Branding and global branding

Branding & Global Branding
By:
1. Abbas M A Fadlallah
2. Ashjan Ali
3. Anas Abdallah.
4. Omnia Ahmes
5. Sofyan Mohamed
6. Abdelraheem Mohamed
7. Abobaker Abdelmahmoud
8. Remaz Elhibir
9. Hana Murtada
10.Suzan Mohamed

Branding and Global Branding:
1. Introduction.
2. How To build a brand internationally.
3. What you need to expand.
4. Building International Brand.
5. Building International brand awareness.
6. Symbols in Global Culture.
7. Dimension of Global brand.
8. Globate consumer segments
9. New opportunities New responsibility.
10.Conclusion: Strategies to build Global
Brand.

Introduction
• Forty years ago, there were only a handful of truly "global brands"
and they were made up of only the biggest corporations -- Coca-Cola,
PepsiCo, Colgate-Palmolive, IBM, Shell.
• Then a rash of upstarts came along, such as Nike, Microsoft, Apple,
and Honda, and pushed their brand reputation further than their
actual sales footprint.
• But now that barriers to international trade have come
down and the Internet has helped small and mid-sized companies
compete on the global stage, building an international brand is a
realistic goal for more and more businesses.

• "Thanks to the Internet it's hard to keep your brand just localized.
Once you're on the Web, you're accessible pretty much anywhere in
the world. It doesn't necessarily make you a global brand but you
have to be mindful of the implications."
Introduction

• Branding involves what people think about your business and your
products. "Think of a brand as a reputation," says Paul Williams,
founder of the international marketing firm, which helps companies
build their brands. "Building a reputation in any new market,
including overseas, involves a first impression, which
comes from the initial interactions someone has with your
company, products, and services."
How to build a brand internationally?
What a global brand is?

• Businesses can attempt to shape or form the branding of their company
or products in many ways: including advertising, media, word-of-
mouth, and contact with your products or services.
• A lot of thought and effort goes into branding, including naming
products, designing logos, and ensuring that service is
uniform throughout the business.
• Through continued exposure over time, your brand -- or your reputation -
- is formed with potential and existing customers.
"A brand is essentially a short
cut, it is a way for a customer
to get an instant recognition on
what the promise is of a
product or service and how
that will benefit them,"

• The reason businesses spent time and money
developing brand recognition is so that they can charge
a premium for a product or service.
• People will pay more for a brand name product or
service if it is recognized as a leader and a trusted brand
and they know what they will get.
• Apple, for example, can charge more for its computers
than some other companies because of its brand
reputation for offering innovative design and quality
electronics. The same can be said about Mercedes or
BMW automobiles.
"A brand is essentially a short cut, it is a way for a customer
to get an instant recognition on what the promise is of a
product or service and how that will benefit them,"

• When businesses try to expand their brand globally, those goals don't
change. But there are several steps you should take to make sure that
your products or services will have a market overseas, that you can
maintain quality in delivering and/or distributing your goods
or services, and that your business or product branding meets
cultural expectations -- and doesn't insult anyone -- in different
parts of the world.
What you need to expand?
How to build a brand internationally?

The following steps may help you in building an international brand:
1. Make sure you have a market.
2. Make sure you can deliver.
3. Re-examine your business and/or product names.
4. Give your logo another look.
5. Understand packaging requirements.
6. Register trademarks and domain names.
Building International Brand

"It is nearly impossible to understand local culture simply by visiting
a country," Williams says. "Find local customers, local translators.
Just because you took two years of French in high school doesn't make
you qualified to understand the French market nor do French
translations. Just as consumers' needs are different in Rhode Island
from those in Florida and California, so are the needs of consumers in
Paris different from those in Marseille."
• In taking these steps to building a brand internationally, it almost
always helps to find local resources to help you understand and
enter new foreign markets. You might consider entering into business
with a local distributor or retailer in this new market.
Building International Brand

• The way to build awareness of your brand in these new markets --
and increase sales because, let's face it, this is your goal -- follows the
same formula you use to increase brand awareness at home.
Building International Brand Awareness
"Craft and communicate a
message that is relevant to the
needs and wants of your
customers," Williams says.
"Deliver this message in the
places they are receptive to it,
in terms they can relate to and
understand, and through the
channels that will truly reach
your potential customer."

Craft your message:
• Having done your homework and researched the
new foreign markets, and perhaps engaged the help
of a local firm or representative, you have hopeful
honed your domestic branding for this new
audience.
• Be sure to note what the competition and other
businesses are doing.
"What may have seemed witty or charming in the U.S.
may be misunderstood in your new market,”

Deliver this message through the right channels:
• Make sure you are communicating your message where it will be
seen.
"What are the habits your customer base in that other country? Where
are they found? What is their lifestyle? What are they doing?"
Williams says. There is no secret answer. It's up to you to connect the
dots and find the right approach.

