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Chapter 14 managing brands globally by leroy j. ebert


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Managing brands globally …

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)

Published in: Marketing, Business

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  • 1.  AOZZritk
  • 2.  Regionalization –  i.e. Pepsi divided its US operation into four regional companies to gear its marketing locally
  • 3.  Segmentation drives regionalization  More focus on certain consumer goods  One size doesn’t fit all  Compete more efficiently
  • 4.  Marketing inefficiencies  Production cost goes up  Economies of scale is lost  Brand identity may be blurred  May force local competition to become more competitive
  • 5.  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
  • 6.  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
  • 7.  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
  • 8.  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
  • 9.  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
  • 10.  Need to revisit brand positioning in each market  Create mental maps  Define core brand associations  Identify points of parity and differentiation
  • 11. 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?
  • 12.  Global cultures are being formed  Across cultures across countries similarity in needs and wants are been identified  Brands are identifying them
  • 13. › Developed vs. developing markets › Changing landscape for global brands due to global media, technology etc.
  • 14.  Build brand equity  Build brand awareness  Build brand knowledge
  • 15.  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
  • 16.  Consistency across all channels  Non traditional communication elements should be consistent
  • 17.  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
  • 18.  Geographic expansion i.e. coca cola  Acquire brands from the respective market i.e. AIA  JV, franchise i.e. ADIDAS, NIKE
  • 19.  Product strategy – consistency vs. adaptation  Pricing Strategy - taxes, distribution costs, consumer income play a major role. With internet
  • 20.  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
  • 21.  Brand guidelines i.e. logo color, logo size, font type font size  Operation guidelines
  • 22.  Use research agencies  Some countries do not have  Equity tracking  This is not similar to tracking the value of a brand
  • 23.  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
  • 24. 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)