Most of the consumer behavior models that are used in Asian boardrooms today were developed in a handful of Western countries. Marketers still do not know very well how marketing techniques and theories can be applied to non-Western contexts.

Many models that are used by companies today are based on the assumption that, as the anthropologist Clifford Geertz puts it, the person is "a bounded, unique, more or less integrated, motivational and cognitive universe."

Most marketing and management theories rely on what we can call a Western perspective of the individual as an independent, autonomous identity, free to make decisions based on purely personal desires and affiliations, living life in accordance with Maslow's hierarchy: food, shelter and clothing are the most basic needs, after which might come high cuisine, decoration and fashion. Mankind universally, it would seem, operates as rationally.

Marketing textbooks still use this model to show how consumers move from the satisfaction of basic needs to higher-order goals such as self-actualization. This model, however, fails to consider cultural differences. In some third world countries, people may deprive themselves of food to buy a refrigerator to enhance their social class.

Clearly the hierarchy of priorities is quite different in an Asian context, where interpersonal relationships and social interactions are more valued, on average, than self-actualization needs. The Western's need for self-actualization, in the Asian context is replaced by social needs of status, admiration and affiliation. Autonomy and independence are not as important or at least do not have the same connotations as in the West.

The importance of in-groups in Asian cultures
Asian cultures have a very different conception of individuality, placing more emphasis on the way individuals are connected to the people around them: attending to others, fitting in and living in harmony. While in the West, individuals generally define themselves through certain individual talents, abilities and personality traits, many non-Western cultures do not value a strict separation of the self from the family unit and the community, what psychologists call in-group.

In many Asian cultures, people believe in the fundamental connectedness or interdependence of individuals within the same in-group. The importance of the in-group does not mean total social conformity though. L'Oreal's large sales of hair dyes in Japan testify to the importance of being different.

The importance of luxury brands in Asia shows consumers trying to differentiate themselves from other members of society through iconic brands such as Chanel, Louis Vuitton or Gucci. A large portion of the French luxury giant LVMH's turnover comes from Asia.

The differences between Western and Asian cultures are not black and white though. It would be too simplistic to label all Asian cultures collectivist and Western cultures to be all individualist. Within Asia, there are vast differences in the way the interdependent self is expressed. There is a tendency across the region to engage in socially engaging behavior but the form of this behavior varies greatly.

For example, the Japanese view of the self is evident in everyday episodes where Japanese emphasize the notion of "losing face", acting on the basis of these others' expectations and needs, blurring the distinction between self and others.

In contrast Indians' in-group is limited to their family and their ethnic community. With 18 official languages, drastic regional differences, religious feuds and extreme social class disparities, the ability for Indians to empathize with others becomes limited at best. Instead, in India the interdependent self means enduring loyalty and sense of belonging to a community defined by caste, language, geographic origin and social class. What constitutes the Indian in-group is very different from the Japanese or Chinese in-group.

Overall, though, it is important for marketers to realize the importance of the in-group for consumers who will seek advice, think of products and evaluate products within an in-group.

Societies in Asia are moving fast and the dimensions described above are not set in stone. Asian countries are increasingly connected to other countries within and beyond Asia. These connections only enhance and increase the rapidity of the Asian evolution. What remains though, are these connections between these different countries. Contrary to popular thinking, the biggest Asian companies do most of their business in Asia. To become astute marketers and understand Asian consumers, the corporate management of companies will first have to look within Asia.

Companies striving to build successful brands in Asia should understand this unique mosaic of cultures that Asia is. The region represents a blend of modernity and traditionalism. This indeed is a doubled edged sword for companies seeking to develop brands in Asia.

On the one hand, this presents a hug set of opportunities with diverse customer segments, latent rural demand, and an immense potential to weave exciting new stories. But on the other, it also compels companies to find a fine balance between varied scapes and flows to become local and regional at the same time.

