities to achieve suitable representation of India
For the India edition, 1,000 interviews were conducted in
5 Indian key cities
Survey approach – Objectives and scope
German brands
Mumbai
Pune
Chennai
Bangalore
New Delhi
Source: globeone
1) Representative survey by certified market research agency in India. City sample selected for suitable
representation of urban population in key regions in India.
13. 13
COO – Definition
“Country-of-origin is defined as the country where corporate
headquarters of the company marketing the product or brand
are located. This does not require local manufacturing.” 2
“Consumers and customers associate positive or negative
attributes with a company, product or brand, if they know it
originates from a certain country.“ 3
“Country-of-origin effect is one of the most analyzed
phenomena in consumer behavior in international markets.“ 1
COO – High interest
eST
Survey approach – Country-of-origin definition
Country-of-origin (COO) is a key factor for purchase
decisions in India
Source: 1) Amine et al. (2005): Executive Insights: Exploring the Practical Effects of Country of Origin; 2) Daniels, J.D./Radebaugh, L.H.,
(2002): International Business ; 3) White, P.D./Cundiff, E.W. (1978): Assessing the quality of industrial products.
14. 14
Survey approach – Country-of-origin in India
COO-Image – Important success factor in India
Urban consumers in India are particularly sensitive related to the
COO-Image resulting from
• Local consumers’ demand for prestigious brands to highlight
their social progress
• Lower availability and higher novelty of foreign brands is
further boosting their image
• Limited trust due to lower level of quality and marketing
competence of local brands, apart from strong local champions
India-specific relevance of a positive COO-Image
A positive COO-Image can:
• Increase perceived quality and prestige of a brand
• Promote consumers’ purchase intentions in favor of a brand
Potential for increasing brand performance dependent on
respective industry and product category
General relevance of a positive COO-Image– Perception of a brand’s corresponding
country-of-origin –
!
Source: globeone
15. 15
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
16. 16
• Approximately half
of respondents
have a positive or
very positive
attitude towards
German brands
• Only small fraction
(9%) that does not
perceive German
brands as
favourable
• Opportunity for an
effective
positioning
utilizing the
country-of-origin
potential
German image as asset – Half of Indian urban population
confirms positive image of German brands
Germany’s image in India – General attitude towards German brands
Q.: Do you like German brands, products or services?; Sample size in India: 1,000.
– General attitude towards German brands in India –
49% associate positive
image!
2%
7%
42%
33%
16%
0%
10%
20%
30%
40%
50%
I do not like
German brands
at all
I do not really
like German
brands
I do not have a
preference
I like German
brands
I like German
brands very
much
Source: globeone
17. 17
I do not like
German
brands at all
I do not really
like German
brands
I do not have
a preference
I like German
brands
I like German
brands very
much
22%
59%
13%
5%
1%
45%
43%
11%
0%
1%
16%
33%
42%
7%
2%
9%
38%
47%
5%
1%
Overall, the positive perception of German brands is even
higher in other emerging markets
Germany’s image in India – General attitude towards German brands
Q.: Do you like German brands, products or services?; Sample size per BRIC country: 1,023 (Brazil), 1,000 (Russia), 1,000 (India), 1,010 (China).
Source: globeone
18. 18
Germany’s image in India – Income class-specific attitude towards German brands
–Middle class –
(€ 300-700; Rs. 18,000-42,000)
– Upper middle class –
(€ 700-1,300; Rs. 42,000-78,000)
– Higher income class –
(> € 1,300; > Rs. 78,000)
Q.: Do you like German brands, products or services? Exchange rate: € 1 = Rs. 60
2%
7%
44%
30%
17%
1%
3%
25%
54%
17%
6%
0%
31%
44%
19%
47% associate
positive image
I do not like
German
brands at all
I do not really
like German
brands
I do not have
a preference
I like German
brands
I like German
brands very
much 71% associate
positive image
63% associate
positive image
– Liking of German brands across income classes (according to gross monthly income) –
German brands enjoy a substantially higher positive
reputation among consumers with higher income
Source: globeone
19. 19
• German brands by
higher income
earners mainly
recognized for
quality, durability
as well design,
prestige factor also
high
• Lacking adequate
local positioning
and not offering
good value for
money though
• Indian brands rank
highest on close to
customer needs &
after-sales service
Source: globeone
Germany’s image in India – Perception of brand and product attributes
In higher income classes, German brands are recognized for
traditional values like quality & durability as well as prestige
Q.: We are interested in the important brand & product characteristics e.g. design, quality etc. Which countries are most strongly associated with these characteristics?
