International branding


Published on

An introduction to branding and the paradox brand managers face between globalisation and localisation when internationalising. A brand is a friend and you should treat it as one.

Published in: Marketing, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

International branding

  1. 1. BrandingBranding Topic: Consumer Products/Branding in International Markets
  2. 2. LiamOhObain . Liam ÓhÓbáin MSc. In Marketing DIT
  3. 3. IntroductionIntroduction  What is a brand and a global brand  Why Brands Matter  Brand Equity  How Global are Global Brands?  Country of Origin  Global Brands in the United States  Brand Personality, Price and Quality and Positioning  Private Label Brands  Corporate Rebranding: Diageo Ireland  Case Study: Diageo Ireland  What makes an Enduring Brand  Brand Management
  4. 4. Definition of a BrandDefinition of a Brand What is a Brand? Armstrong and Kotler state that a brand is a name, term, sign, symbol or design, or a combination of these intended to identify the good or service to one seller or group of sellers and of differences from those of competitors. According to de Chernatony (2010) brands exists by virtue of a continuous process whereby senior managers specify core values that are enacted by organisation’s staff and interpreted and redefined by customers whose changing behaviour influences managers views about more appropriate ways for staff to live the brand’s value.
  5. 5. Global BrandingGlobal Branding What are Global Brands? Brands that are widely available across international markets and enjoy high levels of recognition across the world are described as a global brand. Dimofte et al (2008).
  6. 6. Why Brands MatterWhy Brands Matter  A brand is a promise  Think of some top brands and you immediately know what they promise: Coca Cola, Apple, Samsung, Starbucks. Brands matter because consumers know what they’re going to get with a well-branded product or service.  So this means that brands instil trust in the minds of consumers and reduce risk in the decision making process.  In another sense, a brand is a specific combination of logo, words, type font, design, colours, personality, price, service, etc.
  7. 7. Why Brands MatterWhy Brands Matter In another sense, a brand is a specific combination of logo, words, type font, design, colours, personality, price, service, etc. It’s also a bundle of attributes. Think of Apple, for instance, and your first thoughts are probably going to be something like ‘imagination, design and innovation’ and, most of all, ‘empowerment through technology.’ Brand Personality
  8. 8. Why Brands MatterWhy Brands Matter To the Buyer: - indication of quality - identification - increased efficiency - draws attention to new products -rewards loyalty -Trust -Promise To the Buyer: - indication of quality - identification - increased efficiency - draws attention to new products -rewards loyalty -Trust -Promise To The Business: - becomes an asset - brand equity - legal protection - aids sale of product - conveys meaning - used in advertising - barrier to competition - basis for extension To The Business: - becomes an asset - brand equity - legal protection - aids sale of product - conveys meaning - used in advertising - barrier to competition - basis for extension The Benefits of Brands
  9. 9. Brand Equity for a companyBrand Equity for a company Brand equity is a positive differential effect that knowing the brand name has on a customer response to the product or service.
  10. 10. How Global are Global BrandsHow Global are Global Brands Idea fine but execution not Use standardised advertising, brand name, and product positioning that worked so well at home and hope to conquer new markets. Worked for some But in many case, the situation turned out different
  11. 11. What Went WrongWhat Went Wrong Treated expansion as an extension of business-as-usual, and did not focus on geographical diversification Attempted to standardise their strategy Extending brands globally more balancing many different strategic, operational, and organisation factors
  12. 12. Lessons of ExperienceLessons of Experience Kellogg’s and their Nutrigrain brand. IKEA’s failure in the US and Japan
  13. 13. Standardisation versusStandardisation versus CustomisationCustomisation The idea of a fully standardised global product that is identical all over the world is a near myth Instead of standardising the complete product, a better approach is to reap the benefits of global products (or services) by standardising the core product or large parts of it while customising peripheral or other parts
  14. 14. Three Step Process for Obtaining Global Benefits 1. Gain the benefits of going global 2. Standardise only the core elements 3. Modify both structural and non-structural organisational elements
  15. 15. Country of OriginCountry of Origin COO (Country of Origin) is the effect on a products ability to sell due to the fact it was develop is a certain country and consumers perception of the quality of that product. COO is a form of image variable that influences consumers perception of the quality of foreign-made products.
  16. 16. Country of OriginCountry of Origin Peoples cognitive maps. Past experiences. Perceptions. National characteristics. “made in”