Fine-tuning products and services to satisfy local tastes and preferences while also appealing to a pan Asian identity by leveraging the common underlying cultural underpinnings will be one of the possible ways ahead for companies in Asia.

Brands are built on the value proposition platform. The basic logic has been that in the ever competitive market place characterized by decreasing information asymmetry between customers and companies, increasing customer power allowed by the Internet, flattening of boundaries between economies, fragmented media and communication overload, branding is an effective strategy for companies to cut through the clutter, engage the customer and build both customer loyalty and the bottom line.

What do tough economic conditions do to branding? By focusing on superior quality and creating engaging customer experiences, brands have been commanding huge price premiums over similar private label products. The argument has been that customers buy not just for utilitarian consumption but also for the brands' symbolic value.

But tough economic conditions turn such equations upside down. Customers who were buying high end brands to symbolize prestige are finding that they can no longer afford such indulges. They start pruning their purchases of such symbolic products. Especially given the proliferation of store brands in literally every product category, which not only boast of comparable quality but also low prices, customers start reevaluating their buying behaviors.

They downgrade to the basic minimum which is offered by these private labels. As such, customers tend to migrate from purchasing brands to purchasing private labels. Even though much has been written about the captivating power of brands and how they can ward off competition from private labels, situations of economic downturn challenges such arguments.

The most common strategic mistake that most companies make is to try to retain their customers by competing with the private labels by slashing prices. Such a decision can prove very detrimental to the long term equity of the brand.

Engage the customer: Economic downturns can offer excellent opportunities for brands to engage customers in innovative ways. As customers are cutting down on consumption, brands can initiate measures that take customers mind off the difficulties of consumption and focuses on the worthy features of the brand. Such situations can prove to good times to initiate procedures to co-create value with customers.

A slightly related example is that Singapore Airlines' strategy during the deadly SARS that hit South East Asia. When customers were very scared of flying and airlines were flying their flight nearly empty, Singapore Airlines (SIA) started offering very innovative vacation packages. Such innovative options used to engage the customers helped SIA to minimize its losses. But more importantly, such measures ensured that SIA was successful in protecting its brand image and brand equity.

Create excitement in customer experiences: Brands should use all of their strategic arsenal to create exciting interactions with the customers. Such initiatives can range from special deals to surprise the customers, product bundling to enhance value, promotions with creative alliances (such as with celebrities, traveling etc) to rewarding customers for their loyalty through special gifts, brand credit and so on.

Such initiatives not only take the focus off of price but also reiterate the brands' commitment to engage and value customer patronage. Such initiatives also allow companies to experiment with new steps. For example, recently Starbucks advertised that customers who volunteered for local community work for two hours would receive a free coffee. What is interesting about this initiative is that this was not a corporate level initiative but rather a local initiative that a couple of stores in one city undertook. Such initiatives not only enhance the brand image in the eyes of the customers, but also create additional reasons for the customers to continue to patronize the brand.

Offer customers viable options: Market conditions during such economic turmoil also offers brands opportunities to test waters with some new offerings, which can be different product variants, new products, new service offers through brand alliances and so on. Brand can experiment using a distribution channel such as Wal-Mart for example, to reach broader customer segments.

Such new options serve two purposes. First, they allow the brand to carry out pilot studies of such new offerings in the market, gather customer reaction and test its own competence in the new situations. Second, and more importantly, such initiatives sends a very strong signal to customers that the brand cares about the dire economic conditions and that the brand is trying to reach out to the customers by creating new options for them. Creation of such goodwill will not only help earn customer loyalty in the present time but also will help companies to cement such relationships when the economy bounces back and customers start evaluating their options.

Conclusion
Branding is not viable only in thriving economic conditions but is also a very viable strategy during economic downturns. All those who have announced the demise of branding because of the global economic meltdown may after all be surprised by the staying power of global brands. By building on the platform of superior value propositions, enriching interactions and enjoyable experiences, brands have established a very strong relationship with customers.

