Lawson Cosmetics wants to make a big splash with a new global branding initiative. What should headquarters do when a country manager says his market will never go for it? ROWINA GUPTA was amused to see almost every guest at the black-tie gala sporting the same futuristic sunglasses. It was past 10 PM in Los Angeles, and the party to celebrate the release of the summer's most anticipated movie, The Grid Revisited, was heating up. Earlier that evening, a select audience had watched the long-awaited sequel to the 1998 blockbuster The Grid, and the scene-stealers had once again proved to be the lead pair's eyewear. In fact, there had been a near stampede when the invitees realized that each of the goody bags of TGR memorabilia contained a pair of the new shades, designed by the legendary Tom Strider. Gupta, the executive vice president and global marketing officer of one of the world's best-known cosmetics companies, $1.1 billion Lawson Cosmetics, rarely found the time to attend such events. When she wasn't visiting one of the 75-odd countries where the company marketed lipstick and nail polish, she liked to spend time with her husband and 12-year-old daughter. But her friends at Supreme Studios, which had produced the blockbuster, had insisted that she should attend, along with Lawson's chairman and CEO, Ed Johnson -- and Tasha knew why. Just as she had given up hope of spotting her boss in the melee, she heard his deep baritone behind her. "There you are. I knew I'd eventually find you," Johnson called out. As she turned to greet him, Gupta was surprised to see Johnson triumphantly brandishing a pair of Strider shades. Noticing her expression, he chuckled. "My son, who's studying Spanish in Peru this summer, wanted them. You gotta hand it to this guy Strider, eh? He's got a global cult following for his product, thanks to some sci-fi movie," Johnson said as he looked around the crowded ballroom. Gupta couldn't have asked for a better cue. She grabbed two flutes of champagne, handed one to Johnson, and determinedly steered him to a deserted alcove." Ed, I want to bounce an idea off you, and it can't wait. I started talking to some people at Supreme Studios six months ago, and they've offered Lawson the cosmetics sponsorship for the second Diana's She Devils movie." "Is that why those folks were so keen to have me come here tonight?" asked Johnson, his eyebrows shooting into his hairline. "They'd want you here anyway, I'm sure. But it's true they're looking for a decision. And I'd love to ink the deal soon" replied Gupta enthusiastically. "Diana's She Devils was a hit two years ago, and our research suggests that the sequel will probably be an even bigger draw. There are more romantic elements in it, by the way. Most important, I've seen the studio's publicity plans. They're huge. And we can associate Lawson's new summer line with the release all over the world." 2 "We've been offered deals like this in the past," Johnson pointed out. "But we never thought it was worth the money. And particularly if it's only our summer products range--" "Here's why I think it's right for us now," Gupta cut in. "First, we should be doing something splashy -- next year is our 50th anniversary, after all. Second, this is an ideal vehicle to launch a global brand- building strategy. Think about it, Ed. The three stars are from Europe, Asia, and South America -- our fastest-growing markets. And they're all on board for the sequel. What if we created three new lipstick and nail polish combinations, in the right palette for each of the three stars, and then associated the stars with the advertising? As the film gets released in each country, we can launch the new products in specially designed combination packs." "And call it Lawson's anniversary line," Johnson chimed in. "Interesting. But where does the money for the promotion and the related advertising come from? I don't think you have enough in your budget." "I don't" replied Gupta, her nose wrinkling slightly. "But I know where to find it. I had lunch last week with Brian Davis." She was referring to the marketing head for North America. "He loved the idea. As he sees it, two of the stars also happen to represent big ethnic markets in the U.S., so he's more than willing to foot some of the bill. Now I just need to get the other regions to chip in, which shouldn't be so hard." Johnson frowned. "I wouldn't be too sure about that," he said slowly. "If the recession in the U.S. gets any worse, and it may, I'll have to cut marketing budgets again. In that case, the country heads will have little left for local advertising or promotion initiatives after paying for your global promotion. They