Global Reflections

Managing for growth:

Global insights from

local brands

How to use this deck

2

Please read through the deck to understand the framework we have used – with 11 strategies

for growth that local brands are using effectively. You can use the framework overall to talk

with clients, or you can take a particular lever relevant to a project you are working on and find

examples of how local brands have successfully activated it.

For example, Partnerships: we found that local brands have better opportunities to extend

their brand and marketing strategies in a consistent way through tactical local

partnerships. You can find examples of this at work in brands from China and Brazil. You can

then find the right example to add to a presentation deck to inform and inspire your clients.

You can also find many more examples of brand activation in our Global Reflections papers –

on The Source.

Local brands already command over 60% market share of packaged goods –

and they are winning year on year

36.2 35.8 35.5

63.8 64.2 64.6

2015 2016 2017

Global Local

Source: Kantar Worldpanel

Every 0.1% gained by local brands is worth US $500m

Global brand share of spend by sector

4Source: Kantar Worldpanel

20%Food Beverages Homecare Beauty/Personal care

27% 38% 47% 58%Dairy

Local brands

Successful strategies

5

6

Levers for growth – specific strategies

Product Innovation

7

Create new variants which appeal to a broader

range of individual requirements, especially

those adapted to local needs

When the local socio-economic environment

requires products that are affordable

From technological investment to innovation and keeping up

with the latest trends and consumers’ consumption habits

Understanding and adapting to local trends allows brands

to be innovative and cater to more specific preferences

keeping them on par with local brands

Brands that identify new needs and create effective and

efficient ways to meet them, benefit from first-to-market advantage

Stretching brands across categories can attract buyers whose

needs are not met by any of the existing brands’ function

Enables your brand to occupy a distinct position,

relative to competing brands, in the mind

of the customer

Increasing the number of geographical locations in

which a shopper can choose the brand. This often

requires adapting product ranges to suit local tastes

Better opportunities to extend brand and

marketing strategies in a consistent way through

tactical local partnerships

Allows expansion with already established

and successful entities

Locally inspired communication in all

aspects of the marketing mix

complimenting the global positioning

Product Innovation

Nongfu spring

2% increase in penetration

Source: Kantar Worldpanel China 8

PRODUCT INNOVATION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

CATEGORY EXPANSION

9

6% increase in penetration

One One

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

WIDEN REACH

ADVERTISING & PROMOTION

ACQUISITIONS

POSITIONING

PRODUCT INNOVATION

DISTRIBUTION

TECHNOLOGY

CONSUMER TRENDS

Source: Kantar Worldpanel Vietnam

10

4% increase in penetration

Três Corações

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

Source: Kantar Worldpanel Brazil

11

7% increase in penetration

Bjorg

PRODUCT INNOVATION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

CATEGORY EXPANSION

Source: Kantar Worldpanel France

12

4% increase in penetration

Herfy

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ACQUISITIONS

POSITIONING

DISTRIBUTION

ADVERTISING & PROMOTION

TECHNOLOGY

Source: Kantar Worldpanel Saudi Arabia

13

2% increase in penetration

Pescanova

PRODUCT INNOVATION

PARTNERSHIPS

FORMATS/PRICING

ACQUISITIONS

POSITIONING

CATEGORY EXPANSION

WIDEN REACH

CONSUMER TRENDS

ADVERTISING & PROMOTIONS

TECHNOLOGY

DISTRIBUTION

Source: Kantar Worldpanel Spain

14

Cem Porcento

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

4% increase in penetration

Source: Kantar Worldpanel Portugal

15

25% increase in penetration

Patanjali

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

TECHNOLOGY

POSITIONING

Source: Kantar Worldpanel India

CONSUMER TRENDS

16

2.5% increase in penetration

Pircanjuba

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

Source: Kantar Worldpanel Brazil

FORMATS/PRICING

17

4% increase in penetration

Bonne Maman

PRODUCT INNOVATION

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

CONSUMER TRENDS

Source: Kantar Worldpanel France

18

7% increase in penetration

Petit Navire

CATEGORY EXPANSION

PARTNERSHIPS

FORMATS/PRICING

CONSUMER TRENDS

WIDEN REACH

ADVERTISING & PROMOTION

DISTRIBUTION

ACQUISITIONS

POSITIONING

TECHNOLOGY

Source: Kantar Worldpanel France

PRODUCT INNOVATION

19

10% increase in penetration

Tate & Lyle

FORMATS/PRICING

WIDEN REACH

DISTRIBUTION

ACQUISITIONS

PARTNERSHIPS

CATEGORY EXPANSION

ADVERTISING & PROMOTION

CONSUMER TRENDS

Source: Kantar Worldpanel UK

POSITIONING

PRODUCT INNOVATION

TECHNOLOGY