Transcript Managing Brands Across Boundaries and Segments

Managing Brands Across
Boundaries and Segments
Chapter 14
Why go Global?
• Slow growth and competition
domestically
• Profit opportunities overseas
• Diversify risk
• Emerging economies
• Consumer mobility
Global Marketing
Disadvantages
• Consumer difference for usage, needs, wants
• Consumer response to marketing mix
elements (poor retailing)
• Competitive environment varies (local
brands)
• Restrictions from legal environment (product
endorsements, comparative ads)
• Cultural differences (hi/lo context countries)
• Advertising regulations (native production)
Strategy Terms
• Products &
• Brands &
Services
Advertising
can
be
can be
standardized
globalized or
or
localized
customized
Global Brands Suggested:
• For worldwide firms like IBM
• When the brand is the creator like
Tommy
• To enable product adaptation for tourists
and over the Internet
• To ease the process of brand extension
• To gain credibility
Conditions Favoring Global
Brands
1. Social and cultural changes - new values,
new role models, new demographics
2. Technology brings standardization
3. Cultural stereotypes help brand proliferation
(BMW=made by German craftsmen)
4. Single production centers deliver a unified
product
Global Identity Management:
Lego
• Universal concept of play from Denmark
• Product has 378 different sets with 1720
elements
• Centralized production in 5 factories
• Only localized elements are sales
brochures in 25 languages
• Universal toy with global image
Product Adaptation
STANDARDIZE
• Brand name
• Product positioning
• Warranties
• Packaging
• Advertising theme
CUSTOMIZE
• Distribution
• Personal selling
• Pricing
• Media selection
When is Product
Standardization Best?
• In markets with similar economies
• If segments are customers, not
countries
• When lifestyles are similar
• For industrial and hi-tech products
• With centralized authority
Globalization & Standardization
Criteria
Industry/Product
Category Factors
Company
competitive factors
Global/
standardized
Local/
customized
Attitudes toward
foreign images
Cultural
Factors
Company and Competitive
factors
• Airlines standardize image management and
customize tactical decisions like pricing
• Mary Kay cosmetics uses a global image and product
standardization
• Coke customizes the product and localizes
advertising but retains a global brand image
Industry and Product Category
Factors
• Product category differences - light use of
deodorant in Germany so customization is
necessary
• Automotive industry differences - India
imports few options for purchase; imports are
customized for Indian consumer use
Attitudes Toward Foreign
Images
• Cognitive component - knowledge consumers have
about the country of brand origin
• Affective component - emotional feelings and
attitudes about country of brand origin
Cultural Factors
Physical artifacts. diamonds mean Africa, coffee
means Columbia
Language. spoken and written; tone, inflection,
character, etc.
Values. social norms: collectivism vs. individualism;
time orientation
Customs. Gerber baby food jar label
Styles and Themes in Global
Identity Management
1. Brand naming (GM car Nova means “No
go” in Mexico)
2. Color (Hundai uses Korean colors)
3. Shape (Building orientation [chi] and design
[feng shui])
4. Styles (ornamental for Thai brand)
5. Themes (Western independence &
individualism; Eastern harmony & affiliation)
Matrix of Strategies
Standardized product
Localized communication
KLM, Mercedes, Fiat
Levis jeans
Worldwide standardized
product and global
communication
Montblanc pens, American
Express, Cartier jewelry
Customized Product
Localized communication
Nestle chocolate, Nescafe
Unilever brands: Vif, Viss, Jif
Customized product
Global communication
Douwe Egberts coffee
Esprit, Esso
Qualities of Multi-Cultural
Advertisements
• Recognize the culture of the
category
• Reflect the culture of the brand
• Respect the culture of the
consumer
Factors for Selecting a Car
JAPAN
•Self expression
• Driving
sensation
• Comfort
• Quality
• Sporty handling
• Personal
USA
•Self expression
• Comfort
• Driving
Sensation
• Personal
• Innovation
• Sporty handling
EUROPE
•Self expression
• Quality
• Comfort
• Value
• Driving
sensation
• Innovation
BMW Advertising Message by
Location
• Japanese are told to “Feel the sensation of speed
and performance.”
• Americans are told to “Sit back and relax in leather
cushioned seats.”
• Europeans are told about “Expert engineering and
extended warranties.”
Cultural Differences: Talking to
women about intimate moments
• France - woman bathing for her husband portrays
seductive power
• Japan - man would never enter a woman’s bathroom
• Italy - macho man with admiring wife
• Austria - Paris background is seductive
• Greece - sexy woman with few clothes
Standardize or Customize?
•
•
•
•
No one product for every country
Expensive to produce variety
Global branding, local usage
“Think global, act local” optimizes brand
and product adaptation
Breathe Right Strips
Video Case
• How did the company localize the brand?
• How did they globalize the product?
• What was the best source of product promotion for
the brand?
• What advertising strategy was used and how was it
implemented?