Global strategy Vs local market adaptation. Presentation for Molton Brown which I got the position of International Marketing Assistant

1. GLOBAL STRATEGY
VS
LOCAL MARKET
ADAPTATION
By Vickie Chiu

2. Introduction
 How much head office control is
appropriate for a global luxury brand?
 How should luxury brands react to
increasing globalisation?
 Implications for International Brand
management
 Implications for consumers

3. Outline
 Global brands
 Luxury market
 Globalisation and the Luxury market
 Think global, act local?
 Big ideas are global
 Striking a balance
 Howthis affects brand owners and International
Brand Management
 Impact on end-consumers
 Conclusion

4. Global brands
 What makes a successful global brand?
 Brand equity
 Clearunified image
 Association with a social desire*
 Customer loyalty
 Many different strategies
 Global, Regional, Local
 People in the organisation*
 Need to think globally, yet…
 Possess local awareness 1.

5. Global brands (continued)
 Example
 Coca Cola – Post global?*
 Starbucks

6. Luxury market
 Global luxury goods market 9% growth
 3 segments*
 Absolute
 Aspirational
 Accessible
 Desire
 Awareness
 Purchase level

7. “New Luxury”
 Experience
 Brand becomes justification, not reason for
purchase.*
 Implications
 Strong emphasis on customer services
 Improving brand equity
 What does this mean with increasing
globalisation?

8. Globalisation & the Luxury
Market
Strengths Opportunities
 Increased sophistication  Potential new markets
of tastes*
 New methods of
 Increased awareness of
promotion
brand
 Similar regional and  Global campaigns
global tastes
Weaknesses Threats
 Difficult to apply “one glove  Over exposure*
fits all” approach  Decrease in desire
 Difficult to for complete Head  Loss in brand equity
office control  Loss in value
 Hinder creativity

9. Remedies to threats
 Control over exposure*
 Head office
 Not to be viewed as too “accessible”,
otherwise..
 Lose “luxury” status

10. Remedies to weakness:
Think global, act local?
 Head office to generate global strategies
 Allowing local departments to design plans
to implement the strategies
 Assumes
 Local
personnel more aware of local market
needs
 Example
 HSBC – “World’s local bank” *
…Applicable to luxury market?

11. “Big ideas are global”
 Local thinking creates“Won’t work” mentality
 Hinder creativity
 NOT saying, purely global
 Simple ideas with specific market in mind has
global appeal
 Example
 Miss Universe vs Sex and the city*
What does this imply?

12. Old communication model

13. New communication model

14. Implications for international
brand management
 Effective communication between Head
Office and domestic offices is KEY
 Effective global brands need local ideas
 Ideas flow back and forth
 Head office with central control of brand
identity
 DON’T change a brand to suit specific market
 DO develop products designed for local
markets, it may have global appeal.

15. End consumers
 Stronger brand equity
 Justification for purchasing the brand would
be stronger
 Choose to purchase what they want to be
associated with, value the brand projects.
 NOT a local version of a global elite brand

16. Conclusion
 Brand equity is most important
 Head office should control brand and global
strategies
 Avoid over exposure
 Loss of luxury status
 Constant communication with local offices to
generate local ideas with global appeal
 “New luxury” is an experience
 Give consumers the experience they want
 NOT what you believe they want based on
their geographical location

17. References
 Global Marketing: Balancing Global Thoughts and Local
Actions Donald E. Sexton
Columbia Business School, The Arrow Group, Ltd
 The end of 'think global, act local': big ideas are global
Douglas Daft, Market Leader issue 12, Spring 2001
 Journal of Advertising Research, Vol. 35, No. 4,
July/August 1995 ,OBSERVATIONS: Understanding the
World of International Luxury Brands: The 'Dream
Formula'
Bernard Dubois and Claire Paternault
 Brand identity management in the context of global
brands
The contribution of qualitative research
Caroline Ollivier–Lamarque