America, The World, and the

New Challenges for Global Brands

Corporate Communications Institute
April 28, 2004
Presentation to cover:

• How the World Sees America Today

• What’s Changed Since the 1990s
• Americans Themselves: A Greater “Disconnect”
• Is America In Tune With The World’s Values?
• So What? The Impact on US Brands
• The New Challenges for Global Brands
Roper Reports Worldwide 2004

Listening to 30,000+ consumers worldwide since 1995 --

1,000 1-hour+ interviews per country with people aged 13-65

Representative of 1.3 billion consumers worldwide

National sample (North America 17%; West Europe 17%)

National urban (Developed Asia 10%; Central Europe/Middle East 8%)
National urban w/o lowest SES (Developing Asia 30%;
Latin America 11%; Other markets 6%)
How the World Sees America Today
What Are Personal Values?

“The things that act as

the guiding principles in
your life and give
meaning to your life”

or

Whatever
is
important
to you

Rene Magritte: “Personal Values”

Examples of Values Statements
Name of the value and a description
Wealth:
Having material possessions, a lot of money

Open-mindedness:
Being broad-minded

Honesty:
Being sincere, having integrity

Looking good:
Seeking the utmost attractive appearance

Having fun:
Having a good time
American Culture:
Wealth, Power, Freedom, Fun
% who attribute listed value as important to American culture
(base: value is extremely/very important to them)

Wealth 90%
Power 88
Freedom 87
Enjoying life 87
Having fun 87
Pleasure 84
Status 83
Material security 83
Ambition 82
Self-reliance 82
Sex 82
American Culture:
Not Faith, Equality, Honesty
% who attribute listed value as important to American culture
(base: value is extremely/very important to them)

Modesty 51%
Simplicity 47
Social tolerance 41
Tradition 41
Traditional gender roles 41
Thrift 41
Spirituality 37
Enduring love 37
Respecting ancestors 37
Obedience 35
Stable per. relationships 34
Honesty 33
Equality 33
Faith 33
Countries Most Aligned
With American Culture
% who attribute their values as important to American culture
(base: value is extremely/very important to them)
Venezuela 84%
72% USA Taiwan 80
Philippines 79
Brazil 76
Australia 75
Hungary 75
South Africa 75
India 74
Korea 74
Japan 73
Poland 72
Mexico 72
Russia 72
Thailand 72
Countries Least Aligned
With American Culture
% who attribute their values as important to American culture
(base: value is extremely/very important to them)
Singapore 71%
72% USA Hong Kong 70
China 70
Argentina 70
Indonesia 68
Canada 68
Czech Republic 66
U.K. 65
Sweden 63
Italy 63
France 63
Spain 59
Turkey 57
Saudi Arabia 55
Germany 55
Egypt 55
What’s Changed Since the 1990s
World’s Perception of America:
More Power, “Striver” Values
Top values attributed to American culture (base: values extremely/very important)

1999 2004
Wealth Wealth
Freedom Power
Sex Enjoying life
Having fun Freedom
A varied life Having fun
Health & fitness Pleasure
Enjoying life Status
Adventure Ambition
Power Health & fitness
Self-reliance Material security
Material security Knowledge
Internationalism Self-reliance
Knowledge Sex
Based on consistent values set and total population weighting (1999/2004)
Most Notable Declines:
Internationalism, Altruistic Values Drop
Change in rank of values attributed to American culture
(base: value is extremely/very important)
Change
1999 Rank 2004 Rank in Rank
Internationalism 11 29 -18
Equality 28 42 -14
Excitement 14 27 -13
A varied life 5 17 -12
Adventure 6 16 -10
Curiosity 16 26 -10
Sex 3 13 -10
Justice 26 35 -9
Social tolerance 43 52 -9
Social stability 33 41 -8
Individuality 17 24 -7
Open-mindedness 24 30 -6
Preserving the environ. 30 36 -6
Based on consistent values set and total population weighting (1999/2004)
Values Alignment: Shifts from 1999
Change in rank (1999 v. 2004): % of total values attributed (by listed country) to
American culture (base: total values that are extremely/very important to country)
Change in Rank Change in Rank
2004 Rank from 1999 2004 Rank from 1999
1 Venezuela 9 15 USA -14
2 Taiwan 3 16 Hong Kong 0
3 Philippines 19 17 China -9
4 Brazil 21 18 Argentina 5
5 Australia 2 19 Canada -4
6 Hungary 0 20 Indonesia -3
7 South Africa 2 21 Czech Repub -9
8 India 16 22 U.K. -8
9 Korea 4 23 France -2
10 Japan -6 24 Italy -5
11 Poland 7 25 Spain -5
12 Mexico 16 26 Turkey 1
13 Russia -11 27 Saudi Arabia -1
14 Thailand -11 28 Germany -17
Fall in Values Alignment:
Western Europe, US Lead Declines
Change in rank of highest values alignment (1999 v. 2004):
% of total values attributed (by listed country) to American culture
(base: total values that are extremely/very important to country)
Germany -17
USA -14
Russia -11
Thailand -11
Czech Repub -9
China -9
UK -8
Japan -6
Spain -5
Italy -5
Americans Themselves:
A Greater Disconnect
Americans Associating
Fewer Values with Their Own Culture
% Americans who attribute listed value as important to American culture
(base: value is extremely/very important to them)
1999 2004
94 93 94
87 85 87 88
83 84 82 80 79
75 76 75 75
70 71 70
63 62 63 59
57 57 59 56
51 54 53 55
50
40 37

