Brand Footprint 2013 Global

8/11/2019 Brand Footprint 2013 Global

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A Global Ranking of the MostChosen Consumer Brands


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The measure quantifies the true level ofinteraction a brand has with shoppers byuntangling the moment of truth whensomeone decides which brands to buy.

The Consumer Reach Points provides theclearest, most compelling and precise pictureof a brands global strength available today, bycombining how many households around theworld are buying a brand and how often. TheBrand Footprint ranking is purely objective asit is based on what shoppers actually do. Thedepth and breadth of the supporting data isunrivalled; it is based on continuous shopperbehaviour tracking of hundreds of thousands ofhouseholds and millions of purchases acrossour unique global coverage.

As peoples habits, tastes and needs evolvebrands are driven to innovate and find new ways

to engage with and be chosen by consumers andshoppers. Backed by brand and category casestudies, this in-depth report identifies how muchtraction each FMCG brands growth strategyis really gaining them globally, in developedregions such as Europe and USA, and in thecrucial emerging markets of Latin America,Asia and the Middle East.

As the world leader in consumer behaviourinsights, Kantar Worldpanel gives you,for the first time, a unique read of your brandsand competitors reach at global, regional andlocal level, helping you to understand and setambitious and realistic targets. Brand Footprintand Consumer Reach Points have been createdto deliver the complete picture of your brandsstrength and its opportunity to grow.

You will find the Top 50 ranking and the

insights, trends and themes behind thefigures in the following report. This reportdelivers a global strategic perspective ofeach brand while we have designed the site

www.brandfootprint-ranking.com which allowsyou to design precise plans by region, country andcategories. I encourage you to visit it to navigate,interact with and interrogate the data to build them.

I see this as an exciting time for brands andconsumers. Brand growth demands not onlyan expanding consumer base but also strongloyalty. Meeting local needs, competing withbrands and private labels, building efficientglobal supply chains, negotiating complexdistribution agreements will always be at theheart of a brands strategy and the evidence oftheir success can be seen in our results. It isreally encouraging that brands are investing inemerging regions for future growth, with the

ambition to gain new buyers and new users.This report and its Consumer Reach Points metricreveal which brands are already doing this, andhow important it is to include in the strategy.

I congratulate the brands who made it into theBrand Footprint Top 50, and I invite you to learnmore about the most chosen brands, and todiscover what your own Brand Footprint is.

Josep Montserrat,Global CEO of Kantar Worldpanel

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Josep Montserrat

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WELCOME TO KANTAR

WORLDPANELS 2013 BRANDFOOTPRINT REPORT


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In order to grow, brands need to expandtheir consumer base and deepen loyalty.

Brand Footprint gives exactly that, based ona new and simple metric Consumer ReachPoints which combines penetration andfrequency of purchase into a clear picture ofa brands reach, strength and depth.

This begins with an understanding of howconsumers around the world buy their brands,and how well they are reaching and engagingdifferent populations.

Covering 32 countries (62% population,58% GDP), the Brand Footprint ranking givesowners of global and local FMCG brands valuableinformation to feed into their marketing strategies.It reveals which are achieving global success

and provides unique insight that will help brandsdesign growth strategies more accurately.

Not surprisingly, top ranked brands in theBrand Footprint have gained traction by beingstrong on both penetration and frequency witha particular focus on emerging growth marketswith large populations. They manage to combinea consistent brand offer across the globe withan ability to understand and respond to specificlocal needs through innovative variants andpackaging.

However, the results also tell a story of greatuntapped opportunities; all brands still haveplenty of room to recruit more shoppers innew geographies, new segments or on newoccasions.

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Executive summary

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BRAND FOOTPRINT.A GLOBAL RANKINGOF THE MOST CHOSEN CONSUMER BRANDS

The strongest global brands in the ranking excel at a combination of anyof these four key areas.

To explore the BrandFootprint data, including

detailed results forindividual brands visit

www.brandfootprint-ranking.com

13 Billionaire Brandsachieve more than 1 billion

Consumer Reach Points -is yours one of them?

GROWING BRAND REACH: The FouR GolDen Rules


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Ptrati i ky bt it t vrytigIts the brands that combine high penetrationwith high frequency that feature in the Top 10.

Penetration drives share, but brands have toattract consumers more than once; they makea choice each time they go shopping. Coca-Cola

doesnt have the highest penetration, but itcombines penetration of 44% with the highestglobal frequency of purchase 15 times per yearon average.

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Every one of the Top 10 global brandsdemonstrates innovation.

Investment in research and developmentdrives market share and profits even morein difficult economic times. Adapting to changing

consumer needs and habits in different territories,particularly in emerging markets, has played abig part in the performance of brands includingColgate, Maggi, Dove, Tide and Tang.

A brad av pprtitit rcrit w ctmrColgate is the only FMCG brand bought by morethan half of the worlds households.

The level of acceptance is still low in certaincategories in health and beauty, for example,more than 40% of the globe does not yet purchasedeodorants, hair conditioner or make up.

emrgig grwt marktEmerging markets are responsible for 98%growth of the growing brands.

Six of the Top 10 show significant growthin these markets: Coca-Cola, Colgate,Dove, Maggi, Nescafe and Pepsi. Brands areresponding to, and benefiting from, changes inhabits and affluence for instance, the growinginterest in health and beauty. They are adaptingto local markets Heinz solves distributionchallenges by acquiring and growing existinglocal brands, while Colgate builds awarenessand sales with small pack sizes whichencourage trial.

scc i tyym wit gba12 local brands all Asian achieve more than1 billion Consumer Reach Points; 23 more than500 million.

While more and more consumers have thedesire and the income to buy global brands,brands can achieve powerful traction withouta presence in western markets for instance,Japanese cooking seasoning brand Ajinomoto.Consumers feel enormous pride towards localbrands, and they particularly like to buy localwhen it comes to food.

Coca-Cola is the worlds most boughtbrand, chosen 5.3 billion times per year.Coca-Cola is also the brand leading in thehighest number of countries (8 out of 32).

Colgate number two in the ranking is bought by 65% of the worlds households,the highest penetration of all. Its the onlybrand bought by more than half the worldshouseholds.

There are 13 global brands being chosen byconsumers more than one billion times ina year: Coca-Cola, Colgate, Nescaf, Pepsi,Lifebuoy, Maggi, Pantene, Knorr, Lays,Dove, Lux, Palmolive and Tide.

Unilever is the leading manufacturer,placing 15 brands in the Top 50followed by Procter & Gamble (P&G)with eight, PepsiCo with five and TheCoca-Cola Company with four. There are18 different manufacturers in the Top 50.

Dove is the top riser, growing its ConsumerReach Points by 18%. Other top risers areMr Muscle, Tide, Vim, Oreo, McCormick,Head and Shoulders, Dettol and LOral.

Some highlights:Brand Footprint at a glance

Consumer Reach Points provides marketersand CEOs of FMCG companies with a clear,straightforward, objective indication of a brandsinner and competitive strength.

It measures how many households are buyinga brand (penetration x population) and how

often (frequency), giving a true representationof shopper choice. Each time a consumerchooses a brand at the point of purchase, thebrand earns a reach point.

FMCG brands can measure sales value andvolume of their products and categoriesaround the world, but Consumer Reach Pointsmeasures the true reach of the brand howmany times it wins at the moment of truth,when the shopper chooses to buy it. Our uniquecombination of penetration and frequency iscritical: unless both are calculated its notpossible for a brand to clearly understandits reach.

CONSUMER REACH POINTS:QUANTIFYING SHOPPER DECISIONS

How manyPenetration:

Number of householdsbuying the brand /

Universe

PopulationUniverse: Numberof households in

a country

How often

Frequency: Numberof times each

household purchasedthe brand on average

in a year

CONSUMER REACH POINTS =

Global population used to estimate Consumer Reach Points is 820,157,590 households.1 point of penetration means a brand reaches 8.2 million households.


