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More and more brands are crossing borders. But for a successful journey, a marketer needs to have a special vision for the product and its marketing strategy to create a truly global brand. People around the world know Coca-Cola is "the real thing," and before yearend, few human beings who have ever gazed on a computer will not have heard of Microsoft Corp.'s Windows 95.

What will be the next global brands? Advertising Age International consulted international branding experts, marketers and our worldwide network of correspondents to develop our own list of 25 emerging global brands. They are all fast-growing brands from internationally minded marketers. These brands cannot be found in all markets yet, but if their marketers make all the right moves, the marketplace in the next century will be a very different place.

LONDON-In 2000, consumers in almost any part of the world may very well shop for casual clothes at The Gap, surf the Internet via CompuServe or watch the Discovery Channel-using a single hybrid computer/TV screen-while sipping Orangina in their Ikea-furnished homes. Walking around in Nine West shoes and clutching Ericsson cellular phones, they might hop into Daewoo cars and head for a meal at Planet Hollywood.

Today, there are few if any cities where every one of these emerging global brands is available, although more and more people travel enough to sample them all. But as more marketers think globally, they are matching fast-growing international brands with the drive to cover the world as truly global brands Coca-Cola Co., McDonald's Corp. and, most recently, Microsoft Corp., have done.

"What makes [a global brand] a success is a new product or service concept that is not available in individual countries, that fills a need," said Eric Salama, London-based WPP Group director of strategy. "It has very simple but recognizable brand values.

"With Ikea, Body Shop, The Gap and Disney stores there wasn't a concept [like theirs] before. It's much easier for these brands to move across countries very quickly" because they offer such a unique product.

A global brand is "a big idea, a vision," said Jim Williams, senior VP, director of strategy and research at Young & Rubicam Europe.

"What you then need is the energy and drive," Mr. Williams said. Companies "which become global brands want to conquer the world. There's a missionary zeal, a restlessness."

Move over, Coke

No one is more zealous than Richard Branson, the bearded hot air ballooning enthusiast who has created a trendy mystique around the Virgin brand name that has spawned Virgin Atlantic Airways, Virgin Megastores, and now consumer products such as Virgin cola and Virgin vodka.

Mr. Branson, who gets away with minimal advertising for the Virgin Group because of his own status as a public relations icon, likes to say, "In 10 years Virgin cola will outsell Coke and Pepsi outside the U.S."

"Everywhere Virgin goes it has made a huge impact," Mr. Williams said. "The brand is so well differentiated. Richard Branson is personally involved and has very clear ideas" on brand extension.

A new, aggressive parent can also spur worldwide growth. IBM Corp.'s acquisition this summer of U.S. software company Lotus Development Corp. will put international marketing muscle behind Lotus Notes, the fast-growing groupware that lets computer users anywhere in the world work together on projects.

"Lotus Notes is not a power brand [now] but IBM will make it one," said Jeff Meers, president of International Data Group Marketing Services for Europe, the Middle East and Africa.

Lotus expects IBM's clout to boost Lotus Notes' international brand awareness and sales, both lower outside the U.S.

"One of the key areas is the IBM sales force-they're out in thousands," said Paul McNulty, Lotus' director of marketing for Europe, the Middle East and Africa. "Notes is an example of a product people want to look at in some detail." Lotus will also be able to do more seminars and other events now, he added.

Becoming a major player

In another acquisition, Cadbury Schweppes paid $2.5 billion in March to buy Dr Pepper/Seven-Up Cos. as a key part of its strategy to become a leading player in the non-cola segment of the world soft drink market. (While the deal gives Cadbury the 7UP brand in the U.S., Pepsi-Cola owns the brand outside America.)

"One of the things we are looking at is how to extend Dr Pepper outside the U.S.," said Dora McKay, group public relations manager.

Dr Pepper has limited sales in a smattering of countries but doesn't have a bottler or an ad agency outside the U.S. "We certainly see it as a core brand for us."

With the Dr Pepper and 7UP brands, the deal increased Schweppes' share of the U.S. soft drink market to 16% from 5%. The U.S. accounts for one-third of the world's soft drink sales. Elsewhere Schweppes, already strong in Europe, is building distribution in the developing markets of India and Russia.

"Dr Pepper has a unique character, but it's been confined to the U.S.," Mr. Williams said. "Now that it's part of an international company, I'd expect it to sweep the world."

Another soft drink with international potential is Pernod-Ricard's tangy Orangina, the No. 2 soft drink behind Coke in France. Local soft drinks usually don't travel well-brands like Peru's Inca cola and Japan's Pocari Sweat certainly don't have a lot of appeal beyond their own borders-but Orangina is the exception.

Pernod Ricard is signing up bottlers country by country. Mexico will be one of the next markets after entering several Asian countries last year. The brand is also distributed in the U.S. Orangina's first international ad campaign will run in 15 countries by yearend. The ads are by Y&R.

Ongoing telecommunications deregulation provides opportunities for new global brands in an area dominated until now by state-owned companies. In the past two years, fast-growing British Telecommunications used a head start from being one of the first privatized phone companies outside the U.S. to enter joint ventures in the U.S., Japan, Germany, Italy, Spain, Denmark and Norway to sell phone services.

