America, The World, and the New Challenges for Global Brands
Corporate Communications InstituteApril 28, 2004
•How the World Sees America Today
•What’s Changed Since the 1990s
•Americans Themselves: A Greater “Disconnect”
• Is America In Tune With The World’s Values?
•So What? The Impact on US Brands
•The New Challenges for Global Brands
Presentation to cover:Presentation to cover:
National sample (North America 17%; West Europe 17%)National urban (Developed Asia 10%; Central Europe/Middle East 8%)National urban w/o lowest SES (Developing Asia 30%;Latin America 11%; Other markets 6%)
Representative of 1.3 billion consumers worldwide
Listening to 30,000+ consumers worldwide since 1995 --1,000 1-hour+ interviews per country with people aged 13-65
Roper Reports Worldwide 2004Roper Reports Worldwide 2004
How the World Sees America TodayHow the World Sees America Today
What Are Personal Values?What Are Personal Values?
Rene Magritte: “Personal Values”
“The things that act as the guiding principles in
your life and give meaning to your life”
or
Whateveris
importantto you
Examples of Values Statements Name of the value and a description
Wealth:Having material possessions, a lot of money
Open-mindedness:Being broad-minded
Honesty:Being sincere, having integrity
Looking good:Seeking the utmost attractive appearance
Having fun:Having a good time
American Culture:Wealth, Power, Freedom, FunAmerican Culture:Wealth, Power, Freedom, Fun
Wealth 90%Power 88Freedom 87Enjoying life 87Having fun 87Pleasure 84Status 83Material security 83Ambition 82Self-reliance 82Sex 82
% who attribute listed value as important to American culture (base: value is extremely/very important to them)
American Culture:Not Faith, Equality, HonestyAmerican Culture:Not Faith, Equality, Honesty
Modesty 51%Simplicity 47Social tolerance 41Tradition 41Traditional gender roles 41Thrift 41Spirituality 37Enduring love 37Respecting ancestors 37Obedience 35Stable per. relationships 34Honesty 33Equality 33Faith 33
% who attribute listed value as important to American culture (base: value is extremely/very important to them)
Venezuela 84%Taiwan 80Philippines 79Brazil 76Australia 75Hungary 75South Africa 75India 74Korea 74Japan 73Poland 72Mexico 72Russia 72Thailand 72
Countries Most Aligned With American CultureCountries Most Aligned With American Culture% who attribute their values as important to American culture (base: value is extremely/very important to them)
72% USA
Countries Least AlignedWith American CultureCountries Least AlignedWith American Culture
Singapore 71%Hong Kong 70China 70Argentina 70Indonesia 68Canada 68Czech Republic 66U.K. 65Sweden 63Italy 63France 63Spain 59Turkey 57Saudi Arabia 55Germany 55Egypt 55
% who attribute their values as important to American culture (base: value is extremely/very important to them)
72% USA
What’s Changed Since the 1990sWhat’s Changed Since the 1990s
World’s Perception of America: More Power, “Striver” Values
20041999WealthFreedomSexHaving funA varied lifeHealth & fitnessEnjoying lifeAdventurePowerSelf-relianceMaterial securityInternationalismKnowledge
WealthPowerEnjoying lifeFreedomHaving funPleasureStatusAmbitionHealth & fitnessMaterial securityKnowledgeSelf-relianceSex
Based on consistent values set and total population weighting (1999/2004)
Top values attributed to American culture (base: values extremely/very important)
Most Notable Declines: Internationalism, Altruistic Values Drop
Based on consistent values set and total population weighting (1999/2004)
1999 Rank 2004 RankChange in Rank
Internationalism 11 29 -18Equality 28 42 -14Excitement 14 27 -13A varied life 5 17 -12Adventure 6 16 -10Curiosity 16 26 -10Sex 3 13 -10Justice 26 35 -9Social tolerance 43 52 -9Social stability 33 41 -8Individuality 17 24 -7Open-mindedness 24 30 -6Preserving the environ. 30 36 -6
Change in rank of values attributed to American culture (base: value is extremely/very important)
Values Alignment: Shifts from 1999
Change in Rank from 1999
1 Venezuela 92 Taiwan 33 Philippines 194 Brazil 215 Australia 26 Hungary 07 South Africa 28 India 169 Korea 4
10 Japan -611 Poland 712 Mexico 1613 Russia -1114 Thailand -11
2004 RankChange in Rank
from 199915 USA -1416 Hong Kong 017 China -918 Argentina 519 Canada -420 Indonesia -321 Czech Repub -922 U.K. -823 France -224 Italy -525 Spain -526 Turkey 127 Saudi Arabia -128 Germany -17
2004 Rank
Change in rank (1999 v. 2004): % of total values attributed (by listed country) to American culture (base: total values that are extremely/very important to country)
