2. •Perception of no growth and increased competition in
domestic markets
•Belief in enhanced oversees growth and profit opportunities
•Desire to reduce costs from economies of scale
•Need to diversify risk
•Recognition of global mobility of customers
3. •Standardization and Customization – ‘Think global act local’ – strategy that
optimizes brand effectiveness in various markets
–Positioning – consistent. But may not be the same brand name and
marketing program
–Packing may have the same overall look but tailored to local requirement
•Standardization and Customization – ‘Think global act local’
–Hire local staff to tailor marketing to the region,
•Delivers locally oriented strategy, faster decision making
–Centralized marketing strategies that preserve local customs
•Increasing ability for coordination made possible by advances in
information systems and telecommunication
•Decreasing concentration of production activities - made possible by
flexible manufacturing technology
4. I. Economies of scale of production and distribution (supply side –
cost perspective)
II. Lower marketing costs
III. Power and scope – credibility from expertise and acceptance
across a wide variety of countries
IV. Consistency of brand image – important when there is customer
mobility
V. Ability to leverage good ideas quickly and efficiently
VI. Uniformity of marketing practices
5. I.
II.
III.
IV.
V.
Differences in consumers •
Needs, wants, usage patterns of products
•
Consumer response to marketing mix elements
Varying product lifecycle - brand and product development in a
different competitive environment
Legal environment
Marketing institutions – intermediaries, media,
Administrative procedures and autonomy of local offices
6. –Market differences
•Structural market differences
•Consumer category behavior patterns
•Price variance positioning and market positioning
•Other barriers
–Organizational blockages
•Corporate culture
•Decentralized firms
•Relationship between HO and country branches
7. Three pathways
1. Progressively duplicate original strategy across countries –
Orangina - a country a year progressively starting with markets with
similar cultures
2. Simultaneously launch brand in several countries particularly
appropriate for cosmetics, technology, luxury brands, etc.
3. Unify with local brands - inherited / acquired –
•Substitute original name with own name – Vodafone and
Hutch
Or
•Retain old brand – to benefit from equity associated with
the original name – Thums Up and Coke
8. Three different approaches
Decentralized approach - beginner brands let each subsidiary
decide its own strategy and produce its own advertising
Centralized approach - ‘Lead-country’ approach
Decentralized structure but with strong coordination – evolves over
time, as centralized organizations lose touch with the different
markets
9. 1. Understand similarities and differences in the global branding
landscape
Developed v/s developing markets
Changing landscape for global brands
2. Don’t take short-cuts in brand-building
3. Establish marketing infrastructure
4. Embrace integrated marketing communications
5. Cultivate brand partnerships
6. Balance standardization and customization
7. Balance global and local control
8. Define operable guidelines
9. Implement a global brand equity measurement system
10.Leverage brand elements