21. Global or local brands? Figure 10.1 Dimensions of international brand architecture
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Notes de l'éditeur
Refer to header: Managing multinational product lines Most organisations sell a wide assortment of products. The product assortment is usually described on two dimensions: the width and the length of the product mix. The first dimension width, refers to the collection of different product lines marketed by the organisation. For most organisation these product lines are closely related. The second dimension length, refers to the number of items that the organisation sells within the given product line.
Refer to header: Managing multinational product lines Several drivers affect the composition of an organisation’s international product line.
Refer to header: Product piracy Product piracy is one of the downsides that marekters with popular global brand names face. Any aspect of the product is vulnerable to piracy, including the brand name, the logo, the design and the packaging. Even services are pirated.
Refer to header: Product piracy A global industry such as entertainment is a prime target for pirates. Individuals and organised crime groups in many countries take part, inflicting damage on the profits and successes of manufacturers. For example, many movies are available in pirated DVD form even when the films are still in their early theatre release stage.
Refer to header: Country-of-origin stereotypes In the 1970’s the idea that Australian wines might become celebrated around the world was nonsense to many. Countries such as France and Italy, and to some degree Germany, were seen as the true birthplaces of high-quality wines. Over time, the influence of country of origin on perceptions of wine has changed. The new world wines from Australia, New Zealand, South Africa and the United States have an image that suggests innovation and new experiences.
Refer to header: Country-of-origin stereotypes The impacts of ‘Made in Australia’ labels for products such as wine, glazed apricots, honey and more specifically, perhaps, a cheese labelled ‘Margaret River, Australia’ are significant. The country-of-origin effect is positive and suggests to the world’s consumers that the products are fresh, high quality and from a clean, healthy environment.
Refer to header: Country-of-origin stereotypes Before exploring strategic options to deal with country of origin, organisations should conduct market research to investigate the extent and the impact of country-of-origin stereotypes for their particular product. Such studies would reveal whether the country of origin really matters to consumers and to what degree it hurts or helps the product’s evaluation.
Refer to header: International branding strategies A brand can be defined as ‘a name, term, sign, symbol, or combination of them which is intended to identify the gods and services of one seller or group of sellers and to differentiate them from those of competitors’. Linked to brand name is a collection of assets and accountabilities: The brand equity tied to the brand name. These include brand-name awareness, perceived quality and other associations invoked by the brand name in the customer’s mind.
Refer to header: International branding strategies
Refer to header: International branding strategies
Refer to header: International branding strategies
Refer to header: International branding strategies
Refer to header: International branding strategies One important issue is how consumers value global brands. There are 3 key dimensions: Quality signal, global myth and social responsibility.
Refer to header: International branding strategies The arguments for global branding sound very powerful. Note, however, that as with many other aspects of international marketing, the value of a band – its brand equity – usually varies a great deal from country to country. Inter-country differences in brand equity may be due to any of the following: History Competitive climate Marketing support Cultural receptivity to brands Product category penetration
Refer to header: International branding strategies Outside Australia, New Zealand and their closest neighbours, few people have heard of Hungry Jack’s or Holden cars. Yet these 2 brands come under the umbrella of two global, well-known brands, Burger King and General Motors. Cars designed and produced in Australia by Holden are exported and badged mostly as General Motors cars.
Refer to header: International branding strategies Cultural barriers also often justify local branding. Without localising the brand name, the name might be hard to pronounce or may have undesirable association in the local language.
Refer to header: International branding strategies Clearly there are no simple answers to global/local brand dilemma. Organisations such as Nestle and Unilever have a portfolio of local, regional and global brands. For example, in Russia Nestle balances its global brand portfolio with local brands that it has acquired. Organisations need to consider their brand structure (brand portfolio) An organisation’s current set of brands across countries, businesses and product markets Brand architecture - Guidelines regarding how brand names should be used
Refer to header: International branding strategies Brand architecture has 3 key dimensions. These are: The level in the organisation at which the brand is used The geographic scope of the brand and The product scope.
Refer to header: International branding strategies When the case for a transition from local to a global (or regional) brand name is made, the organisation needs to decide how to actually do the changeover. Four broad strategic options exist: Fade-in / fade-out Combine brands via co-branding or under one umbrella brand Transparent forewarning and summary axing.
Refer to header: International branding strategies The spread of private labels (store brands) is one of them most visible retailing phenomena of the last decade. Private labels come in various guises. At one extreme are the generic products that are packaged very simply and sold at bottom prices. At the other, are premium store brands that deliver quality that is sometimes superior to national brands.
Refer to header: International branding strategies Co-branding exists where two products are linked to take advantage of the equity to each brand to build product success.
Refer to header: International branding strategies Umbrella branding is a system where single banner brand is used worldwide, often with sub-brand name, for almost the entire product mix of the organisation. Often the banner is the organisation's name: Sony, Kodak, Siemens, Virgin, to name a few.
Refer to header: International branding strategies Given the strategic importance of brands, a major task facing the brand owner is protection of the brand name. This entails several questions: How should the brand be protected? Which aspects of the brand? When? Where? For which product classes? Answers to these questions can largely be found in an analysis of costs and benefits of protecting the brand.
Refer to header: Global marketing of services Compared with marketers of tangible goods, services marketers face several unique hurdles on the road to international expansion. These include protectionism (trade barriers), cultural barriers for service transactions, and difficulties in measuring customer satisfaction overseas.
Refer to header: Global marketing of services Despite the challenges just described, many international service industries offer enormous opportunities to savvy services marketers. The major ones are: Deregulation of service industries Increasing demand for premium services Increased value consciousness
Refer to header: Global marketing of services To compete in foreign markets, service organisations resort to a wide range of different strategies. Capitalise on cultural forces in the host market Standardise and customise Central role of information technologies Add value by differentiation