From Local to Global Branding

A Coca-Cola Case Study

Eric Hogue Vice President, Millward Brown Neil Mathis Director of Client Services, Millward Brown Anne McAllester Director, Knowledge and Insights, The Coca-Cola Company

BACKGROUND: THE NATURE OF GLOBAL BRANDS Hundreds of brands around the world could be described as "global," and hundreds more aspire to the same status. But unfortunately for those aspiring global players, there is no one prescriptive formula for success on the world stage. The requirements vary according to a myriad of factors, most of which ultimately boil down to the nature of an individual brand or product category and the way that brand is perceived in new markets compared to the brand's country of origin. Culture, economic circumstances and government regulation all vary by country and all exert influence on the evolution of a brand, especially when a brand is managed locally rather than globally (that is, out of a centralized or corporate office). As a result, a global brand may manifest itself differently in different parts of the world. The packaging, the product formulation, the advertising, and sometimes (though rarely these days) even the name might vary. One branding factor has taken on increased significance as the world simultaneously grows larger for brands (as new markets open) and smaller for consumers (as new technology allows news and entertainment to cross borders in real time). That factor is the brand's positioning.

POSITIONING OF GLOBAL BRANDS Many well-known and successful brands have found themselves using multiple positionings around the world. This may occur for a number of reasons. An entrenched local competitor may already occupy the position that the global brand staked out in its home country, or the global brand may have deliberately chosen a different positioning to take advantage of conditions in a new market. Many brands can continue to thrive without rationalizing those diverse positionings, but advantages may exist for brands that do tackle the issue. For example, a global positioning facilitates the implementation of a global communications strategy, even if customization and adaptation is needed for specific markets. A global brand can also provide a platform to increase scale, synergy, and productivity across markets by enabling efficiencies in manufacturing, operations, supply chains, communication across different media channels, and in-store execution materials. Powerade, the sports drink of The Coca-Cola Company (TCCC), is an example of a brand that

has succeeded with a variety of positionings around the world. Launched in the United States in 1 992, Powerade is now sold in 80 countries. Powerade is the fastest growing major sports drink brand globally, and is one of fourteen billion dollar brands from The Coca-Cola Company. Because of Powerade's association with high-profile international sporting events such as the Olympics and FIFA World Cup, the establishment of a unified global positioning is critical. By adopting a consistent brand vision, Powerade will be able to speak to consumers around the world in a consistent voice while leveraging financial efficiencies with agencies and global media outlets.

THE CHALLENGE OF RATIONALIZING POSITIONING AROUND THE WORLD Like most global companies, The Coca-Cola Company (TCCC) has historically drawn on in-market experience, competitive review, and strategic rationale to inform its brand positioning in a region. This positioning is then

integrated with the brand's goals and targeting in each cultural and competitive context to establish a brand vision. When considering a move towards a consistent global brand vision, the challenge in this approach is that it doesn't allow for accurate cross-market comparisons of consumer appeal, volume potential, and risk. This exacerbates a problem TCCC shares with other global companies: the difficulty of convincing local managements to change from a local positioning that has proven successful.

the art of position creation with the science of a rigorous volume-based outcome. This enabled TCCC to review the findings across markets and align a global positioning that conveyed a consistent vision for the brand but also allowed for the local flexibility needed to assure the relevance of in-market messaging and other marketing activities. The results of this research program provided compelling quantitative evidence that has fostered consensus across markets and increased confidence in Powerades global positioning strategy. The research also identified ways in which the positioning could be optimized, both overall and for each market.

The positioning process begins with articulating the brand's goal and their target customer GLOBAL BRAND VISION
CORE CUSTOMER TARGET MarketNorms ALIGN WITH CULTURE BRAND GOAL CATEGORY INSIGHT & COMPETITION

THE RESEARCH PROGRAM After a review of best practices in leveraging consumer opinion to inform effective positioning, Millward Brown designed a two-stage approach. In the first stage, respondents used an online forum to report their motivations for participating in sports, as well their current perceptions and sports activity behaviors. They also provided their reactions to different Powerade positioning concepts and the extent to which these resonated with their sports activity experiences. A score card from Stage 1 summarized each concept's appeal, uniqueness, fit with the brand, and overall potential, as well as key take-aways (messaging), likes, dislikes, associations, and opportunities for improvement. This information fueled efforts to prioritize and refine the concepts for Stage 2 testing.

Without the facts and rigor provided by the quantitative measurements that can address local concerns about the risk of changing, it can be hard to align markets behind a singular approach.

A NEW APPROACH TCCC hoped that by combining quantitative research with strategic rationale, market experience, and qualitative learning, they would bring greater precision, rigor, and insight to this process, thus facilitating consensus across markets and reducing the overall risk involved in global repositioning. TCCC asked Millward Brown to collaborate in developing such an approach. The research model that resulted linked

Stage 2 examined the refined concepts through multiple lenses including: A monadic score card An examination of how each concept changed perceptions of the brand relative to the competition Diagnostic exercises that identified promising shifts in brand attitudes and personality A benefit statement trade-off exercise that identified alternative bundles of benefits to maximize the winning concept's potential Incremental volume potential and source-ofvolume analysis Both stages of the study were conducted in five countries (the United States, Mexico, Great Britain, Italy, and Australia) using online or face-to-face interviewing depending on the country. The test stimulus for Stage 1 involved a 1 00-to-1 word 50 concept with supporting visuals that described various aspects of the sporting occasion, the needs within the occasion, and the role of the beverage. For Stage 2, the stimulus was again a 1 00-to-1 word 50 statement, accompanied by a picture of the product. Respondents for both stages of research were defined as "sports active" and recruited based on criteria provided by a preceding segmentation study.

group plays more sports than others we studied, and its members are 50 percent more likely to consider sports drinks as their regular drink during sporting activity. The response to the various concepts yielded one critical insight. There was a general consensus across groups and countries that too much emphasis has been placed on winning in sports competition. Our respondents indicated that they participated in sports to challenge themselves and to continue to improve. They enjoy competition, but these athletes reserve the right to define winning for themselves.

