Alexander Consulting Enterprise 9/13/2015 Global Branding

Alexander Consulting EnterpriseAlexander Consulting Enterprise 04/19/2304/19/23

Global Branding


Top Ten Most Valuable Brands 2014¹

¹ https://www.millwardbrown.com/brandz/2014/Top100/Docs/2014_BrandZ_Top100_Chart.pdf

1. Google2. Apple3. IBM4. Microsoft5. McDonald

6. Coca-Cola7. Visa8. AT&T9. Marlboro10. Amazon


-Bundle of images and experiences in the customer’s mind

-A promise made by a particular company about a particular product

-A quality certification

-Differentiation between competing products

-The sum of impressions about a brand is the Brand Image

What is a Brand?


What is a Brand?

“The Capitalized Value of the Trust Between the Company and the Consumer”

James Burke, ex-CEO of Johnson & Johnson

A Brand’s Value is Reflected in:- Attitudinal versus Behavioral Loyalty- Customer efforts to obtain the brand- Price Premium- Possibilities for leveraging the brand


Branding Strategies

- Combination or tiered branding: allows marketers to leverage a company’s reputation while developing a distinctive identity for a line of productsSony Walkman

- Co-branding features two or more company or product brandsNutraSweet and Coca-ColaIntel Inside

-Brand acts as an umbrella for new productsExample: Honda cars, motorcycles, and lawnmowers


Global Brand Development

Global Brand LeadershipUsing organizational structures, processes, and

cultures to allocate brand-building resources globally, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies


Global Brand Development

• Create a compelling value proposition• Think about all elements of brand identity and

select names, marks, and symbols that have the potential for globalization

• Research the alternatives of extending a national brand versus adopting a new brand identity globally

• Develop a company-wide communication system


Country of Origin Effect as Brand Element

• Perceptions about and attitudes toward particular countries often extend to products and brands known to originate in those countries

Example: Different perception of Swiss watch versus Italian watch versus Chinese watch


Common Features of Global Brands

Consistent Positioning

Alludes to Similar Consumer Needs Worldwide

Geographical Sales Balance


Value of Brands

“The value of a brand, like beauty, is in the eye of the beholder”

Current Brand Value of Existing Owner+ Synergies with existing operations+ Increase in Sales+ Brand Name Leverage+ Preemption of Competition+ Psychic Value (Employee Motivation)

= Potential Brand Value


Current Brand Value of Existing OwnerEquals

NPV of DCF (or Future Earnings) of Current Business

Discount Rate Depends on:

- Risk Free Rate- Associated Risk- Growth


• Two errors that management makes in choosing a strategy• NIH (Not invented here) syndrome means

managers ignore the advancements of subsidiaries overseas

• Managers impose policies upon subsidiaries because they assume what is right for customers in one market is right in every market

How to Choose a Strategy?


• Cave Dweller – new products launched internationally to dispose of excess production

• Naïve Nationalist – company recognizes growth opportunities outside of home market

• Globally sensitive – company views world as competitive marketplace

How to Choose a Strategy?

Documents

Alexander Consulting Enterprise 9/13/2015 Global Branding