Communicate in the right manner:
• The manner and tone in which you engage your potential and new
customers is as important as the words you choose.
• "Manner and tone will come across through your packaging, advertising,
online, through your sales people, and even the way you answer the
phone,“
• What types of interaction you will have with customers? What will be the
tone you choose? What types of sales process and policies will you use?
Even though you are based thousands of miles away, this is still a
reflection on you and your brand. Remember that.

• While you focus on raising brand awareness, there is another
component to building a brand internationally that needs your
attention.
• You need to be vigilant in maintaining your brand reputation in every
market in which you sell.
• That gets harder as your business gets bigger and expands into more
locales.
Roth says. "Remember, your brand is a promise. You're starting to
make a promise that people are buying into and you need to deliver
whatever that product or service is.“
• You need to ensure that your customers' experiences with your
product, your business, and your staff are positive.
• That extends to how you deliver your product, product quality
control, how service is delivered or structured, and how your people
act.

• In branding, one bad customer experience often resonates longer
than one good experience.
Roth says: ." You might consider developing an employee manual,
investing in online training for your staff, and/or keeping in check
how fast you grow so that you can ensure that you deliver on your
brand promise no matter what market you serve.

• To grasp how consumers perceive global brands,
companies should think about the issue in cultural terms.
• The forces that Levitt described didn’t produce a
homogeneous world market; they produced a global
culture.
• Culture is created and preserved mainly by
communication.
Symbols in the Global Culture
ATL Promotion

In modern societies, communication takes many forms:
• ATL and BTL , and, of course, advertising and marketing
communications. For decades, communication had circulated mostly
within the borders of countries, helping to build strong national
cultures.
Symbols in the Global Culture
•Toward the end of the twentieth century, much
of popular culture became global.
•Not surprisingly, consumers ascribe certain
characteristics to global brands and use those
attributes as criteria while making purchase
decisions.
BTL Promotion

• Dimensions of Global Brands:
• In 2002, we carried out a two-
stage research project in
partnership with the market
research company Research
International/USA to find out
how consumers in different
countries value global brands.
• A detailed analysis (see the
sidebar “The Global Brands
Study”) revealed that consumers
all over the world associate
global brands with three
characteristics and evaluate them
on those dimensions while
making purchase decisions:
Why Consumers Pick
Global Brands
The three dimensions of
global brands—quality
signal, global myth, and
social responsibility—
together explain roughly
64% of the variation in
brand preferences
worldwide.
The percentages shown in
the study are the averages
of survey responses from
12 countries.
Dimension of Global Brands

A focus-group participant in Russia told us:
• A Spanish consumer agreed: “I like [global] brands because
they usually offer more quality and better
guarantees than other products.”
• That perception often serves as a rationale for global brands
to charge premiums. Global brands “are expensive, but
the price is reasonable when you think of the
quality,” pointed out a Thai participant.
•
Quality Signals

• Consumers also believe that transnational companies
compete by trying to develop new products and
breakthrough technologies faster than rivals.
• Global brands “are very dynamic, always upgrading
themselves,” said an Indian. An Australian added that
global brands “are more exciting because they come up
with new products all the time, whereas you know what
you’ll get with local ones.”
Quality Signals

• That’s a significant shift. Until recently, people’s
perceptions about quality for value and
technological prowess were tied to the nations
from which products originated. “Made in the USA”
was once important; so were Japanese quality and
Italian design in some industries. Increasingly,
however, a company’s global stature indicates
whether it excels on quality.
Quality Signals

• Consumers look to global brands as symbols of
cultural ideals. They use brands to create an imagined
global identity that they share with like-minded people.
• Transnational companies therefore compete not only to
offer the highest value products but also to deliver
cultural myths with global appeal.
“Global brands make us feel like citizens of the world,
and…they somehow give us an identity,” an
Argentinean consumer observed.
Global Myth

• People recognize that global companies wield extraordinary
influence, both positive and negative, on society’s well-being.
They expect firms to address social problems linked to what
they sell and how they conduct business. In fact, consumers
vote with their checkbooks if they feel that transnational
companies aren’t acting as stewards of public health, worker
rights, and the environment.
An Australian argued: “McDonald’s pays back locally, but it is
their duty. They are making so much money, they should be
giving back.”
Social Responsibility

• The playing field isn’t level; consumers don’t demand that
local companies tackle global warming, but they expect
multinational giants like BP and Shell to do so. Similarly,
people may turn a blind eye when local companies take
advantage of employees, but they won’t stand for
transnational players like Nike and Polo adopting similar
practices. Such expectations are as pronounced in
developing countries like China and India as they are in
developed countries in Europe
Social Responsibility

