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Chapter 15: Brands in a Borderless World. Contents How to manage brands across geographical boundaries Challenges and issues in going international Branding.

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Presentation on theme: "Chapter 15: Brands in a Borderless World. Contents How to manage brands across geographical boundaries Challenges and issues in going international Branding."— Presentation transcript:

1 Chapter 15: Brands in a Borderless World

2 Contents How to manage brands across geographical boundaries Challenges and issues in going international Branding strategies that can be adopted while going international Critical factors for success Ethical brand positioning

3 Managing brands across boundaries Brands are ‘ubiquitous’ and consumers are consuming the best brands available at their convenience. The availability of a number of competitor brands necessitates a brand to be present in the particular market. Global brands are looked upon with envy and have a uniform positioning, personality, look, feel, and advertising strategy across different countries. However, they are not exactly identical but slight changes can be there in the product offering, communication, promotions, etc.

4 Reasons for going global Slow growth in the domestic market Increased competition at home and saturation of the domestic market Opportunities for higher profitability in the global market Tax incentives and government policies that promote international marketing Identification of similar market segments and consumer needs in different country markets Risk is diversified by being present in multiple countries.

5 Advantages of global brands Economies of scale Increased brand life cycle Availability Perception of brand superiority High prestige and status Decrease in marketing cost Uniform brand image Barrier to entry Opportunity to tap similar segments in different geographical markets Enhanced strategic flexibility

6 Disadvantages of global brands Needs and wants Different usage patterns Difference in consumer response Preference for local brands

7 Challenges in going international Politico-economic factors Socio-economic classifications Social factors Legal aspect Technological factors Cultural factors

8 Local or global A local brand is a brand that is available in one country or a limited geographic area. A global brand on the other hand is a brand that uses a uniform marketing strategy and marketing mix in all the markets it serves. An organization while marketing brands across boundaries can either develop different brands for different markets, which lead to a number of local brands in its portfolio that have to be managed. The other option is that it can treat the world as one market and offer one brand globally. This leads to the development of few global brands in the brand portfolio, which then becomes easier for the organization to manage.

9 Advantages of local brands Satisfying local needs Socio-economic factors Flexible pricing Hedging risks Gaining entry into a new market

10 Localization to Standardization Local brand Global brand Brand name and positionin g modified Brand name modifie d Positioni ng and product modified Product modifie d Positioni ng modified Brand name and product modified (brand name, product, positioning standardize d) (brand name, product, positioning modified)

11 Brand strategy process for a borderless world Organizational Drivers Vision Resources and skills to go international Country markets to enter PEST analysis Market scenario study Consumer analysis Brand drivers Global / local Brand identity and elements Brand image Brand position in brand architecture Review of activities Brand Entry strategy How to enter Product decision Price decision Place decision Promotion decision s Feedback Sharing of best practices

12 Critical factors for success Standardization and customization Support global brand-building process Build coherent international brand architecture Assign managerial responsibility – Management team, brand champion, global brand manager, global brand team Share best practices Create cross-country synergies

13 Ethical brand positioning It is imperative for organizations to be ethical to build credibility and long term brand equity. It takes consistent application of resources, in terms of money, time, and effort to build a brand and it can be ruined by the reckless activities of individuals. Following an ethical path is a matter of choice but working ethically and in the larger interest of the brand will help reap the benefits of the brand for ages. Thus, a brand that has been painstakingly built over time can be brought to nothing due to reckless behaviour and ulterior motives of some people in the organization. Managing a brand should intertwine ethical practices into the organizational internal brand building activities and the organizational culture should motivate the employees towards the same. While revitalizing and rejuvenating the brands over time, special attention should be paid so that brand life along with the brand equity is enhanced.

14 Quick Recapitulation How to manage brands across geographical boundaries Challenges and issues in going international Branding strategies that can be adopted while going international Critical factors for success Ethical brand positioning

15 Questions?


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