Global Brands

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Global brands and attitudes of young Europeans : : 

Béatrice Maccario - Qualitative director - Research International Marie-Agathe Nicoli - Quantitative director - Research International Esomar Consumer Insights Conference 2005 Global brands and attitudes of young Europeans : The rise of the citizen consumer inFrance and Germany

Introduction : The rise of the “citizen-consumer” : 

2 Negative view about the power of global brands. Sensitive to scandals, corporate social policies, layoffs and relocations Better accept the rules of the consumer society. More worried about the products’ price to quality ratio than the strategies of large corporations. Introduction : The rise of the “citizen-consumer” Anti-globalisation thinking is strong across Europe, especially in France and Germany. In both markets, consumers are becoming more sophisticated citizen-consumers concerned about the ethical and social behaviour of brands.

Introduction : 

3 Introduction Focus-group sessions among young people in France and Germany (including pro-boycott consumers and potential activists) and online research within the 18-35 age group have been conducted. Support of Business for Diplomatic Action (BDA) in devising the questions  How this plays out amongst younger consumers ?

Agenda : 

4 Agenda What is a Global Brand ? A Positive View of Global Brands 5 Patterns of Relationship with Global Brands Key Expectations for Global Brands Main Complaints on Global Brands Does The Country of Origin Matters ? Trapped by The Consumer Society Is the Boycott Option a Growing Trend ? Alternatives to Global Brands Fields of Action for Global Brands Conclusion

What is a Global Brand ? : 

5 What is a Global Brand ? A powerful international brand with strong and consistent image Dominating brand holding a leading position, a monopoly even. Represents a group heading several brands and many activities Embodies the global village, the appealing idea to feel at home everywhere, to come across landmarks Trans-cultural : "It has to offer something that is appealing and relevant in all cultures."

What is a Global Brand ? : 

6 What is a Global Brand ? Food and drink: Coca-Cola, Nestlé, Mac Donald’s, Pepsi, Ferrero, Schweppes, Starbucks Shoes: Nike, Adidas, Puma, Converse Clothing: H&M, Levi’s, Gap, Zara, Benetton Consumer electronics: Nokia, Sony, Samsung Computing/Internet: Microsoft, Apple, Yahoo, eBay, DELL, HP Cosmetics: L’Oreal, Nivéa, Dove, Garnier, Body shop General: Unilever Perfumes: Chanel, Gucci, Vuitton, Prada Media: CNN Finance: American Express Oil: E.ON, Shell, Total Tobacco: Marlboro Furniture: Ikea

A Positive View of Global Brands : 

7 A Positive View of Global Brands Fascination in the gigantic power game in which brands evolve and operate 25% Have a very good opinion of global brands Like the fact that these brands are “powerful”. Have a positive opinion of global brands (85% among less than 25yo) 80%

5 Patterns of Relationship with Global Brands : 

8 5 Patterns of Relationship with Global Brands The “enthusiasts” They like the brands and delight in their choices. Potentially fans of “classic” brands The “pragmatics” They do not care about what the brands do or their social policies The “ethical”: They require from the brand ethical values and traceability The “activists” They are willing to act in an organized way to penalize a brand The “resigned critics” Similar profile but their dissent remains a vague desire

Key Expectations for Global Brands : 

9 They should offer quality products They need to be trustworthy Offering fashionable and trendy products and services Communicating well to their consumers Key Expectations for Global Brands France Germany They want quality and ethics. Expert, critical consumers not fooled by marketing.

Key Expectations for Global Brands : 

10 Key Expectations for Global Brands Any spending of money by a global brand is appreciated Charity is acceptable when it appears credible Greater degree of transparency Companies should provide more information, explain how profits are used, and encourage dialogue with the public. They should be transparent and accountable, clear about the production process "Even if calculated, better than nothing." "Even Bill Gates spends money for Aids in Africa."

Main Complaints on Global Brands : 

11 Excessive or manipulative marketing is identified as poor behaviour Global brands are too expensive Global brands manipulate the consumer too much Main Complaints on Global Brands Under-performance from a global brand is not accepted High price :

Main Complaints on Global Brands : 

12 Too much has been relocated abroad Feel concerned by the fact Global Brands are not exploiting local workers The company is too much focused on profitability Main Complaints on Global Brands They penalize brands identified with : health hazards, political or financial scandal, layoffs and relocation, the use of child labour and damage to the environment. Exploitation of developing countries Lack of respect towards individuals

Does The Country of Origin Matters ? : 

13 Does The Country of Origin Matters ? Some do not see a significant difference between the type of management of a European group as opposed to a US group. There are ‘good' American brands – the ones which are more tribal and with credible authenticity such as Apple, Levi's, eBay and Converse. Buy fewer American global brands since the Iraq war.

Slide 14: 

14 Prefer their domestic global brands (American brands come in second) Prefer buying products manufactured in their country Does The Country of Origin Matters ?

Trapped by The Consumer Society : 

15 Trapped by The Consumer Society They feel trapped by the consumer society and the existence of brands “ We do not have the choice” “We are dependant” “Even if you would like to, you hardly can avoid them, you buy a product and find out later that it belongs to a global enterprise.” “If we stop purchasing these brands, we might as well live in a remote village and not see anyone.”

Is the Boycott Option a Growing Trend ? : 

16 Is the Boycott Option a Growing Trend ? “Why would I penalize myself by deciding to stop purchasing a brand? We penalize a company because they are laying off, but as we purchase less, we might contribute to force the company to layoff again! “we feel like we are acting alone, isolated” It may even have an opposite effect to the intended A change in purchasing habits is complicated, Boycott has to be a collective action

Is the Boycott Option a Growing Trend ? : 

17 Is the Boycott Option a Growing Trend ? Have already boycotted a brand Have never done it because they think it is pointless Disagreement with the company policy Poor working conditions such as the use of child labour or low wages Brand harmful to the environment The reasons of boycotting a brand were : France Germany

Alternatives to Global Brands? : 

18 Alternatives to Global Brands? They buy more brands with the Fair Trade label than before Individuality, community, innovation Private labels which offer value for money Regional products  fresh quality and support of the local business Fair trade products

Fields of Action for Global Brands : 

19 Fields of Action for Global Brands To improve the ethical and human dimensions of the global brands by : Reestablishing their meaning Fighting against standardization Encouraging ethical consumption Finding new ways to communicate with communities of consumers Innovating across a range of their activities for the benefit of society

Fields of Action for Global Brands : 

20 Fields of Action for Global Brands Education: Supporting of universities, schools, foundations. Employment: work committees, fair jobs/payments, fairer contracts of employment. Environment: More credible ecological packaging or production methods. Humanitarian help/ human rights: Sponsorship of humanitarian foundations, fair trade, and development aid. Health: The use of organic ingredients, no preservatives, medicinal research, no genetically modified raw materials, no animal testing. Public interest: Sponsorship of kindergartens, playgrounds, and cultural institutions

Conclusion : 

21 Young people are increasingly well-informed and used to the idea of consumerism  the basic contract of the global brand is becoming more sophisticated. Conclusion A brand with a global dimension must : Create products which are always more perfect and personalized Get involved in a more human and generous vision of capitalism Be even more irreproachable in terms of quality and consumer service, Be even more respectful of its customer base and employees, Be even more responsible in protection of the environment or humanitarian work.

Conclusion : 

22 Conclusion Moving business in a direction that allows global brands to increasingly become citizens of the world is a true challenge that is at the heart of the evolution of our western societies The global brands have everything to gain if they have more ethics, transparency and commitment