Why is there a constant debate about local versus global ? Global versus Simon Thompson: There is a feeling at chief executive level that a single, consistent and global approach to marketing will Local Branding save money. However, from a marketing perspective, there is no such thing as a global consumer. I’ve never met a person who is exactly like me and the principle of marketing should be about targeting the consumer most appropriately. The more appropriate the marketing the higher the potential conversion rate A conversation with Simon Thompson, and the better the overall ROI. European Managing Director, LastMinute.com www.criticaleye.net 1 Would you say then that a global consumer marketing. It could risk being too high So can a company have a consistent with consistent wants and desires exists? brow for the UK consumer, and/or lose global identity? out on an opportunity in Hong Kong. That is the golden question. I think the Should a product have the same badge answer is no. People think they can do Can a company have a local profit and and the same colour all over the world? demographic profiling by postcode, but loss with a approach? Take the colour red, which in most western I’m delighted to say that my neighbours markets, can mean danger, but if you go to the left and to the right hand sides have I believe not. Most companies with a localised to China, it actually means good luck. completely different family circumstances, marketing approach hold regional branches Therefore the actual colour and its relation work in completely different industries, accountable for delivering their business to corporate identity should be examined and have completely different tastes in plan. If somebody in headquarters is making and a flexible approach must be applied. terms of what they want to buy and do. So all the marketing and therefore the demand if there doesn’t appear to be commonality generation decisions, how can the local team But then some companies, such as Coca- on this very micro level, how on earth can be held accountable when the marketing Cola, keep the look and feel, but go by one expect to get commonality between activities do not deliver positive results? The another name in local script. It still looks someone in Italy, Spain, Germany, Japan or last thing a business needs is an opportunity and feels like Coke, but they have taken a in North America? North American-based for local leadership to shirk accountability. sensible approach to localisation. Other organisations have a higher propensity to companies have to alter their names lack understanding in this area due to a Does the consumer want a because their attachment to a certain ‘centralised command and control’ mentality. local or a global brand? nationality can actually be a barrier to entry in some parts of the world. Could it not be argued that today’s The consumer wants something that fast-paced communications has is completely appropriate to them and Who then, should be accountable for given birth to a global consumer? doesn’t care whether it comes from a local satisfying the needs of the local consumer? or global source. From their perspective, Yes, and it is a fair debate. Therefore, there isn’t a great benefit to knowing that My view is that those who touch the communications consistency on a global the brand exists in every single market local consumer, at the , perspective is important since consumers worldwide unless of course they intend need to be accountable for satisfying can access your brand in other markets, to use the product all over the world. that consumer. Whether the marketing particularly as international travel increases. On the counter side of it, in the B2B World, materials come from a global or regional It is pointless then, for a brand to represent it might be a positive advantage to have perspective, fundamentally, Italians need very cheap products or services in one a truly global brand. I am sure IBM have to look after Italians, Spanish need to market, but then be known to be something leveraged this reality for many years. look after Spanish and the British need very expensive in another; it is counter- to look after British. They should also intuitive. From that perspective, there So, does a single brand promise be the final approvers of any marketing would be an argument for a consistent work in all markets? work. This should never be forgotten. proposition on a global basis. But the question is, to what extent should this go? Not necessarily, and Boots’ example How should this be managed? highlights exactly why not. On the other In a recent Criticaleye Discussion hand, look at a brand like Apple, which has Those who face the customers should Group on global , Boots was an iconic global standing; their product be local. The idea of taking people from discussed as being perceived as a design and cutting-edge technology are headquarters and flying them around regular high street brand in the UK, successful in most markets. Apple’s product the world as troubleshooters in different whilst in Hong Kong it has a line is basically two products (iPod/iPhone countries is probably not the best approach. branding association. Why is that? and iMac), and the consumers that buy these It’s a very North American approach. The products are quite similar the world over - at Japanese however, tend to localise their Yes, it’s a classic example of where least in terms of their needs and wants. So operations with local people and they are globalised marketing would not work. If in this particular case you could argue that a probably more successful at integrating a global approach had been taken, Boots global approach might actually work where their business into local society around would end up with some very inappropriate it’s a simple product with a simple promise. the world than any other nationality.