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THE BRAND FOOTPRINT GLOBAL RANKING TOP 50

Rank

2012

Rank

2011

Rank

change Brand name Manufacturer

Consumer Reach

Points (m) Penetration% Frequency

Consumer Reach

Points growth%

1 1 The Coca-ColaCompany 5,295 43.9 14.7 0%

2 2 Colgate-PalmoliveCompany 3,330 65.4 6.2 5%

3 3

Nestl 2,270 26.0 10.6 -2%

4 4 PepsiCo 1,797 27.9 7.9 2%

5 5 Unilever 1,751 27.3 7.8 1%

6 6 Nestl 1,580 26.7 7.2 4%

7 7 Procter & Gamble 1,456 31.9 5.6 -2%

8 8

Unilever 1,290 27.6 5.7 1%

9 10 1 PepsiCo 1,146 26.0 5.4 2%

10 14 4 Unilever 1,117 33.7 4.0 18%

11 9 2 Unilever 1,068 34.4 3.8 -10%

12 11 1 Colgate-PalmoliveCompany 1,062 18.6 7.0 5%

13 13 Procter & Gamble 1,052 28.8 4.4 11%

14 12 2 Unilever 994 15.8 7.7 -1%

15 16 1 MondelezInternational 948 13.2 8.7 4%

16 15 1 Unilever 924 21.8 5.2 -1%


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Rank2012

Rank2011

Rankchange

Brand name ManufacturerConsumer Reach

Points (m)Penetration% Frequency

Consumer ReachPoints growth%

17 20 3 MondelezInternational 916 28.2 4.0 8%

18 21 3 Bimbo 896 7.6 14.4 6%

19 17 2 Ajinomoto 890 7.1 15.3 -2%

20 18 2 The Coca-ColaCompany 858 27.0 3.9 0%

21 19 2 Unilever 849 13.7 7.5 -1%

22 22

Procter & Gamble 804 14.1 7.0 2%

23 23

Nestl 797 7.9 12.4 2%

24 25 1 Procter & Gamble 786 26.2 3.7 7%

25 24 1 Procter & Gamble 768 16.9 5.5 2%

26 26

H.J. Heinz Company 739 15.9 5.7 4%

27 27

Procter & Gamble 654 22.8 3.5 -4%

28 31 3 The Coca-ColaCompany 625 21.0 3.6 5%

29 29

General Mills 596 12.8 5.7 -6%

30 28 2 Danone 591 12.2 5.9 -8%

31 30 1 Unilever 591 16.2 4.5 -2%

32 33 1 PepsiCo 563 14.3 4.8 2%

33 35 2 PepsiCo 542 16.5 4.0 7%


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Rank2012

Rank2011

Rankchange

Brand name ManufacturerConsumer Reach

Points (m)Penetration% Frequency

Consumer ReachPoints growth%

34 32 2 Johnson & Johnson 532 20.9 3.1 -6%

35 38 3 Unilever 515 13.1 4.8 0%

36 37 1 Unilever 505 18.0 3.4 -2%

37 39 2 Unilever 496 15.4 3.9 0%

38 36 2 Unilever 488 18.8 3.2 -6%

39 42 3 LOral 480 17.0 3.4 4%

40 41 1 Procter & Gamble 461 15.2 3.7 -3%

41 46 5 Unilever 449 11.3 4.9 9%

42 34 8 Unilever 445 11.4 4.8 -18%

43 40 3 The Coca-ColaCompany 444 17.0 3.2 -7%

44 45 1 Beiersdorf 441 17.5 3.1 3%

45 43 2 Unilever 424 13.3 3.9 -3%

46 44 2 Yakult 413 6.8 7.4 -4%

47 47

PepsiCo 375 12.7 3.6 -2%

48 48

Reckitt Benckiser 374 15.8 2.9 5%

49 49 Procter & Gamble 344 13.0 3.2 -1%

50 50 Kimberly-Clark 289 11.3 3.1 -1%

Global population used to estimate Consumer Reach Points is 820,157,590 households. 1 point of penetration means a brand reaches 8.2 million households.


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COCA-COLA REGULAR

COCA-COLA LIGHTCOCA-COLA ZERO

DIET COKE

They are generally consistent in theirapproach and are recognised across the globe yet the Kantar Worldpanel ranking revealsopportunities that still remain untapped forthese brands, to increase their penetrationacross the globe.

There is more variation in penetration thanfrequency across the Top 50: the range of lowestto highest penetration is 7% to 65%, whereas

the lowest to highest frequency ranges from3 to 15.Only one brand Colgate has over50% penetration, at 65%. There is great scopefor growth here.

Even Billionaire Brands have room forimprovement in certain markets. Number onebrand Coca-Cola (Consumer Reach Points5.3bn) has much lower in-home penetration inIndia, Malaysia and Korea for example. Lookingat India, the category of carbonated soft drinks

is purchased by only 25% of households, andthe local consumer doesnt tend to purchasesoft drinks for the home so global brands inthe category do show a weakness in that region.Despite having acquired local brands like ThumsUp, Coca-Cola only reaches a maximum of8% of Indian households, in terms of in-homeconsumption.

Colgate, the number two brand (3.3bn) in the

global ranking, reaches two thirds of the worldshouseholds with a 65% global penetration andis the only brand reaching more than 50% ofhouseholds globally. This is notable consideringit is only purchased on average six times a year,and as a brand is not even present in such alarge country as Indonesia. Coca-Cola reaches44% of homes globally but is purchased 15times in a year on average by each household,driving its number one position.

Brands will always face region specificchallenges which vary most significantlybetween the emerging and the developedregions.

In the emerging markets most brands needto think about brand building, creating brandawareness and distribution. Pack formats andeffective pricing are focus areas as brands lookto set pricing that allows market entry.

Consumers in developed markets are now morefocused on reducing debt and saving money inthe wake of recession. They have become morefocused on price and value and these trends

combined with ageing populations, smallerhouseholds and increasing ethnic diversitywill affect purchase behaviour, pack sizes andinnovation. It is clear that in order to thrivemanufacturers must respond to these trends.

In the developed regions brands need constantrejuvenation; they are often looking to growdespite volume stability and need to managenot only the threat of other competitive brandsbut also that of private label. We can seefrom Colgates brand footprint much higherpenetration levels in emerging countrieslike Venezuela (100%) and Ecuador (98%)where private label levels are less than 1%for groceries. In contrast we can see lowerpenetration levels for Colgate in developed

countries such as France (41%) and Spain(38%) as private label levels in these countriesis greater than 35% thus offering more of achallenge to brands looking to grow in thesedeveloped regions.

However, with a continued focus onrejuvenation and innovation, Colgate hasmanaged to hold private label at bay in thesecompetitive markets.

GLOBALPeneTRATIon 44%

FReQuenCY 15ConsuMeR ReACh PoInTs 5.3 bn

LATAMPeneTRATIon 91%FReQuenCY 32ConsuMeR ReACh PoInTs 3 bn

EUROPEPeneTRATIon 69%FReQuenCY 10ConsuMeR ReACh PoInTs 520 m

USAPeneTRATIon 67%

FReQuenCY 14

ConsuMeR ReACh PoInTs 1 bn

ASIA & MEPeneTRATIon 26%FReQuenCY 5ConsuMeR ReACh PoInTs 712 m

MARKET PENETRATION IS KEYCOCA-COLA 2012BRAND FOOTPRINT

CoCa-Cola by variant

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the private label Challenge

PHILLIPPINES

93%

IRELAND

73%

ARGENTINA

80%

BOLIVIA

98%VIETNAM

70%

CHILE

81%

MALAYSIA

72% CENTRALAMERICA

99%

VENEZUELA

100%

THAILAND

84%

BRAZIL

89%

ECUADOR

98%

MEXICO

98%

PERU

94%

CHINA

50%

INDIA

86%

UK

70%FRANCE

41%

GREECE

65%

TAIWAN

41%

SPAIN

38%

US

64%

PORTUGAL

65%

SAUDI

ARABIA

30%

Colgates brand footprint: Penetration in Europe challenged by private label

Colgate penetration in 2012

Breaking out Coca-Cola, Coca-Cola Regularwould remain #1 and Diet Coke would reach#41 in the Top 50.

% Consumer Reach Points globally


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THE BILLIONAIRE CLUB

These are Coca-Cola, Colgate, Nescaf, Pepsi,Lifebuoy, Maggi, Pantene, Knorr, Lays, Dove,Lux, Palmolive and Tide.

Several factors influence the position of a brandin the Kantar Worldpanel ranking. A brand willrise up the listing if it has a strong presence incountries with a high population, such as China,India, Brazil and Indonesia, or if it is found in acategory where frequency of purchase is high,like beverages.

Having an umbrella brand, such as Dove, whichis successful across a number of categories willalso boost a brands Consumer Reach Points,

as will the amount of competition it faces fromprivate label or local brands in key regions andcountries.

These Billionaire Brands own a wide and loyalconsumer base. However, all of them still haveplenty of room to recruit more shoppers in newgeographies, new channels, new targets, newsegments, or on new occasions.

Innovation also remains a crucial element ofthe marketing mix for growing brand footprint,as manufacturers adapt to changing consumerneeds and habits in different territories particularly in emerging markets where thegrowing middle class wants to buy brands and

more consumers have the money to do it. AsNestl states in its 2012 Annual Report Many

consumers are not looking to eat and drinkmore; they are looking to eat and drink better.

One of the drivers for achieving BillionaireBrand status is to have different productvariants across different continents. UnileversDove (1.1bn) has been investing heavily in newproducts such as Dove Men+Care and DoveCurls haircare products.

Looking forward, Tang is the most likely newentrant with 948m and growth of +4%. Anotherpossible future Billionaire Brand is MondelezInternationals (previously Kraft Foods) Oreobiscuit (916m) which has successfully launched

different product variants across internationalmarkets and is growing by 8% in ConsumerReach Points.

