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Managing Brands Across Boundaries and Segments

Managing Brands Across Boundaries and Segments. Chapter 14. Why go Global?. Slow growth and competition domestically Profit opportunities overseas Diversify risk Emerging economies Consumer mobility. Global Marketing Disadvantages. Consumer difference for usage, needs, wants

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Managing Brands Across Boundaries and Segments

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  1. Managing Brands Across Boundaries and Segments Chapter 14

  2. Why go Global? • Slow growth and competition domestically • Profit opportunities overseas • Diversify risk • Emerging economies • Consumer mobility

  3. Global Marketing Disadvantages • Consumer difference for usage, needs, wants • Consumer response to marketing mix elements (poor retailing) • Competitive environment varies (local brands) • Restrictions from legal environment (product endorsements, comparative ads) • Cultural differences (hi/lo context countries) • Advertising regulations (native production)

  4. Brands & Advertising can be globalized or localized Products& Services can be standardized or customized Strategy Terms

  5. Global Brands Suggested: • For worldwide firms like IBM • When the brand is the creator like Tommy • To enable product adaptation for tourists and over the Internet • To ease the process of brand extension • To gain credibility

  6. Conditions Favoring Global Brands • Social and cultural changes - new values, new role models, new demographics • Technology brings standardization • Cultural stereotypes help brand proliferation (BMW=made by German craftsmen) • Single production centers deliver a unified product

  7. Global Identity Management: Lego • Universal concept of play from Denmark • Product has 378 different sets with 1720 elements • Centralized production in 5 factories • Only localized elements are sales brochures in 25 languages • Universal toy with global image

  8. STANDARDIZE Brand name Product positioning Warranties Packaging Advertising theme CUSTOMIZE Distribution Personal selling Pricing Media selection Product Adaptation

  9. When is Product Standardization Best? • In markets with similar economies • If segments are customers, not countries • When lifestyles are similar • For industrial and hi-tech products • With centralized authority

  10. Globalization & Standardization Criteria

  11. Company and Competitive factors • Airlines standardize image management and customize tactical decisions like pricing • Mary Kay cosmetics uses a global image and product standardization • Coke customizes the product and localizes advertising but retains a global brand image

  12. Industry and Product Category Factors • Product category differences - light use of deodorant in Germany so customization is necessary • Automotive industry differences - India imports few options for purchase; imports are customized for Indian consumer use

  13. Attitudes Toward Foreign Images • Cognitive component - knowledge consumers have about the country of brand origin • Affective component - emotional feelings and attitudes about country of brand origin

  14. Cultural Factors Physical artifacts. diamonds mean Africa, coffee means Columbia Language. spoken and written; tone, inflection, character, etc. Values. social norms: collectivism vs. individualism; time orientation Customs. Gerber baby food jar label

  15. Styles and Themes in Global Identity Management • Brand naming (GM car Nova means “No go” in Mexico) • Color (Hundai uses Korean colors) • Shape (Building orientation [chi] and design [feng shui]) • Styles (ornamental for Thai brand) • Themes (Western independence & individualism; Eastern harmony & affiliation)

  16. Matrix of Strategies

  17. Qualities of Multi-Cultural Advertisements • Recognize the culture of the category • Reflect the culture of the brand • Respect the culture of the consumer

  18. Factors for Selecting a Car

  19. BMW Advertising Message by Location • Japanese are told to “Feel the sensation of speed and performance.” • Americans are told to “Sit back and relax in leather cushioned seats.” • Europeans are told about “Expert engineering and extended warranties.”

  20. Cultural Differences: Talking to women about intimate moments • France - woman bathing for her husband portrays seductive power • Japan - man would never enter a woman’s bathroom • Italy - macho man with admiring wife • Austria - Paris background is seductive • Greece - sexy woman with few clothes

  21. Standardize or Customize? • No one product for every country • Expensive to produce variety • Global branding, local usage • “Think global, act local” optimizes brand and product adaptation

  22. Breathe Right Strips Video Case • How did the company localize the brand? • How did they globalize the product? • What was the best source of product promotion for the brand? • What advertising strategy was used and how was it implemented?

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