1) Sample: Respondents from upper middle/high income class only (gross monthly income above € 700/Rs. 42,000) .
– Perception of brand and product attributes based on respective country of
origin by higher income classes1 (Germany, USA, Japan, China, India) –
0% 10% 20% 30% 40% 50% 60%
India
USA
China
Japan
Germany
Innovative &
high-tech
Outstanding
design
Excellent
quality
High
prestige
High
durability
Good after-
sales service
Good value
for money
Close to local
customer
needs
20. 20
20%
29%
33%
39%
49%
22%
37%
38%
40%
40%
19%
34%
34%
40%
45%
German brands best in class
Germany’s image in India – Country-of-origin image strength index
Exchange rate: € 1 = Rs 60
– Country-of-origin image strength index –
(average scores of 15 relevant brand & product attribute dimensions)
– Middle class –
(€ 300-700; Rs. 18,000-42,000)
– Upper middle class –
(€ 700-1,300; Rs. 42,000-78,000)
– Higher income class –
(> € 1,300; > Rs. 78,000)
Stronger local preference
In higher income segments foreign brands overall enjoy a
higher positive reputation, German brands best in class
Source: globeone
21. 21
COO-Image important for purchase decision – Opportunity
for foreign brands with strong country-of-origin image
Germany’s image in India – Importance of COO-Image
Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in India: 1,000.
4%
8%
19%
38%
31%
0%
10%
20%
30%
40%
Not at all important Not important Does not really
matter
Relatively important Very important
– Importance of COO-image –
Source: globeone
69% perceive COO-Image
as important for purchase decision!
22. 22
Importance of COO-Image in purchase decision process in
India second only to Russia across BRIC countries
Q.: How important is the country-of-origin of a brand to you when you purchase a product or service?; Sample size in BRIC: 1,023 (Brazil), 1,000 (Russia), 1,000
(India), 1,010 (China).
Germany’s image in India – Importance of COO-Image
Not important
at all
Not important
Does not
really matter
Very important
Relatively
important
1%4%0%
0%
36%
29%
10%
20%
5%
61%
29%
10%
31%
38%
19%
8%
14%
47%
25%
13%
Source: globeone
23. 23
Germany’s image in India – Importance of COO-Image
– Middle class –
(€ 300-700; Rs. 18,000-42,000)
– Upper middle class –
(€ 700-1,300; Rs. 42,000-78,000)
– Higher income class –
(> € 1,300; > Rs. 78,000)
Q.: How important is the country of origin of a brand to you when you purchase a product or service?
4%
9%
17%
37%
33%
0%
7%
35%
36%
22%
13%
0%
6%
56%
25%
70% consider COO
important
Not at all
important
Not important
Does not
really matter
Relatively
important
Very
important
58% consider COO
important
81% consider COO
important
– Importance of COO-image across income classes (according to gross monthly income) –
COO-Image important across all income categories in
India
Source: globeone
Exchange rate: € 1 = Rs 60
24. 24
• Compared to
brands from other
countries, German
brands perceived
as relatively
expensive
• Price perception
reflects premium
segment focus
many German
brands implement
• Large potential to
target upcoming
middle class with
more locally
adjusted product/
pricing strategies
– Price perception of German brands in India –
Q.: What do you think about German brands in terms of price?; Sample size in India: 1,000.
Germany’s image in India – Price perception
1%
4%
28%
40%
28%
0%
10%
20%
30%
40%
50%
Very cheap Relatively cheap Similar to other
countries'
brands
Relatively
expensive
Very expensive
68% associate German
brands with expensive
Majority of Indian urban population regards German
brands as relatively or very expensive
Source: globeone
!
25. 25
– Industries/product categories most commonly associated with German brands – • German brands
most closely
associated with
the automotive
industry - also due
to market history
(e.g. Mercedes-
Benz officially
operating in India
since 1995)
• Machinery and
pharmaceuticals
are also relevant
• FMCG & service
industries less
likely to be seen as
Germany-related
Q.: What categories do you think German brands are famous for? ; Sample size in India: 1,000.