Merry Christmas and a Happy New Year to all readers of Asian Brand Strategy. Stay tune for 2010 where new content, insights and perspectives will be provided.

We have new books in the making about the role of the Chief Marketing Officer (CMO) for 2010, and another on the importance of leadership and brand strategy, and how they interact in order to achieve optimal business performance and edge (2011).

If you like to know more about our services and how we can add value to your organization, please visit Martin Roll Company where you can also download our brochure (click here to download PDF >> ).

All the best! See you in 2010.

The Martin Roll Company team

http://www.martinroll.com/

Asian economies with its many countries, cultures, business practices and customer segments are much more complex than other any other region in the world, and these markets still demonstrate branding infancy. The mindset, the complexity of business structures, the diversity of demographic composition and the huge geographic extant requires certain unique brand strategy steps.

1. Create a strong differentiation: In many of the still developing countries, Western brands are still looked up to as people in these countries aspire to own the global brands. With many local companies striving to create similar products at lower prices, the Western brands would do good to create a strong differentiation by leveraging their brand equity. Similarly, local brands that aspire to make it big must tap into the unique cultural associations and local myths to weave the brand into the societal fiber.

2. Establish a strong distribution network: Emerging economies of South East Asia are very vast countries and distribution in these countries holds the key to success in many industry sectors. With an increased migration of consumer from the rural side into main stream economy, success in these rural areas will prove critical. Moreover, unlike the developed markets, distribution is not organized and centralized in these countries. Regional and fragmented distribution channels replace national channels.

Establishing strong distribution network is of paramount importance. Some major brands such as P&G and Unilever have benefited from such a focus in India.

3. Glocalize: As emerging economies mature gradually, they start developing a strong sense of individual consumption identity. This is evident from the increasing demand for products which are localized to suit the local preferences. Global brands must retain their brand identity at the strategic level but localize the tactical implementation such as the communication, product offerings etc. This combination of global brands with local products will allow the global companies to weave their brands into the fabric of the local society and make the brand a part of the community.

For example, given the religious beliefs of Indians, cow is not treated as a source of meat, but rather an object of worship. Understanding such sentiment, McDonald's have eliminated their beef items and have introduced India specific menu items that appeal to the Indian palate.

4. Leverage cross-border synergies: In spite of the many differences between the many South East Asian countries, companies can leverage the scale of operations and supply chain across borders to optimize profitability. The relatively lower cost of production offers companies a fine platform to serve the entire region. By standardizing the major part of the product and fine tuning the final offering to suit the local tastes, companies can minimize cost and gain scale.

5. Recognize and respond to the unique regional markets: Emerging markets are mosaics of cultures and rich heritage. Each country has a unique pattern of consumption. Companies should be careful not to generalize across them as a homogenous region by ignoring the glaring regional and national uniqueness. As each country is fast evolving and integrating with the global economy, none of these challenges and market situations are static. Businesses should develop the flexibility to quickly react to the changes in the market and adapt their strategies to successfully compete and survive.

For example, British India is a major successful apparel brand from Malaysia. However, given India's troubled past with the British occupation, British Raj does not bring out positive emotions to the Indian customers, and the brand stayed out of India.

6. Collaborate and co-create: Many global and regional companies entering new markets have collaborated and leveraged the resources of the local companies. The combination of strong brand equity, financial prowess and the business acumen of the global brands and the local networks, established distribution channels and the strong knowledge of local customers of the local companies would offer a winning scenario.

For example, Costa Coffee is one of the leading coffee brands from the UK. But when it entered the Chinese market, it successfully collaborated with the Yueda Group, to leverage the local partners' knowledge of the market and customers.

7. Leverage the unique local cultures: Companies that plan to build brands in the different South East Asian economies must leverage the unique local culture to relate to the customers. Every market has a very strong history and heritage that has for long influenced the local cultures and practices of both companies and consumers. Companies should tap into these specific details and incorporate them in their brand personalities and identities so that customers can be offered an authentic experience.

