An introduction to branding and the paradox brand managers face between globalisation and localisation when internationalising. A brand is a friend and you should treat it as one.
3. IntroductionIntroduction
What is a brand and a global brand
Why Brands Matter
Brand Equity
How Global are Global Brands?
Country of Origin
Global Brands in the United States
Brand Personality, Price and Quality and Positioning
Private Label Brands
Corporate Rebranding: Diageo Ireland
Case Study: Diageo Ireland
What makes an Enduring Brand
Brand Management
4. Definition of a BrandDefinition of a Brand
What is a Brand? Armstrong
and Kotler state that a brand
is a name, term, sign, symbol
or design, or a combination of
these intended to identify the
good or service to one seller or
group of sellers and of differences
from those of competitors.
According to de Chernatony (2010) brands exists
by virtue of a continuous process whereby senior
managers specify core values that are enacted
by organisation’s staff and interpreted and
redefined by customers whose changing
behaviour influences managers views about more
appropriate ways for staff to live the brand’s value.
5. Global BrandingGlobal Branding
What are Global Brands?
Brands that are widely available across
international markets and enjoy high
levels of recognition across the world
are described as a global brand.
Dimofte et al (2008).
6. Why Brands MatterWhy Brands Matter
A brand is a promise
Think of some top brands and you immediately know what they promise:
Coca Cola, Apple, Samsung, Starbucks. Brands matter because consumers
know what they’re going to get with a well-branded product or service.
So this means that brands instil trust in the minds of consumers and
reduce risk in the decision making process.
In another sense, a brand is a specific combination of logo, words, type
font, design, colours, personality, price, service, etc.
7. Why Brands MatterWhy Brands Matter
In another sense, a brand is a specific
combination of logo, words, type font, design,
colours, personality, price, service, etc.
It’s also a bundle of attributes. Think of Apple, for
instance, and your first thoughts are probably
going to be something like ‘imagination, design
and innovation’ and, most of all, ‘empowerment
through technology.’
Brand Personality
8. Why Brands MatterWhy Brands Matter
To the Buyer:
- indication of quality
- identification
- increased efficiency
- draws attention to
new products
-rewards loyalty
-Trust
-Promise
To the Buyer:
- indication of quality
- identification
- increased efficiency
- draws attention to
new products
-rewards loyalty
-Trust
-Promise
To The Business:
- becomes an asset
- brand equity
- legal protection
- aids sale of product
- conveys meaning
- used in advertising
- barrier to competition
- basis for extension
To The Business:
- becomes an asset
- brand equity
- legal protection
- aids sale of product
- conveys meaning
- used in advertising
- barrier to competition
- basis for extension
The Benefits of Brands
9. Brand Equity for a companyBrand Equity for a company
Brand equity is a positive differential
effect that knowing the brand name has
on a customer response to the product or
service.
10. How Global are Global BrandsHow Global are Global Brands
Idea fine but execution not
Use standardised advertising, brand
name, and product positioning that
worked so well at home and hope to
conquer new markets.
Worked for some
But in many case, the situation turned out
different
11. What Went WrongWhat Went Wrong
Treated expansion as an extension of
business-as-usual, and did not focus on
geographical diversification
Attempted to standardise their strategy
Extending brands globally more balancing
many different strategic, operational, and
organisation factors
12. Lessons of ExperienceLessons of Experience
Kellogg’s and their Nutrigrain brand.
IKEA’s failure in the US and Japan
13. Standardisation versusStandardisation versus
CustomisationCustomisation
The idea of a fully standardised global
product that is identical all over the world
is a near myth
Instead of standardising the complete
product, a better approach is to reap the
benefits of global products (or services)
by standardising the core product or large
parts of it while customising peripheral or
other parts
14. Three Step Process for Obtaining
Global Benefits
1. Gain the benefits of going global
2. Standardise only the core elements
3. Modify both structural and non-structural
organisational elements
15. Country of OriginCountry of Origin
COO (Country of Origin) is the effect on a
products ability to sell due to the fact it
was develop is a certain country and
consumers perception of the quality of
that product.
COO is a form of image variable that
influences consumers perception of the
quality of foreign-made products.
16. Country of OriginCountry of Origin
Peoples cognitive maps. Past experiences.
Perceptions.
National characteristics.
“made in”
17. Country of OriginCountry of Origin
Four Dimensions of consumers
expectation of a foreign product.
1.Economic.
2.Information.
3.Conviviality.
4.Personality.