Wisdom

Authenticity
Spirituality
Curiosity
responsibility

Individuality
Internationalism

Modesty

Faith
mindedness

Creativity

Adventure

Health and
Being in tune

Enduring love

tolerance
Preserving the

with nature
environment

Social
fitness
Open-
Social

Total Population Weighting

Holding Steady:
Power, Freedom, Fun, Family
% Americans who attribute listed value as important to American culture (base:
value is extremely/very important to them)
1999 2004
93 94 92 91 93 91 93 94
89 90
83 84 85
79 77 80

59
55
Enjoying life

Beauty
Power

Freedom
Protecting

Having fun
the family

Leisure
Pleasure
Respecting
ancestors

Total Population Weighting

American Altruists Report
Largest Decline in Values Alignment
% of total values attributed (by U.S. value segment) to American culture
(base: total values that are extremely/very important to U.S. value segment)

1999 2004 % pt change

86% 77% -9
88% 75% -13
85% 72% -13
85% 69% -16
80% 64% -16
83% 64% -19

Total Population Weighting

Then and Now: Disconnect Explained?

1999 2004
26% now is a good time to buy

34% now is a good time to buy

Corporate
Unemployment 4.1% Trust?

KYOTO AGREEMENT

KYOTO AGREEMENT
Unemployment 5.7%
13% concerned about
27% concerned about
recession and unemployment
recession and unemployment
Today’s Americans: More Realistic?
% Americans/Global* who attribute listed value as important to American culture
(base: value is extremely/very important to them)
94 91
Global United States
90 90 91 89
86 87 87 86 86 86 85 85 86 84
83 83 83 83 83 82 82 81 80 80 80 80 7880 78 78 78
74 75 76 75 75
71 70

Ambition
Enjoying life

Status

Being youthful

Looking good
Wealth

Power

A varied life
Knowledge
Freedom

Material security

Sex

Adventure
Having fun

Learning
Health and fitness

Leisure
Pleasure
Self-reliance

Being enterprising

*Global excludes U.S.

Is America In Tune With The World’s Values?
Top Global Personal Values
% global respondents saying value is extremely/very important

Protecting the family 69%

Honesty 61
Health and fitness 57
Friendship 51
Self-esteem 49
Freedom 49
Knowledge 49
Justice 49
Self-reliance 47
Stable relationships 43
Enduring love 43
Protecting The Family:
Muslim Nations Disagree
% who attribute protecting the family as important to American culture
(base: protecting the family is extremely/very important to them)

91 91 90 89 89 88 Global Average 76%

87 86 86 84 U.S. Average 84%
72 72 69
63 62 60 59

38
34 32
Australia

Saudi Arabia
USA
U.K.

