Managing brands globally Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (3rd of May 2014)

2.  https://www.youtube.com/watch?v=JKI
AOZZritk

3.  Regionalization –
 i.e. Pepsi divided its US operation into
four regional companies to gear its
marketing locally

4.  Segmentation drives regionalization
 More focus on certain consumer goods
 One size doesn’t fit all
 Compete more efficiently

5.  Marketing inefficiencies
 Production cost goes up
 Economies of scale is lost
 Brand identity may be blurred
 May force local competition to become
more competitive

6.  Any market segment however we define it
may be a candidate for a specialized
marketing program i.e. age, income
gender, race, these factors cause
differences in shopping behavior
 These differences can be the rationale for a
separate branding and marketing
campaign
 Issues: targeted individuals feel that they
are being highlighted because they are
different, consumers not in the target
audience feels left out

7.  Many brands derive much of their sales and
profit from non domestic countries coke,
rolex, benz etc.
› Perception of slow growth and increased
competition in domestic markets
› Belief in enhanced overseas growth and profit
opportunities
› Desire to reduce costs from economies of scale
› Need to diverify risk
› Recognition of global mobility of customers

8.  Economies of scale
 Lower marketing costs
 Power and scope
 Ability to leverage good ideas quickly
and efficiently
 Consistency in brand image
 Uniformity of marketing practices

9.  Differences in consumer needs, wants and usage
patterns for products – i.e. Tea Iraq
 Difference in consumer response to marketing mix
elements – i.e. GDP, types of media, culture
 Difference in brand and product development and
the competitive environment i.e. PLC
 Difference in legal environment i.e. taxes, advertising
to children, 60 days to approve an ad
 Difference in marketing institutions i.e. channels of
distribution, media availability, media costs
 Differences in administrative procedures i.e.
resistance from local brand team

10.  100% customized global brand
campaign
 Customized Sri Lanka & India
 Cheap way of Standardizing India vs. Sri
Lanka
 Hybrid Model Sri Lanka vs. International
 100% Standardized Male & Female

11.  Need to revisit brand positioning in each
market
 Create mental maps
 Define core brand associations
 Identify points of parity and
differentiation

12. 1. How valid is the mental map in the new
market? How appropriate is the positioning?
How valuable are the core brand associations,
points of parity and points of difference?
2. What changes should we make to the
positioning? Do we need to create any new
association? Should we modify and existing
association?
3. How should we create this new mental map?
Can we still use the same marketing activities?
What changes should we make? What new
marketing activities are necessary?

13.  Global cultures are being formed
 Across cultures across countries similarity
in needs and wants are been identified
 Brands are identifying them

15. › Developed vs. developing markets
› Changing landscape for global brands due
to global media, technology etc.

16.  Build brand equity
 Build brand awareness
 Build brand knowledge

17.  A critical success factor for global brands
have been their manufacturing, distribution
and logistical advantages.
 Either create from scratch or adapt to
existing marketing infrastructure in other
countries
 Lean manufacturing practices to reduce
costs
 Strong dealership and business partners
 Low risk and low fixed cost strategies i.e. 3PL

18.  Consistency across all channels
 Non traditional communication elements
should be consistent

19.  Global brands have marketing partners
of some form in their international
markets
› JV
› Licensees or franchisees
› Distributors
› Ad agencies
› Legal associates
 Lipton provides special tea powder to
Pepsi to make iced tea beverage

20.  Geographic expansion i.e. coca cola
 Acquire brands from the respective
market i.e. AIA
 JV, franchise i.e. ADIDAS, NIKE

21.  Product strategy – consistency vs.
adaptation
 Pricing Strategy - taxes, distribution costs,
consumer income play a major role. With
internet

22.  Control centrally or from a head office
 Decentralize of decision making to local
markets
 Combination between centralization
and decentralization
 Logo, brand soul is standardized,
communication, quality, distribution,
price is customized

23.  Brand guidelines i.e. logo color, logo size,
font type font size
 Operation guidelines

24.  Use research agencies
 Some countries do not have
 Equity tracking
 This is not similar to tracking the value of
a brand

25.  Proper design and implementation of brand
elements can often be critical to the successful
building of a global brand
 Often brands come across problems in translating
elements into various cultures
 i.e. Ronald Mc Donald, apple logo, swoosh, colors
of brands, music etc.
 Even nonverbal elements will have cultural issues
i.e. green color in Malaysia symbolizes death and
disease
 Verbal communication will also have issues i.e.
coke’s can’t beat the feeling was translated to ‘I
feel coke’ in Japan, ‘unique sensation’ in Italy, in
Germany no proper translation was available so
they kept the English version

26. Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management
Students
Presentation developed by Leroy J. Ebert (3rd of May 2014)