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Dove is the fastestgrowing brand in the

Billionaire Club, with anincrease in ConsumerReach Points of +18%.


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Tide (1.1bn) is the most recent entry, whileSurf (994m) and Tang (948m) are almostBillionaire Brands.Tang has a growth in CRPsof 4%, whereas Surf suffered a small decline of-1%, in emerging markets, but did experiencean 8% growth in developed markets.

Another brand to watch is MondelezInternationals Oreo (916m) at number 17 inthe global ranking. It is the fourth top riserwithin the ranking, experiencing a ConsumerReach Points growth of 8%. It has a number

of variants with Oreo Mini, Oreo Duo, DoubleStuff Oreo, Green Tea Oreo and Blueberry Oreoamong others. The manufacturer has cleverly

positioned the brand as The worlds favouritecookie with 100 years of history while alsobuilding its profile on social media.

Sunsilk (924m) also known as Sedal and Sedin Latin America is another brand to keep aneye on. Although its Consumer Reach Pointsgrowth is flat, it is still purchased by one in fourhouseholds globally which is significant in sucha crowded category. It is a billion dollar brandand its parent Unilever says it sees innovation ashelping to fuel growth following the launch of a

Sunsilk natural oils range.

Another contender for the Brand Footprint Top50 is Mr Muscle (158m and currently ranked65) which was the third highest riser behindOral-B and Dove. Its global Consumer ReachPoints growth is 15%, and it is particularlystrong in emerging markets (20%) and in Brazil,China, Mexico and Colombia. It is now in 10% ofhouseholds worldwide.

BRANDS TO WATCH

18%

9%

5%

5%

15%7%

7%

11%

5%

6%

8%

5%

21%THESE BRANDS ARE NOT AMONG THE TOP 50 GLOBAL RANKING,BUT ARE WITHIN THE NEXT 20 AND GROWING AT FAST PACE

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Top 10 RiseRs (Global bRands Ranked accoRdinG To cRp % GRowTh veRsus pRevious yeaR)


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BILLIONAIREBRANDS ARENOT NECESSARILY

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t ca cmr d.The Brand Footprint ranking has revealeda number of brands that are reaching morethan a billion local consumers. In India thebiscuit and confectionery range Parle has a40% share of the local biscuit market and 15%of total confectionery, whilst Active Wheelfrom Hindustan Unilever is the largest Indiandetergent brand. In China, Master Kong instantnoodles, drinks and biscuits has more than abillion Consumer Reach Points but as a localbrand it isnt in the global ranking.

In important growth markets such as Brazil,about 70% of the biggest Consumer Reach Points

food brands are local. Drinks brand GuaranaAntarctica, producers of chilled and frozen foodsSadia and Perdigo, cookies and biscuits brandVitarella and dishwashing brand Ypeare allreaching high numbers of Brazilian shoppers.

This liking for local means global manufacturersmust react to cultural differences and spendtime understanding local consumers needsand wants to win shoppers hearts. Colgate,for instance, achieves 86% penetration in Indiacompared to 65% globally by having excellenturban and rural availability and by adapting tothe local market with smaller pack sizes. It alsorelies on an excellent distribution network bothin rural and urban areas. This example of bestpractice is something that other brands looking

to expand into vast local markets can learn from.

It would be wrong to assume global brandsare always competing with local alternativesfor shoppers attention. In reality, consumerslove both.

International and national brand owners aredriven by social-demographic and cultural trendsand consumers often dont differentiate betweena local and a global brand, yet globalisation isdefinitely on the rise judging by the results of theKantar Worldpanel Brand Footprint ranking.

In some markets global brands promote theirperceived quality and reliability and in non-food

the strength of a global brand and its reputationcan mean huge penetration.

GLOBAL OR LOCAL?

USA

POPULATION 315m4%OF WORLD POPULATION

NIGERIA


BRAZIL


INDIA


BANGLADESH


3

5

7 2

PAKISTAN


6

RUSSIA


9 INDONESIA


4

8

CHINA


1 JAPAN


10

THE TOP 10 MOST POPULATED COUNTRIES

TOP 15 BRANDS IN BRAZIL

BRAND NAME Consumer Reach Points (m) Penetration% Frequency

Coca-Cola 653 90 15

Ype 345 88 8

Colgate 278 89 6

Omo 253 77 7

Tang 236 68 7

Antarctica 217 72 6

Qualy 216 71 6

Maggi 201 74 6

Soya 189 78 5

Nesquik 185 71 5

Sadia 185 78 5

Vitarella 184 35 11

Sorriso 180 74 5

Itambe 174 65 6

Miojo 174 69 5

Source: IMF

Highlighted brands are local


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With production peaking at 14.5bn packs in2011, Indonesia is the second-largest producerof instant noodles after China, which produces42.5bn packs a year.

People in Indonesia prefer noodles with a strongflavour popular flavours include chicken curry,

onion and Chicken Soto, a traditional chicken soup.Most of the market share is owned by Indomie MiGoreng: a form of instant noodle spiced for theIndonesian palate, owned by Indofood CBP SuksesMakmur, the worlds largest instant noodle maker.Although Mie Sedaap of the Wings Group onlymade its first appearance in Indonesia in 2003, it isthe biggest potential competitor to Indofood in themarket and is alsoa Billionaire Brand.

Masako is accepted as the number one brandof flavoured seasoning, and is found in manykitchens. One of the biggest producers ofseasoning in Indonesia, it uses real beef, fish,vegetable and chicken extract. The seasoning

is used in a wide range of dishes, including soupsand stir-fries, and applications includingpre-seasoning.

The dominant Indian biscuit and confectionaryrange Parle reaches even the most remotevillages with its most popular product theParle-G biscuit.

Active Wheel, from Hindustan Unilever, is thelargest Indian detergent brand. It is available inpowders, bars and laundry soaps in three variants:lemon and orange, gold and lemon and jasmine.Other brand owners serving this market includeHenkel and P&G, as rapid urbanisation bringsmore demand for better household products.

In China, Master Kong covers instant noodles,drinks and biscuits and its ready to drink tea isthe number one player achieving sales all acrossthis vast country. With production and distributioncosts increasing, Master Kong has successfullyincreased its prices as the brand appeals to thegrowing middle class.

Another Billionaire Chinese brand is Mengniu.The Mengniu Dairy Company distributes liquidmilk products (such as UHT milk, milk and yogurt),

ice cream, and other dairy products includingmilk powder and cheese across China. It regularlyfeatures in the WPP BrandZ Top 50 Most ValuableChinese Brands ranking produced by MillwardBrown. The third Chinese Billionaire Brand isrival dairy business Yili Group which producesice-cream, milk powder, milk tea powder,

sterilized milk and fresh milk under the Yilibrand. Both Mengniu and Yili originatedfrom Inner Mongolia, and have faced productquality challenges in recent years.

ABC Santos is the leading coffee brand inIndonesia, produced by Santos Jaya Abadi.Kapal Api and ABC are the companys two leadingstandard fresh ground coffee brands. ABC is theleading brand of mixed fresh ground coffee, andcontinually innovates by providing a variety offlavours. The most recently launched variant wasABC STMJ, a product which combines coffee withmilk, egg, honey and ginger. The acronym STMJstands for susu, telur, madu and jahe and is apopular traditional stamina drink in Indonesia.

As well as these local Billionaire Brands thereare 23 local brands around the world reachingmore than 500 million Consumer Reach Points:Roma, Tora Bika, Molto, So Klin, Energen, Sasa,Daia, Ekonomi and Sarimi in Indonesia; Lucky Mein the Philippines; Clinic Plus, Ghadi, Fair & Lovelyand Tata Salt in India; Lala and Gamesa in Mexico;Wahaha, Shuanghui, Want Want and Bright inChina; Almarai in Saudi Arabia and, finally, OscarMeyer in the USA and Warburtons in the UK.

Availability in some emerging marketsremains a challenge for global brands,which is why some manufacturers, suchas Heinz, choose to acquire local brands.

Heinz has expanded its global footprint inthe last 15 years through organic initiativesand its robust buy-and-build strategy toacquire and grow strong local brands.In 2005 it purchased HP Food Groupe fromGroupe Danone for US$852m which gaveit the worlds number one WorcestershireSauce brand Lea & Perrins. In recent yearsit also bought an 80% stake in the Braziliantomato-based sauces company Quero, andChinas premium soy sauce manufacturerFoodstar. This deal included the MasterWeijixian brand which was the premiumsoy sauce in Chinas southern region.

