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"Tomorrow I will not remember the words, but I will remember the names."

"Tomorrow I will not remember the words, but I will remember the names.". - from his novel Ojos de Perro Azul , the famed Colombian author Gabriel García Marquéz. Yoshi Tanaka, Denise Murray, Divya Mishra. 3/12/01. Where Are We Headed?. Branding Global marketing

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"Tomorrow I will not remember the words, but I will remember the names."

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  1. "Tomorrow I will not remember the words, but I will remember the names." - from his novel Ojos de Perro Azul, the famed Colombian author Gabriel García Marquéz Yoshi Tanaka, Denise Murray, Divya Mishra 3/12/01

  2. Where Are We Headed? • Branding • Global marketing • Advertising in Developing Countries • Brand Equity • Brand Equity & Advertising • Brand Dilution • Conclusion

  3. Branding • The right name provides distinction. In business, the right name also supports a brand image and enhances competitive advantage – critical attributes in highly aggressive industries. • Example: • On November 25, 1998, telecommunications giant Telefonica de España, S.A. announced the birth of a new corporate identity based on the consolidation of all of its operating companies worldwide under one brand, one name: Telefonica.

  4. Strong Brands • Brands earn deeper shares than retailers do • World’s top 10 brands’ by estimated market share*1 • Microsoft 80% • Campbell’s 60% • Gilette 53% • Coke 50% • Cascade 46% • Tide 43% • Duracell 43% • Listerine 42% • Huggies 41% • Kellog’s 35%

  5. Necessity of Branding • In the retail industry, generating a sale from a new customer is five or six times more costly than generating a sale from an existing customer.*2

  6. Global Marketing • Going global • Changes have opened new markets • Developing countries (i.e. China, Argentina)

  7. Advertising in Developing Countries • Advertising & promotional expenditures • The importance of advertising • Builds brand image • Builds brand position • Creates brand equity

  8. Brand Equity • What is brand equity? • What erodes brand equity? • How do you decrease brand equity?

  9. Brand Equity & Advertising • Developed vs. developing countries • Where does the opportunity lie? • Decreased advertising = decreased brand equity in developing countries • Brand dilution

  10. China: Brand Dilution

  11. Branding Fight in Argentina • The food and consumer goods industries are hot for solidifying brand names. • The winners will probably be those that already exist or are global operators. • M&A by international conglomerates • Internet by brick-and-mortar local giants

  12. M&A Branding by Conglomerates • Advantage: • Utilizing the developed country-backed brand • Disadvantage: • Hit hard by the local recession, unrest, etc • Example: Telefonica and Nestle • Strategy: • Long-term investment • JV with local big names

  13. M&A Fight for Brand • Nestle’s fight with Unilever in Argentina • Nestle: • $150M investment to M&A for pet-food, JV for mineral water • $400M sales increase • Unilever: • Close of ice-cream operation • $170M investment to M&A for condiments, soups, etc • a large portion would go towards publicity and marketing

  14. Internet Branding by Local Giants • Advantages: • Utilizing physical stores and relationships with value chain • Disadvantages: • Lack of e-skills and channel conflict • Example: Musimundo.com and Americanas.com • Strategy: • Internet branding and expanding to neighboring countries • Internet pure-plays investing into brick-and-mortar

  15. Internet Fight for Brand • Musimundo’s fight in Internet • Acquisition of Zona247 • Pan-regional ventures surge • Pureplay in books, CDs, videos, toys, etc • Musimundo’s fight in brick-and-mortar • Multinational big names surge: Wal-Mart, • Expansion to Chile and Brazil

  16. Argentina Branding Recap • Current two mainstreams • M&A by international conglomerates • Internet by brick-and-mortar local giants • New strategy will be necessary • Intellectual property issues being discussed in the government • Retail licensing and franchising is emerging

  17. So What? Things to Consider • Economic Environment • Cultural Environment • Demographic Environment • Political/legal Environment

  18. Sources • Brett Revy, “Specialty in Retail,” PaineWebber, March 31, 1999 • Belch & Belch, Introduction to Advertising and Promotion Management, 5th Ed. McGraw-Hill, Irwin 2001.

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