For example, the Malaysian government brand campaign "Malaysia, Truly Asia" attempts to capture the unique culture, practices and experiences of the country. This offers an excellent example of how companies building brands in the Asian markets can leverage the local cultural assets.

The Swedish employer branding agency Universum has made a Top-50 list of brands that young talents want to work for. It is remarkable that there are only 2 Asian brands among the global Top 50 - namely SONY and HSBC.

It emphasizes how important it is for Asian businesses to build and sustain more global brands in order to compete for future talents. Asian managers need to step up to the challenge and compete better for the future. Through strategic brand strategy efforts and through better employer branding.

Universum asked 120.000 students in 11 countries including US, England, Japan, China and Germany.

Top-50 for business students:

1. Google
2. PricewaterhouseCoopers
3. Microsoft
4. Goldman Sachs
5. Ernst & Young
6. Procter & Gamble
7. J.P. Morgan
8. KPMG
9. McKinsey & Company
10. Deloitte
11. The Boston Consulting Group
12. BMW
13. Coca-Cola
14. L'Oreal
15. Morgan Stanley
16. Sony
17. IBM
18. Johnson & Johnson
19. Deutsche Bank
20. General Electric
21. Citigroup
22. HSBC
23. Accenture
24. Nestle
25. Credit Suisse
26. Bain & Company
27. Unilever
28. UBS
29. Nokia
30. Intel
31. Esso/ExxonMobil
32. Kraft Foods
33. Shell
34. Hewlett-Packard
35. Mars (Masterfoods)
36. Pfizer
37. Siemens
38. Philips
39. Oracle
40. Bayer
41. Philip Morris
42. DHL
43. BP
44. Bosch
45. Cisco
46. Daimler
47. Ericsson
48. ABB
49. Novartis
50. Schlumberger
    

Top-50 for engineering students:

1. Google
2. Microsoft
3. IBM
4. BMW
5. Intel
6. General Electric
7. Sony
8. Siemens
9. Shell
10. Proctor & Gamble
11. Johnson & JJohnson
12. Hewlett-Packard
13. Cisco
14. Esso/ExxonMobil
15. McKinsey & Company
16. Schlumberger
17. BP
18. L'Oreal
19. Nokia
20. Accenture
21. Coca-Cola
22. Philips
23. Goldman Sachs
24. Nestle
25. Pfizer
26. Bosch
27. The Boston Consulting Group
28. J.P. Morgan
29. Deloitte
30. Morgan Stanley
31. GlaxoSmithKline
32. Ericsson
33. Ernst & Young
34. ABB
35. Bayer
36. Unilever
37. PricewaterhouseCoopers
38. Deutsche Bank
39. HSBC
40. Kraft Foods
41. Bain & Conpany
42. Citigroup
43. Alcatel-Lucent
44. Daimler
45. Novartis
46. Mars (Masterfoods)
47. KPMG
48. Credit Suisse
49. DHL
50. UBS
    

Source: Universum

One of the fundamental tenets of building global iconic brands is to pursue consistency in strategy, identity, communications and positioning. Toyota, Google, the New York Times, Singapore Airlines, Apple, and IKEA are just some examples of global iconic brands that have followed this fundamental branding tenet. Given such religious following of this tenet, it is no wonder that when companies experiment with any aspect of their brand, it manages to catch everyone's attention. More importantly, such moves challenge this fundamental tenet of consistency.

Changes in the global brandscape have brought about rethinking among the global brands. No longer are brands confined to any one particular market. Different markets pose different challenges in terms of customer preferences, local practices, resident competitors and together a challenge to the global brand identity. As such, brands have continually adapted to different demands. However, changing the fundamental identity and positioning of the brand is completely different.