  17. 17. Country of OriginCountry of Origin Four Dimensions of consumers expectation of a foreign product. 1.Economic. 2.Information. 3.Conviviality. 4.Personality.
  18. 18. Global brand in the United States.Global brand in the United States. The study wanted to compare the three different ethnic groups and there response to global brands. Three different ethnic groups in the study. 1.Caucasian 2.Hispanic 3.African American Results of study.  Caucasian show less of an gratitude for global brands.  Hispanic and African American have a similar belief towards brands due to the fact they have closer links in terms heritage.
  19. 19. Hypotheses of research.Hypotheses of research. 1. African American + Hispanic consumers will find the globality of a brand more important than Caucasian consumers. 2. African American + Hispanic will have more favourable attitudes towards global brands than Caucasian. 3. African American + Hispanic will perceive global brands as providing more positive benefits compared with Caucasian. 4. Caucasian buy global brands at a lower rate than either African American or Hispanic. 5. Coefficients linking global brands attitudes and purchasing behaviour will be the same for all ethnic groups.
  20. 20. Global brand in the United StatesGlobal brand in the United States Results of findings H1: Similarities in thinking of beliefs, buying behavior and globality through all groups. H2: Ethnic groups believe there is higher prestige in owning global brand. H3: Caucasians believe in added social status owning global brands. H4: Attitudes less favorable towards global brands, Caucasians still buy at same rate as Ethnic groups.
  21. 21. ResultsResults Global brands have a perceived higher quality in less developed countries. The African American and Hispanics have the most similar heritage of the three selected groups so they would have similar thoughts towards global brands. Roughly 40% refer to quality as the main reason the opt for a global brand. They feel the name can be trusted.
  22. 22. Brand PositioningBrand Positioning  The term positioning is often used to embrace all that distinguishes the brand in the minds of consumers  Distinctiveness may reflect a brand’s positioning relative to the competitive set or its personality (a unique combination of functional attributes and symbolic values) or both.  Hankinson & Cowking (1996) prefer to separate the brand’s positioning from its personality. Thus a brand’s positioning is usually determined by price or product usage which in turn determines its competitive set.
  23. 23. Brand Personality When a brand builds favourable brand personality, they can enhance brand attitudes, consumer-brand relationships and purchase intentions
  24. 24. Examples of Brand PersonalitiesExamples of Brand Personalities Levis - Rebellion Sensuality Being Cool Marlboro – Adventure Masculinity Freedom
  25. 25. Jung Lee & Soo Kang (2013) Effect of Brand Personality on Brand Relationships and Attitudes Findings •The sincere and cute brand personalities •affect the consumer-brand relationship •and a brand attitude positively. WHY? Because they contain positive attributes such as reliable and credible. The exciting and strong brand personalities •affect the consumer-brand relationship and •brand attitude negatively. WHY? Because they contain slightly negative attributes such wild and irresponsible.
  26. 26. Brand Personality and ValueBrand Personality and Value What gives a brand personality and value? Quality (perceived) Price Branding – logos and other visual elements These 3 elements develop a brand’s personality and value E.G. Starbucks
  27. 27. Brand Quality and PriceBrand Quality and Price
  28. 28. Private Label Brands Does Branding Matter? Many retailer outlets have private label products, which competes at a lower price, side by side with branded products. •Private labelling has been strongest in low-emotional Involvement goods such as butter, eggs, flour, and sugar. •Private label market matures Tesco in the UK offers petrol President’s Choice, a Canadian retailer, offers financial services. According John Stanley Associates roughly 45% of products sold in Europe and 25 % of products sold in the US are private label goods.
  29. 29. Muzellec & Lambkin (2008) Corporate Rebranding: The Case of Guinness (Diageo Ireland) Interaction between corporate and product brands: The Vertical Links in Brand Architecture Guinness to Diageo reflects strategy of separating a corporate brand from its product brands - new concept of business branding. Objectives of articles - to understand phenomenon of corporate rebranding  Does a change in the corporate brand name reflect a change in corporate reputation? Does a change in the corporate brand name affect the management of product brands? How does the new rebranded image relate to the company’s heritage and brand portfolio?
  30. 30. Rebranding Strategies: Integration or separation? Integration - Uniting corporation and its products under one brand. Separation - creating a separation between corporate brand and its products.
