Download Managing brands across boundaries

Chapter 15:
Brands in a
Borderless World
Contents
• How to manage brands across geographical boundaries
• Challenges and issues in going international
• Branding strategies that can be adopted while going
international
• Critical factors for success
• Ethical brand positioning
Managing brands across boundaries
• Brands are ‘ubiquitous’ and consumers are consuming the best
brands available at their convenience.
• The availability of a number of competitor brands necessitates a
brand to be present in the particular market.
• Global brands are looked upon with envy and have a uniform
positioning, personality, look, feel, and advertising strategy across
different countries. However, they are not exactly identical but
slight changes can be there in the product offering,
communication, promotions, etc.
Reasons for going global
• Slow growth in the domestic market
• Increased competition at home and saturation of the
domestic market
• Opportunities for higher profitability in the global market
• Tax incentives and government policies that promote
international marketing
• Identification of similar market segments and consumer
needs in different country markets
• Risk is diversified by being present in multiple countries.
Advantages of global brands
•
•
•
•
•
•
•
•
•
Economies of scale
Increased brand life cycle
Availability
Perception of brand superiority
High prestige and status
Decrease in marketing cost
Uniform brand image
Barrier to entry
Opportunity to tap similar segments in different geographical
markets
• Enhanced strategic flexibility
Disadvantages of global brands
•
•
•
•
Needs and wants
Different usage patterns
Difference in consumer response
Preference for local brands
Challenges in going international
•
•
•
•
•
•
Politico-economic factors
Socio-economic classifications
Social factors
Legal aspect
Technological factors
Cultural factors
Local or global
• A local brand is a brand that is available in one country or a limited
geographic area.
• A global brand on the other hand is a brand that uses a uniform
marketing strategy and marketing mix in all the markets it serves.
• An organization while marketing brands across boundaries can
either develop different brands for different markets, which lead to
a number of local brands in its portfolio that have to be managed.
• The other option is that it can treat the world as one market and
offer one brand globally. This leads to the development of few
global brands in the brand portfolio, which then becomes easier for
the organization to manage.
Advantages of local brands
•
•
•
•
•
Satisfying local needs
Socio-economic factors
Flexible pricing
Hedging risks
Gaining entry into a new market
Localization to Standardization
Global
brand
Local
brand
(brand
name,
product,
positioning
modified)
Brand
name
and
product
modified
Brand
name and
positionin
g
modified
Brand
name
modifie
d
Positioni
ng and
product
modified
Product
modifie
d
Positioni
ng
modified
(brand
name,
product,
positioning
standardize
d)
Brand strategy process for a borderless world
Organizational Drivers
•Vision
•Resources and skills to go
international
Country markets to enter
Sharing of best
practices
•PEST analysis
•Market scenario study
•Consumer analysis
Brand drivers
•Global / local
•Brand identity and elements
•Brand image
•Brand position in brand architecture
Feedback
Brand Entry strategy
•How to enter
•Product decision
•Price decision
•Place decision
•Promotion decisions
Review of activities
Critical factors for success
•
•
•
•
Standardization and customization
Support global brand-building process
Build coherent international brand architecture
Assign managerial responsibility
– Management team, brand champion, global brand manager,
global brand team
• Share best practices
• Create cross-country synergies
Ethical brand positioning
• It is imperative for organizations to be ethical to build credibility and long term
brand equity.
• It takes consistent application of resources, in terms of money, time, and effort to
build a brand and it can be ruined by the reckless activities of individuals.
• Following an ethical path is a matter of choice but working ethically and in the
larger interest of the brand will help reap the benefits of the brand for ages.
• Thus, a brand that has been painstakingly built over time can be brought to nothing
due to reckless behaviour and ulterior motives of some people in the organization.
• Managing a brand should intertwine ethical practices into the organizational
internal brand building activities and the organizational culture should motivate the
employees towards the same. While revitalizing and rejuvenating the brands over
time, special attention should be paid so that brand life along with the brand equity
is enhanced.
Quick Recapitulation
• How to manage brands across geographical boundaries
• Challenges and issues in going international
• Branding strategies that can be adopted while going
international
• Critical factors for success
• Ethical brand positioning
Questions?