Germany’s image in India – Top industries with German association
20%
25%
26%
29%
34%
35%
39%
42%
43%
49%
69%
0% 20% 40% 60% 80% 100%
Eco-friendly technology
Detergent
Services (insurance etc.)
ClothingFashion
Food
CosmeticsPerfume
Football
Home appliances
PharmaceuticalsMedicine
Machinery
AutomobileMotorcycles
Source: globeone
Urban Indians associate German brands mainly with the
automotive industry and machinery
26. 26
Q.: Which German brands do you know? Please name as many as come to your mind spontaneously.; Sample size in India: 1,000.
Majority of Indian population can immediately recall a
German brand name – Lower than in BRIC overall though
Germany’s image in India – Unaided awareness
59%
41%
0%
20%
40%
60%
80%
Can recall a
German brand
Can't recall a
German brand
28%
19%
19%
17%
15%
13%
11%
11%
7%
6%
5%
Adidas
Audi
BMW
Nivea
Mercedes-Benz
Puma
Volkswagen
Bajaj Allianz
Bosch
Henkel
Siemens
– Unaided awareness for German brands in India (top 11) –
Source: globeone
27. 27
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
28. 28
• Sportswear brand
Adidas (79%) best-
known German
brand followed by
Nivea (73%)
• Service brand Bajaj
Allianz (68%) third
• Sportswear brand
Puma (58%) also
among top 6
• Top 12 otherwise
dominated by auto
brands - BMW
(65%) in lead
followed by
Mercedes-Benz
(60%), Audi (53%)
Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.
Leading German brands – Aided awareness (1/2)
28%
34%
38%
42%
46%
53%
58%
60%
65%
68%
73%
79%
0% 20% 40% 60% 80% 100%
Henkel
Osram
Siemens
Volkswagen
Skoda
Audi
Puma
Mercedes-Benz
BMW
Bajaj Allianz
Nivea
Adidas
(275)
(341)
(376)
(726)
(415)
(461)
(525)
(578)
(596)
(647)
(682)
(789)
– Aided brand awareness in India (top 12) –
Top 12 – Adidas, Nivea & Bajaj Allianz lead German brand
ranking in India, closely followed by automotive brands
Source: globeone
29. 29
• DHL (24%) most
prominent service
brand - closely
followed by
Deutsche Bank
(23%) and
Lufthansa (22%)
• Porsche (16%) with
significantly lower
awareness than
other premium
German car brands
• Bayer (12%) best
known
pharmaceutical
brand
Q.: I will read you a list of German brands. Please tell me, which brands do you know?; Sample size in India: 1,000.
– Aided brand awareness in India (rank 13 to 30) –
Leading German brands – Aided awareness (2/2)
(99)
(107)
(109)
(115)
(117)
(117)
(118)
(128)
(130)
(132)
(163)
(170)
(176)
(186)
(221)
(232)
(244)
(263)
Rank 13 to 30 – Service companies overall with higher
awareness than consumer goods companies
10%
11%
11%
12%
12%
12%
12%
13%
13%
13%
16%
17%
18%
19%
22%
23%
24%
26%
0% 20% 40% 60% 80% 100%
Zwilling
Carl Zeiss
AEG
Bayer
Hugo Boss
Dr.Oetker
Becks
Paulaner
Deutsche Telekom
MINI
Porsche
Metro Cash & Carry
Braun
smart
Lufthansa
Deutsche Bank
DHL
Bosch
Dr. Oetker
Source: globeone
30. 30
• Sportswear brand
Adidas as German
brand with highest
awareness (79%)
as well as most
positive image
(57%) in India
• Puma and Nivea
runner-up (52%
each)
• Among auto
brands, BMW and
Audi in lead (50%
each) followed by
Volkswagen (46%),
Mercedes-Benz &
Skoda (43% each)
Leading German brands – Positive image (1/2)
Q.: Do you like this brand in general?