The consumer wants something that is completely appropriate to them and doesn’t care whether it comes from a local or global source Their global long-term success, growth Honda had local markets run by local people, and stability is a result of this mentality. so it had fantastically appropriate marketing for the consumer, but it was very expensive Who does the local approach work best to produce on a market-by-market basis. for, the consumer or the large company? When I joined, LastMinute.com had a Without a doubt, it works best for completely localised . the consumer and in the longer- We then established the hybrid approach of term the corporation. group level strategy combining measurement with localised execution and planning. So, we On paper, a localised approach will not do a lot of our work on a group basis, such sit well with large organisations because as , consumer segmentation it means that there is potentially more and our brand strategy. But, we allow the duplication, and companies have to carry regions to come up with their own marketing a higher headcount. So, for instance, communications, merchandising of their instead of doing one brochure, you might website and established timelines based end up doing ten. This is why CEOs and on execution of strategic items such as CFOs in large companies like the idea of the brand strategy. It is working well. Top Tips for global marketing because on an Excel Marketing Leaders spreadsheet it looks great. But, if the What challenges have you faced marketing is more appropriate for the with this hybrid model? • Never forget that your local consumer, then you should be able job is to understand and to sell more products, at a higher price, One challenge is making sure that the lines satisfy your consumer so the overall equation will balance. of accountability are very clear, because all • Start everyday thinking of our profit and loss accounts are done on about your existing I am not convinced that the most senior a market-by-market basis. It has also been customers before you start global leaders in corporations understand quite difficult to find where the line should prospecting for new ones the balance of be drawn between what is local, what is • In a downturn change your versus cost, but they should. regional, and what is global. But the biggest language and marketing challenge has been the recruitment of measures to reflect a shorter term Putting cost aside, isn’t the ‘command and people who can work in this environment; sales focus. Talking about longer control’ approach much easier to manage? great networkers with small egos in the term brand value improvement marketing community are hard to find. will result in contract termination! It makes execution simpler because it • Marketing is about making requires one team with one direction, but What impact do you think the current profit not about do you then lose efficiency and ownership? economic climate is going to have on this? • Keep looking at marketing in Furthermore, if the local teams don’t feel as Will companies revert to ‘command and terms of its value, not only its cost though they’re in charge of their own destiny, control’, or reach out on a regional level? • Marketing will never understand motivation and accountability will be lost. finance and finance will Unfortunately, when things go quiet, the never understand marketing; Who do employees engage best business decision-making shifts from this tension is important with, a local or a global brand? considering the consumer, which is the role of marketing and sales (and who generally Employees are very much like consumers; have the power when the business is doing they want to work for a company that is well), to the finance function. And because right for them. If you’re Italian I think finance doesn’t understand the intricacies you’d like to work for a company that was of how markets or consumers work, they good for the Italian people. The fact that get out their spreadsheets and opt for the it might be owned by the Japanese or the global approach. However, it has been French or the Germans or the Americans proven that those organisations that spend is almost irrelevant to get a truly engaged on marketing during a downturn find their Simon Thompson workforce. People look at their local leader sales accelerate when the upturn begins. European Managing for motivation, direction and development. Director, LastMinute.com One plus one equals two in finance, but, in How have your experiences working the land of the consumer, the calculation Simon joined LastMinute.com as CMO in with Honda, Motorola and LastMinute. is very different. The tension between April 2007 arriving from Motorola via com impacted your viewpoints? marketing and finance is important; neither Honda. Formally educated at university side should ever have the upper hand. in Computer Science, Simon’s professional Honda had a market-by-market approach recognition includes numerous Cannes and Motorola was much more centralised. © Criticaleye 2009 Lions for outstanding creative work. He is The benefit of Motorola’s approach is that ranked among the UK’s top marketers by there was very fast execution to market. the Marketing Society and Marketing and The downside was in many cases, it wasn’t Campaign magazine. always suitable for the local consumer. Contact Simon through ‘My Criticaleye’

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