international marketing management session 15: building an international brand architecture 1
TRANSCRIPT
INTERNATIONAL MARKETING MANAGEMENT
SESSION 15:
BUILDING AN INTERNATIONAL BRAND ARCHITECTURE
1
Increased attention to brand-building
- visibility
- channel power
- cost economies
Strong brands as a valuable asset in
international markets
Branding as a central component in
international marketing strategy
THE ROLE OF INTERNATIONAL BRANDING
2
3
KEY DRIVERS OF BRAND ARCHITECTURE
Internationalization of markets
Industry consolidation
Increasing power of brands
Rising media costs
4
WHAT IS AN INTERNATIONAL BRAND?
Brands available in multiple countries
- Global brands (Coca-Cola, Disney, Kit
Kat)
- Regional brands (Good Humor, Ariel)
- Multi-country brands (Marmite, Walls,
Algida)
- Same brand name, different
positioning (Mars)
5
WHAT IS A GLOBAL BRAND?
Geographic reach
Uniform positioning and image
worldwide
Perceived by consumers as global
6
SOME EXAMPLES OF GLOBAL BRANDS
Coca-Cola
Shell
NikeMcDonald’s
7
ADVANTAGES OF INTERNATIONAL BRANDS
Strong customer recognition/reassurance
Economies of scale and scope
Leverages power with retailers
Consolidates efforts across countries
Potential for extension
8
DRIVERS OF A FIRM’S BRANDING STRATEGIES
Geographic extension of ‘power’ brands
- e.g. Mars, Coca-Cola
Acquisition of local (national) companies and brands
- e.g. Best
Integration of country-centered organizations
- e.g. Unilever, Nestlé
Growth of brand alliances (co-branding)
- e.g. Cereal Partners, Snack Ventures
9
A TYPOLOGY OF BRANDS
Corporate brand names
- e.g. Shell, Kellogg’s, Philips, Heinz
Product brands
- e.g. Tide, Marmite
10
A TYPOLOGY OF BRANDS…CONTINUED
House/family brands
- e.g. Good Humor, Pedigree, Nivea,
Goya
11
BRAND HIERARCHIES
Corporate-dominantCorporate-dominant
MixedMixed
Brand-dominantBrand-dominant
Corporate brands (Shell, Philips)
House brands (Walls)
Dual brands (Philips, Whirlpool)
Endorsed by corporate brand (Nestle,
Cadbury)
Mono-brands (Tide, Pampers)
Brand extensions
12
PRESSURES FROM BOTH ENDS OF HEIRARCHY
Corporate identity/endorsement
Brand extensions
More mixed strategies
13
INTEGRATING THE INTERNATIONAL BRAND PORTFOLIO
Portfolio ofmono brands(Mostly local)
(Akzo Nobel)
Portfolio ofmono brands(Mostly local)
(Akzo Nobel)
Partially integrated structure
(Kleenex)
Partially integrated structure
(Kleenex)
International brand
heirarchy
(Nestlé)
International brand
heirarchy
(Nestlé)
Unintegrated Unintegrated Transition to integration
Transition to integration
Integrated Integrated
14
CUSTODY DRIVERS
Structure of international brand portfolio
Organizational structure
Power of local brands
Management vision
15
ALTERNATIVE CUSTODY STRATEGIES
No international
management strategies
Negotiation between
corporate H.Q. and local
country managers
Brand champions
Corporate guidelines (brand
manuals)
Centralized control
Degree of Centralization
Degree of Centralization
16
CUSTODY ISSUES
EXISTING PRODUCTS
Establishing and Maintaining
Brand Harmonization
NEW PRODUCTS
Monitoring Brand Extensions
Monitoring Line Extensions
ContentContent
ProcessProcess
17
IMPLICATIONS
Role of branding in strengthening firm’s global
image
Importance of establishing international
branding strategy/brand architecture
Appropriate balance of global, regional and
local brands should be determined
Need to assign responsibility for custody of
international brands