  31. 31. Horizontal and Vertical Dynamics Horizontal Dynamics •A new name along with new visual identity •To protect company distinctiveness •To impress external audiences Vertical Dynamics - Image Transfer between the levels of brand hierarchy •Separating corporate brand from its product brand portfolio •Transformation of Guinness to Diageo was one of the first instances a large multinational corporation pursued a separation strategy. Why did they do it? To give a name to a new corporate giant. This adoption of a new name triggered a change in the financial structure
  32. 32. Results of Case Study Analysis Corporate Debranding - Horizontal Changes  Decreased presence of Guinness corporate brand  Diageo had not been built up as a strong corporate brand As Guinness pulled out of Irish life, it was not being replaced by Diageo. Why? No brand endorsement. Problems of debranding • Lack of brand equity • The new name received limited brand support • Customers had no contact with the brand • There was limited brand awareness • There was low levels of brand knowledge
  33. 33. Results of Case Study AnalysisResults of Case Study Analysis Diageo was not targeted at customers and not targeted to affect customers. Diageo identified key stakeholder groups as employees, investors, government, community, media, customers, suppliers and joint venture partners
  34. 34. Corporate Rebranding – VerticalCorporate Rebranding – Vertical EffectsEffects  Stakeholders than customers  Enhance the profile of business partners  Innovative, successful, global and socially responsible corporate brand Corporate Social Responsibility  GrandMet foundation became Diageo Foundation  Guinness initiatives such as the Digital Media Hub and Liberties Learning Initiative branded under name Diageo. Drink Responsibly CSR Programmes  Slogan ‘Diageo, Drink Responsibly’  ‘Don’t see a great night wasted’ campaign  ‘Choice Zone’ in Guinness Storehouse
  35. 35. Final Thoughts Discussion •The change of name pushes the corporate heritage down to the product level •Corporate rebranding and product branding are differentiated in their approach towards different audiences •Consumers emotional attachment may be a valuable asset at the product level •Corporate/consumer relationships are weak/irrelevant whereas product brand relationships are strong.
  36. 36. Case Study: Diageo IrelandCase Study: Diageo Ireland Diageo is the world’s leading premium drinks business with the most recognised collection of premium spirits, wine and beer brands. •Trading in 200 markets around the world •Generating some €19 billion in revenue •Employing 26,000 people worldwide •Turnover of €1 billion in profits •Diageo Ireland is a major contributor to the Group and Irish economy.
  37. 37. Integration of Two CompaniesIntegration of Two Companies Guinness Company + Grand Metropolitan = Diageo Diageo is the result of a merger and acquisition strategy, in which Guinness and Grand Metropolitan joined forces to create a synergistic effect. Guinness’s strengths - market leader in Irish stout and beer markets with a substantial presence in global spirits. Grand Metropolitan’s Strengths - key player in International spirits market
  38. 38. A New Corporate Brand IdentityA New Corporate Brand Identity Diageo is taken from the Latin word ’day’ and the Greek word ‘world’ and is taken to mean ‘Every day, Everywhere’ It sold off it’s food divisions - Pillsbury food Company and Burger King Corporation. Focused on premium brand products with high levels of brand equity, brand recognition and brand loyalty Diageo believed a multi-brand strategy for most appropriate for the business.
  39. 39. Top Ten BrandsTop Ten Brands Top 10 Brands. 1.Apple 2.Microsoft 3.Coca-Cola 4.IBM 5.Google 6.McDonalds 7.General Electric 8.Intel 9.Samsung 10.Louis Vuitton
  40. 40. Enduring BrandEnduring Brand Criteria for becoming an Enduring Brand. 1.Leading and Innovating within the industry. 2.This will lead to attracting the top talent. 3.Connecting with the customer, Knowing what they want. 4.Building a tradition and sticking with it.
  41. 41. Global BrandsGlobal Brands
  42. 42. Brand ManagementBrand Management Managing a brand is about the management of all the touch points that consumers will come into contact with the product/brand. Not just about Advertising its about the product itself, customer service and the employees. Disney C/E Michael stated that a brand is a living entity and that it is enriched or undermined cumulatively over time. DHL example.
  43. 43. Criteria for Brand ManagementCriteria for Brand Management Does your brand excel at delivering benefits that consumers truly value? Is the brand properly positioned? Do all of your consumer touch points support the brand positioning? Do the brand manager understand what the brand means to a consumer? Does the brand receive proper sustained support?
  44. 44. DHLDHL  DHL ad.
  45. 45. 22ndnd April 1993April 1993 Marlboro Friday
  46. 46. Marlboro Friday FactsMarlboro Friday Facts On the 2nd April 1993 Marlboro announced a one off price cut of 20% to win back market share they had lost to stiff competition. Question: What would you have done in Marlboro case?
  47. 47. ConclusionConclusion The importance of brands. Standardisation Versus Customisation.  Consumer Perception. Rebranding with a consumer focus.