Fall in Values Alignment: Western Europe, US Lead Declines
Germany -17USA -14Russia -11Thailand -11Czech Repub -9China -9UK -8Japan -6Spain -5Italy -5
Change in rank of highest values alignment (1999 v. 2004): % of total values attributed (by listed country) to American culture (base: total values that are extremely/very important to country)
Americans Themselves: A Greater Disconnect
Americans Themselves: A Greater Disconnect
8775
85 83 84
63
87 8882
94 93
76 8070
79
94
75
56
75
5950
5955
7170
576362
37
575354
4051
Pres
ervi
ng th
een
viro
nmen
t
Bei
ng in
tune
with
nat
ure
Inte
rnat
iona
lism
Soci
alre
spon
sibi
lity
Ope
n-m
inde
dnes
s
Mod
esty
Cre
ativ
ity
Cur
iosi
ty
Endu
ring
love
Adv
entu
re
Indi
vidu
ality
Spiri
tual
ity
Wis
dom
Aut
hent
icity
Faith
Hea
lth a
ndfit
ness
Soci
alto
lera
nce
1999 2004
Americans AssociatingFewer Values with Their Own CultureAmericans AssociatingFewer Values with Their Own Culture
Total Population Weighting
% Americans who attribute listed value as important to American culture (base: value is extremely/very important to them)
8393 92 93
79
59
93 9485
809089
55
77
91919484
Prot
ectin
gth
e fa
mily
Pow
er
Enjo
ying
life
Hav
ing
fun
Bea
uty
Res
pect
ing
ance
stor
s
Plea
sure
Free
dom
Leis
ure
1999 2004
Holding Steady: Power, Freedom, Fun, Family Holding Steady: Power, Freedom, Fun, Family % Americans who attribute listed value as important to American culture (base: value is extremely/very important to them)
Total Population Weighting
American Altruists Report Largest Decline in Values AlignmentAmerican Altruists Report Largest Decline in Values Alignment
86%
88%
85%
85%
80%
83%
1999 2004 % pt change
77%
75%
72%
69%
64%
64%
-9
-13
-13
-16
-16
-19
Total Population Weighting
% of total values attributed (by U.S. value segment) to American culture (base: total values that are extremely/very important to U.S. value segment)
Unemployment 5.7%
Then and Now: Disconnect Explained?Then and Now: Disconnect Explained?
Unemployment 4.1%
1999 2004
13% concerned about recession and unemployment
27% concerned about recession and unemployment
34% now is a good time to buy
26% now is a good time to buy
KYOTO AGREEMENT
KYOTO AGREEMENT
Corporate Trust?
90 87 87 86 86 83 83 83 83 83 82 82 81 80 80 80 78 78 78 7870
8475
8086
75
8580
858689
71767574
9190919486
Wea
lth
Pow
er
Enjo
ying
life
Free
dom
Hav
ing
fun
Stat
us
Hea
lth a
nd fi
tnes
s
Self-
relia
nce
Kno
wle
dge
Plea
sure
Am
bitio
n
Mat
eria
l sec
urity
Bei
ng e
nter
pris
ing
Sex
Lear
ning
Bei
ng y
outh
ful
Leis
ure
Adv
entu
re
Look
ing
good
A v
arie
d lif
e
Global United States
Today’s Americans: More Realistic? Today’s Americans: More Realistic?
*Global excludes U.S.
% Americans/Global* who attribute listed value as important to American culture (base: value is extremely/very important to them)
Is America In Tune With The World’s Values?Is America In Tune With The World’s Values?
Top Global Personal ValuesTop Global Personal Values
Protecting the family 69%Honesty 61Health and fitness 57Friendship 51Self-esteem 49Freedom 49Knowledge 49Justice 49Self-reliance 47Stable relationships 43Enduring love 43
% global respondents saying value is extremely/very important
91 91 90 89 89 88 87 86 86 84
72 72 6963 62 60 59
38 34 32
Swed
en
U.K
.
Bra
zil
Aus
tralia
Vene
zuel
a
Rus
sia
Japa
n
Cze
ch R
epub
lic
Hun
gary
USA
Ger
man
y
Spai
n
Chi
na
Sing
apor
e
Thai
land Italy
Indi
a
Turk
ey
Saud
i Ara
bia
Egyp
t
Protecting The Family:Muslim Nations DisagreeProtecting The Family:Muslim Nations Disagree
Global Average 76%U.S. Average 84%
% who attribute protecting the family as important to American culture (base: protecting the family is extremely/very important to them)
Top 10 and bottom 10 countries
78 76 73 70 69 66 65 64 61 61
44 4439 39 37 36
32 31 2923
Phili
ppin
es
Aus
tralia
Vene
zuel
a
Bra
zil
Kor
ea
Can
ada
Taiw
an
Indi
a
Hon
g K
ong
Thai
land
Fran
ce
Italy
Rus
sia
Arg
entin
a
Egyp
t
Spai
n
Cze
ch R
epub
lic
Ger
man
y
Turk
ey
Saud
i Ara
bia
Global Average 54%U.S. Average 60%
% who attribute honesty as important to American culture (base: honesty is extremely/very important to them)
Honesty: Western Europe, Middle East Say NoHonesty: Western Europe, Middle East Say No
Top 10 and bottom 10 countries
97 95 94 94 94 93 93 91 91 9186 84 84 82 80 80 79 79 77
69
Taiw
an
Thai
land
Japa
n
Pola
nd
Vene
zuel
a
Hun
gary
Kor
ea
Hon
g K
ong
Indi
a
Indo
nesi
a
U.K
.
