2. One of the major tasks that the
international marketer face is the
management of their company’s brand
portfolio.
3. A Global Brand is one that is marketed
according to the same basic principles in every
part of the world.
A truly global brand has a consistent identity with
consumers across the world.
This means the same product formulation, the
same core benefits & Values & the same
positioning across the world, though the
marketing-mix may be altered to suit the needs
of individual markets.
Generally, a Global Brand is positioned the
same way in every market.
If the Brand has a premium price image in the
Home country, it will carry a similar positioning
around the world.
4. For example, Heineken Beer is positioned
around the world as a Premium beverage.
Marlboro is positioned around the world as an
Urban Brand. It has carefully developed an
image to appeal to the universal desire of
independence, freedom & space. Lack of
freedom & physical space are acutely felt by
urban dwellers, whose loyalty to Marlboro may
be a reflection of their own sense of “Macho-
ness” or a symbol of freedom & independence.
Benetton has positioned its main Benetton line
to the youth market of 16-24 years olds around
the world.
5. While a global brand is marketed across the
world in the same way, the marketing-mix
may be adjusted to meet the local consumer
& competitive requirements.
The same core product may be offered but
one or more elements of the marketing-mix,
such as Price, Appeal, Media, Distribution,
etc may be varied.
For eg. Pepsi increased the sweetness of its
beverage in the Middle East where
customers prefer a sweeter drink.
6. Coke is positioned & marketed in the same
way in all countries. But the product itself
may vary to suit the local tastes & the price
to suit the local competitive conditions. The
channels of distribution may also differ. But
the core principles that guide the
management of the brand are the same
worldwide. Coke projects a global image of
Fun, Good times & Enjoyment.
7. Creating a Global Brand requires a different
type of marketing effort than that required to
create multiple national brands.
In particular, the up-front creative vision
necessary to create a great global brand is
grander than that required for a national brand.
8. Deciding whether or not to establish global
brands depends on several factors.
It is usually easier to build a global brand
when starting from scratch, than by
repositioning or renaming an existing
national brand.
Still, many companies have succeeded in
transforming National brands into World-
wide brands.
For eg- MARS changed the name of its
successful European chocolate biscuits from
Raider to Twix, the same name used in U.S.
9. A Global Brand has much more visibility
than a Local Brand.
Prospective customers who travel may
be exposed to the brand both in their
home country & in many countries they
visit.
Therefore, it is often easier to build up
awareness for a Global Brand than for a
local brand.
10. Global positioning can be very effective if the
brand is a leader in the home country.
Eg.: After struggling for sometime, Marlboro
quickly became the leading cigarette brand
in Hong Kong when it positioned itself as the
leading brand of U.S.
In some cases, Global brands leverage the
country’s association for the product : Mc
Donald's is a U.S. fast food; L’Oreal is
French Cosmetics; Swatch is a Swiss watch.
Disney changed its name for its Paris theme
park from euro Disney to Disneyland Paris
to reflect its American roots.
11. In many cases, Local linkage can also prove
helpful in countries where patriotism & local
attitudes matter.
Under such circumstances, the Local Brand
name sends a signal that the company cares
about local sensitivities.
Unilever’s Indian subsidiary has deliberately
called itself Hindustan Unilever Limited, just to
sound more Indian.
In many emerging markets, once the novelty &
curiosity of Western brands are gone, customers
often switch to Less expensive Local Brands; So
the companies try to project their image of the
reasonably affordable local brands.
13. Competitive factors
Branding strategies are shaped by local
circumstances.
In some countries, brand faces only a few
competitors; In others, the Brand
constantly has to break through the clutter
& encounter many other competing
brands that nibble away its market share.
14. Cultural factors
Cultural receptivity towards brands is
another factor.
Withinn europe, countries such as Spain &
Italy are much more receptive towards
brand names than Germany.
15. Product factors
A final factor is the salience of the product
category in which the brand competes.
Because of the lifestyle differences, a
given category will be established more
strongly in some countries than in others.
In general, the higher the product usage,
the stronger will be brand equity.
16. Umbrella (Corporate) Branding
In Umbrella Branding, a single banner brand is used
worldwide, often with a sub-brand name, for almost the
entire product-mix of the company.
Very often, the banner is the company’s name.
Umbrella Branding is particularly popular among the
Japanese firms. A good example is SONY.
It can play a useful role in global marketing context. In many
situations, a good corporate image will have a strong
positive impact on the evaluation of the product endorsed by
the banner brand.
For the customers, the presence of banner brand’s logo on
the product means a seal of approval & a guarantee of
quality & excellence.
Contd…
17. For example, TATAs have a strong brand equity
in India. By having the TATA name on the
packaging, individual products can build up equity
faster.
Instead of spending their market expenses over
different brands, the advertising supports focus
on single umbrella brand.
A case in point is NOKIA, one of the leading
manufacturers of cellular phones.
Corporate branding makes it easier to add or
drop new products. Nurturing a single strong
banner brand is far more efficient than creating a
distinct brand from scratch for every new product
launch.