18. Global brand in the United States.Global brand in the United States.
The study wanted to compare the three
different ethnic groups and there response to
global brands.
Three different ethnic groups in the study.
1.Caucasian
2.Hispanic
3.African American
Results of study.
Caucasian show less of an gratitude for global brands.
Hispanic and African American have a similar belief
towards brands due to the fact they have closer links
in terms heritage.
19. Hypotheses of research.Hypotheses of research.
1. African American + Hispanic consumers will
find the globality of a brand more important
than Caucasian consumers.
2. African American + Hispanic will have more
favourable attitudes towards global brands
than Caucasian.
3. African American + Hispanic will perceive
global brands as providing more positive
benefits compared with Caucasian.
4. Caucasian buy global brands at a lower rate
than either African American or Hispanic.
5. Coefficients linking global brands attitudes
and purchasing behaviour will be the same
for all ethnic groups.
20. Global brand in the United StatesGlobal brand in the United States
Results of findings
H1: Similarities in thinking of beliefs, buying
behavior and globality through all groups.
H2: Ethnic groups believe there is higher prestige in
owning global brand.
H3: Caucasians believe in added social status
owning global brands.
H4: Attitudes less favorable towards global
brands, Caucasians still buy at same rate as
Ethnic groups.
21. ResultsResults
Global brands have a perceived higher
quality in less developed countries.
The African American and Hispanics have
the most similar heritage of the three
selected groups so they would have
similar thoughts towards global brands.
Roughly 40% refer to quality as the main
reason the opt for a global brand. They
feel the name can be trusted.
22. Brand PositioningBrand Positioning
The term positioning is often used to embrace all that
distinguishes the brand in the minds of consumers
Distinctiveness may reflect a brand’s positioning
relative to the competitive set or its personality (a
unique combination of functional attributes and
symbolic values) or both.
Hankinson & Cowking (1996) prefer to separate the
brand’s positioning from its personality. Thus a
brand’s positioning is usually determined by price or
product usage which in turn determines its
competitive set.
23. Brand Personality
When a brand builds favourable brand personality, they can enhance
brand attitudes, consumer-brand relationships and purchase intentions
24. Examples of Brand PersonalitiesExamples of Brand Personalities
Levis - Rebellion
Sensuality
Being Cool
Marlboro – Adventure
Masculinity
Freedom
25. Jung Lee & Soo Kang (2013)
Effect of Brand Personality on Brand Relationships
and Attitudes
Findings
•The sincere and cute brand personalities
•affect the consumer-brand relationship
•and a brand attitude positively.
WHY? Because they contain positive
attributes such as reliable and credible.
The exciting and strong brand personalities
•affect the consumer-brand relationship and
•brand attitude negatively.
WHY? Because they contain slightly negative
attributes such wild and irresponsible.
26. Brand Personality and ValueBrand Personality and Value
What gives a brand personality and
value?
Quality (perceived)
Price
Branding – logos and other visual elements
These 3 elements develop a brand’s
personality and value
E.G. Starbucks
28. Private Label Brands
Does Branding Matter?
Many retailer outlets have private label products,
which competes at a lower price, side by side
with branded products.
•Private labelling has been strongest in low-emotional
Involvement goods such as butter, eggs, flour,
and sugar.
•Private label market matures
Tesco in the UK offers petrol
President’s Choice, a Canadian retailer, offers
financial services.
According John Stanley Associates roughly 45% of products sold in Europe and 25 %
of products sold in the US are private label goods.
29. Muzellec & Lambkin (2008) Corporate
Rebranding: The Case of Guinness (Diageo
Ireland)
Interaction between corporate and product brands: The Vertical
Links in Brand Architecture
Guinness to Diageo reflects strategy of separating a corporate brand from its
product brands - new concept of business branding.
Objectives of articles - to understand phenomenon of corporate
rebranding
Does a change in the corporate brand name reflect a change in corporate
reputation?
Does a change in the corporate brand name affect the management of product
brands?
How does the new rebranded image relate to the company’s heritage and brand
portfolio?
30. Rebranding Strategies: Integration or
separation?
Integration - Uniting
corporation and its
products under one
brand.
Separation - creating
a separation between
corporate brand and its
products.
31. Horizontal and Vertical Dynamics
Horizontal Dynamics
•A new name along with new visual identity
•To protect company distinctiveness
•To impress external audiences
Vertical Dynamics - Image Transfer between the levels of brand hierarchy
•Separating corporate brand from its product brand portfolio
•Transformation of Guinness to Diageo was one of the first instances a large
multinational corporation pursued a separation strategy.
