Brand

1
Brand Product Decisions

• in Global Marketing

Vicki Enteen
2
The Product

• Companies today who operate on a global scale
  must develop product and brand policies and
  strategies that are sensitive to market needs,
  competition, and company objectives and resources.

3
The Product

• A product is a good, service, or idea with both
  tangible and intangible attributes that
  collectively create value for a buyer or user.
• Tangible assets physical features such as
  weight, dimensions,
  materials, etc., that translate
  into benefits.

4
The Product

• Intangible product attributes status associated
  with product ownership, manufacturers service
  commitment, brand reputation and/or mystique.

5
Product Classification

• Consumer vs. industrial products
• Buyer orientation the amount of effort expended
  by customer, level of risks of purchase, buyer
  involvement in purchase includes convenience,
  preference, shopping experience, type of goods.
• Product life span durable, non-durable,
  disposable

6
The Product

• Effective global marketing often means finding a
  balance between the payoff from extensively
  adapting products and brands to local market
  preferences and the benefits that come from
  concentrating company resources on relatively
  standardized global products and brands.

7
The Brand

• A brand is a promise by a particular company
  about a particular product, helping consumers
  better organize their shopping experiences, to
  differentiate one companys offering from others.
• Brand image perceptions about a brand through
  brand associations held by consumers.
• Brand equity the total value that accrues to a
  product as a result of the companys cumulative
  investments in marketing the brand.

8
Local Products Brands

• A local product or brand is one that has achieved
  success in a single national market.
• Sometimes a global company creates local products
  and brands
  to cater to the needs
  and preferences of
  particular country
  markets.

9
Local Products Brands

• Entrenched local products and brands can
  represent significant competition to global
  companies entering new country markets.
• Growing national pride can result in social
  backlash which favors local products and
  brands. They can cut prices and use patriotic
  advertising themes.

10
International Products Brands

• Globalization is putting pressure on companies to
  develop global products and to leverage brand
  equity on a worldwide basis.
• A true global product is offered in all world
  regions, including countries at every stage of
  development.

11
International Products Brands

• A global brand has the same name and often a
  similar image and positioning throughout the
  world.
• Brands have become a lingua franca a common
  language for consumers around the world.
• Brands marketed globally
  are often endowed with an
  aura of excellence as well
  as a set of obligations.

12

• A multinational has operations in different
  countries. A global company views the world as a
  single country. We know Argentina and France are
  different, but we treat them the same. We sell
  them the same products, we use the same
  production methods, we have the same corporate
  policies. We even use the same advertising in
  a different language of course.
• Alfred Zeien, former CEO Gillette

13
Global Brand Characteristics

• Quality Signal provide world-class quality,
  differentiation of product offerings, and often
  sold at premium prices.
• Global Myth symbolize cultural ideals. Uses
  Global Consumer Culture Positioning (GCCP) to
  communicate brands global identity and link it
  to aspirations.
• Social Responsibility Customers evaluate
  companies and brands in terms of how they address
  social problems and how they do business.

14
Tiered Branding

• Also known as combination branding.
• A corporate name is combined with a product brand
  name. (Ex. Sony Walkman)
• Leverages a companys reputation while developing
  a distinctive brand identity for a line of
  products.

15
Co-Branding

• Co-branding is a variation on combination
  branding in which 2 or more different companies
  or product brands are featured prominently on
  product packaging or in advertising.
• Can result in customer loyalty, and allow
  companies to achieve synergy.
• BUT can also confuse customers and dilute brand
  equity if products are not complementary.

16
Product/Brand Matrix

• PRODUCT
• Local Global
• local product/ global product/
• local brand local brand
• BRAND
• Global Global
• local product/ global product/
• global brand global brand

17
Global Branding

• To be considered a global brand, it has to
  generate at least 1/3 of sales outside the home
  country.
• Developing a global brand is not always an
  appropriate goal. The move must fit well with
  the company its markets, expected economies of
  scale must be realistic, and management must have
  expertise in building a global brand team.

18
Global Brand Leadership

• Using strong organizational structures,
  processes, and cultures to allocate
  brand-building resources globally, to create
  global synergies, and to developo a global brand
  strategy that coordinates and leverages country
  brand strategies.

19
Global Brand Leadership

• Guidelines for success
• Create a compelling value proposition for
  customers in every market entered.
• Before taking a brand across borders, think about
  all elements of brand identity and select names,
  marks and symbols that have the potential for
  globalization.
• Develop company-wide communications to share
  leverage knowledge and information about
  marketing programs in different countries.

20
Global Brand Leadership

• Develop a consistent planning process across
  markets products.
• Assign specific responsibility for managing
  branding issues to ensure that local brand
  managers accept global best practices.
• Execute brand-building strategies that leverage
  global strengths and respond to relevant local
  differences.

