Managing Brands Across

Boundaries and Segments

Chapter 14

Why go Global?
Slow growth and competition
domestically
Profit opportunities overseas
Diversify risk
Emerging economies
Consumer mobility

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)

Strategy Terms
Brands &
Products &
Services
Advertising
can be
can be
standardized
globalized or
or
localized
customized

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

Conditions Favoring Global

Brands
1. Social and cultural changes - new values,
new role models, new demographics
2. Technology brings standardization
3. Cultural stereotypes help brand proliferation
(BMW=made by German craftsmen)
4. Single production centers deliver a unified
product

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

Product Adaptation
STANDARDIZE
Brand name
Product positioning
Warranties
Packaging
Advertising theme

CUSTOMIZE
Distribution
Personal selling
Pricing
Media selection

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

Globalization & Standardization

Criteria
Industry/Product
CategoryFactors

Company
competitivefactors

Global/
standardized
Local/
customized
Attitudestoward
foreignimages

Cultural
Factors

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

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

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

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

Styles and Themes in Global

Identity Management
1. Brand naming (GM car Nova means No
go in Mexico)
2. Color (Hundai uses Korean colors)
3. Shape (Building orientation [chi] and design
[feng shui])
4. Styles (ornamental for Thai brand)
5. Themes (Western independence &
individualism; Eastern harmony & affiliation)

Matrix of Strategies
Standardizedproduct
Localizedcommunication
KLM,Mercedes,Fiat
Levisjeans
Worldwidestandardized
productandglobal
communication
Montblancpens,American
Express,Cartierjewelry

CustomizedProduct
Localizedcommunication
Nestlechocolate,Nescafe
Unileverbrands:Vif,Viss,Jif
Customizedproduct
Globalcommunication
DouweEgbertscoffee
Esprit,Esso

Qualities of Multi-Cultural
Advertisements
Recognize the culture of the
category
Reflect the culture of the brand
Respect the culture of the
consumer

Factors for Selecting a Car

JAPAN
Selfexpression
Driving
sensation
Comfort
Quality
Sportyhandling
Personal

USA
Selfexpression
Comfort
Driving
Sensation
Personal
Innovation
Sportyhandling

EUROPE
Selfexpression
Quality
Comfort
Value
Driving
sensation
Innovation

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.

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

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

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?