Egypt
Russia

Hungary

Germany

China

Singapore

Italy

India

Turkey
Japan

Spain

Thailand
Brazil

Venezuela

Czech Republic
Sweden

Top 10 and bottom 10 countries

Honesty:
Western Europe, Middle East Say No
% who attribute honesty as important to American culture
(base: honesty is extremely/very important to them)
Global Average 54%
78 76 U.S. Average 60%
73
70 69
66 65 64
61 61

44 44
39 39 37 36
32 31 29
23
Australia

Argentina

Saudi Arabia
Egypt
Philippines

Korea

Canada

India

France

Italy

Russia

Germany

Turkey
Hong Kong

Thailand

Spain
Brazil
Venezuela

Czech Republic
Taiwan

Top 10 and bottom 10 countries

Freedom:
Definitely Seen As An American Value
% who attribute freedom as important to American culture (base: freedom is
extremely/very important to them) Global Average 87%
U.S. Average 90%
97 95 94 94 94 93 93 91 91 91
86 84 84 82 80 80 79 79 77
69

Saudi Arabia

Argentina
U.K.

Egypt
Hungary

India

Indonesia
Korea

China

Turkey

Germany

France
Thailand

Hong Kong
Japan

Poland

Mexico

Spain
Venezuela
Taiwan

Top 10 and bottom 10 countries

Justice:
Middle East, Western Europe Less Aligned
% who attribute justice as important to American culture (base: justice is
extremely/very important to them)
90 Global Average 67%
87
83 82 U.S. Average 73%
79 78 76 76 76 75
64 63 61 59 58 56 55
44
38
32
Australia

South Africa

Saudi Arabia
Egypt
Philippines

Singapore

India

France

Hungary

China

Russia

Turkey

Germany
Hong Kong

Poland

Spain
Brazil
Venezuela

Taiwan

Sweden

Top 10 and bottom 10 countries

So What? The Impact on US Brands
In 2002, Awareness and Use of
Many Global Brands Were Rising
7
Some Brands Increased More Than
Change from ’01 to ’02* Others from 2001 to 2002
Familiarity Own/Use/Watch
16.5 4.3 CNN (+9 pts. since ‘01) McDonald’s (+9 pts. since ‘01)
Mercedes (+6) Panasonic (+8)
Discovery Channel (+5) Nokia (+7)
Nike (+5) Discovery Channel (+6)
Samsung (+5) CNN (+6)
BMW (+4) MTV (+5)
MTV (+4) Microsoft (+5)
15.8 3.7 McDonald’s (+4)
Disne y (+5)
Ford (+4)
Nike (+4)
Volkswagen (+4)
Sony (+3)

Familiar Use/Own/ Microsoft (+4)

Watch ©2002 RoperASW

*Among brands consistent between 2001 and 2002

In 2003 Consumers Were More Hesitant

Average number of brands familiar with*

2002 2003
17.4 17.6
Average number of brands own/use/watch
2002 2003
4.6 4.5
Average number of brands ‘really like’
2002 2003
5.5 5.9

*Among brands consistent between 2002 and 2003

And Now, Global Brands Have
Started to Decline Slightly
Average number of brands familiar with*
2003 2004
18.6 18.3
Average number of brands own / use / watch
2003 2004
4.9 4.8
Average number of brands ‘really like’
2003 2004
6.0 5.8
*Among brands consistent between 2003 and 2004
Global Brand “Fundamentals”
2003 2004
Familiar with American brands 59% 57%
Familiar with non-American brands 70% 69%

Like American Brands 30% 29%

Like non-American Brands 36% 36%

Use American Brands 30% 27%

Use non-American Brands 24% 24%
Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
A Brand I Trust

2003 2004
American Brands 36% 35%
Non-American Brands 48% 47%

Coca-Cola 55% 52%

McDonald’s 36% 33%
Nike 56% 53%
Microsoft 45% 39%

Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
A Brand Associated with Honesty

2003 2004
American Brands 18% 15%
Non-American Brands 19% 16%

Coca-Cola 18% 15%

McDonald’s 19% 14%
Nike 14% 11%
Microsoft 18% 12%

Using a consistent set of 15 American brands and 13 Non-American brands between 2003 and 2004
New Challenges for Global Brands

• Growth in “fundamentals” has stalled, even declined

♦ New opportunities arising for local brands, especially in
rapidly growing markets like India, China
• American brands: a period of reassessment?
♦ Worsening attitudes toward US culture could have
impact in the marketplace
• Basic attributes necessary for brand greatness remain
♦ Quality, reliability, value, of course
♦ Trust, honesty possibly more important than ever
• Change in the balance of “glocal” strategies?
America, The World, and the
New Challenges for Global Brands
Corporate Communications Institute
April 28, 2004