1. International brands and their management

2. The World’s top 20 brands -Interbrand 2006 (click on the link and find out more)
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Toyota
8. Disney
9. McDonald’s
10 Mercedes-Benz
11. Citigroup
12. Marlboro
13. Hewlett-Packard
14. American Express
15. BMW
16. Gillette
17. Louis Vuitton
18. Cisco
19. Honda
20. Samsung

3. What are brands? - visual identities
Name
Symbol
Packaging
Strap-line
E.g ‘Oil of Ulay’ in UK became ‘Oil of Olay’, its global name
E.g ‘Marathon’ became ‘Snickers’

4. What are brands? -legal property
In UK we have The Trade Marks Act (1944)
European registration can be obtained thro’ the EU
International registration can be obtained thro’ the Madrid Protocol (29 nations only)
Excludes U.S.A., New Zealand and Australia

5. The conventional brand model*
A brand is a product or service made distinctive by its positioning and its personality
Note there is no distinction between product and service
*Hankinson and Cowking, 1993

6. Positioning*
Defines the brand’s point of reference with respect to the competitive set.
*Hankinson and Cowking, 1993

7. A unique combination of functional and symbolic attributes
Personality*
A unique combination of functional and symbolic attributes
*Hankinson and Cowking, 1993

8. Functional attributes: For example:
Personality*
Functional attributes:
Tangible attributes, intrinsic to the product
For example:
Duracell's products are designed to give you maximum power.
Whatever your power needs, it will last longer with Duracell
*Hankinson and Cowking, 1993

9. Personality* Symbolic attributes
Intangible attributes, extrinsic to the product
For example:
All about Virgin
Want to find out how Virgin happened, why we do things differently, or what Richard Branson gets up to in his spare time? Click below to find out everything you ever wanted to know about Virgin.
*Hankinson and Cowking, 1993

10. Has this brand got a functional or symbolic personality?

11. The branding objective: The brand - consumer fit
The consumer
Physical needs
Psychological needs
A notional budget
The brand
Functional attributes
Symbolic values
Price positioning
Hankinson and Cowking, 1993

12. International brand strategies: -Multi-domestic branding
To retain local brand loyalty
Companies which have grown by acquisition
E.g.
65% of Heinz products do not carry the Heinz label
Declining strategy

13. International brand strategies: - Corporate brand endorsement
Typical of growth through acquisition
E.g.
Nestle endorses Polo, Buitoni, Herta (sausages)
Brands in different markets
Also as a positioning strategy
Renault endorses Clio, Laguna, Espace
Cars for different market segments

14. International brand strategies - Monolithic corporate brands
IBM
BMW ( with the recent exception of the Mini)
Cathay Pacific
Japanese companies:
Yamaha
Mitsubishi
Honda
All the top 20 brands are corporate brands

15. International brand strategies - Low profile monolithic corporate brands
Brands aimed at stock markets
E.g.
General Motors makes Chevrolet, Vauxhall, Opel
Louis Vuitton owns Hennessy, Moet, Dior, De Beers?

16. Why corporate brands?
Maximises brand exposure
Builds recognition
Offers all the benefits of brand stretching...

17. What does brand stretching do?
Transfers existing brand knowledge to new products/services
Existing brand knowledge
reduces the consumer’s risk
reduces distributors’ risks
reduces launch costs
Builds brand exposure further
Enhance sales of other products?

18. The management of corporate brands*
Leadership
Culture
Identity
Image
* Hatch and Schultz, 2003

19. Brand strategy matrix Product formulation Standardised Adapted
Fully adaptive
Nescafe
Proposition adaptive
Gordon’s Gin
Product adaptive
Shell
McDonald’s
Fully Global
Coke
Nike
Standardised
Adapted
Standardised
Brand proposition
Adapted

20. Factors favouring fully global brands Dahhringer and Cunliffe 1986
The use of universal symbols to override cultural differences
E.g. Coke uses children/youth
E.g. McDonald’s uses golden arches
Regional appeals to a similar culture
Social segments open to received culture
Brands with generic national personalities:
Marlboro (American)
Chanel No. 5 (French)
Buitoni (Italian)
Walker’s (Scottish)

21. Fully global branding does not mean global advertising
Different executions can lead to the same proposition
E.g. Bacardi (no.1 spirit brand) tailors its advertising to local markets:
In Europe it is about sun. sea and sand
In the U.S. its about health awareness and diet-consciousness

22. Characteristics of strong international brands (Young and Rubicam Brand Power survey)
Weight (dominance)
In terms of market share
Innovation
Clear brand focus
Length (stretch)
Ability to extend into new product markets
Breadth (brand franchise)
Demographic and cultural spread
International appeal
Depth (commitment)
Having an intimate relationship with customers (e.g. ‘cult status’)
Brand loyalty