I always like to learn about new and helpful tools and methods that I can bring to my work.
Recently I’ve been reading the excellent book “Global Brand Strategy” by esteemed dutch marketing professor and author Jan-Benedict Steenkamp.
In it, Steenkamp makes the point that there are many different factors that add (or take away) value in a customers mind when a brand is perceived as being “Global”. There are also some very important things Global brands can leverage to their advantage due to their territorial spread. Over his many years of research, he has developed a framework to assess how global brands perform and creating value. He calls this framework the COMET framework.
Here is an overview and my interpretation of these factors:
C = Customer Preference
Global brand’s carry with them the ideas of availability, acceptance and success. They can become icons of globalisation / global culture. They can also carry some of their country of origin’s reputation with them. All of this adds meaning and potential value to audiences and can make a difference in the choices they make.
O = Organisational Benefits
Being a global brand and having assets and resources spread across multiple regions and locations carries value. New products and innovations can be brought to market swiftly to more people at a faster pace. A unified identity can also attract employees and align teams spread across wide areas giving them a sense of global belonging.
M = Marketing Superiority
People travel. So if they come across a familiar brand in a new place that they trust they will be more willing to purchase it. Managers can pool marketing resources and deploy them where needed on a global scale. Also, brands have more budget and so can work with high profile celebrities who have cross-cultural appeal. Data can be gleaned from promotional activities in one area and used for the benefit of the whole.
E = Economies of Scale
Procurement and production costs can be driven down due to the volume a Global brand can command. Companies can rationalise and standardize processes and create core offerings that are created on mass and then tailored to fit local markets.
T = Transnational Innovation
By connecting the best minds across borders, Research and Development can be leveraged to provide the very best of new innovations for the customers of Global brands. Also by leveraging a wide reach, the necessity (e.g. due to scarcity or culture constraints) that breeds innovation in certain localised areas can then be developed into solutions for the globe.
Within his book, Steenkamp builds on this framework providing a way for leadership teams to score a brand and assess how their global brand from these five perspectives.
Super helpful and I’ll certainly be using this method in upcoming projects.
Purchase Steenkamp’s book here. Recommended.