Heinz added 5m Consumer Reach Pointsin emerging markets in 2012, althoughmost of its Consumer Reach Pointsgrowth did come from Europe.

lca brad giat

SEDAAPINDONESIA

INDOMIEINDONESIA

CONSUMERREACHPOINTS(m)

MASTER KONGCHINA

MASAKOINDONESIA

MENGNIUCHINA

ABC SANTOSINDONESIA

ROYCOINDONESIA

YILICHINA

KAPAL APIINDONESIA

PARLEINDIA

% PENETRATION = = AVERAGE FREQUENCY (2012)

WHEELINDIA

FRISIAN FLAGINDONESIA

99% / 54

2000

1500

1000

500

0

96% / 43

91% / 1087% / 31

88% / 8 72% / 3189% / 24 86% / 8 82% / 26

99% / 54

70% / 6 65% / 7 88% / 23

LOCAL BILLIONAIRE BRANDS IN ASIA

ECONOMIESOF SCALEFor the large brand owners, theconsistency that comes with using thesame name in every market brings valuableeconomies of scale although the localheritage of some brands means keepinglocal names can be more appropriate. Forexample, Lays is branded Walkers in the UK,and Tide as Ace in Latin America.

If a brand is availablein China, India and

Indonesia, for instance,it will be reachingalmost 40% of the

global population.


16/32

SHOPPERS ARE LOCAL

There are many examples of where brandshave got this right.For instance, Unilever haslaunched coconut ice-cream brands mixed withfruits and vegetables in China, while PepsiCohas asked consumers in local markets to deviseregionally-inspired flavours for Lays/Walkers/Sabritas. These have included Tangy CarolinaBBQ in the USA and Pickled Onion flavour in theUK, and in Greece consumers can choose a FetaCheese flavour. Knorr produces local flavours

for its instant soups: corn in Argentina andBrazil; mushrooms or fish soups in Spain.

Many international companies are choosing tocreate more consistency by having the samebrand name in multiple countries, whichmeans marketing activity is coordinated moreeffectively. Examples include P&G switchingOil of Olay to Olay, Unilever changing Jif to Cifand Mars renaming the confectionery brandMarathon as Snickers.

Non-food offers global manufacturers more

opportunities in local markets. In Vietnammost of the non-food brands are global, whichcreates a competitive market and encourages

aggressive advertising activity. Top brandsinclude Unilevers fabric detergent Omo(76% penetration) and its dishwashing detergentSunlight (75%), and P&Gs fabric conditionerDowny (53%).

People like to buy local, especially when itcomes to food. In fact, consumers in manycountries, such as France and Korea, can bestaunchly loyal: we have seen Fleury Michon,

and Amora among the top brands in France andMaeil, Shinramyun and Bulgaris in Korea.

CHILE130 (m)

ARGENTINA286 (m)

BOLIVIA85 (m)

PERU292 (m)

ECUADOR81 (m)

COLOMBIA459 (m)

VENEZUELA80 (m)

IRELAND39 (m)

US1,095 (m)

UK523 (m)

BRAZIL653 (m)

MEXICO1,489 (m)

T aciv igicat d ptrati cay a gba brad mt kw itcmr itimaty ad t imp t brad m ctr t ca markt.

*Consumer Reach Points (m)

Top bRand by counTRy


17/32

CHINA1,522 (m)

KOREA134 (m)

INDIA1,294 (m)

INDONESIA2,634 (m)

PHILIPPINES985 (m)

TAIWAN60 (m)

PORTUGAL37 (m)

SPAIN127 (m)

FRANCE422 (m)

MALAYSIA36 (m)

VIETNAM57 (m)

THAILAND302 (m)

SAUDI ARABIA646 (m)

CENTRAL AMERICA188 (m)

GREECE21 (m)

THE LOCAL SCENEEven the most fervent fan of global namesstill loves local brands, whose popularity isoften linked to cultural references anda feeling of national pride.

In the UK, bread brand Warburtons isbought on average 23 times a year andhas high household penetration, whilethe Walkers crisps brand, sold as Layselsewhere in the world, reflects the Brits

love of snacking.

In Mexico dairy brand Lala is one of anumber of local milk brands in its top 10.Others include sister brand Nutri Leche,Alpura and Liconsa.

In Colombia 68% of the top 50 main foodbrands in terms of Consumer Reach Pointsare local, with only two global brands in thetop 10. Milk is an important category heretoo, with six of the top 50 brands belonging

to local FMCG manufacturer Grupo Nutresa

(Colcaf, Saltn, Doria and Comarrico andDucales). Coca-Cola is the first global brandin the local ranking.

Some strong regional brands haveno intention of being global they aresuccessfully responding to and servingregional consumer tastes and trends.Powdered juice drink Tang, for example,has a 63% penetration in Latin America but

reaches just 0.2% of European households.


18/32

T Katar WrdpaBrad Ftprit gbarakig cmpri a tFMCG catgri trackdard t wrd by KatarWrdpa, wic icdt i bvrag, fd,at ad baty adm car.The number one food brand globally is theNestl instant soups, stocks, noodles andsauces brand Maggi (1.6bn) which has achieveda Consumer Reach Points growth rate of 4%and now bought by 27% of households. Colgateis the top-ranked health and beauty brand andP&Gs Tide (1.1bn) the highest placed home carename. Its commitment to innovation includedthe launch last year of premium Tide Pods.

Kantar Worldpanels Brand Footprint rankingalso reveals how a brand can achieve highpenetration and sales without a high presencein western markets. The Japanese cookingseasoning brand Ajinomoto (890m) is number

19 on the global ranking yet reaches virtuallyno households in Europe and just 2.6% in theUSA. Although in the USA it is growing at 20%,demonstrating the brands future potential.

CATEGORY WINNERS

COOKING OIL

BISCUITS

TOOTHPASTE

TOILET PAPER

PASTA

SHAMPOO

MILK

BAR SOAPS

READY TO DRINK JUICE

DETERGENT

96%

95%

94%

94%

93%

92%

90%

87%

84%

83%

Top 10 caTeGoRies Globally wiTh hiGhesT peneTRaTion1 point of penetration means a category is purchased by 8.2 m households.


19/32

Products measured are powdered juices,carbonated soft drinks (CSD), ready to drinkjuices, waters, all types of milks and hotbeverages such as tea and coffee.

Powdered drinks are a phenomenon inemerging regions. Brands such as Milo,Nesquik, Nescau, Nestea, Ovaltine and Tangare very popular, especially among householdswith kids aged 4 to 12. Fruit juice in powdered

format is much cheaper per volume and canbe stored in the cupboard. It is also availablein sachets or sticks, and has a wide range oflocal flavours such as passion fruit in Brazil andadded benefits such as vitamin C for children.The category is so well developed in LatinAmerica that there are a number of establishedcompetitors such as Zuko, Arcor and Clight.

The fact that fruit-flavoured drink Tang is thefourth biggest global beverage brand despiteonly reaching 13% of households demonstratesthe size of its customer base in the marketswhere it performs strongly. It is number ninein the all-brand ranking in emerging marketsand number five in Latin America, yet it is notpresent in Europes top 50 and is thereforeoutside the Top 50 ranking for developedregions overall. It is extremely popular in Brazil,Philippines, Venezuela, Mexico and Argentinaand the brand is growing by developing a varietyof flavours to suit local preferences.

Only Coca-Cola, Nescaf and Pepsi are aheadof Tang in the global ranking for beverages, yetthese global brands face challenges. Coca-Cola,for instance, is only at number eight in Asia. Inmany countries the carbonated soft drinks (CSD)category is larger outside of home, which meansbrand awareness is high even if ConsumerReach Points rates are relatively low. India is

one country where out of home purchases arestrong but where rural penetration is very low.Flavours and pack sizes drive CSD sales in India.

Cans are very small, with bottles preferredon the go.

CSD is very important in Mexico whereconsumption is second only to the USA, withCoca-Cola the top brand by far. Consumersprefer it to water or juice and Coca-Colasefficient distribution network means it isavailable in even the smallest towns andvillages. Coca-Cola is also a brand icon in

Colombia, but is facing on-going aggressivemarketing by its rivals, including brands suchas Postobon. With 82% penetration it isColombias largest soft drinks maker, achievingannual sales of US$1.1bn, and has a number ofpopular soft drinks including a cola.

For Nescaf, 90% of its Consumer Reach Pointsare in emerging markets 60% of those in Asia.Interestingly, Nescaf is declining in some ofits core markets such as the Philippines wherethe instant soluble market is falling and mixes(three in one) products are proving popular in general consumers are now buying lesscoffee by making fewer trips. A number of localcompetitors are also on the rise, such as Kopikoand Great Taste, and this has hit the brandwhich is still heavily reliant on Nescaf Classic.

In the USA the coffee category is rising inpenetration and frequency, but it is being drivenby single cup coffee. Instant coffee has lessthan 25% penetration and is declining. Nescafhas the number one instant coffee (regularplus decaf) and the brand is challenged by theconsumer trend for more single cup coffee.Nestl does enjoy some other successes inthe global Brand Footprint ranking with itschocolate and malt powder drink Milo (ranked23 in the Top 50), which is growing well in thePhilippines where it has attracted 9.6m more

Consumer Reach Points.

