Brand Breakout: How Emerging Market Brands Will Go Global

267 Pages·2013·1.445 MB·English

by  Nirmalya Kumar, Jan-Benedict E. M. Steenkamp (auth.)

“Brand Breakout is a must-read, not only for those who run
local companies and brands expanding internationally, but for all
of us who compete against them in their own territories, and are
compelled to win with global brands and strategies against a
variety of very local realities.”
Juan Alanis, General Manager
The Estée Lauder Companies Inc., Mexico
“As two of the most well-known marketing scholars on emerging
markets in the world, Nirmalya Kumar and Jan-Benedict
Steenkamp provide a definitive guideline for emerging market
brands here. The eight routes proposed in this book lay out a
comprehensive roadmap for those aspiring companies and
countries to effectively enter global markets, and will have a
far-reaching impact in the years to come. It also provides great
insights on the transition of the economic development mode of
China. A novel and thought-provoking masterpiece!”
Yubo Chen, Professor & Deputy Chair
of Marketing, Tsinghua University
“Outstanding book. It is fascinating and undoubtedly a must-read
piece for managers in both Western and emerging market
companies. It was eye-opening to see how Chinese and other
emerging market firms are changing from a clear focus on
manufacturing and supply chain efficiencies to building brand
equities and allocating enough resources behind them. This is our
new competition. It seems they now realize that the real value of
their companies is in their brands. And it is not until they fully
comprehend this that the expansion of these brand equities can
really take place; Corona from Mexico is a good example.”
Henry Gomez, Vice-President Business
Development for Latin America, Pepsico
“Emerging market firms are still better at manufacturing than
branding. Brand Breakout provides CEOs with a timely and
systematic roadmap of recommendations to change this.”
John Quelch, Professor, Harvard Business School & Former
Dean of CEIBS (China Europe International Business School)
“An encouraging and integral reading about how emerging
markets companies could rapidly expand the value of their
offering. It recognizes how crucial it becomes to unlock value
through ‘the art’ of brand building with tangible and relevant
principles. Certainly, leveraging the full potential of the cross-
cultural diaspora strategy will be fundamental for brands
determined to thrive in global markets. An extraordinary book
with priceless insights that every marketing manager should
treasure.”
Leandro Berrone, Marketing VP
Cuauhtémoc Moctezuma, Part of the Heineken Company
BRAND
BREAKOUT
HOW EMERGING
MARKET BRANDS
WILL GO GLOBAL
NIRMALYA KUMAR
JAN-BENEDICT
E.M. STEENKAMP
© Nirmalya Kumar and Jan-Benedict E.M. Steenkamp 2013
All rights reserved. No reproduction, copy or transmission of this
publication may be made without written permission.
No portion of this publication may be reproduced, copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,
Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this
work in accordance with the Copyright, Designs and Patents Act 1988.
First published 2013 by
PALGRAVE MACMILLAN
Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited,
registered in England, company number 785998, of Houndmills, Basingstoke,
Hampshire RG21 6XS.
Palgrave Macmillan in the US is a division of St Martin’s Press LLC,
175 Fifth Avenue, New York, NY 10010.
Palgrave Macmillan is the global academic imprint of the above companies
and has companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States,
the United Kingdom, Europe and other countries.
ISBN 978-1-349-44674-2 ISBN 978-1-137-27662-9 (eBook)
DOI 10.1057/9781137276629
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
Typeset by Aardvark Editorial Limited, Metfield, Suffolk
To MK – emerging market conception, hopefully on the way
to becoming a global brand
NK
To my father – without whom I would never have been
where I am now –
and to Valarie – whose love ensures I am happy where I am
JBS
Also by the Authors
Nirmalya Kumar and Jan-Benedict E. M. Steenkamp,
Private Label Strategy: How to Meet the Store Brand Challenge
(Boston: Harvard Business School Press, 2007)
CONTENTS
List of figures x
List of tables xi
Preface xii
Acknowledgments xv
Introduction 1
ONE The Asian Tortoise route: migrating to higher
quality and brand premium 21
Rise of the Japanese automotive global brands 23
Pioneered by Japanese, followed by South Korea 27
Key success factors for the Asian Tortoise strategy 29
Haier and higher with the Asian Tortoise strategy 35
Limits of the Asian Tortoise strategy 43
Managerial takeaways 44
TWO The business to consumer route: leveraging B2B
strengths in B2C markets 47
Understanding B2B companies 48
From contract manufacturer to consumer brand 50
A move to adjacent consumer categories for global
B2B firms 62
Managerial takeaways 69
THREE The diaspora route: following emigrants into
the world 71
Understanding the diaspora 73
vii
viii CONTENTS
Ethnic affirmers 75
Biculturals 78
Diaspora and reverse diaspora 80
Using the diaspora as a beachhead to breakout 83
Dabur: from diaspora to mainstream 88
Managerial takeaways 90
FOUR The brand acquisition route: buying global brands
from Western multinationals 93
The rationale for acquiring global brands 96
Retain or migrate? 99
Acquire and migrate 100
Acquire and retain 105
Managing acquisitions as a learning capability 109
Managerial takeaways 111
FIVE The positive campaign route: overcoming
negative country-of-origin associations 115
Country-of-origin image 117
Why do country images differ so much? 120
The role of country of origin in consumer
decision-making 122
Overcoming country-of-origin disadvantage 129
Nation/region-branding campaigns 138
Managerial takeaways 142
SIX The cultural resources route: positioning on
positive cultural myths 145
A framework for cultural branding 146
Cultural meanings 148
Transfer of cultural meaning to consumer brands 152
Cultural branding based on ancient myths 156
Cultural branding based on contemporary myths 159
Managerial takeaways 164
CONTENTS ix
SEVEN The natural resources route: branding
commodities in four steps 167
Define the geographical region 169
Specify production standards 170
Authenticate ingredients and processes 173
Take the brand international 176
The making of the Café de Colombia brand 180
Managerial takeaways 183
EIGHT The national champions route: leveraging strong
support from the state 185
A brief history of national champions 186
The rationale for national champions 187
The limits of national champions 193
When can national champions build consumer
brands? 197
Emirates Airlines: global brand and national
champion 206
Managerial takeaways 212
Conclusion 215
Appendix 219
Notes 227
Index 251