Why did they do it?
To give a name to a new corporate giant.
This adoption of a new name triggered a change in the financial structure
32. Results of Case Study Analysis
Corporate Debranding - Horizontal Changes
Decreased presence of Guinness corporate
brand
Diageo had not been built up as a strong
corporate brand
As Guinness pulled out of Irish life, it was not being
replaced by Diageo. Why? No brand endorsement.
Problems of debranding
• Lack of brand equity
• The new name received limited brand support
• Customers had no contact with the brand
• There was limited brand awareness
• There was low levels of brand knowledge
33. Results of Case Study AnalysisResults of Case Study Analysis
Diageo was not targeted at customers and not
targeted to affect customers.
Diageo identified key stakeholder groups as employees,
investors, government, community, media, customers,
suppliers and joint venture partners
34. Corporate Rebranding – VerticalCorporate Rebranding – Vertical
EffectsEffects
Stakeholders than customers
Enhance the profile of business partners
Innovative, successful, global and socially
responsible corporate brand
Corporate Social Responsibility
GrandMet foundation became Diageo
Foundation
Guinness initiatives such as the Digital Media
Hub and Liberties Learning Initiative branded
under name Diageo.
Drink Responsibly CSR Programmes
Slogan ‘Diageo, Drink Responsibly’
‘Don’t see a great night wasted’ campaign
‘Choice Zone’ in Guinness Storehouse
35. Final Thoughts
Discussion
•The change of name pushes the
corporate heritage down to the
product level
•Corporate rebranding and product
branding are differentiated in their
approach towards different audiences
•Consumers emotional attachment
may be a valuable asset at the
product level
•Corporate/consumer relationships
are weak/irrelevant whereas product
brand relationships are strong.
36. Case Study: Diageo IrelandCase Study: Diageo Ireland
Diageo is the world’s leading premium drinks business with the most
recognised collection of premium spirits, wine and beer brands.
•Trading in 200 markets around the world
•Generating some €19 billion in revenue
•Employing 26,000 people worldwide
•Turnover of €1 billion in profits
•Diageo Ireland is a major contributor to the Group and Irish economy.
37. Integration of Two CompaniesIntegration of Two Companies
Guinness Company + Grand Metropolitan =
Diageo
Diageo is the result of a merger and acquisition strategy, in which
Guinness and Grand Metropolitan joined forces to create a
synergistic effect.
Guinness’s strengths - market leader in Irish stout and beer
markets with a substantial presence in global spirits.
Grand Metropolitan’s Strengths - key player in International
spirits market
38. A New Corporate Brand IdentityA New Corporate Brand Identity
Diageo is taken from the Latin word ’day’ and the Greek
word ‘world’ and is taken to mean ‘Every day, Everywhere’
It sold off it’s food divisions - Pillsbury food Company and Burger
King Corporation.
Focused on premium brand products with high levels of brand
equity, brand recognition and brand loyalty
Diageo believed a multi-brand strategy for most appropriate for
the business.
39. Top Ten BrandsTop Ten Brands
Top 10 Brands.
1.Apple
2.Microsoft
3.Coca-Cola
4.IBM
5.Google
6.McDonalds
7.General Electric
8.Intel
9.Samsung
10.Louis Vuitton
40. Enduring BrandEnduring Brand
Criteria for becoming an Enduring Brand.
1.Leading and Innovating within the industry.
2.This will lead to attracting the top talent.
3.Connecting with the customer, Knowing what
they want.
4.Building a tradition and sticking with it.
42. Brand ManagementBrand Management
Managing a brand is about the
management of all the touch points that
consumers will come into contact with the
product/brand. Not just about Advertising
its about the product itself, customer
service and the employees.
Disney C/E Michael stated that a brand is
a living entity and that it is enriched or
undermined cumulatively over time.
DHL example.
43. Criteria for Brand ManagementCriteria for Brand Management
Does your brand excel at delivering
benefits that consumers truly value?
Is the brand properly positioned?
Do all of your consumer touch points
support the brand positioning?
Do the brand manager understand what
the brand means to a consumer?
Does the brand receive proper sustained
support?
46. Marlboro Friday FactsMarlboro Friday Facts
On the 2nd
April 1993 Marlboro announced
a one off price cut of 20% to win back
market share they had lost to stiff
competition.
Question: What would you have done in
Marlboro case?