Consider the case one of the most well known brands, Mercedes. The Mercedes brand has consistently been known for luxury, premium pricing, cutting edge technology and superior quality. However, in distinguishing itself from another well known brand, the BMW, Mercedes has focused more on its quality and premium--evel than mere technological superiority.

Given such strong notions of premium, the primary target of Mercedes has long been the high flying executive or mid-career professionals who have a sense of professional achievement and personal status image. Despite the recent sporty models, Mercedes has consistently been touted as the luxury car of the grown-ups. Such a singular positioning although ideal in normal circumstances is proving to be tough for Mercedes in the face global recession, falling demand, tighter environmental regulations across Europe and increasingly in the US and the closing of the gap by competitors like BMW and Audi.

Should Mercedes change its positioning? Or should be it true to the fundamental branding tenet of consistency? And if Mercedes decides to change, how can it do so without negatively impacting the brand image and equity?

Brand consistency is important. But equally important is for the brand to be responsive to the changing conditions. Mercedes has chosen the route of both incremental and substantial innovation to make the brand ever more relevant. Mercedes' (part of Daimler) CEO Dieter Zetsche has instituted a number of companywide initiatives to move Mercedes in the right direction.

For starters, despite cutting budgets in every possible area, Zetsche has kept the R&D budget intact. Innovation in enhancing fuel efficiency, better platforms and better designs have formed the pillars of the basic strategy. On technological innovation, Zetsche has bet hugely on the yet to be proven lithium ion battery technology to kick start the hybrid range of cars.

The company has enlisted many partners including Tesla Motors in the US to build an electric-roadster in the near future. The market has reacted very favorably with Daimler stock rising 50% to US$34 from a low of US$22.

Another tactical innovation has been to break down every Mercedes car into different modules to make sure similar parts can be used across the different models, thereby enhancing efficiency and achieving scale. It is forecasted that the soon to be launched next generation C-Class will use this sharing strategy completely.

In addition to these tactical and incremental innovations, Mercedes is also involved in innovation is two other fronts - dealing with competitiors and responding to customer needs. In a rare turn occurrence, Mercedes and BMW are collaborating in procuring parts and leveraging commonalities. Such collaboration has not only garnered positive reaction from the market, but also is expected to help both brands minimize costs.

Additionally, Mercedes has finally decided to expand its portfolio to target young but affluent customers, who traditionally have preferred the much sportier BMW or Audi, by launching A and B-class models. Although such a strategy is never easier to pull off given the traditional associations with a brand such as Mercedes, the new push by CEO Zetsche is seen as a move to stop the declining trends of Mercedes. From earning of around US$8 billion in 2000 to a loss of US$4.8 billion in the first quarter of 2009, from a market share of 24% among luxury car brands in 2003 to losing the market leader position to BMW in 2008, Mercedes is under immense pressure to show a turnaround.

In such circumstances, iconic brands do not just change their entire strategies, betray their brand identity and start afresh. Rather, they adapt a clever strategy of pursuing simultaneously incremental innovation that would streamline their process and cost structure while also pursuing strategic innovation that positions them well. As such, although consistency is a fundamental brand tenet, it can only be effective when practiced along with strategic adaptive capabilities.

Competition is a core characteristic of business. Corporations around the world strive hard to outsmart competition to achieve sustainable competitive advantage. Much has been researched about the how companies can formulate strategies that can narrow the gap between market leaders and new players. Similarly, much is discussed about how companies choose strategies depending on the specific competitive landscape.

A central feature of such strategies is what has come to be known as first mover advantage (FMA). First mover advantage refers to the phenomenon whereby companies can achieve a considerable lead time over their competitors by being the first in a host of activities such as entering a market, introducing a new product, launching a new service, creating a distinctive positioning, creating a unique community or developing an enticing web presence. The argument is that whoever does these things first will have a significant advantage over their competitors, who will be forced to imitate.

Consider the case of two of the biggest brands in the mobile communication industry: Apple's iPhone and RIM's Blackberry.

