- Ready for the social media firestorm: Good preparation for digital crises is important - 9. October 2018
- The mobile revolution in the digital universe - 1. October 2018
- Good relations are half the battle: The power of relationships and politics - 25. September 2018
- Digital Leadership: Four principles of digital brand building - 18. September 2018
- Digital Emerging Markets – The Era of Tweets, Likes and Uploads - 10. September 2018
- Split identity: How to avoid brand schizophrenia in the target markets - 4. September 2018
- Premium for everyone: Two factors that reinforce the trend towards premiumization - 28. August 2018
Most companies are convinced that their brand has fully exploited its potential. But far from it: the brand can only score maximum points in the target group if its tradition, its promise and its unique history are well known. The most general definition of a brand is: “The consumer’s idea of a product or service”. So it’s not just about knowing and recognizing, it’s above all about associative connections. Clearly, this is the big moment of storytelling.
And this often starts from scratch in young markets. After all, international brands are often completely unknown to local consumers and potential customers in the major growth markets. In 2013, 70% of Chinese car buyers were still first-time buyers. Most of them had just obtained their driving licenses. They had no product or purchasing experience. Many of them had never been in a showroom before or had dealt with the technical aspects of an engine. For Western brands, this is a challenge, but also a great opportunity. Niklas Schaffmeister (Managing Partner Globeone) and Florian Haller (CEO Serviceplan Group) therefore explain the cornerstones of an engaging storytelling. Further details on that can be found in our new Springer publication “Successful brand development in the major emerging markets” (written in German).
1. Brand knowledge: Managers like to overestimate consumers
A well thought-out strategy with determined implementation is needed. When formulating the strategy, marketing cannot simply assume that the target group being addressed already has the necessary knowledge of the brand simply because connoisseurs of the company are familiar with many details. Brand managers often overestimate what consumers already know. This often results in communication campaigns that do not go far enough. But it is imperative to explain what the brand in question stands for. If this is done in a committed, interesting and motivating way, a lot can be gained. It is important not to overload the storytelling with messages. Target groups in emerging markets are usually 10 or 20 years younger than those in developed Western markets.
2. Understandable messages: Consumers must be addressed in their language
In the new markets, the 30- to 40-year-olds belong to the richest target group, which is already accustomed to exciting and committed marketing techniques. If a bank argues with traditional terms such as “trust” or “security”, its marketing message will not automatically be well received by these “newly-rich” consumers. Many people in these middle income brackets are also consumers without good foreign language skills. Don’t use too many English and technical terms. Admittedly, design and other concrete arguments of conviction are very important for this. But they must be communicated to consumers who are generally not technical experts in their own language. They must also be made aware of why this brand in particular meets their specific needs. Making new customers familiar with the brand requires patience.
3. Tradition is the trump card: With the brand history to the price premium
Every brand strategy must have enough space to tell the history of the brand. You have to take enough time to explain why your brand is unique and how much time it took to become a leading brand. The traditional aspect and the associated foreign brand image are the only sustainable competitive advantage that cannot easily be imitated. Those who tell their own story thus have the opportunity to achieve a clear price premium for the brand, compared to local competitors. This goal can be achieved with clear language and simple explanations as well as with visual clarity and a creative implementation of the campaign. This is the only way to break the communicative flooding in megacities.
4. Educating the consumer: For each product there are instructive campaigns
Educational campaigns or brand academies are particularly suitable for informing a target group about the brand history and special unique selling points. There are many educational examples of awareness-raising campaigns. For example, the highly creative and very successful “MINI Academy for Rapid Learners”. Its success is due to the fact that it has been excellently integrated into the local cultural framework. In Europe, MINI has the image of a cheeky, flexible and individualistic small car. In 2009, the brand was still not able to develop the hoped-for potential in China so quickly. In China, the MINI was initially considered a cute little car for young women and a fun car for young people as a whole. Men and older customers were underrepresented in this group. The MINI managers wanted to make “the most exciting small car in the world” interesting for a broader group of buyers. To this end, a creative strategy was developed around the themes of “dynamic driving experience”, “cult design” and “tradition”. A MINI Academy was founded to inform Chinese consumers about the rich tradition and history of the MINI brand. The Academy was a platform that made it possible to communicate within the local cultural environment via different media channels and at the same time to establish a strong connection to the Chinese mentality.
There are many success stories proving how well storytelling can attract young target groups in growth markets. The history of the brand and its special features must be clearly highlighted. Educational campaigns with instructive and easy-to-understand content are achieving great success.
This page is available in Deutsch (German)