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, product, positioning modified)
Brand name and product modified
Brand name and positioning modified
Brand name modified
Positioning and product modified
Product modified
Positioning modified
(brand name, product, positioning standardized)

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
Sharing of best practices
Brand drivers
Global / local
Brand identity and elements
Brand image
Brand position in brand architecture
Feedback
Brand Entry strategy
How to enter
Product decision
Price decision
Place decision
Promotion decisions
Review of activities

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?