standardization powerpoint
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International Brand-Name
Standardization/Adaptation
What’s in a name?
Name 5 brands that summarize you or your personality.
Movies, music, people, sport, product, service, country
5 Brands
Branding
Brand name valuable asset to firm
__% of products success or failure based on brand name
Philip Morris invested over $18 billion to acquire Kraft and General Foods
4 times the value of actual assets
http://www.youtube.com/watch?v=du51uVOP86s&feature=related
Study
1. Propose framework w/ events and consequences of international brand-name standardization/adaptation
2. Develop hypothesis of this relationship
3. Test hypothesis using survey method
4. Discuss
Structure-Conduct-Performance (SCP)
ModelUsed to explain how market structure influences firms’ marketing strategies.
Market performance depends on market conduct which depends on market structure
Environmental Factors
Brand-NameStrategy
Market Structure
Cost Savings
Sales Volume
PerformanceConductStructure
H1
H2
H3
H4
Events and Consequences of Brand Name Strategy
Environmental FactorsReligion
Language
Education
Technology
Economy
H1: The greater the differences between home and host country environmental factors, the less standardized is the brand name.
Market Structure
Intensity of consumers
Intensity of buyers
Intensity of distribution
H2: The greater the intensity of market structure factors, the less standardized is the brand name.
Cost Savings
Standard product for several international markets = cost savings for economies of scale
Product specialization and modifications increase costs.
Standardization done for cost savings. Reduces Ads, inventory costs, promotions
H3: The less standardized the brand name, the less are the costs savings of the brand.
Sales Volume
1. Standardization viewed more negative than adapted brands because of competition and buyers attitudes
2. Total revenue increase with standardization because locals have more positive attitude towards global brands and foreigner travelers recognize product.
H4:The less standardized the brand name, the greater is the sales volume for the brand.
Study Procedures
Survey method
680 U.S. corporate marketing executives with variety of products
Results
___% used same name
___% used different name
Supported or not?
H1: Environmental factors
H2: Market structure
H3: Cost savings
H4: Sales volume
H1: NO
H2: YES
H3: YES
H4: NO