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Managing brands globally Content Extracted from “Strategic Brand Management” 3rd Edition Authors: Kevin Lane Keller M.G. Parameswaran Issac Jacob Presentation developed from SLIM Diploma In Brand Management Students Presentation developed by Leroy J. Ebert (3rd of May 2014)
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AOZZritk
Regionalization –
i.e. Pepsi divided its US operation into
four regional companies to gear its
marketing locally
Segmentation drives regionalization
More focus on certain consumer goods
One size doesn’t fit all
Compete more efficiently
Marketing inefficiencies
Production cost goes up
Economies of scale is lost
Brand identity may be blurred
May force local competition to become
more competitive
Any market segment however we define it may be a candidate for a specialized marketing program i.e. age, income gender, race, these factors cause differences in shopping behavior
These differences can be the rationale for a separate branding and marketing campaign
Issues: targeted individuals feel that they are being highlighted because they are different, consumers not in the target audience feels left out
Many brands derive much of their sales and
profit from non domestic countries coke,
rolex, benz etc.
› Perception of slow growth and increased
competition in domestic markets
› Belief in enhanced overseas growth and profit
opportunities
› Desire to reduce costs from economies of scale
› Need to diverify risk
› Recognition of global mobility of customers
Economies of scale
Lower marketing costs
Power and scope
Ability to leverage good ideas quickly
and efficiently
Consistency in brand image
Uniformity of marketing practices
Differences in consumer needs, wants and usage patterns for products – i.e. Tea Iraq
Difference in consumer response to marketing mix elements – i.e. GDP, types of media, culture
Difference in brand and product development and the competitive environment i.e. PLC
Difference in legal environment i.e. taxes, advertising to children, 60 days to approve an ad
Difference in marketing institutions i.e. channels of distribution, media availability, media costs
Differences in administrative procedures i.e. resistance from local brand team
100% customized global brand
campaign
Customized Sri Lanka & India
Cheap way of Standardizing India vs. Sri
Lanka
Hybrid Model Sri Lanka vs. International
100% Standardized Male & Female
Need to revisit brand positioning in each
market
Create mental maps
Define core brand associations
Identify points of parity and
differentiation
1. How valid is the mental map in the new market? How appropriate is the positioning? How valuable are the core brand associations, points of parity and points of difference?
2. What changes should we make to the positioning? Do we need to create any new association? Should we modify and existing association?
3. How should we create this new mental map? Can we still use the same marketing activities? What changes should we make? What new marketing activities are necessary?
Global cultures are being formed
Across cultures across countries similarity
in needs and wants are been identified
Brands are identifying them
› Developed vs. developing markets
› Changing landscape for global brands due to global media, technology etc.
Build brand equity
Build brand awareness
Build brand knowledge
A critical success factor for global brands have been their manufacturing, distribution and logistical advantages.
Either create from scratch or adapt to existing marketing infrastructure in other countries
Lean manufacturing practices to reduce costs
Strong dealership and business partners
Low risk and low fixed cost strategies i.e. 3PL
Consistency across all channels
Non traditional communication elements
should be consistent
Global brands have marketing partners of some form in their international markets › JV
› Licensees or franchisees
› Distributors
› Ad agencies
› Legal associates
Lipton provides special tea powder to Pepsi to make iced tea beverage
Geographic expansion i.e. coca cola
Acquire brands from the respective
market i.e. AIA
JV, franchise i.e. ADIDAS, NIKE
Product strategy – consistency vs.
adaptation
Pricing Strategy - taxes, distribution costs,
consumer income play a major role. With
internet
Control centrally or from a head office
Decentralize of decision making to local
markets
Combination between centralization
and decentralization
Logo, brand soul is standardized,
communication, quality, distribution,
price is customized
Brand guidelines i.e. logo color, logo size,
font type font size
Operation guidelines
Use research agencies
Some countries do not have
Equity tracking
This is not similar to tracking the value of
a brand
Proper design and implementation of brand elements can often be critical to the successful building of a global brand
Often brands come across problems in translating elements into various cultures
i.e. Ronald Mc Donald, apple logo, swoosh, colors of brands, music etc.
Even nonverbal elements will have cultural issues i.e. green color in Malaysia symbolizes death and disease
Verbal communication will also have issues i.e. coke’s can’t beat the feeling was translated to ‘I feel coke’ in Japan, ‘unique sensation’ in Italy, in Germany no proper translation was available so they kept the English version
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management
Students
Presentation developed by Leroy J. Ebert (3rd of May 2014)