International Marketer’s Blog

Global brands often struggle to succeed in local markets, while local brands meet consumer needs better, according to new research.

Brands with a centralised structure (with brands managed centrally, rather than locally), can lose track of consumer needs and shopper insights, according to the study by Roland Berger and Ipsos.

As a result, centralised product launches suffer significantly higher flop rates (80%) than decentralised ones (50%) posing the question whether companies should opt for global corporate branding or localization.

According to a study conducted by Nielsen, flop rates in the German FMCG market are as high as 85%. Another study found that out of 24,000 new products, only half survived their first year in the market (Source: GfK/Madakom,1998).

In 2001, 32,000 new products were launched, and only 30% survived the first year. Roland Berger and Ipsos cite relevance and differentiation in the market as two top criteria for global brand marketing success. (more…)

The centralising of marketing operations for international brands continues apace, Unilever, P&G, Reckit Benckiser have been moving this way for some time and advertising agencies have been reshaping their international structures to fit their client’s new requirements for high quality, centralised creative and more efficient implementation across country markets.

Whereas in the past, major brands have run virtually autonomous marketing offices in many different countries that run their own version of a centrally planned campaign, in 2010 the decision making power is steadily sliding back up the reporting chain to head office. Here they are using marketing technology to satisfy country market demand for bespoke creative, with head office’s desire to reduce costs whilst maintaining quality, consistency and detailed reporting.

In between head office and country office, many brands are now more actively using regional hubs which act as a staging post for creative campaigns coming down the line to be adapted for use across a number of geographically and culturally related countries.

Our own hub offices, thanks to good technology and experience of the regional markets, offer brands an efficient solution to the issues facing them internationally. (more…)

Ford’s new integrated global marketing strategy will be deployed for the launch of the 2011 Ford Fiesta at the North American International Car Show in January, the company has announced.

The company says it wants to create ”a more consistent and compelling connection with customers worldwide, while better leveraging the company’s global assets and capabilities”.

In January, Ford appointed Elena Ford, the great great granddaughter of founder Henry Ford, as its new director of global marketing, sales and service operations.

Since her appointment, she has been working to integrate the company’s marketing team members, global agencies and other supplier partners with a common and integrated plan to bring new global vehicles to market. (more…)

Global creative for Pirelli tires, the world’s fifth-largest tyremaker has been centralised through the Milan office of WPP Group’s Young & Rubican.

Y&R reclaimed the estimated £40m account last month after an absence of ten years. Y&R handled the business between 1992 and 1999.

Y&R, created Pirelli’s iconic 90s “power is nothing without control” campaign starring the sprinter Carl Lewis and then fell out with Pirelli after a row over a TV campaign featuring the football star Ronaldo.

The business was later awarded to Armando Testa. Last year, it moved to Wieden & Kennedy Amsterdam. (more…)

Credit Suisse has launched a global advertising campaign, created by Havas’ Euro RSCG in London, to promote their new brand positioning. 

The campaign targets private banking, investment banking and asset management audiences through key financial media in its largest markets including Neue Zürcher Zeitung, The Wall Street Journal, The Economist and the Financial Times.

“At a time of tremendous change in the industry, it was decided to look at our brand positioning and to ensure that it reflects our strategy and the needs of our clients. This is a large scale effort of which the advertising campaign is just one element..even though to the outside world it is a very visible part,”  said Libby Hills, Credit Suisse’s global head of advertising.

It’s understood that Credit Suisse intends to retain a centralised approach to global campaign implementation for future service (more…)

Bayer is looking to extend the consolidation of its global marketing supplier network which began in May with the search for a new global creative agency.

Bayer are now understood to be looking to consolidate media buying and planning activities outside of the US which are currently handled by a host of agencies in several country markets.

In May Bayer announced plans to consolidate its $1 billion global advertising account, currently led by the New York office of Omnicom Group’s BDDO Worldwide and covering Bayer brands including Phillip’s Milk of Magnesia, Aleve, Alka-Seltzer and One-a-Day vitamins.

A spokesperson for the company said the review was “to determine whether there are ways to improve the effectiveness and efficiencyâ€� in creative services (more…)

Dulux paints has ended its 13 year relationship with Abbott Mead Vickers BBDO, leaving  DDB and Euro RSCG on the final shortlist for their £60 million global advertising account. BBH has also been dropped from the pitch process.

Dulux and Crown owners AkzoNobel, called the global marketing review in September, as part of a move to consolidate all of its paint brands into a single agency.

The company appointed the intermediary Oystercatchers to handle the review.

Kerris Bright, AkzoNobel’s chief marketing officer for decorative paints, is overseeing the process. She is believed to be seeking an agency with a worldwide presence (more…)

Kellogg’s has reduced its global roster of agencies from around 30 to five and centralized its agency management through their US headquarters.

Leo Burnett US will now handle the majority of Kellogg’s creative work with incumbent JWT’s role reduced to Asia Pacific only.

The consolidation, internally dubbed ‘project silver’ was led by the company’s procurement division tasked with trimming Kellogg’s $1 billion global advertising and marketing agencies spend.

A spokesperson for Kellogg’s said the move “reflects the needs of our business to have greater alignment across our marketing model moving forward. While changes of this nature are never easy, we believe greater alignment across our marketing model is critical in helping us achieve best-in-class strategy and execution.” (more…)

MasterCard has invited agencies to pitch for a centralized, global business-to-business advertising account, according to a request for proposals (RFP) issued to prospective partners late last week.

Currently MasterCard uses several different agencies for B2B advertising projects, depending on the division and market the ads are released into, but according to the RFP they are now keen to streamline this process by appointing a single advertising shop, with marketing centralization across all sectors.

The purpose of the review is to “ensure we have the most effective and efficient approach based on current and future business needs and opportunities,” said Chris Monteiro, group head of worldwide communications at MasterCard, quoted in AdWeek. The process is “designed to assess our current B2B marketing agency roster and our overall approach to this space to ensure we are executing a best-in-class modelâ€� he added. (more…)

Coty, the world’s largest fragrance company is consolidating its £180 mllion global media planning and buying business for the first time.

Coty currently works with agencies on a market by market basis. In the UK, the incumbent on the business is OMD, after the agency retained the £25m account in March following a pitch.

The 105-year-old cosmetics giant is home to many of the most popular brands, including Calvin Klein, Cerruti and Marc Jacobs in its Coty Prestige portfolio, and Adidas, David and Victoria Beckham, and Kate Moss in its Coty Beauty range.

The review will include the media business across both portfolios operating in 90 countries and is being led by Coty’s senior vice-president, corporate media, Sigrun Graeff.