• Although we didn’t find much
variation across countries,
when we looked for differences
within them, we found that in
each country, consumers held a
variety of views about global
brands. When we grouped
together consumers who
evaluate global brands in the
same way, regardless of home
country, we found four major
segments.
Dreamers, Doubters, and
Other Global Consumers :
Most consumers worldwide
fall into one of four segments
in terms of how they relate to
global brands. Global citizens
care about firms’ behavior on
the environment and other
issues; global dreamers
readily accept brands’ myths;
anti-globals try to avoid
buying transnational‘s
products; and global
agnostics don’t regard
brands’
Global Consumer Segments

• Fifty-five percent of respondents, on average, rely on
the global success of a company as a signal of quality
and innovation. At the same time, they are concerned
whether companies behave responsibly on issues like
consumer health, the environment, and worker rights.
According to our study, the United States and the UK
have relatively few global citizens, and Brazil, China, and
Indonesia have relatively high numbers of them.
Global Citizens

• The second-largest segment, at 23%, consisted of
consumers who are less discerning about, but more
ardent in their admiration of, transnational
companies. They see global brands as quality
products and readily buy into the myths they
author. They aren’t nearly as concerned with those
companies’ social responsibilities as are the global
citizens.
Global Dreamers

• Thirteen percent of consumers are skeptical that
transnational companies deliver higher quality
goods. They dislike brands that preach American
values and don’t trust global companies to behave
responsibly. Their brand preferences indicate that
they try to avoid doing business with transnational
firms. The antiglobals’ numbers are relatively high
in the UK and China and relatively low in Egypt and
South Africa.
Anti-global

• Such consumers don’t base purchase decisions on a
brand’s global attributes. Instead, they evaluate a
global product by the same criteria they use to
judge local brands and don’t regard its global nature
as meriting special consideration. While global
agnostics typically number around 8% of the
population, there’s a higher percentage of them in
the United States and South Africa and a relatively
low percentage in Japan, Indonesia, China, and
Turkey.
Global Agnostics

• Global brands usually compete with other
global brands. In most countries, Toyota
battles Ford and Volkswagen. Nokia faces off
against Motorola and Samsung. Sony takes
on Nintendo and Microsoft.
• To succeed, transnational companies must
manage brands with both hands. They must
strive for superiority on basics like the
brand’s price, performance, features, and
imagery; at the same time, they must learn
to manage brands’ global characteristics,
which often separate winners from losers.
One person in ten
wouldn’t buy
global brands if
given a choice.
That’s an
extraordinary
number.
Companies must
earn the trust of
that segment.
New Opportunities New Responsibilities

• Smart companies manage their brands as global symbols
because that’s what consumers perceive them to be. However,
people all over the world are either astonished or disturbed by
giant transnational corporations.
• Firms must learn to participate in that polarized conversation
about global brands and influence it. A major obstacle is the
instability of global culture.
Think Gloabalness
Consumer understandings of global brands are
framed by the mass media and the rhizome-like
discussions that spread over the Internet.
Companies must monitor those
perceptions constantly.

• Just because companies are globally successful doesn’t
mean that consumers have only positive perceptions about
them. Transnational companies often have a “dark side”
that they must manage.
• In the early 1990s, IBM discovered that while consumers
believed the company was quality focused, they also
thought it was arrogant and bureaucratic.
Manage the dark side

• Global success often allows companies to deliver value to
consumers by authoring identity-affirming myths. Firms
must create appropriate myths, though. For instance, the
idea of a technological utopia in which personal
empowerment would reign supreme took hold in the late
1990s.
• Major technology firms competed fiercely to own that
ideal and become the company that people would join
with to feel empowered.
Build Credible Myths

• Most transnational companies are unsure how to treat the
people who dislike them.
• As NGOs have become adept at staging media-friendly
protests, corporations have been working hard to get off
the activists’ hit lists. They assign the problem to
government- or community-relations directors, who court
the favor of NGOs in backroom dialogues. However, these
“civil society” organizations are only the tip of the iceberg.
Treat Anti-global as Customers

• While most companies have launched
corporate social responsibility initiatives, the
impact of such activities is questionable.
• Most efforts appear to be a new form of
public relations. Even when companies are
proactive, initiatives are often limited to those
that are “sustainable”—a euphemism used to
describe moneymaking activities that happen
to benefit society.
Turn Social Responsibilities into
Entrepreneurship

Strategies to Build a Global Brand
Conclusion

5 Strategies to Build a Global Brand
1. Understand customer behavior:
Just because consumers have certain buying
preferences or habits in one culture, doesn't mean
that such preferences are universal.
2. Position yourself properly:
Good brand positioning includes truly understanding
your competition and then looking at your
competitive advantage.
3. Know how your brand translates:
A clever brand or product name in one language may
translate into an embarrassing misstep in another.

Turn Social Responsibilities into
Entrepreneurship
4. Think broadly:
Since your company may need to expand into
offering new products based on regional market
demands, it's important that your company
name be broad enough to accommodate those
changes.
5. Find good partners:
To ease market penetration in global market,
good local partner will strengthen your brand
awareness and add to your firm a competitive
advantage.

Branding and global branding

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