Global Branding – 1 Global Branding Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building A Brand Managing Across Brands

Global Branding – 2 Agenda Rational for Global Marketing Benefit of Global Marketing Liabilities of Global Marketing Building Global Brands

Global Branding – 3 Why Use Global Brands? Economies of scale –Production –Marketing (e.g., one agency) Prestige of global availability Consistency (McDonalds) Rapid adoption of innovations Benefits of learning across cultures Less risk of arbitrage (e.g., diverting low price brands from other markets)

Global Branding – 4 Why Not Use Global Brands Consumers differ across cultures –Needs, attributes, marketing response Environment differs across markets –Competition, regulations, channels, etc. High tech, high image (jewelry), corporate image (airlines), new channels (internet), point of origin brands (champagne), and standardized needs (medical) are categories where global makes more sense Is the Duke MBA a global brand? Why?

Global Branding – 5 Building Global Brands Exporting brand –Costly, high control, slow Brand acquisition –Costly, medium control, fast Brand alliance –Cheap, low control, fast

Global Branding – 6 Building Global Brands Global brands vs. Global leadership in brands Share best practices across nations Develop consistent planning process (but not plan) across countries Develop organizational structure to integrate best practices Source: Aaker and Joachimsthaler (1999)

Global Branding – 7 Building Global Brands Brand elements must transfer across categories Ensure product does not interact adversely with environment Develop distribution (pull won’t work without) Communications - standardize some messages, but vary creative

Global Branding – 8 Summary Global brands have benefits.. But also liabilities Key solution is to be global leader in branding as opposed to global brand