One of the hottest product categories is the mobile phone. Ericsson, the Swedish telecommunications group battling Finnish rival Nokia for cellular phone leadership, predicts that in five years there could be 350 million cellular phone subscribers in the world-a gigantic jump from 55 million at the beginning of this year.

Right now, Ericsson has the edge as the world's largest supplier of mobile phone systems and the third largest marketer of handsets, with a 40% and 10% market share respectively. Orders for the first half of this year rose by 74%, compared to the same period a year ago.

Nokia, with a market share of about 20% in Europe and 19% in North America, often demonstrates more marketing savvy than Ericsson, with carefully tailored promotions like sponsorship of prime-time U.S. college football games through 1998 to raise brand awareness in the U.S. But Nokia's relatively low spending on research and development, lack of non-Finnish international managers and speculation that the company could be taken over may help make Ericsson the truly global brand.

Media grows stronger

In another area of explosive growth, media are following in the footsteps of CNN and MTV: Music Television in overcoming language, regulatory and cultural barriers to become truly global in reach even though ad buys are still regional or even local.

Discovery Channel can beam programming to more than 80 million people in 100 countries after adding Australia this month. Its strategy now is to move from branded program blocks in markets like Japan and Israel to a full-service network.

Related products-Discovery Channel stores, CD-ROMs and home videos-move in after the channel. Discovery has just finished a global brand identity evaluation, leading to a redesigned logo for use in 1996, said Petra Buchanan, manager of international publicity for Discovery Communications.

ESPN's rapid growth into a global TV sports network will be spurred by Walt Disney Co.'s takeover of ESPN parent Capital Cities/ABC. Disney Chairman-CEO Michael Eisner is interested in ways of blending ESPN and Disney product worldwide, noting that family programming and sports are the least controversial forms of entertainment distributed in culturally sensitive areas of the globe.

Media owners are increasingly tailoring global brands so they are not the same everywhere. While the Chinese watch table tennis on ESPN, Indians see cricket.

One international restaurant chain, Orlando, Fla.-based Planet Hollywood Inc., benefits directly from the global expansion of satellite and cable services.

"American film and TV is hot around the globe .*.*. and that's the positioning of our theme," said Gary Kerns, VP-marketing.

Planet Hollywood has 26 restaurants-mostly in the U.S., as well as Mexico, Hong Kong, Indonesia, Israel and the U.K. The chain aims to enter Canada, France, Finland, South Korea, Australia, Singapore and Spain in 1996, Mr. Kerns said, while keeping an eye on the Asia-Pacific and Latin American regions.

International Data Group has computer titles around the world but is setting up regional marketing divisions to promote IDG's titles, research and exhibitions as a single branded group.

Eclipsing Japan's rising sun

Japan is lagging in creating new global brands with the vitality of longtime winners like Sony Corp.

A recent report by the Dentsu Institute for Human Studies warns that the Japanese suffer from flagging confidence and need to adapt better to information technology because such technology will dominate trade in the 21st century. Dentsu says Japan has "not been successful in changing its industrial market and social structure during the long recession."

New global brands are likely instead to come out of the rest of Asia, such as South Korea's Daewoo cars and Acer, Taiwan's fast-growing PC marketer. As Korean cars increasingly move into the cheap Asian-made car segment originally created by Japan, Daewoo Group has become free to compete globally.

After ending a Korean joint venture with General Motors Corp. in 1992, Daewoo agreed not to take on GM in Europe until 1995 and in the U.S. market until 1997. As the agreement expires, Daewoo has raced to enter Europe-picking up a 3% market share in the U.K. since April.

Acer, with just under 5% of the worldwide PC market, is already Taiwan's largest exporter with a strategy that entails joint ventures with local companies.

Under a policy dubbed "21 in 21," Acer plans to own stakes in at least 21 publicly quoted joint ventures around the world by the beginning of the 21st century. This year, Acer plans to have publicly listed companies on the stock exchanges of Singapore and Mexico and next year in the U.S. and Taiwan.

Contributing: Charles Siler, Bradley Johnson, Juliana Koranteng, Todd Pruzan, Jack Russell and Gerard O'Dwyer.


Household words by 2000?

Acer (personal computers, Taiwan)

Aveda (hair and skincare products and cosmetics, U.S.)

Body Shop (personal care products, U.K.)

BT (telephone services, U.K.)

CompuServe (online services, U.S.)

Daewoo (automobiles, Korea)

Danone (yogurt, France)

Discovery Channel (satellite-delivered documentary

channel, U.S.)

Dr Pepper (soft drink, U.S.)

Episode (upmarket women's apparel chain,

Hong Kong)

Ericsson (mobile phones, Sweden)

ESPN (satellite-delivered sports network, U.S.)

The Gap (apparel, U.S.)

Gateway 2000 (mail-order personal computers, U.S.)

Ikea (furniture chain, Sweden)

(computer magazines,

research and exhibitions, U.S.)

LG (formerly Goldstar) (consumer electronics, Korea)

Lotus Notes (computer software, U.S.)

Marie Claire (women's monthly magazine, France)

Nine West (women's shoes, U.S.)

Orangina (soft drink, France)

Planet Hollywood (restaurant chain, U.S.)

Samsung (consumer electronics, Korea)

Singapore Airlines (airline, Singapore)

Virgin (airline, retail and consumer products,


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