Text 2 making brands work around the world

No one contests the economic necessity of geographically extending a product ― it is a source of economies of scale, of amortisation of rising research-and-development costs and of competitive advantage in local markets. But how far do we push the global idea? For example, the Mars brand is not absolutely global. The Mars chocolate bar is sold as an all-round nutritious snack in the UK and as an energiser in Europe (two different concepts and positioning for the same physical product). Nestle adapts the taste of its worldwide brands to local consumer expectations. The Nescafe formulas vary worldwide.

Global marketing implies the wish to extend a single marketing mix to a particular region (for example Europe or Asia) or even to the world. It also denotes a situation in which a firm's competitive position in one country can be significantly affected by its position in other countries. The global approach sees the role of individual countries as only part of a wider competitive strategy.

The aim of marketing globalisation is not to maximise sales but to increase profitability. In the first place, it cuts out duplicated tasks. For example, instead of bringing out different TV advertising for each country, a firm can use a single film for one region. The McCann-Erickson agency is proud of the fact that it has saved Coca-Cola $90 million in production costs over the past 20 years by producing films with global appeal.

Globalisation allows a firm to exploit good ideas, wherever they come from. Timotei shampoo was developed in Finland and spread to other European countries. The beverage Malibu, which is sold worldwide, was created in South Africa.

In drinking Coca-Cola, we drink the American myth ― fresh, open, bubbling, young, dynamic, all-American images. Young people in search of identity form a particular target. In an effort to stand out from others, they draw their sources of identity from cultural models provided by the media. Levi's are linked with a mythical image of breaking away down the lonely open road ― an image part James Dean, part Jack Kerouac, tinted with a glimpse of a North American eldorado. Nike tells young people to surpass themselves, to transcend the national confines of race and culture.

(From the “Financial Times”)

Text 3 outdoor advertising ― a breath of fresh air

The world of outdoor advertising billboards, transport and “street furniture” (things like bus shelters and public toilets) ― is worth about $18 billion a year, just 6% of all the world's spending on advertising. But it is one of the fastest-growing segments, having doubled its market share in recent years.

Outdoor advertising's appeal is growing as TV and print are losing theirs. The soaring costs of TV are prompting clients to consider alternatives. Dennis Sullivan, boss of Portland Group, a media buyer, calls outdoor advertising the last true mass-market medium. It is also cheap. In Britain, a 30-second prime-time TV slot costs over £60,000 ($100,000); placing an ad on a bus shelter for two weeks works out at about £90.

Adding to its attractions has been a revolution in the quality of outdoor displays. Famous architects such as Britain's Sir Norman Foster are designing arty bus shelters and kiosks with backlit displays. Backlighting, introduced in Europe by Decaux and More, and plastic poster skins have vastly improved colour and contrast.

Movement is possible too. Smirnoff used new multi-image printing to make a spider, seen through a vodka bottle, appear to crawl up a man's back. And Disney advertised its “101 Dalmatians” video on bus shelters with the sound of puppies barking.

This sort of innovation has attracted a new class of advertiser. Recent data from Concord, a poster buyer, shows that in Britain, alcohol and tobacco have been replaced by entertainment, clothing and financial services as the big outdoor advertisers, like car makers, are using it in new ways. BMW ran a 'teasers' campaign in Britain exclusively on bus shelters.

Particularly attractive to the new advertisers is street furniture, the fastest growing segment of the outdoor market. It accounts for some 20% in Europe and about 5% in America.

From The Economist

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