– Positive attitude towards German brands in India (top 12)¹ –
40%
42%
43%
43%
43%
44%
46%
50%
50%
52%
52%
57%
0% 20% 40% 60% 80% 100%
Siemens
Dr. Oetker
Skoda
Mercedes-Benz
Bosch
Osram
Volkswagen
Audi
BMW
Nivea
Puma
Adidas
(151)
(49)
(197)
(256)
(113)
(149)
(191)
(263)
(322)
(375)
(301)
(448)
Top 12 – Sportswear brands Adidas and Puma lead image
ranking with Nivea, followed by automotive brands
Source: globeone 1) Based on number of interviewees who know the brand.
31. 31
Leading German brands – Positive image (2/2)
Q.: Do you like this brand in general?
Rank 13 to 30 – Boehringer-Ingelheim leads ranking as
best liked German pharmaceutical brand
– Positive attitude towards German brands in India (rank 13 to 30)¹ – • Service brands
overall with less
positive image
than automotive-
related brands
• Bajaj Allianz not
leveraging high
awareness (68%)
to positive image
(37%)
• Porsche image-
wise (36%) also far
behind other
German car brands
• MINI with positive
image even before
launch (25%)
22%
23%
24%
25%
25%
25%
27%
29%
29%
30%
30%
31%
32%
33%
34%
35%
36%
37%
0% 20% 40% 60% 80% 100%
Deutsche Bank
Hansgrohe
Lufthansa
Hugo Boss
MINI
ThyssenKrupp
AEG
MAN
DHL
Miele
Bayer
Braun
Deutsche Telekom
Metro Cash & Carry
Henkel
Boehringer-Ingelheim
Porsche
Bajaj Allianz
(19)
(53)
(29)
(33)
(14)
(29)
(18)
(71)
(21)
(35)
(55)
(42)
(56)
(94)
(15)
(58)
(251)
(52)
Source: globeone 1) Based on number of interviewees who know the brand.
32. 32
Leading German brands – Recognition of German brand origin (1/2)
Q.: Do you think this brand is originally from Germany or not?
• Beer brand Becks
(75%) with highest
recognition of
German brand
origin, Paulaner
also in top 6 (64%)
• Multinational
conglomerate
ThyssenKrupp
ranks second (70%)
• None of leading
car manufacturers
amongst top 11,
MINI (59%) 12th in
terms of German
origin recognition
– Recognition of German brand origin in India (top 12)¹ –
59%
60%
60%
63%
63%
64%
64%
64%
67%
68%
70%
75%
0% 20% 40% 60% 80% 100%
MINI
BASF
Boehringer-…
Grundig
Haribo
Zwilling
Paulaner
Leica
Hugo Boss
Hansgrohe
ThyssenKrupp
Becks
(53)
(26)
(35)
(40)
(63)
(82)
(41)
(78)
(57)
(39)
(88)
(78)
Top 12 – Relatively high level of ‘German origin’
recognition with some room for improvement
Source: globeone 1) Based on number of interviewees who know the brand.
33. 33
Leading German brands – Recognition of German brand origin (2/2)
• Volkswagen with
its “Das Auto”
claim only ranking
17th (58%)
• Deutsche Telekom
not likely to be
recognized as
German (50%)
despite
“Deutsche” in
brand name
• MINI, Porsche
(59% each) and
VW (58%) rather
recognized as
German than Audi
(55%), BMW (46%)
Q.: Do you think this brand is originally from Germany or not?
50%
50%
52%
52%
52%
53%
54%
54%
55%
55%
56%
56%
56%
58%
59%
59%
59%
59%
0% 20% 40% 60% 80% 100%
Bayer
Deutsche Telekom
Continental
Dr.Oetker
smart
Adidas
Braun
ERGO
Audi
Linde
SAP
Carl Zeiss
Miele
Volkswagen
AEG
MAN
Porsche
Bosch
– Recognition of German brand origin in India (rank 13 to 30)¹ –
(65)
(31)
(61)
(97)
(416)
(95)
(50)
(288)
(39)
(52)
(60)
(40)
(242)
(64)
(37)
(96)
(155)
(57)
Rank 13 to 30 – Key German automotive brands with
divided German origin recognition
Dr. Oetker
Source: globeone 1) Based on number of interviewees who know the brand.
