In India, the largest-selling cola is neither Coke or Pepsi. Its Thums Up.
In Sri Lanka, the largest-selling beer is neither Bud or Heineken. Its Lion.
In Taiwan, the largest-selling toothpaste is not Colgate. Its Darlie.
In Ghana, the largest-selling skin-care brand is not Helena Rubinstein. Its Dark&Lovely.
In Thailand, the largest-selling hair-care brand is not Pantene. Its Caring.
In India, the largest-selling TVs are not made by Sony or Philips. They are made by Videocom or BPL.
Locals prefer home-grown
Most of the countries above have big multi-nationals trying to buy a foothold in these lucrative markets. Few have been successful. Coca-Cola thought they could do it by buying Thums Up and killing it in favour of Coke. Instead, Pepsi began to gain market share while Coke languished. A hurried relaunch of Thums Up returned the cola to its leading position. Coke is still struggling against Pepsi for the left-overs.
Why is it so?
Some say in countries with poor literacy, the power of symbols is immeasurable. They sat the sheer simplicity and relevance of the Thums Up symbol made the cola a clear winner. Of course, a well-established distribution system helped enormously as well, which is what attracted Coke to Thums Up in the first place.
The only companies which have been successful in establishing local markets are those which have tailored their products to local conditions. This has demanded a new approach.
One well-known multi-national racked its brains until a rather challenging solution was discovered.
Kelloggs was having no luck in the Indian cereal market because Indians like to eat vegetables and breads for breakfast. They decided to enter Indias blossoming casual snack market even though they had never manufactured biscuits before. Indian children loved the new Choco breakfast biscuits, thus establishing the Kelloggs brand name strongly in Indian households.
Coca-Colas new strategy for the Indian Market
To survive in India, Coke is breaking with global policy and introducing celebrity endorsement. Others are taking the same tack. Will it work? Only time will tell. Five Design Lessons for Emerging Markets
1. Make your message graphic, direct and simple 2. Your message should be inspirational yet achievable 3. Utility and reusability in packaging is important 4. The look should appeal to all socio-economic classes 5. The look and name should mean the same thing in all regions of the country
Mnemonics and Symbols Rule!
In emerging markets with poor literacy, consumers see not read. Mnemonics and symbols must grab attention and offer a position of pride. Use elements which are familiar and comfortable; direct and relevant to consumers. Names should also be easy to pronounce, abbreviate, signal, and above all, simple to symbolise. |