Blackberry was the first brand to introduce mobile email that was compatible with corporate requirements. Based out of Canada, Blackberry easily became the market leader, and has continued to dominate the market. Even though there have been many other makers of smart phones before Blackberry, Blackberry was the first brand to seamlessly integrate mobile communication, internet capabilities and corporate email into a convenient hand held gadget.
Not surprisingly, many competitors have since then tried to imitate those features in their own handsets. But since the introduction of Blackberry in 2002, it has been the market leader in smart phones till today.

Blackberry's stranglehold on smart phone market was strongly challenged by Apple with its introduction of iPhone in June 2007. Unlike many other competitors such as Motorola, Nokia, Sony Ericsson, and Samsung, that aggressively imitated many of Blackberry's features in similar looking handsets, Apple did the unthinkable. Apple created a totally new design with appealing features and build.

The iPhone was a very slim and handy gadget with a very large touch screen that lacked a physical keyboard. Furthermore, unlike Blackberry, it significantly improved the convergence of a mobile phone, a music player, an internet browser, a digital camera, and an in-built GPS. Furthermore, iPhone was efficiently connected to iTunes, Apple's online store to purchase music and movies. That way, iPhone not only bettered what Blackberry had done, but also created a new standard.

Challenge the conventional wisdom
This represents a classic case of challenging the conventional wisdom of FMA. Although it was Blackberry that created the industry standard for almost five years, iPhone seems to have changed those rules despite not having FMA. This begs a couple of very important strategic questions. First, is FMA sustainable or only temporary? Second, how can companies undertake strategic initiatives to sustain FMA?

Sustainability is a relative term. Nothing is sustainable forever. Even the mighty IBM had to bite dust and the once leader General Motors is struggling. However, sustainability is very important for companies. If all strategies were easily replicated, then competition would be ruthless and eventually lead to a zero sum game.

First mover advantage certainly creates a very significant advantage for companies depending on the underlying basis of FMA. Early entry into a market allows early penetration into different segments and market domination. Similarly, in this case, Blackberry was able to define the industry standard by being first. However, iPhone not only conformed to those standards by including all the features Blackberrys offered, but improved every single of them. As such, innovation and customer insight helped iPhone redefine the standard.

An even more important question is then, are companies that are not first are doomed to failure? The answer is certainly no. Companies can undertake certain strategic initiatives to overcome the FMA deficit.

As in this example, Apple initially conformed to the industry standard, but additionally practiced innovation. Constant innovation to improve the status quo always allows companies to overcome the FMA deficit. Additionally, building strong brands is an extremely important strategic necessity. Despite Blackberry's FMA, Apple's brand equity was so strong with cult like following among its customers, that it allowed iPhone to overcome its FMA deficit.

As such, strong brands can both be a cause and a consequence of first mover advantage. As companies formulate their strategies, they should clearly evaluate their FMA status and accordingly take strategic initiative to compensate for their FMA deficit. As has been consistently demonstrated by global iconic brands like Apple, brand equity provides one of the strongest and most enduring strategic assets to correct FMA deficit.

It is a widely accepted notion that world is indeed flat. Economic boundaries are being demolished. Companies are no longer constrained to their national markets. Internet has become a great leveler of field between companies and customers. Price has yet again taken central stage. And brands are under increasing threats from private labels.

Given such a connected world, how can companies maintain their underlying brand identity in face of worldwide external shocks such as the current global recession? Should brands practice consistency or continually adapt?

Before answering those questions, take a look at one of the world's iconic brands - Starbucks. Starbucks is almost single handedly responsible for creating the concept of a third place between home and work where people can relax, enjoy a cup of coffee and experience the inviting ambience.

Since its founding days in the early 90s, Starbucks has strived to build its brand identity on offering customers a relaxing and enjoyable experience. In addition, Starbucks has also built its brand on things that tend to be out of the box, by consistently defying the conventional wisdom.