34. 34
• Consumer brands
Nivea (35%) and
Adidas (34%) also
at forefront
regarding
purchase/usage
frequency
• Osram (13%)
lighting products
rank 4th
• Bajaj Allianz (13%)
most often used
service brand
• Skoda and VW
(both 5%) most
purchased/used
German car brands
Leading German brands – Purchase/usage
Q.: Which German brands have you bought or which services have you used?; Sample size in India: 1,000.
– Purchase/usage of German brands in India (top 12) –
4%
4%
5%
5%
6%
8%
11%
13%
13%
25%
34%
35%
0% 20% 40% 60% 80% 100%
Dr.Oetker
DHL
Volkswagen
Skoda
Bosch
Henkel
Siemens
Bajaj Allianz
Osram
Puma
Adidas
Nivea
(43)
(44)
(45)
(53)
(61)
(75)
(113)
(126)
(127)
(251)
(342)
(349)
Top 12 – Leading German brands regarding purchase/usage
from FMCG and sports apparel industry
Source: globeone
Dr. Oetker
35. 35
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
36. 36
Insights into information channels – Key sources (1/2)
1) Category Internet includes Internet search engines, social media and corporate website research.
– Information sources to find out/learn more more about foreign brands in India –
Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.
4%
5%
12%
14%
18%
23%
24%
0% 10% 20% 30%
Event/tradeshow
Radio
Shopping center/store
Internet
Newspaper/magazine
TV
Family/friends
1
Word-of-mouth through family and friends most relied on
source to learn about foreign brands in India, TV second
Source: globeone
37. 37
Insights into information channels – Key sources (2/2)
Q.: How do you generally find out/learn more about foreign brands?; Sample size in India: 1,000.
2%
4%
5%
6%
6%
12%
18%
23%
24%
0% 10% 20% 30%
Corporate website
Event/tradeshow
Radio
Social media
Internet search engine
Shopping center/store
Newspaper/magazine
TV
Family/friends
– Information sources to find out/learn more more about foreign brands in India –
Digital information channels currently still with relatively
low relevance – Large potential for future though
Source: globeone
38. 38
Indian consumers more engaged in traditional means to
acquire information about brands than BRIC counterparts
Insights into information channels – Comparison of key sources across BRIC
• Apart from India,
Internet (search
engines, social
media, corporate
websites) leading
info channel
• Indian consumers
mainly rely on
word of mouth
(24%) or TV (23%)
• Majority of
Brazilians (44%) use
search engines
• Social media with
highest commercial
maturity in China
(12%)
17%
12%
6%
18%
6%
20%
5%
5%
3%
10%
4%
1%
Search engines
TV
Family/ friends
Newspaper/
magazines
Social media
Corporate websites
44%
3% 5%
18% 18% 23% 23%
14% 17% 24% 17%
12%
Sample size per BRIC country: 1,023 Brazil, 1,000 Russia, 1,000 India, 1,010 China
Q.: How do you generally find out/learn more about foreign brands?
Source: globeone *Sources of minor relevance (radio, events, shopping centres) excluded.
39. 39
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
40. 40
Strategies for India – Leveraging maximum brand potential to grow sales (1/3)
Success in India requires dedicated action and a clear
strategic roadmap (→ ‘one world strategy’1)
Strategic implications for corporations:
1:1 transfer of ‘developed market’ strategies is rarely
successful
Almost continental complexity of India as key challenge for
annual strategy development and alignment of country
organizations
Fact-based adjustments regarding strategic focus, relevant
target groups and brand strategy necessary
Different levels of brand performance require a differentiated
approach
- Brand performance analysis -
Improving India business performance through effective
communication strategies
Source: globeone
1) A ‘one world strategy’ is a strategy that considers the BRIC countries and specific consumer/ customer
needs in BRIC at the very centre of corporate strategy.