21
Leading Global Brand Coke

• Coca-Cola is the quintessential global product
  and brand.
• Relies on similar positioning and marketing in
  all countries global image of fun, good times,
  and enjoyment.
• Product varies to suit local tastes, prices vary
  to suit local competition, channels of
  distribution may differ.
• Not exact uniformity, but essentially the same
  product and brand promise.

22
Maslows Needs Hierarchy

• Useful framework for understanding how and why
  local products and brands can be extended beyond
  home-country borders.
• As an individual fulfills needs at each level, he
  or she progresses to higher levels.
• Higher stages include external and internal
  esteem (social needs) and self-actualization
  (personal needs).

23
Maslows Needs Hierarchy

• In some of the emerging countries, particularly
  in Asia, social needs are part of affiliation
  needs (being part of a group and conforming)
  which are important in Asia.
• At the top of the pyramid,
• Status, Admiration, and
• Affiliation.

24
Upscale Products

• Many products, especially upscale ones, do not
  have to be adapted to specific countries because
  consumers want the same products particularly
  those that convey status.
• Conspicuous consumption.
• Some luxury companies now doing 50 of their
  business in Asian countries.

25
Country of Origin as Brand Element

• Country-of-origin effect based on perceptions and
  attitudes towards that country. Part of brand
  image and contributes to brand equity.
• Can be either positive or negative.

26
Packaging as Brand Element

• Must conform to local laws.
• Must communicate to help consumer make purchase
  decisions.
• Engage the senses, make emotional connections,
  enhance brand experience.

27
Packaging as Brand Element

• Provide information and sales encouragement in
  todays self-service retail environments.
• Attract attention, support product positioning,
  persuade customers to buy.
• Ingredient labeling, use and care instructions,
  health warnings, multi-lingual, etc.

28
Extend, Adapt, Create

• Extension strategy offering a virtually
  identical product to markets outside the home
  country.
• Adaptation strategy changing elements of
  design,
• function, or
• packaging in
• response to needs
• or conditions in
• particular country
• markets.

29
Extend, Adapt, Create

• Product invention entails developing entirely
  new products from scratch with world market in
  mind.
• Often required because of government regulations
  on technical and health/safety standards.

30
Extend, Adapt, Create

• Extension strategy used by companies that believe
  that all markets are alike (ethno-centric)
• Adaptation strategy used by companies that
  believe that all markets are different.
  (polycentric)
• Adaptation/extension strategy used by companies
  that take advantage of similarities. (geocentric)

31
Extend, Adapt, Create

• Communications strategies can use the same as
  in home country (extension) or adaptation (modify
  for country markets).

32
Extend, Adapt, Create

• Product and communications adaptation for
  Malaysian market

33
Product Innovation

• For markets in which there is a need but not the
  same purchasing power, companies can create
  products at a much lower price point.
• For companies from lower-income countries, there
  may be a need to bring products up to world-class
  standards.

34
Product Innovation

• Creating new products for specific markets
  low-fat yogurt for US market, cosmetic colors for
  Asian women

35
Product Innovation

• Product transformation when a product that has
  been introduced into new country markets serves
  a different function or is used differently than
  originally intended.

36
New Products in Global Marketing

• Need to create new products that offer superior
  value worldwide. Continuous development and
  introduction of new products are key to survival
  and growth.
• An existing product that is not new to a company
  may be new to a particular market.

37
New Products in Global Marketing

• Discontinuous innovation entirely new
  invention, creating new markets new consumption
  patterns, a real break with the past.

38
New Products in Global Marketing

• Dynamically continous innovation share certain
  features with earlier generations of products but
  incorporate new features that offer added value.

39
New Products in Global Marketing

• Continuous innovation new and improved versions
  of existing products and require minimal
  adaptation of existing consumption patterns.

40
New Products in Global Marketing

• A large factor in the move toward development of
  global products is reducing cost of RD. The
  goal is to create a single platform or core
  product design element or component that can be
  quickly and cheaply adapted to country markets.

41
New Products in Global Marketing

• Tap all relevant. sources for product ideas.
• Screen these ideas to identify which should be
  developed further.
• Analyze various product options.
• Ensure the organization commits resources and
  develops product on a worldwide basis.

42
New Products in Global Marketing

• How big is the market for this product at various
  prices? How much potential?
• What are likely competitive moves?
• Can this be marketed through our existing
  structure? Changes needed? Costs?
• Can it be sourced at a profitable level?
• Does it fit into our strategic development plans?
  Consistent with overall goals?

43
New Products in Global Marketing

• Need for adequate testing of product, brand name
  and elements, etc., to ensure success.

44
Questions for Discussion

• Give examples of companies introducing new
  products within the categories of discontinuous,
  dynamically continuous, and continuous
  innovation.
• What are some examples of various
  extension/adaptation strategies?
• How can buyer attitudes about product
  country-of-origin affect marketing strategy?
  Give examples.