LIQUID MILK RTD JUICE BOTTLED WATER TEA CSD GROUND COFFEE

87%*

83% 72% 71% 68%51%

beverageS

Bvrag brad bt igicaty i t Katar

Wrdpa rakig bca i mt ctri tyar i a frqty prcad catgry r cmdby t majrity. PENETRATION

VENEZUELA

INDIA

US

TAIWAN

PORTUGAL

BRAZIL

INDONESIA

FRANCE

CHINA

ARGENTINA

VIETNAM

SPAIN

CAM

COLOMBIA

IRELAND

MALAYSIA

UK

THAILAND

SAUDI ARABIA

ECUADOR

BOLIVIA

GREECE

CHILE

PERU

PHILIPPINES

MEXICO

GLOBAL 26%

97%

94%

89%

88%

86%

72%

67%

65%

60%

53%

51%

49%

49%

40%

39%

39%

39%

36%

29%

28%

22%

22%

20%

10%

5%

5%

*Global penetration % 2012

Top beveRaGes caTeGoRies Globally by peneTRaTion

NESCAFS PENETRATION

by counTRy


20/32

It added 65m Consumer Reach Points in 2012,

with its highest growth in Asia.

In Latin America its penetration rate isalmost 60%, although it lost 24m ConsumerReach Points mainly due to a sharp decline inColombia and Chile. Its instant noodles are abig hit in India, but the brand has weaknessesin the USA where its reach is only 4.8%,although its Consumer Reach Points growthrate is a healthy 11%.

Not surprisingly, innovation has played a partin Maggis growth. Launches have includedMaggi Liquid Seasoning in China, Maggi low fatnoodles in Malaysia and the launch in India ofMaggi Vegetable Atta, a wholegrain noodle with

real vegetables.

Another rising food brand is Bimbo, which isachieving a Consumer Reach Points growth rateof 6%. This bakery brand is the sixth highestranked food brand and has the second highestfrequency in the sector, purchased on average14 times a year. This is a brand with a strongpresence in Latin America where frequency is23. Its Consumer Reach Points growth in theUSA is an impressive 10%, and in China 8%.

Evolving breakfast eating habits in manyemerging markets is encouraging growth inmany cereal brands. If the umbrella brandKelloggs was treated as a single brand it

would take number six position in the rankingwith over 1.5 billion Consumer Reach Points

as well as being bought by more than one fifth

of households. In Korea cereal has movedfrom being a substitute for a breakfast meal tobeing eaten as part of a healthy lifestyle, andthis has helped sales of Kelloggs Special K.Kelloggs is also seeing brand penetration risein Brazil where consumers are getting usedto eating cereals for breakfast. There is stillplenty of room for growth, as umbrella brandKelloggs penetration in Asia and the Middleeast is only 2%. Clearly, the goal is to get closerto the levels of developed markets where wesee 82% household reach in the USA and 71%penetration across all developed markets.

Local attitudes are having an impact on how theyoghurt category is perceived. In Brazil yoghurt

is the top category with 6% Consumer ReachPoints growth, and consumers are buying theproducts more often. They are being temptedby new flavours, such as tropical fruits, andnew segments including Greek-style andsoya-based yoghurts.

In China, where yoghurt is seen as a gift anda premium product, Yakult and Weichuan arethe top two fresh yoghurt brands with yoghurtdrinks proving increasingly popular as a way toaid digestion and improve metabolism. In manycountries, such as Korea, the category hasexpanded in recent years with drinking yoghurtsand lactic acid yoghurts joining traditionalspoon-eaten yoghurts.

FOOD

1,580

MAGGI

6

KNORR

1,290

8

LAYS

1,146

9

OREO

916

17

BIMBO

896

18

AJINOMOTO

890

19

596

YOPLAIT

29

591

ACTIVIA

30

563

CHEETOS

32

HEINZ

739

26GLOBAL RANKING

BRAND NAME

CONSUMER REACH

POINTS (m)

T mbr fd am gbay i Maggi t ntbrad f itat p, tck, ac, tat acr add wic i t ixt biggt brad (1.6b) vraacivig a Cmr Rac Pit grwt rat f 4%a it rac 27% f d.

Maggis global growth inConsumer Reach Points ishigher than that of its mainrival Knorr (1%) driven

by a stronger performancein Asia.

Top 10 Food bRands Globally


21/32

Health and beauty brands account for 21 of theglobal Top 50 Brand Footprint ranking, and in

Asia it is 20.In Europe there are still more foodbrands than health and beauty, which offerssome insight into the variety of different culturesand attitudes outside of Europe when it comesto eating and cooking.

Colgate-Palmolive has the top two brandsin this category, with Colgate and Palmoliveperforming consistently well in all territories.Palmolive is ranked 12 out of all brands globally.Both brands are trusted around the worldand this trust is translating into householdpenetration and sales. Palmolive soap has beenaround since the 19th century and the brand hasextended into shower gels, hand washes, bathfoam, haircare and men-specific products.

Unilevers Dove, Lux and Lifebuoy aremoving in different directions in the rankingbut Unilever is benefiting from changingpersonal care purchasing habits in emergingmarkets as evidenced in increasing number ofhouseholds building bathrooms. The growthin skin cleansing and deodorants is helpingsales of Dove. Penetration of deodorants andantiperspirants will continue to grow it iscurrently only 41% globally, mainly due to lowacceptance in Asian countries.

The anti-germ soaps market is seeing aboost after various regional health scares and

campaigns on disease prevention. This segmenttargets mothers with kids, and there are lotsof brands available. Lifebuoy, found in 32%of homes and with a Consumer Reach Pointsgrowth of 1%, is making hygiene products suchas soap accessible in many emerging markets.It aims to change the hand washing habits ofone billion people by 2015. Today the Lifebuoybrand is more than the classic red bar of soaplaunched in 1894. There are many soap variantsand body washes, as well as liquid hand washesand hand sanitisers.

P&Gs largest global personal wash brand isSafeguard which was first launched as a bar

of soap in 1963. Its Consumer Reach Pointsgrowth is 2%, and the brand is also availableas a bodywash, liquid hand soap and handsanitiser. It is sold in more than 15 countriesand has a market leader position in China andthe Philippines. In Mexico the brand is soldunder the brand name Escudo, and is verypopular, with growth of 4%.

Shampoo has 90% penetration globally and is arelatively frequently purchased category. Easyentry through sachet formats has helped brandssuch as P&Gs Head & Shoulders increasepenetration in Asia and Latin America. Head& Shoulders achieves the highest ConsumerReach Points growth (7%) in the shampoocategory; it is the sixth highest haircare brandand 24th overall in the ranking. The brand added48m Consumer Reach Points globally with 57min emerging markets. Head & Shoulders ClassicClean Shampoo is the biggest selling shampooin the USA, and around the world the brand isusing different marketing strategies for menand women, targeting male users with sportsmessaging. Its growth in emerging marketsis 9% as Asian consumers with darker hairbecome more aware of dandruff control. Themale shampoo market is growing in Asia too asother brand owners target men with productssuch as Unilevers Clear Men and Dove Men.

P&Gs haircare range Pantene, which has beena billion dollar brand since the mid-nineties, isa concern for P&G as it has seen its ConsumerReach Points rating fall by -19% in the USA andby -14% in Europe (8m), and it is flat elsewhere.Its healthiest household penetration is in LatinAmerica (35%). P&G has attempted to kick-startthe brand on a number of occasions, and mayhave to again in 2013.

HEALTH & BEAUTY

SAFEGUARD

25

768

PEPSODENT

21

849

SUNSILK

16

924

PALMOLIVE

12

1,

062

LUX

11

1,

068

DOVE

10

1,

117

PANTENE

7

1,

456

LIFEBOUY

5

1,

751

COLGATE

2

3,

330

HEAD

&

SHOUDLERS

24

786

GLOBAL RANKING

BRAND NAME

CONSUMER RESEARCH

POINTS (m)

lca brad dmiat t fd rakig i may ctri, bt tgba giat ad t way i t at ad baty catgry.

INDIA

CHINA

TAIWAN

VIETNAM

THAILAND

PHILIPPINES62%

56%

41%

10%

8%

5%

% Penetration 2012

deodoRanTs have Room FoR

developmenT in asia

Top 10 healTh and beauTy bRands Globally

The Top 50 ranking hasrevealed there are moreglobal health and beautybrands and more local

food brands


22/32

TOP 5 ORAL CARE BRANDS

The brand has successfully expanded todifferent products in the oral care market, andis achieving an annual Consumer Reach Pointsgrowth of 5%. Colgate gained 158m ConsumerReach Points, exclusively from emergingregions.Its penetration levels are very high,even reaching 100% in Venezuela where its

Consumer Reach Points growth is 4%.