WHAT DID WE LEARN? While athletes want to win, winning is not everything
We all have the right to tr y and to per form at our best in spor ts to feel good about ourselves. I am not a professional but I enjoy competing against myself, setting challenges and struggling to achieve them; I think this should be the basis or philosophy of any spor tsperson. Even in spor ts where I have little ability, it's not a question of feeling 'loose'. It's about tr ying hard to better my previous per formances.

STAGE 1: IT'S NOT JUST ABOUT WINNING Ten concepts were tested among five different segments of sports active consumers. The priority segment for analysis was the "True Sportsmen" group. This group, which primarily consists of young males, is the core target for the brand. True Sportsmen have played sports all their lives and consider sport to be a part of daily life. They enjoy sporting activity for the social benefits it offers as well as the competition. This

STAGE 2: IT IS MOTIVATING TO PLAY AT YOUR BEST Insights from Stage 1 were used to hone and craft a smaller set of five concepts for further quantitative testing and optimization. In addition to identifying the most promising concepts, the results enabled a flexible analysis of phrases and language to identify a unique and compelling brand vision for Powerade to move forward with on a global basis. The analysis also enabled us to understand the contribution of

specific benefits to incremental volume and elevate the concepts to a higher level of performance.

CONCLUSION The research did not point to a clear "winner" among the concepts; no one concept outscored the others consistently across countries. The strongest concepts, however, all revolve around the globally resonant theme of "performing at your best" while being rooted in persuasive benefits and reasons to believe that revolve around hydration. Inclusive and not elitist, they appeal to committed athletes who participate because of their love of the game and their desire to stretch their own limits. The insights gleaned from the research helped Powerade to evolve their global brand vision to one that promises to be effective across markets. But not only did the research inform a global decision, market-level data is available to aid individual markets in implementing the position in the way that best fits the local culture and competitive context.

We also learned there is significant upside volume potential with new global positioning
Replacing the control benefit with a series of alternative test benefits shows potential to drive additional incremental volume
POWERADE incremental volume vs. (pre vs. post)*
Percent Find Benefit Appealing 16 47 7 Volume (ml) Change to Benefits Remove Control Add Test 3 Add Test 2 Add Test 1

-591 354 454 622

-6.9 Removing Control Add Test 1 Add Test 2 Add Test 3

Benefit Statements

The research program Millward Brown designed harnessed the power of an interactive, qualitative consumer-listening approach with quantitative research

Lastly, much of the incremental volume is sourced from outside the category
Sources of volume (% of post volume - % of pre volume)
12%

to engage respondents with the rigor of advanced analytics to predict results. We believe this approach promises a new way forward for global positioning research. However, such an approach requires art as well as science. Research will never be able to craft your

3%

positioning for you; it must be based on a hypothesis of what the brand should stand for. Further, while research can point toward the most promising concept and
-8% -7% Tap water

language, interpretation is required to develop the final positioning. And finally, in developing and implementing positioning, marketing can't go it alone. Support is needed from all functions across the organization to ensure that the idea is ultimately expressed through all consumer touchpoints.

PowerAde

Other sports drinks

Bottled water

AUTHOR BIOGRAPHIES Eric Hogue, Vice President, Millward Brown Eric is a senior strategist and marketing scientist at Millward Brown where he oversees strategic research for leading clients and leads Millward Browns restaurant consultancy. His work includes brand positioning, new campaign development, new product innovation and ROI/econometric modeling. Prior to Millward Brown, Eric was Director of Consumer Insights for Brinker International (parent company for Chilis, Maggianos, Macaroni Grill, On The Border and Corner Bakery) and held marketing research, product development and business strategy roles with Verizon Communications. He holds and MBA from Vanderbilt University and BS from the University of Tennessee Neil Mathis, Director of Client Services, Millward Brown With over ten years of research experience, Neils primary focus is on developing research solutions to help leading marketers build, grow, and manage their brands. His work includes advertising evaluation, new campaign development, global brand positioning, and strategic planning for major global companies. Prior to joining Millward Brown, Neil began his career with Nielsen consulting on sales forecasting, customer segmentation, and market prioritization. During this time, Neil has worked closely with major clients across a number of industries including consumer package goods, retail, restaurant, and telecommunications. He holds a BS from the Georgia Institute of Technology. Anne McAllester, Director Knowledge and Insights, The Coca-Cola Company Anne has been part of the Corporate Knowledge and Insights community at The Coca-Cola Company for the last 1 years. During that time, Anne she been a key resource for consumer insights and understanding in the still 5 beverages, juice/juice drinks, new product, Health and Wellness, and kid targeted beverage areas. In the late 90's, Anne initiated the Company's first global study on Juice Attitudes, Use, and Market Structure, and developed the New Product Research Process tool, which was used to bring greater alignment across markets on New Product Research. Anne began working with the Powerade Team to define a Global Brand Growth Strategy as well as a Global Positioning in 2008. This project involved using several new approaches and research techniques to understand, define, and optimize the consumer opportunity, resulting in an aligned positioning approach across markets. This new process for global positioning is now being used for other categories. Prior to joining TCCC, Anne worked at The Frito-Lay Company and General Mills. Anne has an MBA from the Owen Graduate School of Management at Vanderbilt University, and a BS from the University of Georgia.