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Managing Global Brands

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Global Brands

Global Brands (Kelloggs, McDonalds,

Coke) are products that enjoyworldwide recognition and arerelatively unaltered in terms of brand

and appearance when sold abroad.

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Rationale for goingInternational

Slow growth and increased competition indomestic market

Foreign markets might offer higher growth andprofit opportunities

Need an enlarged customer base to achieveeconomies of scale

Reduce dependency on any one market

Recognition of global mobility of customers

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Cultural Lessons

Diet Coke is named Lite Coke in Japan--dieting was not well regarded

Red circle trademark was unpopular in Asiadue to its resemblance of Japanese flag

Advertisement featuring man and dog failed

in Africa--dogs were not seen as mans bestfriend

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More Cultural Lessons...

Cologne ad featuring a manattacked by women failed in Africa

Food demonstration did well inChinese stores but not in Koreanones--older women were insulted bybeing taught by youngerrepresentatives

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International marketing research

A study conducted to assist decision-making in

more than one country

Research that crosses national borders and

involves respondents and researchers from

different countries and cultures

e.g coke, Unilever ice tea. tang

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Major Decisions in International

MarketingLooking at the global marketing environment

Deciding whether to go international

Deciding which markets to enter

Deciding how to enter the market

Deciding on the global marketing program

Deciding on the global marketing organization

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Product standardization

Product standardization : the process of marketing a

product in overseas markets with little change except forsome cosmetic changes such as modified packaging

and labelling

Benefits projecting a global product image

catering to customers globally

cost savings in terms of economies of scale in

production

designing and monitoring various components of

marketing mix economically

facilitating the development of a product as aglobal brand

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Product adaptation

Product adaptation: making changes in a product in

response to the needs of the target market is termed

product adaptation or customization

Benefits

enables a firm to tap markets, which are not

accessible due to mandatory requirements

fulfils the needs and expectations of customers in

varied cultures and environments

helps in gaining market share

increases sales leading to economies of scale

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Five International Product and

Promotion Strategies

1. StraightExtension

2. CommunicationAdaptation

3. ProductAdaptation

4. DualAdaptation

DontChangeProduct

AdaptProduct

Product

DontChange

Promotion

AdaptPromotionP

romotion

5. ProductInvention

DevelopNew

Product

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New product launch

Waterfall approach: the launch of a new

product in international markets in a phasedmanner

22 yrs for McDonalds,20 yrs for Coke,35 yrs for

Marlboro

Sprinkler approach: simultaneous product

launch in various international markets