Innovation is crucial to Colgates brandperformance, with recent launches includingColgate Total Pro Gum Health and ColgateSensitive Pro-Relief mouthwashes, and theColgate 360 battery toothbrush. WhereColgate toothpaste has a high penetration, ittends to focus on premiumisation or upsizing.The brand has over a third market share inthe USA, driven by strong sales of ColgateOptic White toothpaste, for example (Source:Colgate Q3 2012 Results). The brand is alsowinning manual toothbrush sales internationallywith products such as the Colgate 360 TotalAdvanced and Colgate Extra Clean brushes.

In Latin America the brand is at number two,and is increasing toothpaste sales in Brazil andChile with Colgate Luminous White and ColgateTotal Pro Gum Health.

In Europe the brand faces fierce competitionfrom private label, and sits outside of the Top

10 in the ranking however, it reports steadygrowth and is still the highest-placed health andbeauty brand. Across the developed marketsColgate is at number nine, although only atnumber 19 in the USA.

Future opportunities for the brand to grow itsglobal reach will come from China where thebrand has toothpaste, manual brushes andmouthwashes. In 2012 Colgate launched OpticWhite in China with an advertising campaignfeaturing actress Solenn Heussaff, and thisboosted awareness and sales. The use oftoothpaste in China is becoming more frequent,and consumers are beginning to look for extravalue such as whitening and sensitive variations.Shoppers are willing to pay more for product

benefits like these but currently the unit pricefor Sensodyne from GSK is five times higherthan for mainstream Colgate toothpaste.

Colgate may also find more competition fromP&Gs Crest brand, which is at number 27 inthe global ranking although its penetration isdown in China. Its growth rate is -4% so P&Gis heavily promoting the brand, particularly itsmouthwashes. P&G is also aggressively grabbingmarket share in Latin America. P&G has seenhuge success globally with its Oral-B brand ofmanual and power toothbrushes for children andadults. The brand is number 5 in its sector, and itsConsumer Reach Points growth is an impressive21% driven by entry into the toothpaste market.P&G has identified huge potential for Oral-Btoothpaste in Brazil, where the company sayssales and reach are exceeding expectations. Itseems Brazilians are increasingly willing to pay for

premium products in the oral care sector.

India is one of the key emerging territoriesto benefit from Colgates successful globalmarketing initiative Oral Care Month. Thecampaign, a partnership with the Indian DentalAssociation, is designed to boost awarenessof oral health and covers six Indian cities. Itis working: Colgate achieved the number oneposition in Brand Equitys Most Trusted Brandsin India survey.

Other competitors closing the gap on Colgateinclude Unilevers Pepsodent toothpaste, which isgrowing brand awareness and sales in India, thePhilippines and Indonesia where it is the oldest

and most well-known toothpaste. The brand,number two behind Colgate in this category byConsumer Reach Points, has an active schoolseducation programme in Indonesia and helps tofund free dental check-ups.

ORAL CARE

CASE STUDY

1.

2.

3.

4.

5.

COLGATE3,330*

PEPSODENT

CREST

CLOSE-UP

ORAL-B

849*

654*

505*

274*

GRoWTh 5%CRP

GRoWTh -1%CRP

GRoWTh -4%CRP

GRoWTh -2%CRP

GRoWTh 21%CRP

T grada icra i ptrati ad cmpti witit ra car catgry a pd Cgat attai t mbrtw piti i t gba Brad Ftprit rakig, acivig3.3 bii Cmr Rac Pit ad trig mr m(65%) ta Cca-Ca (44%).

Asia is the main contributorto Colgates growth,

accounting for 82% ofits gain in Consumer

Reach Points.

*Consumer Reach Points (m)


23/32

DOVE VERSUS LUX

CASE STUDY

Wi Dv i i t Biiair Cb ad jyig db-digit grwt, it itruivr brad lx rik faig t f t grp, xpricig a 10% dci.Asia is the region with the highest number ofConsumer Reach Points for Dove, and the mainbusiness contributing to this is haircare. In thePhilippines and India Doves haircare productsare available in sachet format, making themaccessible to a lot of consumers. Dove haircareis also driving Consumer Reach Points in LatinAmerica. In China and Brazil the growth inConsumer Reach Points can be explained by thelaunch of Dove Nourish and Oil Care at the end of2011. In Brazil, Dove added a Hair Fall variant toits portfolio in 2012.

Investment in innovation is central to Dovessuccess. The roll-out of Dove Men+Care is oneexample, and the brand has extended acrossdifferent products. Its Dove Damage Therapyshampoo is driving growth across many markets,as is its body wash Dove Nutrium Moisture andthe Dove Purely Pampering range, which hasbeen widened to include handand body.

Doves footprint has strengthened in India, thePhilippines, Argentina, Peru, Saudi Arabia andBrazil, where Dove Curls haircare productsare extremely popular. The brand added 188mConsumer Reach Points in emerging markets.Dove is present in growing markets likedeodorants and skincare, where Lux is not. Dovehas bet on a mens range (Dove Men+Care) whileLux remains a brand for women or for the family.In India Dove is a premium brand, but penetration

has been strong because of Unilevers decisionto introduce smaller 50g pack sizes for productssuch as Dove Face Wash - Go Fresh. In thePhilippines, Dove is one of the fastest-risingbrands thanks in part to the launch of shampoosand conditioners.

Lux was the first mass market beauty soap,launched in 1925, and remains the best-sellingsoap bar in the world. At 40% it still has ahigher global penetration than Dove (34%) andit could stay in the Billionaire Club if its successcontinues in emerging markets, where washing

habits are changing and consumers are buildingmore bathrooms in their homes or building newhomes.

In many markets Lux is mainly a skin cleansingbrand and, unlike Dove, is viewed as a valueproposition that drives category penetration andgets consumers interested in the market. It playsstrongly on celebrity endorsement and beauty,and once consumers have bought into skincleansing they tend to trade up to Dove which isa premium proposition. Lux remains the biggestskin cleansing brand in Asia and is big in LatinAmerica, as shown by its Consumer Reach Pointsin these markets.

The decline in Luxs Consumer Reach Points ismainly driven by China, Brazil and Thailand. InBrazil and Thailand we see an increasing numberof consumers moving to liquid soap, but Lux is

underperforming in this segment. Unilever doesdescribe Luxs growth in emerging markets asbroad-based (it ranks at number nine across theseterritories) following a successful relaunch backedby strong advertising, improvementsin quality and the use of fine fragrances.

Europe and developed regions are not a focus forthe brand, where it does not even make the top50. Dove is at number 11 across all developedmarkets.

Nivea on the other hand competes strongly with

Dove and is growing 3% globally. Despite beinga smaller player than Dove, Nivea is catching upat a faster pace than Dove in geographies likeBrazil, Colombia, Malaysia, UK and Spain.

Lux still has the 11thhighest Consumer ReachPoints in Asia, ahead of

Dove, which standsat number 24 in the

regions Top 50 ranking.

PHILIPPINES INDIA CHINA ARGENTINA PERU BRAZIL SAUDI

ARABIA BRAZIL COLOMBIA MALAYSIA UK SPAIN

-17% 1%

24%

7%

22%

1%

22%

4%

13%

-2%

7%

-2%

-61%

0%-5% -17%

-14%

72%

34% 14% 12% 7% 7%

+++

dove LUX dove nivea

dove luX cRp GRowTh RaTes dove nivea cRp GRowTh RaTes


24/32

Over the next ten years the worlds population willcontinue to boom with the majority of growth in

developing markets. During that same period theworlds middle class will also grow significantly -almost exclusively driven by developing markets.This offers clear opportunities to manufacturersand their growth strategies.

Coca-Cola has emerging markets to thank formuch of its recent sales growth, with businessbrisk in Asia and Eastern Europe. Its ConsumerReach Points growth in emerging territories is up7% (gaining 230m Consumer Reach Points) and thebrand now reaches 37% of households, with theaverage frequency of purchase now 16 times a year.This compares with 15 times globally. Its success inemerging markets is driven by Latin America, wheremature market Mexico continues to develop with a

phenomenal frequency of 84. This comes at a timewhen volume sales of the brand in Europe are falling.

In Mexico one quarter of FMCG expenditure is inthe beverages category, and half of this goes onsodas. This category prompts shopping trips toconvenience, discount and traditional stores whereimpulse shopping is popular. The regular versionsof sodas are the most developed in Mexico, with thediet segment very small, accounting for less than 5%of the volume. It is also worth noting that the price ofsodas has increased and, with a budget to stick to,households are buying bigger sizes to get a betterprice per litre, which results in the purchase of fewerunits per trip.

Unilever is also toasting success in emergingmarkets, particularly in haircare and personal wash.Dove, which sits at number 20 in the emergingmarkets ranking and 10th globally, is the star brand

with Dove Damage Therapy haircare a particularsuccess. Heinz expects its sales in emerging

markets to approach 25% in its latest financial year.

