Global Branding

1. Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building A Brand Managing Across Brands Global Branding

2. Agenda • Rational for Global Marketing • Benefit of Global Marketing • Liabilities of Global Marketing • Building Global Brands

3. Why Use Global Brands? • Economies of scale • Production • Marketing (e.g., one agency) • Prestige of global availability • Consistency (McDonalds) • Rapid adoption of innovations • Benefits of learning across cultures • Less risk of arbitrage (e.g., diverting low price brands from other markets)

4. Why Not Use Global Brands • Consumers differ across cultures • Needs, attributes, marketing response • Environment differs across markets • Competition, regulations, channels, etc. • High tech, high image (jewelry), corporate image (airlines), new channels (internet), point of origin brands (champagne), and standardized needs (medical) are categories where global makes more sense • Is the Duke MBA a global brand? Why?

5. Building Global Brands • Exporting brand • Costly, high control, slow • Brand acquisition • Costly, medium control, fast • Brand alliance • Cheap, low control, fast

6. Building Global Brands • Global brands vs. Global leadership in brands • Share best practices across nations • Develop consistent planning process (but not plan) across countries • Develop organizational structure to integrate best practices Source: Aaker and Joachimsthaler (1999)

7. Building Global Brands • Brand elements must transfer across categories • Ensure product does not interact adversely with environment • Develop distribution (pull won’t work without) • Communications - standardize some messages, but vary creative

8. Summary • Global brands have benefits .. • But also liabilities • Key solution is to be global leader in branding as opposed to global brand