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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