When companies were aggressively advertising, Starbucks decided not to advertise. When cost cutting was the dominant paradigm of the industry, Starbucks chose to emphasize non-routine procedures to create excitement among the baristas instead of streamlining procedures to minimize cost. Unlike most other companies, Starbucks made its employees its partners, by offering them stock options and health insurance.

As against rigorous customer surveys Starbucks chose casual and informal chats with customers to gather their overall mood. All these clever strategies have enabled Starbucks to build one of the most iconic brands that has continued to resonate with customers across the world for more than fifteen years. That was until the economic conditions started worsening.

Since early 2008, Starbucks has been forced to bite the dust and succumb to the aftermaths of the recession. Founder Howard Schultz returned as the CEO. Cost cutting and efficiency was made the guiding strategy. More than 800 Starbucks stores were closed in the US alone. For the first time Starbucks invested more than US$200 million in advertising. And for the first time in its history, Starbucks started price campaigns in select stores to lure customers away from other price competitors such as McDonald's and Dunkin Donuts.

These events beg the obvious question. Given such fundamental changes in the macro environment, should iconic brands like Starbucks stay true to their strategic brand vision or continually adapt to regain competitive advantage?

Regaining lost glory and recapturing global brand leadership should be a two-pronged strategy. Iconic brands should strategically manage the dual process of continuous innovation on the one hand and reinforce their guiding strategic brand vision.

Innovation drives strong brands
Innovation is a fundamental building block of iconic brands. Leading brands create their corporate strategies with an inherent strategic element encompassing innovation. Such innovation is not limited to bringing new products to markets, but is expanded to innovation in communication (with customers and other stakeholders) and innovation in implementing cost-cutting and efficiency enhancing strategies. Such continuous innovation serves dual purposes.

First, innovation enables iconic brands to refine and redefine their cores in line with the changing needs. Second, innovation allows iconic brands to continually adapt to the changing needs of customers, thereby protecting its competitive advantage.

Innovation should be practiced along with an organization wide brand vision, which acts as the strategic blueprint of the brand's path. Such strategic vision should not only delineate the boundaries of the brand but also should chart out the possible strategies of the brand in order to attain and maintain brand leadership. Commitment to such brand vision allows companies in tough situations to chart out different strategies (such as either cost cutting or enhancing value proposition) but will ensure that the brand does not deviate from its strategic charter. As innovation prepares the brand to adapt to changing circumstances, brand vision can guide the brand not to stray away from the core brand promises and dilute the core brand identity.

Iconic brands can effectively regain their brand leadership by implementing this dual strategy. Starbucks has already begun on this path. It is innovating in reaching its customers and enhancing efficiency but maintaining consistency in its core brand promise of providing an enjoyable experience.

The changing global economic environment has challenged many global iconic brands. This dual pronged strategy can not only help these brand protect their brand leadership but can also create a sustainable path to ensuring long term competitive advantage.

A quick look at the major media outlets, be they newspapers, magazines, websites, professional conferences or consulting engagements, highlights the global obsession with emerging markets. The rather large bloc of countries in South America, Eastern Europe, and Asia make up the loosely coined term emerging markets. Despite the geographic separation of these clusters of countries they share some very dominant and distinguishing characteristics.

Most of these countries were either socialist economies or controlled capitalist economies. They were closed from the global economy for a long time. All these countries are also characterized by substantial population levels, improvements in physical, intellectual and financial capital. Many of these countries have opened their economies to foreign direct investment and thereby taken a step towards a fuller integration with the global economy. As such, emerging economies seem very similar on many important dimensions.

Although many economies such as Brazil, Dubai, Turkey, and Bulgaria are aggressively developing their economies, it is usually Asia that manages to capture the global attention. Although at first glance such obsession can be waved aside as yet another media frenzy by a curious onlooker, a deeper analysis of the hard facts presents the tremendous evolution happening in the most important of all these emerging markets - Asia.

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