2 Contents How to manage brands across geographical boundaries Challenges and issues in going internationalBranding strategies that can be adopted while going internationalCritical factors for successEthical 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 marketIncreased competition at home and saturation of the domestic marketOpportunities for higher profitability in the global marketTax incentives and government policies that promote international marketingIdentification of similar market segments and consumer needs in different country marketsRisk is diversified by being present in multiple countries.
5 Advantages of global brands Economies of scaleIncreased brand life cycleAvailabilityPerception of brand superiorityHigh prestige and statusDecrease in marketing costUniform brand imageBarrier to entryOpportunity to tap similar segments in different geographical marketsEnhanced strategic flexibility
6 Disadvantages of global brands Needs and wantsDifferent usage patternsDifference in consumer responsePreference for local brands
7 Challenges in going international Politico-economic factorsSocio-economic classificationsSocial factorsLegal aspectTechnological factorsCultural factors
8 Local or globalA 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 needsSocio-economic factorsFlexible pricingHedging risksGaining entry into a new market
10 Localization to Standardization Local brandGlobal brand(brand name, product, positioning modified)Brand name and product modifiedBrand name and positioning modifiedBrand name modifiedPositioning and product modifiedProduct modifiedPositioning modified(brand name, product, positioning standardized)
11 Brand strategy process for a borderless world Organizational DriversVisionResources and skills to go internationalCountry markets to enterPEST analysisMarket scenario studyConsumer analysisSharing of best practicesBrand driversGlobal / localBrand identity and elementsBrand imageBrand position in brand architectureFeedbackBrand Entry strategyHow to enterProduct decisionPrice decisionPlace decisionPromotion decisionsReview of activities
12 Critical factors for success Standardization and customizationSupport global brand-building processBuild coherent international brand architectureAssign managerial responsibilityManagement team, brand champion, global brand manager, global brand teamShare best practicesCreate 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 RecapitulationHow to manage brands across geographical boundariesChallenges and issues in going internationalBranding strategies that can be adopted while going internationalCritical factors for successEthical brand positioning