aren't going to like that very much, and they'll blame you if they don't meet targets. If I were you, I'd check with the regions before going any further." "Well, I'm off next week to Europe and South Asia, so I'll sound them out in person," said Gupta, a trifle defensively. "Good" said Johnson, ushering Gupta back into the thick of the party. "Let's talk when you get back" Je Reviens As the airplane rose into the bright blue sky over Paris, Gupta's spirits soared with it. She pulled out a laptop to write up her notes on her discussions with Jacques Dubois, Lawson's newly appointed marketing head for Europe. Belying her apprehension, the young Frenchman had warmed to the idea of a big movie-based promotion to mark the company's golden anniversary. He admitted that Lawson's archrival, Revlon, had boosted top-of-mind awareness by tying in with movies like the 2002 Bond film, Die Another Day, and he was ready to fight fire with fire. 3 A flash of European pride had, however, showed itself when Gupta mentioned her wish to set up a central Web site that would allow people to buy customized products from Lawson. She wanted to test the initiative first in North America and extend it to Europe once the logistics were in place. "That will not work. A Web site for European customers must have a different look and feel from the American site. It should also have a different name if it is to appeal to them" Dubois had immediately declared. Although Gupta had agreed to think about it, she wondered if the possibility that he could be wrong ever crossed Dubois's mind. Now, reflecting on that moment of irritation, she couldn't help but smirk; that must have been how she had seemed to her own colleagues back in 1994. After all, she'd been more than a little self-confident when she took over as the company's marketing head in India. Lawson, which sold a wide range of cosmetics and accessories, was the leading mass-market brand in North America and Western Europe. Despite the global cachet and the pent-up demand for foreign cosmetics, however, the company had been unable to make any headway in the competitive South Asian market. When Gupta was being interviewed for the job in Delhi, she had been quick to point out why. "I can get a facial for Rs 300 [$6.66] and a manicure for Rs 75 in a beauty parlor. Why would I pay Rs 120 for a lipstick or Rs 75 for a nail polish?" she demanded. Although the comment annoyed the multinational's top brass, they gave her the job. Those had been heady days, recalled Gupta, who had cut her marketing teeth at two British multinationals in India after graduating from the prestigious Indian Institute of Management at Ahmedabad. She had slashed product prices, reduced pack sizes, and used, for Lawson, unusual retailing tactics. For instance, since there were no chains like CVS and Walgreen's in India, Lawson had been selling its products only at the handful of department stores in the four largest metropolitan areas. So Gupta reduced prices and sizes and made sure Lawson items were available in all the hole-in-the-wall grocery stores in the cities and, later, even many of the towns. Lawson couldn't use large counters in those stores, so trays of lipsticks and nail polishes were placed invitingly near the cashiers. That was a tactic Lawson's top brass hadn't even considered. In five short years, the company became one of the market leaders in the Indian market. Johnson was so impressed by Gupta's performance that after three more years he offered her the newly created position of global marketing officer. By that time, Lawson's sales were growing faster in Western Europe, Asia, and South Asia than in North America. "We need to develop a more cohesive brand identity by coordinating local strategies and find a way of leveraging synergies across markets," Johnson said at the time of her promotion, about a year ago now. "You're in an ideal position to do that, because people respect you -- but they also know you'll be sensitive to local issues. The job might not win you any popularity contests, but I know you'll get it done." The announcement that the aircraft was beginning its descent into Kiev's Boryspil Airport interrupted Gupta's reverie. As she leaned forward to look down at the Dnieper River, she wondered how her old colleague in arms, Vasylko Mazur, the head of Lawson's operations in Eastern Europe, was faring. They had first met five years ago at a leadership training program in Los Angeles and had spent some long evenings sampling California wines and griping about top management attitudes toward developing markets. They had stayed in touch until recently. Gupta realized that Mazur had dropped out of sight 4 