by Global Advertising Strategies on January 24, 2012
In the aftermath of the 2008 financial crisis, the continued rapid growth of the BRIC market countries (Brazil, Russia, India and China) has become a symbol of an ongoing shift in global economic power – away from the developed G7 economies, and toward the developing world. This is with good reason: with a population of over 2.8 billion (more than 40% of the world’s population) and rapidly rising economic clout, the world’s developing economies have businesses salivating at the opportunity to put their products in the hands of new consumers with ready cash. Fortune 1000 companies, brand marketers and investors each see the emerging BRIC economies as dominant forces over the next 50 years, based on their expanding consumer populations, increasingly well-educated workforces, and growth rates that are consistently higher than the developed economies.
However, investment in the BRIC economies bears a unique set of risks, beyond any Country- or Region-specific risk. While the BRIC economies have made great strides recently in terms of responsible corporate governance, long a source of investor concern, much remains to be done. Corruption, double-dealing, and conflicts of interest remain, unfortunately, regular business practices for some companies doing business in developing nations. Even as the ethical environment continues to improve, and businesses feel increased pressure to invest in the BRICs or ‘be left behind’, significant concerns do remain.
Why in the face of these issues are the BRIC nations experiencing sustained and increasing international investment? As an agency which works to tap these markets, we would note that the BRIC markets have a number of common attributes that are driving their growth and investment potential: a young population, increasing productivity, rising per capita income, and an appetite for consumption that is fueling new consumer spending. How are these attributes applicable to the US Hispanic consumer market? Check in with us next week to get our detailed take.
by Denis Serikov on January 19, 2012
A couple of weeks ago I reflected on a success story of Jack Daniel’s. One of the comments on that post came from Art Sagurian, the brand creator behind the Jewel of Russia vodka. He raised an excellent point that a successful product should have a very distinctive taste. While the Bureau of Alcohol Tobacco and Firearms defines vodka as “a neutral spirit without distinctive character, aroma, taste or color,” aficionados can easily distinguish between various brands. In the most recent unflavored vodka review, the Beverage Tasting Institute gave high marks to a lesser known Forty Degrees Vodka – a brand that sells for around $20. The review read similar to wine description: “clean aromas with a touch of frosted wheat, cream and nut, with a silky, dry-ish medium body and a super soft, vanilla, dried fruit, and chalk accented finish with a hint of pepper.” Rather flavorful for an ‘unflavored’ spirit, right?
Art’s other point brought up the legend and the origin behind each product. For certain brands, those aspects become the foundation of their positioning on the market. Russian vodkas often rely on the visual of a Siberian backdrop, bearded men in fur hat taking shots, and mentions of Catherine the Great or some other Tsar Dynasty. Scandinavian and Polish vodka brands are not far behind, claiming to be the vodka forefathers and relying on clichéd traditions to back up those claims. (Perhaps the abundance of snow somehow equates to an increase in vodka production, drinking and expertise.) French-made Grey Goose emphasizes its high-end quality (again, relying on the notion that everything made in France is more exclusive and expensive,) and argues to be the “world best tasting vodka” right on the bottle.
A couple of months ago we discussed the psychology behind consumer purchase decisions in beer brands. Vodka marketing wars fall within the same decision-making categories, but unlike beer, the beloved clear liquor demands a more ‘in your face’ messaging, a constant reminder that a certain brand is more hip or more affordable or better tasting.
New York City seems to get bombarded with vodka messages. Georgi gives you an eyeful on trucks and buses. Ciroc taps into Diddy’s world and takes over Times Square. Stoli and Ketel One choose the Meatpacking District, NYC’s nightlife Mecca, to capitalize on last-minute drink decisions, and Svedka’s ‘Bots’ dominate the city’s billboards in all neighborhoods. Even a lesser-known budget brand Wodka jumped in with their awkward recession-driven pop-culture approach.
Overwhelmingly, vodka brands seem to be after the ‘party’ crowd, which is probably why we do not see an intimate connection between one of the brands mentioned above and the consumer. The ‘party’ route may deliver the volume of sales, but does it deliver the loyal following similar to Jack Daniel’s? Don’t think so. Unless, you are a part of Diddy’s entourage, of course.
by Moish Soloway on January 10, 2012
A few days ago I shared a video on my Facebook page showing the test G-Form – a gadget accessory maker – performed for their new protective iPad covers. G-Form is known and widely respected in the nerd community for the incredulous things they do to expensive gadgets for the sake of R&D (or, as I call it marketing) and I have seen a fair share of their videos. In this particular spot (just in case you haven’t clicked on the link yet) they attach an iPad in their protective case, loaded with cameras and tracking devises, to a big balloon, start playing a movie on it and let it fly. The balloon bursts at about 100,000 feet from earth, something you would call SPACE, and the iPad falls back to earth. Miraculously the gadget is not scratched or dented and the movie is still playing (and the case could be yours for only $44.95).
The video got its share of Likes and comments, but the comments that prevailed among my very smart friends claimed that it made no difference if you dropped an object from the tenth floor of an apartment building or from out of space – it will fall with the same speed / force of impact. I was never great at physics so I won’t comment (but I can safely say that this premise was not questioned by any other highly intelligent participants in the discussion, so I assume it’s correct).
