Transcript International Brand Management

International Brand Management
Week 2
Week 2 Objectives
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Conditions for Successful Branding
Why Leading Brands Are Successful
Marketing Strategy Alternatives
Case Study (Levi’s)
Brand Creation Process
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Alternative Architecture Options
Positioning, Naming
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Terminology
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Brand Promise
Differentiation
Positioning
Strategy – Tactics – Implementation/Execution
Conditioning the Market
Awareness
Familiarity
Brand Personality – User Imagery
Intangibles
Symbols
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Conditions for Successful Branding
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Product easy to identify by mark
Quality best value for price and maintainable
Availability
Large demand
Demand strong so price can support branding
Economies of scale
Retail display possibility
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Leading Brands
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What Makes Them Leading Brands?
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They invest heavily in brand promotion
Strength of the brand goes back to basic
marketing strategy
All efforts are directed to supporting the
strategy that flows from basic marketing
decisions
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WSJ 1990 article - “Brand Names have
Cachet in East Block….
SOVIET UNION
Sony
Adidas
Ford
Toyota
Mercedes-Benz
Fanta
Pepsi-Cola
Volvo
Fiat
Panasonic
HUNGARY
Mercedes-Benz
Adidas
BMW
Sony
Porsche
Rolls Royce
Jaguar
Ford
Phillips
Opel
POLAND
Sony
Volvo
Mercedes-Benz
Adidas
Toyota
Ford
BMW
Phillips
Porsche
Honda
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Measures of Brand Familiarity for
Strategy Planning
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Rejection (customers won’t buy unless image
is changed)
Non-recognition (meaningless – low-cost
product)
Recognition (helpful if “nothing” brands are
on market)
Preference (usually preferred over others)
Insistence (customers will search for brand)
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Marketing Strategy #1
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Multi-Domestic
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Assumes all markets are culturally
different
Therefore company must adapt marketing
programs to accommodate the differences
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Marketing Strategy #2
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Global Marketing Strategy
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Assumes similarities as well as differences
Standardizes where there are similarities and adapts where
culturally requires
Assumes existence and growth of global consumer with
similar needs and wants
Advocates that international marketers should operate as if
the world were one large market
May standardize only some of marketing mix
Some standardized products marketing globally but with
different appeal in different markets
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Global Marketing Strategy
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Advantages:
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Cost savings
Management of single strategy
Spill-over of promotional efforts across countries with
extended media coverage
Disadvantages
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Goal may not be realistic
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A mandated strategy can be ineffective
Economies of scale may be elusive
Building a global brand team may be difficult
Global brands cannot be imposed on all markets
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Think Globally, Act Locally
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Smart international marketers know decisions
for standardization or modification depend
more on motivation patterns than geography
CASE: Levi Strauss & Company –
marketing Levi jeans
Brand attributes: Quality and American roots
Attributes expressed differently in each country
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Global Perspective
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Calls for products and advertising toward a worldwide
market rather than national markets
Possible to balance strategy and not make global brand the
priority
Possible to create strong brands through Global Brand
Leadership
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Organizational structures, processes and cultures
Allocate brand-building resources globally, to create global
synergies
Develop global brand strategy that coordinates country brand
strategies
Most multinational companies use Global Brand Leadership
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Global Brand Leadership
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35 MNCs surveyed – how it works
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Sharing best practices (Mobil, P&G)
Common global brand planning (Volvo, H-P)
Managerial responsibility (Nestlé), brand
champion (Sony, NIVEA, Nestlé), team with
manager
Execute brilliant strategies!
CASE: Audi – 5 agencies CASE: Mercedes-Benz –
compete – all implement agencies compete winner takes all 14
Branding Architecture Strategy
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Determined by how the company markets
itself, its products and its services
Alternatives:
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Family brand (Obolon varieties)
Individual brands (Unilever toothpastes)
Generic brands (“cok”)
Manufacturers brands (less important globally)
Dealer or Private brands (some mobile providers)
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Brand Creation Process
Positioning – most important - first step
 It is about minds and emotions
 Both consumer and business markets
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Positioning – owning a credible and profitable
“position” in the consumer’s mind, either by
getting there first, or by adopting a position
relative to the competition, or by repositioning
the competition.
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Naming Products and Services
Steps for Naming
1. Positioning
2. Product objective
3. Branding criteria
4. Generate ideas
5. Select ideas
6. Select a name
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Desired Characteristics
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Distinctiveness
Relevance
Memorability
Flexibility
A good name can be a factor in a product success –
or failure!
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Naming Guidelines
Short and simple
Easy to spell and read
Easy to recognize/remember
Easy to pronounce
Pronounced only one way
Can be pronounced in all
languages
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Suggests product benefits
Meets packaging needs
No undesirable imagery
Stays “timely”
Adapts to any advertising
medium
Legally available for use
Always exceptions – but easier to success without
disadvantage of a bad name! (CASE: General
Motors NOVA)
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To Remember….
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When competing internationally, brand
naming has special problems
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What conveys a positive imagine in one language
may be meaningless in another
Legal availability of a desired name
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Week 3 – Next Lecture
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Who is the Customer?
How to “condition the market” with Promotional
Strategies
How Management sets direction
How brands are introduced, promoted, maintained
and managed
How to identify a company’s marketing strategy and
promotional tactics
How to contrast competitors’ efforts
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