branding in international markets

8/18/2019 Branding in International Markets

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Gautam Dutta

Product strategy For International markets

: Branding Issues


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Nestle’s Branding Tree


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Branding Issues : International Marketing

Global marketing to multi domesticmarketing.

Impact on branding strategy:

Managers Dilemma:

Develop international brand?

Develop local brand? Kill local brand?


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Local brand : brand that exist in one country or in alimited geographical area. Such brand may belong to local, international or global firm.

International brand: brand that have globalize element of

marketing strategy. hat use the same marketingstrategy and mix in all target market

Attributes of a global brand!"ominates the domestic market

!#eets a universal consumer need!"emonstrate s balanced country$market coverage!%eflects a consistent positioning &orld&ide!'enefits from positive country of origin effect

!(ocus is on the product category


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Global brand advantages Standardized brand can generate significant

cost reduction in all areas of businesssystem )%*", any manufacturing,

logistics, packaging, communication,costs+

"evelopment of uniue brand image acrosscountries.

Speed to market ne& product get enhanced'uild case for handsome funding support


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Local brand advantage

'etter response to local need

(lexibility of pricing strategy

-ossibility of responding to local or internationalcompetition

-ossibility of balancing a port folio of brands

-ossibility of responding to need not covered by

international brand

-ossibility of fast entry in to ne& market


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o! t"is debate can be ans!ered ? #ocal

brand or global brand oung * %ubicam &orld &ide brand data base and

study of /00 brands )local 12/ and global 10/ +,based on intervie& of 2/12 people of 3uropeancountries reveals:

A!areness level of local brand is significantl$"ig"er t"an international brand

Image of trust is significantl$ "ig"er in localbrands

#ocal brands are perceived to be more do!n toeart"

#ocal brands are more traditional

%erception of prestige for international brand isnot significantl$ "ig"

Attraction is more for international brand butpreference for local brand !"ile purc"ase

Trust and no frill is t"e ke$ t"at builds t"e image

for local brand


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;6%-6%43: -hillips, 'enetton Shell, 4pple, 9ike

(4#IL: )


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Global

8. ;orporate brands

=. (amily$ 9ivea, pedigree

1. -roduct ? ;amay, -entene

%egional

8. 5alls ?


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4 (rame&ork to examine


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he greater the size of the host market, thehigher the likelihood of a brand@s launch ina market.

he greater the psychic distance bet&eenthe host market and the home market, thelo&er the likelihood of a brand@s launch in amarket.

he larger the size of the host market, the&eaker the effect of psychic distance on thelikelihood of a brand@s launch in a market.


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-ast market launch efforts have effecton the likelihood of a brand@slaunch ina market.

Global geographic scope has apositive effect on the likelihood of abrand@s launch in a market.

>ost$market presence has a positiveeffect on the likelihood of a brand@slaunch in a market.


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branding in international markets

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