Managing Brands Across Boundaries and Segments

1
Managing Brands Across Boundaries and Segments

• Chapter 14

2
Why go Global?

• Slow growth and competition domestically
• Profit opportunities overseas
• Diversify risk
• Emerging economies
• Consumer mobility

3
Global Marketing Disadvantages

• Consumer difference for usage, needs, wants
• Consumer response to marketing mix elements (poor
  retailing)
• Competitive environment varies (local brands)
• Restrictions from legal environment (product
  endorsements, comparative ads)
• Cultural differences (hi/lo context countries)
• Advertising regulations (native production)

4
Strategy Terms

• Brands Advertising
• can be globalized or localized

• Products Services
• can be standardized or customized

5
Global Brands Suggested

• For worldwide firms like IBM
• When the brand is the creator like Tommy
• To enable product adaptation for tourists and
  over the Internet
• To ease the process of brand extension
• To gain credibility

6
Conditions Favoring Global Brands

• Social and cultural changes - new values, new
  role models, new demographics
• Technology brings standardization
• Cultural stereotypes help brand proliferation
  (BMWmade by German craftsmen)
• Single production centers deliver a unified
  product

7
Global Identity Management Lego

• Universal concept of play from Denmark
• Product has 378 different sets with 1720 elements
• Centralized production in 5 factories
• Only localized elements are sales brochures in 25
  languages
• Universal toy with global image

8
Product Adaptation

• STANDARDIZE
• Brand name
• Product positioning
• Warranties
• Packaging
• Advertising theme

• CUSTOMIZE
• Distribution
• Personal selling
• Pricing
• Media selection

9
When is Product Standardization Best?

• In markets with similar economies
• If segments are customers, not countries
• When lifestyles are similar
• For industrial and hi-tech products
• With centralized authority

10
Globalization Standardization Criteria
11
Company and Competitive factors

• Airlines standardize image management and
  customize tactical decisions like pricing
• Mary Kay cosmetics uses a global image and
  product standardization
• Coke customizes the product and localizes
  advertising but retains a global brand image

12
Industry and Product Category Factors

• Product category differences - light use of
  deodorant in Germany so customization is
  necessary
• Automotive industry differences - India imports
  few options for purchase imports are customized
  for Indian consumer use

13
Attitudes Toward Foreign Images

• Cognitive component - knowledge consumers have
  about the country of brand origin
• Affective component - emotional feelings and
  attitudes about country of brand origin

14
Cultural Factors

• Physical artifacts. diamonds mean Africa, coffee
  means Columbia
• Language. spoken and written tone, inflection,
  character, etc.
• Values. social norms collectivism vs.
  individualism time orientation
• Customs. Gerber baby food jar label

15
Styles and Themes in Global Identity Management

• Brand naming (GM car Nova means No go in
  Mexico)
• Color (Hundai uses Korean colors)
• Shape (Building orientation chi and design
  feng shui)
• Styles (ornamental for Thai brand)
• Themes (Western independence individualism
  Eastern harmony affiliation)

16
Matrix of Strategies
17
Qualities of Multi-Cultural Advertisements

• Recognize the culture of the category
• Reflect the culture of the brand
• Respect the culture of the consumer

18
Factors for Selecting a Car
19
BMW Advertising Message by Location

• Japanese are told to Feel the sensation of speed
  and performance.
• Americans are told to Sit back and relax in
  leather cushioned seats.
• Europeans are told about Expert engineering and
  extended warranties.

20
Cultural Differences Talking to women about
intimate moments

• France - woman bathing for her husband portrays
  seductive power
• Japan - man would never enter a womans bathroom
• Italy - macho man with admiring wife
• Austria - Paris background is seductive
• Greece - sexy woman with few clothes

21
Standardize or Customize?

• No one product for every country
• Expensive to produce variety
• Global branding, local usage
• Think global, act local optimizes brand and
  product adaptation

22
Breathe Right Strips Video Case

• How did the company localize the brand?
• How did they globalize the product?
• What was the best source of product promotion for
  the brand?
• What advertising strategy was used and how was it
  implemented?