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Discover How to Build Retail Brands in Singapore

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By: Jay Gronlund

There is no question that developing countries represent an important source for new revenue, but the challenges and risks are also unprecedented.  For example, even mature companies see emerging markets as a primary source for growth in the future (e.g. Avon +9% in sales and Procter & Gamble up 11% in 2008 in Asia-Pacific), and are committed to training their managers to become more proactive in capturing opportunities in these regions.  Such industry leaders also recognize that real progress in these markets will be achieved by developing completely new approaches to planning, marketing and selling.

While every situation is different, a common driver for success will always be how well companies enhance and leverage the core value of their brand, especially how the brand should be adapted to the unique opportunities in each market.  Here are several key initiatives that companies can use to successfully build value and penetrate these developing countries:

• Create a Market Expansion Road Map – many companies simply have not evaluated the market potential thoroughly enough, or in a way that translates to a very specific, actionable road map that reflects the best opportunities.  This is a very complicated, yet critical planning task. One key step is to segment the market in order to identify the highest potential customers and to adapt the specific value offerings that relate best to the particular needs/interests of these customers.  Such segmentation can be based on a variety of criteria, most common being predefined categories based on behavior, profitability, value, attitudes and demographics.  In retail, sophisticated chains often use lifestyle segments such as: 
• Families with children
• “Empty nesters”, including the emerging baby boomers
• Impulsive, “grab ‘n go” shoppers
• Value conscious buyers

A good example of how retail chains use this segmentation is Tesco in the UK, which removed candy at the check-outs because moms with children did not want their kids asking for candy on the way out (they replaced it with financial offers such as credit cards, insurance offers, etc. which were more profitable).  Fully understanding the most promising segments for distinguishing your brand and building loyalty will help management maximize the brand value for these top priority customers. 

• Reposition for Stronger, More Relevant Brands – every global brand should maintain the same “brand essence” (i.e. it’s “DNA”) around the world, but a re-positioning might emphasize different features for each market to make sure a brand is truly relevant and more appealing, depending on the local needs/desires and competitive situation.  The starting point and most important issue for any re-positioning is the target customer.  Careful research on the specific needs (functional and emotional) of each potential customer segment will reveal important insights that will help determine which particular feature would make the core benefit genuinely credible and compelling. The perception of this brand benefit or promise will enable marketers to enrich their value offering for each market segment, so it is critical to think local, not global on this issue.  From a practical standpoint, the brand positioning should also act as the core compass for developing and implementing all new product innovations, line extensions or special services, marketing programs and selling tactics. 
• Ideation for New Ideas – Ideation is basically a creative brainstorming session or technique for generating fresh ideas for new product innovations, marketing, selling or promotion initiatives, and operating efficiencies.  A common and egregious mistake is to expect an expansion “formula” that worked in one country to be successful in another.  Generating truly distinct ideas that are relevant, practical and buzz worthy requires an entirely new thinking process.  Ideally a productive innovation session should be supported by prior research on trends and local market opportunities, an imaginative yet pertinent framework for creativity, a variety of participatory managers (e.g. with different expertise and both right and left brained people), novel ideation techniques, and an experienced, professional facilitator from the outside. 
• Balance Disciplined with Entrepreneurial Thinking – it would be naïve to expect managers from the U.S. or Europe to successfully transfer their inherent style and best practices to these emerging markets.  Instead they should complement their professional discipline with the flexibility and adaptability needed for these dynamic markets.  It is of course essential for local managers to learn the fundamental principles of sound strategic planning, insightful branding, innovative marketing and creative, smart selling.  But it is even more important to be proactive, imaginative and opportunistic for capitalizing on the emerging tends and new ideas from an ideation session
• Support with Management Development and Training – completely understanding these principles can be a real challenge for managers in developing countries, but applying them to their local practices will be even more critical. How to develop tomorrow’s successful manager reflects another paradigm shift highlighted by the current recession.  Human talent is the most important resource of any company, and training in the future must do more than simply develop basic skills; it must combine this learning process with a realistic, practical simulation that enables participants to actually use these principles to find new opportunities, think more creatively, and build better value for their brands in their immediate markets.  In emerging economies in particular, managers and employees have a strong desire for professional training due to several reasons:
• Professional development is considered a significant benefit, and so will enhance employee morale and loyalty (this is very important in China where turnover is high).
• It creates a common corporate culture and language for all employees, which will make sharing of new ideas more effective.
• It makes it easier and more efficient to roll out new products and marketing/sales initiatives around the world.

In summary, one of the best opportunities for business expansion is in these high potential developing markets abroad. However, leveraging this opportunity requires companies to maximize the perceived value of their brand in order to counter the growth of lower priced, indigenous products and respond more proactively to the needs of local customers. 

A compelling value proposition is critical for establishing a strong presence in these emerging markets, importantly at an early stage so that companies can develop a credible bond with your target customers and build brand equity over the long run.

Would your business benefit from brand building in Sinapore?