The number two ranked brand, Colgate, has ahealthy 67% penetration in emerging markets,even higher than its global figure (65%). The brandis dominant in the key emerging countries of Brazil,India and China. A key opportunity remains forthe brand in Indonesia and Korea where Colgateis not currently distributed, despite a few retailersimporting this popular brand.

Manufacturers need to understand the differentconsumer segments in particular countries wherea younger and increasingly wealthy population ischanging its diet and household habits. Much of thegrowth is coming from the major and second tier

cities, but rural areas are gradually getting a taste forglobal brands too as consumers product and mediaconsumption changes. The biggest challenge forbrand owners is often effective distribution.

Pack size and the launch of different variants isencouraging trial. In the Philippines, sachets ofshampoo and toothpaste and the multi-purposeuse of soaps, backed by heavy advertising, isboosting the personal care category.

In China consumers now expect more choice.They still have deep relationships with local Chinesebrands, but are tempted by foreign brands fameand image. Big brands are also benefiting from alack of consumer trust in local brands, which mustoften convince shoppers their products are safe.Many local manufacturers are forming allianceswith international brands to rapidly achieve bestpractices.

Ultimately, global brands must keep up with evolvingtastes and attitudes. This includes understanding

a regions history, re-defining quality, marketingto shoppers requirements to buy more essentialsand ideally identifying a niche.

EMERGING MARKETS

PENETRATION %

FREQUENCY

ThailandTaiwanKoreaIndonesia

MalaysiaIndia

Saudi ArabiaChina

Mexico

Bolivia

Ecuador

Chile

Venezuela

CAM

Brazil

PeruColombia

Argentina

Philippines

Vietnam

Gba brad wr kw tr ar bii f w cmr agrt tr tir markt ad by bradd prdct fr t rt tim.

HEINZ

EMERGING REGIONS

KNORR

NIVEA

ORAL-B

LOREAL

FANTA

PEPSI

MAGGI

COLGATE

COCA-COLA

DEVELOPED REGIONS

100%

100%

100%

86%

76%

75%

67%

51%

48%

19%

CONTRIBUTION TO GROWTH

coca-colas FooTpRinT in emeRGinG maRkeTs

Consumer Reach Points

Emerging markets are akey driver of growth for

93% of the growing brandsin the Top 50 ranking.


25/32

CHINAT my avrag Cid ad t pd i 2012r by 10% i a yar, wi t va

f t FMCG markt wt p 14%.The brands performing well are not only achieving a highreach in traditionally strong areas such as Shanghai andBeijing, but also from the largely untapped central and westernregions, as well as lower-tier cities.

Penetration for online shopping in China is approaching 25% (itwas 18% the previous year), and as the logistics and e-commercemodels improve more FMCG products will be purchased online.Top Consumer Reach Points categories include milk (fresh or not),bread, instant noodles, biscuits, confectionery, sausage, fruit juice,laundry detergent and female skincare. China will become theworlds biggest packaged food and beverage market thanks toa rising desire for convenient, affordable and healthy choices.

The growing middle class and high income young consumers haveled to strong new categories such as butter/margarine, energy drinks,infant milk powder, facial tissues, toothbrushes and moisturising andcleansing wipes. The fastest rising brands this year include Hersheys,which has invested heavily in TV advertising; Ferrero, which is grabbinggift sales; Yakult and Weichuan in the fresh yoghurt drink category, andthe herbal skincare brand Inoherb.

New products helped well-known Chinese moisturiser brandPechoin grow its household penetration in 2012. Other localbrands reaching more homes are botanic and herbal toothpastebrand Yunnan Baiyao and tissue and paper brand Vinda. P&G isstealing a march on its rivals in China with strong relationshipswith retailers and intensive in-store promotions. The VidalSassoon haircare brand performed well thanks to its premiumprice and clear fashion equity. Another P&G brand growing

its penetration and average spend per household in Chinais Safeguard, at number 25 on the global ranking.

BRAZILAvrag icm ar grwig ad mpymt i faig i Brazi,wit cmr ad brad xcitd by t cmic bt t2014 FIFA Wrd Cp ad t Ri 2016 oympic d brig.

INDIAFMCG i t frt biggtctr i t Idia cmy wrt us$13.1b, it i xpctd

t rac us$33.4b by 2015.Each urban household buys around 23 categories each year;in rural areas this is 16.

Tea is the biggest Consumer Reach Points category, ahead ofcoffee in all regions except south India. Other categories withhigh penetration are hair oils (purchased by 88% of households),spices, wheat flour, talcum powder, insect repellents andskincare products.

The categories growing their Consumer Reach Points the fastestare soft drinks, purchased mainly during the summer and inlarge volume packs; hair colorants, where innovation is key withnew products such as fast colouring Indica 10 from CavinKare;and Dentifrices agents, used more in rural areas to clean and

polish natural teeth and available in smaller packs.

Among the biggest Consumer Reach Points brands are highfrequency biscuit brands like Parle, Sunfeast (a biscuit brandwhich has extended into noodles and pasta), Priya, Tata Salt, TataTea and Brooke Bond. Only in south India does Brooke Bond havea higher consumer footprint than Tata Tea. Maggi, the Nestlbrand of instant soups and stocks, has launched a lower pricepoint to target rural areas.

Non-food brands with high Consumer Reach Points includewashing powders Wheel and Ghadi, shampoo Clinic Plus andtoilet soaps Lux and Lifebuoy. The Indian marketing campaignfor Lifebuoy Superfast Handwash won a 2012 Global Effie Bronzeconsumer products award. The judges liked its simple andinnovative idea for encouraging children in a hurry to wash their

hands. Dettol, which sneaked into the global ranking at number48, has also launched a hand-wash dispenser which works onsensors that detect the hand and releases soap.

Lower classes are powering consumption asthey access more categories.

Despite this, the FMCG basket fell in 2012due to frequency decreases and rising priceswith many categories, including health andbeauty, moving towards a premium offer.

The four biggest Consumer Reach Pointscategories are bread, carbonated softdrinks (CSD), biscuits and milk. Frequencydecreases were seen in bread and CSD.Yoghurt is the fastest growing BrandFootprint category, up 6%. Cakes andbreakfast cereals are also growing their

household penetration, as is water thanks

largely to the launch of Bonafont fromDanone, larger pack sizes and soy-basedbeverages where the trend is to add fruit.

About 70% of the biggest Consumer ReachPoints food brands are local (this is 50% fornon-food), but Coca-Cola is the largest brandoverall because of its strong distributionnetwork which reaches even the most remoteregions. However, its sales are down as the CSDcategory contracts and local soft drinks brandsand Coca-Colas sister brand Fanta gain share.

The brands which embrace innovation aregrowing. The fruit-flavoured childrens

powdered juice drink Tang, for instance,

has increased its frequency and penetrationin Brazil with new packaging and flavours:Tang Tangol has two flavours in one packwhich can be mixed.

Food producer Perdigo and protein producersSadia are now part of joint company BRF(formerly Brazil Foods) which is well positionedto take on the global brand owners.

In non-food, Procter & Gamble is aggressivelyadvertising its brands Pampers, Pantene andAriel, while Unilever is investing more in thehaircare category.


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There is not a single brand in the Top 50ranking that has not innovated in one form oranother over the last year.

Colgate is the only brand to reach more thanhalf of the worlds households, so there isan opportunity for all brands to boost theirConsumer Reach Points by continuallyinnovating to encourage trial and raise

awareness.

Innovation by global brands also helps to generatesales in local markets. By discovering new usesfor their products, brands can enter new markets,broaden their household penetration and boostprofitability especially if some R&D creativityadds a new element whether it be convenience,health or premium related.

The heavy-duty P&G detergent Tide, at number14 in the global Consumer Reach Pointsranking, has had a strong history of innovationsince its launch in 1946. Its brand extensionsinclude Liquid Tide and Tide with bleach back inthe eighties, and Tide Ultra Concentrate in theearly nineties. In 2012 P&G launched Tide Pods,a premium product which has helped it growits sales in a category in which price-sensitiveconsumers can be extremely fickle.

Umbrella brand Kelloggs aims for 15% of itsnet sales to come from innovation each year. Itinvests heavily in R&D across its cereal bars,crisps and crackers ranges through its sub-brands such as Nutri-Grain and Special K. Itnow has Special K Pop Corn Chips and Pringlesseasonal cinnamon crisps, while KelloggsFrosted Flakes Chocolate/Choco Zucaritas arenow produced in bilingual packaging in somemarkets.

Spain and Portugal are seeing innovation inthe coffee market, as consumers look to savemoney by moving the coffee bar experience intotheir homes. This has led to the launch of coffeecapsules, for example Nestls Dolce Gustocoffee maker.

In the UK, new Nescaf Cappuccino hasincreased purchase frequency in the instantcoffee market, while the breakfast cerealscategory is benefiting from a trend for hotcereals in traditional porridge and new instantformats where fruit, nuts and flavourings areadded. In the snacks market, Lays UK brandequivalent Walkers has continued to launch new

variants and sub-brands such as Crinkle Cut,Deep Ridged and for the more health conscious,Baked Stars.

