Global Forces &
CountryManager
Global Forces
• The Great Rebalancing
– Emerging market growth > Developed market growth
– Urban migration, growing labor force, declining birthrates
• The Productivity Imperative
– For US, 70% of growth must come from productivity gains
• The Global Grid
– Complex flows of capital, goods, info  Innovation &
destabilizing volatility
• Pricing the Planet
– Rising demand, constrained supplies, increased scrutiny
• The Market State
– Increasing gap between rich & poor
Country Manager Global Trends
• Requires a 5-10-Year View
• Global (Re)Positioning for the Long Term
• CM Plan for the long-term
−Decisions 1-3 = focus on awareness, gain distribution
−Decisions 3-5 = build market share
−Decisions 6+ = now aim to be profitable
Interpreting Feedback
Creating & Leveraging Brand Equity
Period 1 Performance Measures
Company
Unit Sales
(mill.)
Total Mfr. Sales
(mill.$)
Cum. Net
Regional
Contribution
Brand Equity
A
96.4
110.9
-36.5
58
Awesome
46.2
54.7
-14.8
58
B
165.1
186.4
-14.7
55
IAtePaste
100.6
117.1
-67.7
56
Sonrisas
42.6
48.7
-0.2
34
Check List
• Contribution
– Are prices & gross margin %s at least in line with
competition?
– Are advertising & promotion %s in line with competition
(perhaps above)?
– Are capacity plans consistent with sales forecasts?
Brand Equity
• A set of assets (and liabilities) linked to a brand's
name and symbol that adds to (or subtracts from)
the value provided by a product or service to a
firm and/or that firm's customers.
Aaker, Building Strong Brands, 1996.
6
Leveraging Brand Equity
• Consumers are more likely to
prefer and seek stronger versus
weaker brands
• Consumers are willing to pay
more for stronger brands (Raise
price)
• Retailers want to stock stronger
brands (Expand SKUs &/or
distribution)
7
BEI Country Indexes
Brand Equity Index by Country
Benefit
Positioning
Argentina
71
Brazil
64
Chile
65
Mexico
61
Creative
Price
Sales
Share of
Execution Positioning Leadership Mind
100
83
33
39
80
78
41
42
100
79
32
68
100
70
68
50
Brand
Equity
65
61
70
71
Benefit
– This
This
factor
measures
how
aappropriate
team’s
of100.
SKUs
Creative
Execution
–
factor
measures
how
a the
firm’s
Share
ofPositioning
Mind
– A–combination
your for
relative
awareness
vs.
leading
Price
Positioning
Must
have
4ofSKUs
this
factor
to with
bechoice
calculated.
Sales
Leadership
Your
relative
market
share
x
100
max
of
awareness
in for
a category
asthat
well
as
absolute
awareness.
reflects
demand
for
benefit
in Full
the
marketplace.
Fullad,
credit
messagethe
is
athe
culture
and
country.
credit
(100)
new
right
Basically
checks
pricing
vs.
expected
pricing
in
the ifmarket.
Is
the
culture,
right
language.
Multiple
ads
areis
weighted
by makes
budget.
can
only
be received
if the
SKU benefit
advertised
and meets
a large
firm’s
pricing
consistent
across
SKUs?
This
factor
sure that
minimum
threshold
for budget.
tubes
are more
than medium,
that multi-ingredient formulations are more
than economy, etc.
Overall (Regional) BEI Index
BEI Criteria
Measures
Product Standardization
Measures the degree to which a firm’s products are
standardized by comparing unique SKUs introduced to total
SKUs introduced. If SKUs are the same across all
countries entered, then the score is 100. Minimum of
two countries and 4 unique SKUs for this factor to be
calculated.
Regional Diversification
This measures the extent to which sales come from
different countries. Must be in at least 2 countries to for
this measure to be calculated. As sales are spread more
evenly from all countries, this measure increases to a
max of 100.
Consolidating Brand
Equity
Weighted average of brand equity for all six countries.
Weight is based on industry sales of that country.
Overall Brand Equity
Combines the consolidated brand equity with the product
standardization and regional diversification measures.
9
Exception Analysis – Identifying Opportunities
BEI Country & Overall Indexes
Brand Equity Index by Country
Benefit
Positioning
Argentina
71
Brazil
64
Chile
65
Mexico
61
Creative
Execution
100
80
100
100
Price
Sales
Positioning Leadership
83
33
78
41
79
32
70
68
Share of
Mind
39
42
68
50
Brand
Equity
65
61
70
71
Overall Brand Equity Index
Product Standardization
Regional Diversification
Consolidated Country Brand Equity
Overall Brand Equity
78
90
65
73
10
Country & Overall BEIs should be > 70 for Marketing Differentiation
Advantage
Check List (Continued)
• BEI
– Is BEI at least 70 in all countries & overall?
– Is Sales Leadership higher than Share of Mind?
• Are net prices (& gross contribution margins) too low?
• Are relative expenditures on push (Sales Force, Promotion) versus
pull Advertising too high?
– Is Share of Mind higher than Sales Leadership?
• Are net prices too high?
• Are relative expenditures on pull Advertising versus push (Sales
Force, Promotion) too high?
• Are targeted retailers consistent w/targeted customer segments?
• Is the sales force allocated effectively to ensure consistency?
• Is distribution penetration sufficient to reach targeted customers?
Sales Force Allocation
All
Star
B+B
Care
more
Dris
col
Evers
Loc.
Reg.
Traditional
7
0
0
29
0
24
66
Self Serve
10
12
64
9
18
0
21
Hypermarket
15
11
59
0
60
0
0
Web/Other
Home
0
3
3
0
3
0
0
Wholesale
8
0
0
5
5
5
13
40
26
126
43
86
29
100
Channel
Total
Distribution Penetration
Brand
Total Outlets
Allsmile
Dentacare
Local 1
# Outlets Carrying Brand
Self
Hyper
Web/
Trad.
Serve
market
Other
Total
1,093
298
100
10
1,501
757
69%
176
59%
62
62%
6
60%
1,001
67%
0
148
56
6
210
0%
952
87%
50%
92
31%
56%
28
28%
60%
0
0%
14%
1,072
71%
13