INTERNATIONAL MARKETING MANAGEMENT SESSION 15: BUILDING AN INTERNATIONAL BRAND ARCHITECTURE 1

n Increased attention to brand-building - visibility - channel power - cost economies n Strong brands as a valuable asset in international markets n Branding as a central component in international marketing strategy THE ROLE OF INTERNATIONAL BRANDING 2

3 KEY DRIVERS OF BRAND ARCHITECTURE n Internationalization of markets n Industry consolidation n Increasing power of brands n Rising media costs

4 WHAT IS AN INTERNATIONAL BRAND? n Brands available in multiple countries - Global brands (Coca-Cola, Disney, Kit Kat) - Regional brands (Good Humor, Ariel) - Multi-country brands (Marmite, Walls, Algida) - Same brand name, different positioning (Mars)

5 WHAT IS A GLOBAL BRAND? n Geographic reach n Uniform positioning and image worldwide n Perceived by consumers as global

6 SOME EXAMPLES OF GLOBAL BRANDS Coca-Cola Shell Nike McDonald’s

7 ADVANTAGES OF INTERNATIONAL BRANDS n Strong customer recognition/reassurance n Economies of scale and scope n Leverages power with retailers n Consolidates efforts across countries n Potential for extension

8 DRIVERS OF A FIRM’S BRANDING STRATEGIES n Geographic extension of ‘power’ brands - e.g. Mars, Coca-Cola n Acquisition of local (national) companies and brands - e.g. Best n Integration of country-centered organizations - e.g. Unilever, Nestlé n Growth of brand alliances (co-branding) - e.g. Cereal Partners, Snack Ventures

9 A TYPOLOGY OF BRANDS n Corporate brand names - e.g. Shell, Kellogg’s, Philips, Heinz n Product brands - e.g. Tide, Marmite

10 A TYPOLOGY OF BRANDS…CONTINUED n House/family brands - e.g. Good Humor, Pedigree, Nivea, Goya

11 BRAND HIERARCHIES Corporate-dominant Mixed Brand-dominant Corporate brands (Shell, Philips) House brands (Walls) Dual brands (Philips, Whirlpool) Endorsed by corporate brand (Nestle, Cadbury) Mono-brands (Tide, Pampers) Brand extensions

12 PRESSURES FROM BOTH ENDS OF HEIRARCHY n Corporate identity/endorsement n Brand extensions More mixed strategies

13 INTEGRATING THE INTERNATIONAL BRAND PORTFOLIO Portfolio of mono brands (Mostly local) (Akzo Nobel) Portfolio of mono brands (Mostly local) (Akzo Nobel) Partially integrated structure (Kleenex) Partially integrated structure (Kleenex) International brand heirarchy (Nestlé) International brand heirarchy (Nestlé) Unintegrated Transition to integration Integrated

14 CUSTODY DRIVERS n Structure of international brand portfolio n Organizational structure n Power of local brands n Management vision

15 ALTERNATIVE CUSTODY STRATEGIES n No international management strategies n Negotiation between corporate H.Q. and local country managers n Brand champions n Corporate guidelines (brand manuals) n Centralized control Degree of Centralization

16 CUSTODY ISSUES EXISTING PRODUCTS n Establishing and Maintaining Brand Harmonization NEW PRODUCTS n Monitoring Brand Extensions n Monitoring Line Extensions Content Process

17 IMPLICATIONS n Role of branding in strengthening firm’s global image n Importance of establishing international branding strategy/brand architecture n Appropriate balance of global, regional and local brands should be determined n Need to assign responsibility for custody of international brands