Managing Global Brands :Lecture 8 Kirsti Lindberg-Repo October 2, 2008 Managing Global Brands 10/2/2008 1 Copyright - Brand Management: A Global Perspective


Latest Globalization Facts :Latest Globalization Facts Geographic extension is the necessary fate of brands This affects: Brand growth Brand’s ability to innovate Brand’s ability to sustain its competitive edge in terms of: Economies of scale Productivity The main obstacle to the globalization of markets was decentralized organization and its symbol 10/2/2008 2 Copyright - Brand Management: A Global Perspective


Latest Globalization Facts :Latest Globalization Facts 10/2/2008 3 Copyright - Brand Management: A Global Perspective


Talking Point :Talking Point Discuss the differences in the globalization model of 10/2/2008 4 Copyright - Brand Management: A Global Perspective


Patterns of Brand Globalization :Patterns of Brand Globalization Brand relates to 3 facets: a concept, a name, a product or service 10/2/2008 5 Copyright - Brand Management: A Global Perspective


Globalization matrix :Globalization matrix Most companies started in quadrant A. They were international in sales before they thought they had an asset called a brand. From A they can move either B or C. B entails rationalizing the products: it is the main source of profits & synergies C means creating brand transfers to reduce the number of brands D is the quadrant for the introduction of new disruptive products 10/2/2008 6 Copyright - Brand Management: A Global Perspective


Why Globalize? :Why Globalize? 10/2/2008 7 Copyright - Brand Management: A Global Perspective


The benefits of a Global Image :The benefits of a Global Image Globalization influences brand preferences via 5 levers (Study by Holt, Quelch & Taylor): As an indicator of quality Increased status conferred on the brand by its perceived globalization Linkage to the images and special characteristics attributed to individual countries Increased responsibility fostered by brand globalization Finally the American image is associated a number of global brands 10/2/2008 8 Copyright - Brand Management: A Global Perspective


Conditions favoring Global Brands :Conditions favoring Global Brands 10/2/2008 9 Copyright - Brand Management: A Global Perspective


Talking Point: The excess of globalization :Talking Point: The excess of globalization Plenty of examples of failures result from undue haste in adopting a global marketing program. Discuss P&G failure with globalization of Head & Shoulders 10/2/2008 10 Copyright - Brand Management: A Global Perspective


Barriers to Globalization :Barriers to Globalization Coping with local diversity Coping with economic heterogeneity Coping with differences in legislation and norms Coping with category differences Coping with differences of segment Coping with differences in meaning 10/2/2008 11 Copyright - Brand Management: A Global Perspective


Barriers to Globalization :Barriers to Globalization Naming Problems – ability to use the same name worldwide Achieving the delicate local-global balance Each to his own balance Competitive advantage through adaptation Adaptation: a necessity for growth through time 10/2/2008 12 Copyright - Brand Management: A Global Perspective


Barriers to Globalization :Barriers to Globalization Being perceived a local: the new idea of global brand Being relevant before being global Integration factors Local brands can strike back Developing local brands – Local brands suffer from a number of limitations Local brands are in inertia – too used of simply being there Local brands are often too widely dispersed Local brands often lack innovation Local brands are too self-restricting Local brands must not appear too local except in case of ethnic or traditional craft products 10/2/2008 13 Copyright - Brand Management: A Global Perspective


Building the brand in emerging markets :Building the brand in emerging markets Managers are keen to enter the emerging countries as: The managerial freedom – less constraints Pressure of sales and objectives, combined with the lack of resources The pitfalls of market research – since the brand is weak Temptations to use it anywhere on all products 10/2/2008 14 Copyright - Brand Management: A Global Perspective


The process of Brand Globalization :The process of Brand Globalization 10/2/2008 15 Copyright - Brand Management: A Global Perspective


Globalizing communications :Globalizing communications What is it that you want to globalize The brand spirit The brand’s visual identity The strategic product The executional codes of campaigns 10/2/2008 16 Copyright - Brand Management: A Global Perspective


How to make local brands converge? :How to make local brands converge? 10/2/2008 17 Copyright - Brand Management: A Global Perspective


Customizing Global Marketing (Quelch & Hoff) :Customizing Global Marketing (Quelch & Hoff) The role of four dimensions of marketing varies in the light of degree of standardization and adaptation varies Business Functions Products Marketing Mix Countries The three problems that need to be controlled are: Inconsistent brand identities Limited Product Focus Slow New Product Launches Motivating the field helps win battles


Insights on Global Branding (Inter brand) :Insights on Global Branding (Inter brand) Brands are rightly recognized as leaders across the world, but as global brands they face unique challenges What drives Brand Value for famous brands? Google/BMW – Motto: Put it at heart – Excellent Brand Management Starbucks – Motto: Every single Experience Counts – Touch Point Development Apple/Nintendo Motto: If you brand it they will come – Demand creation Toyota Motto: Think about what can be, not what might have been – Modeling contingencies Zara Motto: Make Resources co-operate not compete – Planning Efficiencies


The lure of Global Branding ( Aaker) :The lure of Global Branding ( Aaker) Effective brand leadership depends on: Sharing of insights and bets practices among countries Supporting common global brand-planning process Assigning managerial responsibility Executing brilliant brand building strategies Who is responsible for the Brand? Business management team Brand Champion Global Brand Manager Global Brand Team


Slide 21:Thank you! Any questions, thoughts, wishes?