after taking over as the head of Lawson's Eastern European operations six months ago. It would be good to talk to him again, she thought as she fastened her seat belt. An Ugly Wrinkle Kiev was glowing green and gold at the end of a perfect summer day. The gilded tower atop St. Sophie's Cathedral cast burnished shadows on Mykhailiwska Square, a short distance from Lawson's offices. But neither Gupta nor Mazur noticed. They had been at each other's throats from the moment she broached the idea of a global promotion. "Vasylko, you are being entirely unreasonable," said an exasperated Gupta. "Me? Or you?" retorted Mazur, puffing furiously at the cigarette that never seemed to leave his lips. "Tasha, you don't realize how different Eastern Europe is from the rest of the world. Movie-based promotions won't do anything for my sales. We are in the beauty business, not the movie business." He tried again to convince Gupta that appointing beauty queens like Miss Russia and Miss Ukraine as brand ambassadors would strike a chord with customers in Eastern Europe. Not only would it be cost-effective, it would also allow Mazur to create a contest-based promotion. "Customers will write in with suggestions for new colors, each beauty queen will pick her favorite, and there will be lots and lots of prizes. You, of all people, should know what I'm talking about," he said pointedly. Gupta winced. Her rows with Lawson's headquarters were part of company folklore. She had insisted on launching nail polish in eight-milliliter bottles (price: Rs 35) in India rather than the standard 12-milliliter bottles (price: Rs 75). That would encourage customers to sample, she argued, and allow Lawson to take on the local market leader, which sold a 12-milliliter bottle for Rs 30. "You do know that we have sold our products in only one size all over the world," she had been told initially. The next year, Gupta had insisted that Lawson create a range of products in purple because that had been the rage in traditional Indian dresses like the sari and the lehnga that year. The palette was alien to Lawson, which usually stuck to beiges and reds, but it did wonders for the brand in India. "Vasylko, you are being unfair. First, I did all that ten years ago," argued Gupta. "It was a different world then, and India was different, too. Second, I've stayed away from beauty contests because they are off brand. The Lawson woman is smart, independent, a risk taker. She doesn't identify with pageant queens. Third, I've chosen colors for the global promotion that will work in Eastern Europe. If you won't believe me, test market them yourself, and I'll be receptive to any changes you can show me we need." "You should hear yourself talk," scoffed Mazur." Do you remember how we used to mock HQ, saying how little it knew of our countries? You now sound like an HQ person, who can only see the logic of creating a global brand, using a global campaign, and sticking to a global positioning. Very little of that works here! You must let me handle the market the way I think best. Did a global strategy work for you in India? If it didn't, how can you try to sell me one now?" "Because a global strategy can work, in India and in Eastern Europe, tool," Gupta shot back. "Do you remember Operation Second Coat, which I spoke about at our annual conference three years ago? We 5 had to launch global colors in India because our customers started asking why they weren't available. We used those products to segment the market and shifted many customers from a less expensive local line to a more expensive international range. By the time I left, we were increasingly using global ad campaigns. I'll admit we modified them sometimes, but they were essentially--" "That's not what you used to say," Mazur interrupted, grinding his cigarette into an overflowing ashtray. "In any case, I want no part of your global promotion. It smacks of a narrow vision, and there is no scope to adapt it for this market. Moreover, the promotion will eat into my marketing budget, and I cannot afford that. I need to be quick, tactical, and responsive to local needs, and your templates and rules about standardization only slow me down. I will worry about being in sync with the global brand after Lawson has become the market leader in Eastern Europe." Cosmetic Differences The weekend at her parents' farmhouse on the outskirts of Delhi was a welcome break for Gupta. Family gossip relegated the tensions of Kiev to the back of her mind and helped her recover a little from jet lag. As she walked briskly into the glass-and-concrete tower that housed Lawson's India office in the city of Gurgaon, near Delhi, on Monday morning,