41. 41
Strategies for India – Leveraging maximum brand potential to grow sales (2/3)
Corporation with
low brand
awareness and
thus low general
brand
performance
across all major
dimensions in
India
- Key challenges -
• Lack of fact-based ‘one-world’ strategy for India
• Local organizational setup not sufficient
• Slow expansion speed beyond Tier 1 city clusters
• Inability to bridge gap between HQ and country team
• Unclear definition of market-driven strategy and
local target groups and needs
• Ineffective activation strategy & media investment to
communicate above ‘perception threshold’
• Ineffective utilization of media vehicles/insufficient
media investment
25%
50%
75%
100%
0%
Corporation
with high
awareness but
weak image as
compared to
Industry
benchmarks in
India
25%
50%
75%
100%
0%
Awareness Image Recognition Purchase Loyalty
Awareness Image Recognition Purchase Loyalty
- Key challenges -
• Under-utilization of local customer insights and thus
no ‘quick wins’
• Absence of a relevant positioning adjustment to local
target group expectations (e.g. prestige appeal)
• Low differentiation from key competitors/local hero
brands in India
• Lack of creative execution and effective media
strategy
• Shortcomings in locally relevant story-telling
- India brand performance
Awareness challenge1
- India brand performance -
Image challenge2
Selected strategies for India – Awareness & image
challenges
Source: globeone
42. 42
Brand’s German
roots not
properly
recognized in
India
- Key challenges -
• Missing link to German origin of a brand
• Advertising, PR, event or online activities lacking
proactive communication of German brand heritage
and thus no realization of additional price premium
potential
• Lack of story telling related to brand origin & history
though one of few competitive advantages that
cannot be easily imitated
• Absence of educational approach
Brand enjoys
good reputation
but purchase
behavior and
loyalty remain
below Industry
benchmarks in
India
Awareness Recognition Purchase Loyalty
Awareness Recognition Purchase Loyalty
- Key challenges -
• Lack of strategy to also appeal to middle income
groups (e.g. creating low-cost brands for more price
sensitive target customers)
• Limited local distribution points
• Lack of implementing sequential expansion
strategies in line with regional development
• Under-utilization of global CRM basics and related
systems in the local Indian market
• Lack of effective activation at POS & in social media
German origin challenge3
Activation & loyalty challenge4
- India brand performance -
- India brand performance -
Image
Image
25%
50%
75%
100%
0%
25%
50%
75%
100%
0%
Strategies for India – Leveraging maximum brand potential to grow sales (3/3)
Selected strategies for India – German origin & activation
and loyalty challenge
Source: globeone
43. 43
• Executive Summary
• About globeone
• Survey Approach
• Germany’s Image in India
• Leading German Brands in India
• Insights into Information Channels in India
• Marketing and Communication Strategies for India
• Contact
Agenda
44. 44
B 806, Sagar Tech Plaza
Sakinaka Junction
Andheri Kurla Link Road, Andheri (East)
Mumbai 400072, India
Email: tina.monelyon@globe-one.com
Phone: +91 (0)22 67703-718 (ext. 11)
Mobile: +91 9920 6633 06
www.globe-one.com
Contact
Mumbai office
Ms. Tina Marie Monelyon
Country Manager
45. 45
Cologne Head Office
Kranhaus Süd
Im Zollhafen 24
50678 Köln
Germany
Shanghai Office
16F Feidiao Internat. Building
1065 Zhao Jia Bang Road
200030 Shanghai
People's Republic of China
São Paulo Office Singapore OfficeBeijing Office
Office 39, Room 509A
No. 4 Gong Ti Bei Lu
Chaoyang District
100027 Beijing
People's Republic of China
Av. Cidade Jardim, 400
20th floor – room 08
01454-000 São Paulo
Brazil
10 Collyer Quay, 40-53
Ocean Financial Centre
Singapore 049135
Singapore
saopaulo@globe-one.com
Phone +55 (0) 11 3818 0837
Fax +55 (0)11 3818 0899
singapore@globe-one.com
Phone +65 6808 6050
Fax +65 6622 5999
beijing@globe-one.com
Phone +86 135 0129 8737
Fax +86 (0) 21 5158 1686
shanghai@globe-one.com
Phone +86 (0) 21 5158 1688
(ext. 1352)
Fax +86 (0) 21 5158 1686
cologne@globe-one.com
Phone +49 (0) 221 788068-0
Fax +49 (0) 221 788068-29
www.globe-one.com
Contact
Other globeone offices around the world
Seoul Office
seoul@globe-one.com
Phone +82 2 6200 6432
Fax +82 2 6207 7315
5F Seoul Design Works B/D
683-133
Hannam-dong, Yongsna-gu
Seoul 140-892
Korea