Coca-Cola and Pepsi have both trialled clevervending machines which engage consumersin their brands and provide data collectionopportunities. Coca-Colas Freestyle units,launched in the USA and now also in Europe,allow consumers to purchase brands includingCoca-Cola and Sprite with added flavours suchas vanilla or peach. PepsiCo has an interactivevending machine called Pepsi Touch which

enables shoppers to buy drinks for their friendsremotely via Facebook using a touchscreen.

THE IMPORTANCE OF INNOVATION

PEPSIPepsi is rolling out anew shape for its 20oz(567g) bottle for thefirst time in almost twodecades. The new bottlehas a contoured bottomhalf that is designed tobe easier to hold, and

the wraparound label isshorter so more of thedrink is exposed.

NESCAFNescaf Gold Crema isthe latest addition to theNescaf Gold Blend range.

The new product, said to

deliver a layer of coffeecrema, aims to provide anew smoother coffee forconsumers to enjoy at anytime of the day.

KNORRKnorr recently launched anew product, jelly formatgravy pots, following onthe huge success of KnorrStock Pots. The new product

emphasises strong tasteand flavour credentials aswell as highlighting theeasy-to-use format.

LIFEBUOYLifebuoys liquid handwashhas a special formulationthat protects the user byremoving 99.9% of germswithin 10 seconds. Their new

Color Changing Handwashcontains tiny bead particlesthat release green colourwhen squished. When youvescrubbed your hands forabout 10 seconds, the uniqueformula of the handwashchanges its colour to green,signalling that it is ok torinse. The association withMarvels famous comiccharacter The Hulk makesthe brands communicationeven more compellingfor children.

innovation remainS vital to brand SuCCeSSIvtmt i rarc ad dvpmt driv marktar ad prt v mr i dict cmic tim.

LAYSLays is letting potato chiplovers decide which oneof three options will beits newest flavor. Aftertrying them, fans couldvote for their favouritesthough Lays Facebookpage, by text or through

Twitter using the hashtags#SaveChickenWaffles,#SaveGarlicBread or#SaveSriracha. The flavorwith the most votes willstay on store shelves.


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GLOSSARY OF BRANDS

Manufacturer Brands Ranking Category

Coca-Cola Company Coca-Cola

Sprite

Fanta

Minute Maid

1

20

28

43

Beverages

Beverages

Beverages

Beverages

Colgate-Palmolive

Company

Colgate

Palmolive

2

12

Health & Beauty

Health & Beauty

Nestl Nescaf

Maggi

Milo

3

6

23

Beverages

Food

Beverages

PepsiCo Pepsi

Lays

Cheetos

Quaker

7-UP

4

9

32

33

47

Beverages

Food

Food

Food

Beverages

Unilever Knorr

Surf

Dove

LuxLifebuoy

Sunsilk

Pepsodent

Hellmanns

Close-Up

Vim

Omo

Lipton

Clear

Ponds

Rexona

8

14

10

115

16

21

37

36

41

42

45

35

38

31

Food

Home Care

Health & Beauty

Health & BeautyHealth & Beauty

Health & Beauty

Health & Beauty

Food

Health & Beauty

Home Care

Home Care

Beverages

Health & Beauty

Health & Beauty

Health & Beauty

Manufacturer Brands Ranking Category

Procter & Gamble Tide

Head &Shoulders

Pantene

Safeguard

Crest

Downy

Ariel

Olay

13

24

7

25

27

22

40

49

Home Care

Health & Beauty

Health & Beauty

Health & Beauty

Home Care

Home Care

Home Care

Health & Beauty

MondelezInternational

(previously Kraft

Foods)

Tang

Oreo

15

17

Beverages

Food

Bimbo Bimbo 18 Food

Ajinomoto Ajinomoto 19 Food

H.J. HeinzCompany

Heinz 26 Food

Danone Activia 30 Food

Johnson &Johnson

Johnsons 34 Health & Beauty

LOral LOral 39 Health & Beauty

Beiersdorf Nivea 44 Health & Beauty

Yakult Yakult 44 Food

Reckitt Benckiser Dettol 48 Health & Beauty

Kimberly-Clark Kleenex 50 Health & Beauty


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METHODOLOGY

What is Brand Footprint? Brad Ftprit i a gba rarc rakig by KatarWrdpa, rvaig t mt c FMCG brad acr 32 ctri. T rakigi bad a w mtric, Cmr Rac Pit, wic mar a brad trgtbad w may ppr ar byig brad ad w .Kantar Worldpanel has measured how manyhouseholds purchased a brand at least once in2012 (penetration) and the average number oftimes households bought the brand (frequency).These two numbers are multiplied to calculateeach brands Consumer Reach Points score.Kantar Worldpanel has also weighted themeasurement by actual population to calculatethe global reach for each brand.

DATA PERIODThis report covers the period of 52 w/e October2011 vs 52 w/e October 2012. Indonesia data isfor 2012 only.

CATEGORIESThe ranking comprises over 200 FMCGcategories tracked around the world by KantarWorldpanel, including those in the Beverages,Food, Health and Beauty and Home Caresectors. The following catagories have not been

considered in the Brand Footprint ranking: freshfood, batteries, pet food, tobacco, diapers oralcoholic drinks.

MEASURESThe Consumer Reach Points measure is acombination of penetration and frequency, givingus the ability to measure each time a consumerchooses a brand. As such, two products fromthe same brand from two different categorieschosen on the same occasion would be treatedas two different reach points. For example, if ahousehold purchased a Colgate toothpaste anda Colgate toothbrush on the same trip, Colgateachieves two reach points.

Brands listed in the Top 50 Global BrandFootprint tare global brands; to be consideredglobal each one must be available in at leasttwo continents. The brands weve included

in the regional rankings have a presence inat least two countries in the region. Localbrands can be seen in country rankings on themicrosite www.brandfootprint-ranking.com

The definition of a brand does not includeretailer brands.

Where brands have either a master brand,or feature the manufacturers endorsementin the packaging, we have considered thedaughter brands separately as this is mostprominent in the packaging so Danone,Nestl, Yoplait, Cadbury and Kelloggs brandsare reported individually (i.e. Activia, Nesquik,Yop, Dairy Milk, Special K).

Brands listed in the Brand Footprint rankinginclude all variants, categories and formatswithin the defined brand. For instance:

Colgate includes all Colgate toothpastebrands, toothbrushes, mouthwash, dentalfloss.

Coca-Cola includes Coke Zero, Diet Coke,Coca-Cola Regular, Cherry.

Fanta includes Fanta Orange, Fanta Lemon.

Palmolive includes body wash, hand wash,shampoo, bar soap.

Manufacturer brands are not included in abrands total. For example, Coca-Cola doesnt

include Sprite, Fanta, Schweppes, Relentless,Powerade, or Dr Pepper.

Brands with a name that has been directly

translated into a local language are treated asone brand, because each of these is consideredto be exactly the same brand in every otherway for example Mr Muscle and Mr Musculo(Latam and Spain). The data from each brandwithin the umbrella is combined to determine itsoverall Brand Footprint result.

Brands sold under different names in differentcountries are considered as individual brands,even though they are owned by the samemanufacturer and use the same branding stylein different markets:

Tide, Alo, Vizir or Ace (P&G)

Walkers, Elma Chips, Margarita, Sabritas

and Lays (PepsiCo) Cif, Jif, Vim, Viss (Unilever)

Rexona and Sure (Unilever)

Axe and Lynx (Unilever)

Clear and Clinic (Unilever)

Omo and Persil (Unilever)

Downy and Lenor (P&G)

Becel, Flora, Promise, Primavera,Fruit dOr, etc (Unilever).

If brands with different names that we haveconsidered separately were combined, theirposition in the ranking would be improved.

BRAND DEFINITIONS

For more detailed global,regional, country andsector rankings, visit

www.brandfootprint-ranking.com

All the reported figures are in-home consumptionfigures only, and do not include out of homepurchases. Health and beauty brands penetrationrefers to the percentage of households buying thebrands, not individuals.

Tide + Ace (P&G) would rise from #13 to #8 (1.3m CRP). Ace is mainlypresent in Latin America, where it is purchased by one in every two households.

Lays + Walkers + Sabritas + Elma Chips + Margaritas (all PepsiCo) all potato chips from Fritolay. Lays appears at #9, but if added togetherwith local brands it would gain five positions and rise to #4 (1.8m CRP).

Rexona + Sure (Unilever): Rexona stands at position #31. If combinedwith Sure it would be placed at #28 (646m CRP).

Vim + Cif + Jif (Unilever): Vim stands at #41. If added together withCif and Jif it would be #36 (0.5m CRP).

Combining Local Brand Names

1

2

3

4


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Brand Footprint 2013 Global

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