International Brand Management Week 2

2 Week 2 Objectives Conditions for Successful Branding Why Leading Brands Are Successful Marketing Strategy Alternatives Case Study (Levi’s) Brand Creation Process – Alternative Architecture Options – Positioning, Naming

3 Terminology Brand Promise Differentiation Positioning Strategy – Tactics – Implementation/Execution Conditioning the Market Awareness Familiarity Brand Personality – User Imagery Intangibles Symbols

4 Conditions for Successful Branding Product easy to identify by mark Quality best value for price and maintainable Availability Large demand Demand strong so price can support branding Economies of scale Retail display possibility

5 Leading Brands

6 What Makes Them Leading Brands? They invest heavily in brand promotion Strength of the brand goes back to basic marketing strategy All efforts are directed to supporting the strategy that flows from basic marketing decisions

7 WSJ 1990 article - “Brand Names have Cachet in East Block…. SOVIET UNION Sony Adidas Ford Toyota Mercedes-Benz Fanta Pepsi-Cola Volvo Fiat Panasonic HUNGARY Mercedes-Benz Adidas BMW Sony Porsche Rolls Royce Jaguar Ford Phillips Opel POLAND Sony Volvo Mercedes-Benz Adidas Toyota Ford BMW Phillips Porsche Honda

8 Measures of Brand Familiarity for Strategy Planning Rejection (customers won’t buy unless image is changed) Non-recognition (meaningless – low-cost product) Recognition (helpful if “nothing” brands are on market) Preference (usually preferred over others) Insistence (customers will search for brand)

9 Marketing Strategy #1 Multi-Domestic – Assumes all markets are culturally different – Therefore company must adapt marketing programs to accommodate the differences

10 Marketing Strategy #2 Global Marketing Strategy – Assumes similarities as well as differences – Standardizes where there are similarities and adapts where culturally requires – Assumes existence and growth of global consumer with similar needs and wants – Advocates that international marketers should operate as if the world were one large market – May standardize only some of marketing mix – Some standardized products marketing globally but with different appeal in different markets

11 Global Marketing Strategy Advantages: – Cost savings – Management of single strategy – Spill-over of promotional efforts across countries with extended media coverage Disadvantages – Goal may not be realistic A mandated strategy can be ineffective Economies of scale may be elusive Building a global brand team may be difficult – Global brands cannot be imposed on all markets

12 Think Globally, Act Locally Smart international marketers know decisions for standardization or modification depend more on motivation patterns than geography CASE: Levi Strauss & Company – marketing Levi jeans Brand attributes: Quality and American roots Attributes expressed differently in each country

13 Global Perspective Calls for products and advertising toward a worldwide market rather than national markets Possible to balance strategy and not make global brand the priority Possible to create strong brands through Global Brand Leadership – Organizational structures, processes and cultures – Allocate brand-building resources globally, to create global synergies – Develop global brand strategy that coordinates country brand strategies Most multinational companies use Global Brand Leadership

14 Global Brand Leadership 35 MNCs surveyed – how it works – Sharing best practices (Mobil, P&G) – Common global brand planning (Volvo, H-P) – Managerial responsibility (Nestlé), brand champion (Sony, NIVEA, Nestlé), team with manager – Execute brilliant strategies! CASE: Audi – 5 agencies compete – all implement CASE: Mercedes-Benz – agencies compete - winner takes all

15 Branding Architecture Strategy Determined by how the company markets itself, its products and its services Alternatives: – Family brand (Obolon varieties) – Individual brands (Unilever toothpastes) – Generic brands (“cok”) – Manufacturers brands (less important globally) – Dealer or Private brands (some mobile providers)

16 Brand Creation Process Positioning – most important - first step It is about minds and emotions Both consumer and business markets Positioning – owning a credible and profitable “position” in the consumer’s mind, either by getting there first, or by adopting a position relative to the competition, or by repositioning the competition.

17 Naming Products and Services A good name can be a factor in a product success – or failure! Steps for Naming 1. Positioning 2. Product objective 3. Branding criteria 4. Generate ideas 5. Select ideas 6. Select a name Desired Characteristics 1. Distinctiveness 2. Relevance 3. Memorability 4. Flexibility

18 Naming Guidelines Always exceptions – but easier to success without disadvantage of a bad name! (CASE: General Motors NOVA) Short and simple Easy to spell and read Easy to recognize/remember Easy to pronounce Pronounced only one way Can be pronounced in all languages Suggests product benefits Meets packaging needs No undesirable imagery Stays “timely” Adapts to any advertising medium Legally available for use

19 To Remember…. When competing internationally, brand naming has special problems – What conveys a positive imagine in one language may be meaningless in another – Legal availability of a desired name

20 Week 3 – Next Lecture Who is the Customer? How to “condition the market” with Promotional Strategies How Management sets direction How brands are introduced, promoted, maintained and managed How to identify a company’s marketing strategy and promotional tactics How to contrast competitors’ efforts