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

2
Agenda

• Rational for Global Marketing
• Benefit of Global Marketing
• Liabilities of Global Marketing
• Building Global Brands

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)

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?

5
Building Global Brands

• Exporting brand
• Costly, high control, slow
• Brand acquisition
• Costly, medium control, fast
• Brand alliance
• Cheap, low control, fast

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)
7
Building Global Brands

• Brand elements must transfer across categories
• Ensure product does not interact adversely with
  environment
• Develop distribution (pull wont work without)
• Communications - standardize some messages, but
  vary creative

8
Summary

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