My only answer is – who gives a damn. What this stunt did was taken the power of viral marketing out of the ballpark and pretty much into outer space – or at least the edges of it. It created a story and made it stand out from all of the other stupid things people do to gadgets. It made the narrative stick, made me share it and got enough people to notice it in their news stream and get into a passionate discussion. Push the boundaries of creativity and you might be rewarded (posted three days before this post was written the video already had 2,075,005 views on YouTube, and that’s over the weekend).
by Denis Serikov on January 5, 2012
Welcome to the rude awakening from the post-holiday coma. Hope you have eaten, drunken and been merry enough to last until Memorial Day. Now, off sticking to those resolutions!
Speaking of drinking and being merry, I caught myself eyeballing a plethora of options at a neighborhood liquor store Downtown Manhattan while heading to a holiday party. Between bottles of Clicquot and gift sets of Absolut, Johnnie Walker and Jack Daniel’s, surrounded by newer, less familiar brands, I wondered if the spirits market share game was a fair one after all.
In a recent issue of Fortune magazine, Jim Stengel, former P&G head of marketing and author of Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies, listed Jack Daniel’s as one of his top 10 brands, praising its ability to stay authentic yet implement innovation and grow.
As Jim commended the vision of Jack Daniel and his followers, I thought of spirits marketing in a more global perspective. In the last decade, dozens of liquor brands tried the Veni Vidi Vici approach in the US market. Take vodka, for instance.
Have you heard of the Ukrainian Nemiroff, French Balinoff, or the Jewel of Russia? I have – most likely because they all came to us for media planning guidance early in their market entry – yet, even I wonder what stopped them from becoming ‘global megabrands’?
Vodka and whiskey may not share the same audience, but they do share similar price points and advertising budgets. Vodka sales in the U.S. overtook combined sales of bourbon back in 1975, but bourbon has retained its loyalists. So what’s the secret behind the longevity of Jack Daniel’s? Apparently, it’s Jack himself – the identifiable character that makes the brand. Jack Daniel, Jim Beam, John Jameson – derived from the tradition, the name become synonymous with quality.
For most of 2011, New York subways displayed Jameson ads that quoted something along “I named my son after my whiskey,” emphasizing the loyal following behind the brand. The same approach is seen outside of the spirit world as well. Fashion brands often carry the name of its chief designer – Oscar De La Renta, Ralph Lauren, Miuccia Prada, Donna Karan – all implying their own style and quality.
Vodka brands, however, rarely use a dedicated ‘character’ to sell their products. Except Trump (a topic we will soon re-visit) and, perhaps, Svedka, no premium vodka brand boasts a recognizable ambassador. Maybe that is the reason behind the recent vodka backlash and its attempts to get out of being perceived as just an ingredient that provides alcohol. Or maybe the liquor marketing cycle has given way to other bar players — for now. In any case, the topic of spirits and consumer behavior behind choosing one is intriguing enough to be revisited. Until then, bottoms up!
by Alexandra Moncion on December 27, 2011
2011 has sure taken everyone for a ride: from worldwide economic woes to global social revolutions and life-defining moments courtesy of Mother Nature. From brands becoming movements and technological progress running rampant, to the power of social responsibility reaching an all-time high.
The year kicked off with a cultural awakening for most brands that confirmed what we, cross-cultural marketers, have been saying for many years –MULTICULTURAL is, in fact, the new mainstream. Within six months, the LATINO bandwagon (brandwagon??) was alive and kicking – companies, media outlets, products wanted a piece of the lucrative pie. Global set out to push the pharma industry toward a more aggressive marketing approach with the Hispanic market – still a rare advertiser among that audience.
In the world of social media, if content were king in 2010, ENGAGEMENT has overthrown it this year. Each article and case study on social media read similarly to the society page of the New York Times – screaming the importance of engaging with your audience over mere quality of the content.
Global, in the meantime, tracked those two trends in our respective industries (specifically healthcare), releasing its report on the efforts of the Big Pharma to reach multicultural consumers online. A first in a series of many, the report caused a bit of a stir in the media with its findings of a disturbing reality.
On the international front, our BRIC friends made impressive achievements this year. The ‘emerging economies’ will continue to be among the top trends of 2012 and beyond. Given our strong BRIC ties, we partnered on a number of groundbreaking business and cultural initiatives – promoting global commerce and investment as well as supporting international art and artists.
From the co-hosting the first-ever RBC Financial Conference to bringing back the annual Russian Film Week – one of the most anticipated foreign film festivals of New York, to launching Global Art Group and taking the Miami Art Basel by storm – we defined our own international playground.
Whether business-driven or philanthropic, our dedication to supporting artistic expression and creativity will continue in the years to come.
Speaking of the next year, our predictions are clear (and below):
1. Election, election, election! If the #OCCUPY movement and the Putin or Mubarak backlash taught us anything, it would be that people still have a voice, and it can now be heard on a multitude of platforms
2. Technology is still #WINNING! From successful campaigns executed strictly on viral platforms to pop-culture icons cutting out the publicist to speak directly to us, user-generated content and social media spell out an evolution of how we communicate.
3. Cross-cultural IS International. Don’t be surprised to see your cross-cultural expertise expanded into one of international proportions.
And what’s an agency without new business? We traveled the world for it: Thailand, Spain, Germany, Russia, Ukraine. We pitched, we won, we lost (some.) We grew (in revenue and in staff), we challenged ourselves, our clients and our partners, and we had fun. A ton of it. Because if you don’t love what you do, why waste the time doing it at all?
Here is to an unforgettable 2011 and to a highly-anticipated 2012!