Chi
na
Turk
ey
Saud
i Ara
bia
Ger
man
y
Mex
ico
Arg
entin
a
Egyp
t
Fran
ce
Spai
n
Global Average 87%U.S. Average 90%
% who attribute freedom as important to American culture (base: freedom is extremely/very important to them)
Freedom: Definitely Seen As An American ValueFreedom: Definitely Seen As An American Value
Top 10 and bottom 10 countries
90 87 83 82 79 78 76 76 76 7564 63 61 59 58 56 55
4438
32
Phili
ppin
es
Vene
zuel
a
Aus
tralia
Bra
zil
Hon
g K
ong
Taiw
an
Sout
h A
frica
Sing
apor
e
Indi
a
Pola
nd
Fran
ce
Hun
gary
Swed
en
Chi
na
Rus
sia
Spai
n
Turk
ey
Ger
man
y
Egyp
t
Saud
i Ara
bia
Global Average 67%U.S. Average 73%
% who attribute justice as important to American culture (base: justice is extremely/very important to them)
Justice: Middle East, Western Europe Less AlignedJustice: Middle East, Western Europe Less Aligned
Top 10 and bottom 10 countries
So What? The Impact on US BrandsSo What? The Impact on US Brands
In 2002, Awareness and Use ofMany Global Brands Were Rising In 2002, Awareness and Use ofMany Global Brands Were Rising
©2002 RoperASW
7Some Brands Increased More Than Others from 2001 to 2002FamiliarityCNN (+9 pts. since ‘01)Mercedes (+6)Discovery Channel (+5)Nike (+5)Samsung (+5)BMW (+4)MTV (+4)McDonald’s (+4)Ford (+4)Volkswagen (+4)Microsoft (+4)
Own/Use/WatchMcDonald’s (+9 pts. since ‘01)Panasonic (+8)Nokia (+7)Discovery Channel (+6)CNN (+6)MTV (+5)Microsoft (+5)Disney (+5)Nike (+4)Sony (+3)
Familiar Use/Own/Watch
15.8
16.5
3.7
4.3
Change from ’01 to ’02*
*Among brands consistent between 2001 and 2002
In 2003 Consumers Were More HesitantIn 2003 Consumers Were More Hesitant
Average number of brands familiar with*2002 2003
17.4 17.6
Average number of brands own/use/watch2002 2003
4.6 4.5
Average number of brands ‘really like’2002 2003
5.5 5.9
*Among brands consistent between 2002 and 2003
And Now, Global Brands Have Started to Decline SlightlyAnd Now, Global Brands Have Started to Decline Slightly
Average number of brands familiar with*2003 200418.6 18.3
Average number of brands own / use / watch2003 20044.9 4.8
Average number of brands ‘really like’2003 20046.0 5.8
*Among brands consistent between 2003 and 2004
2003 2004Familiar with American brands 59% 57%Familiar with non-American brands 70% 69%
Like American Brands 30% 29%Like non-American Brands 36% 36%
Use American Brands 30% 27%Use non-American Brands 24% 24%
Global Brand “Fundamentals”Global Brand “Fundamentals”
Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
A Brand I TrustA Brand I Trust
2003 2004American Brands 36% 35%Non-American Brands 48% 47%
Coca-Cola 55% 52%McDonald’s 36% 33%Nike 56% 53%Microsoft 45% 39%
Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
A Brand Associated with Honesty A Brand Associated with Honesty
2003 2004American Brands 18% 15%Non-American Brands 19% 16%
Coca-Cola 18% 15%McDonald’s 19% 14%Nike 14% 11%Microsoft 18% 12%
Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
• Growth in “fundamentals” has stalled, even declined♦ New opportunities arising for local brands, especially in
rapidly growing markets like India, China
• American brands: a period of reassessment? ♦ Worsening attitudes toward US culture could have
impact in the marketplace
• Basic attributes necessary for brand greatness remain♦ Quality, reliability, value, of course♦ Trust, honesty possibly more important than ever
• Change in the balance of “glocal” strategies?
New Challenges for Global BrandsNew Challenges for Global Brands
America, The World, and the New Challenges for Global Brands
Corporate Communications InstituteApril 28, 2004
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