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Critically evaluate the importance of emphasis on ‘country of origin’ in the brand strategy of brands from developed economies attempting to penetrate an emerging market/s

Critically evaluate the importance of emphasis on ‘country of origin’ in the brand strategy of brands from developed economies attempting to penetrate an emerging market/s

sam adkins

on 27 April 2010

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Transcript of Critically evaluate the importance of emphasis on ‘country of origin’ in the brand strategy of brands from developed economies attempting to penetrate an emerging market/s

Double click anywhere & add an idea Group Members Ahmed Jaafri - British Pakistani
Annabelle Lewis - England
Farid Kazimov - Azerbaijan
Sam Adkins - England
Trung Nguyen - Vietnam Countries of origins
England -
Until the 1950's anything produced in the uk was considred as superior quality.
With the downfall of the british empire the brand perceptions were affected.
Biggest companies include vodafone, BP and Tesco's. Top 25 in world. Emerging markets of various sizes
Developing economies are countries that are becoming richer moving from closed to open economies
Seen as emerging markets
BP has been in Azerbaijan since 1992 and is the largest foreign investor in the country. this is an example of a western company going into an emerging market. BP operates two production-sharing agreements (PSAs) – Azeri-Chirag-Gunashli (ACG) and Shah Deniz (SD) – and holds other exploration activity in the area
Emerging markets are nations with social or business activity in the process of rapid growth. There are currently 28 emerging markets in the world including Brazil, South Africa and Mexico; however India and China are regarded to be by far the largest.

Going into emerging markets. Brand Strategy
Introduction Summary / Conclusion
BP is a distinctive, global company with an unshakable commitment to human progress. We serve approximately 14 million customers, providing products they need every day. Our products provide the freedom to move, to heat, to innovate. We believe this freedom is inseparable from the responsibility to produce and consume energy in ways that respect both human rights and the natural environment. Every day ~ 90,000 employees combine their energy and innovation to build the BP brand.
Superior marketing capability is essential to BP’s current and future success and enables the company’s strategy to sustain profitable organic growth. Our marketing strategy keeps us at the forefront of current and new markets and maintains BP’s position as one of the world’s most successful companies. Effective marketing leads to better innovation, closer customer relationships and increased value for all stakeholders
Effective Brand strategy can give a major edge in increasingly competitive markets.
Its a vital step in creating the companies identity.

Country of origin often abbreviated to COO refers to the country of manufacture, production or growth, in other terms where the product comes from.

Many factors – brand image, brand personality, brand associations, communication messages – influence the perception of customers about the quality of a brand. The very reason a company indulges in branding is to assist customers in making purchase decisions by providing cues on quality, credibility and value about a product. One such factor that influences perceptions towards brands is the place where it is made. Such effect is referred to as country of origin.
Coo and branding strategy
brand associated with 'Made in ' label
When entering a new foreign market they need to be aware of the cultral differences.
Azerbaihan, Pakistan, Vietnam all have major cultural differences. Businesses have to change accordingly to fit into a new market.
Unilever in Pakistan have differentiated their products in both markets called multi domestic marketing.
unilever also has differing product names as in hellmans mayonnaise is a western title and it is called best foods in eastern countries. Unilever

A clear direction
The four pillars of our vision set out the long term direction for the company – where we want to go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference for the world.

We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of people’s lives and in doing the right thing. As our business grows, so do our responsibilities. We recognise that global challenges such as climate change concern us all. Considering the wider impact of our actions is embedded in our values and is a fundamental part of who we are.
Global strategy
Companies expanding so much in todays market
A strategy is not now restricted to just one place
both prior examples of unilever an bp both english companies dont mention the fact they are english but talk about global aspects
Global markets are international markets where products are largely standardised.
Michael Porter argued that industries are either multi-domestic or global.

•The classical industrial revolution
•Cars were derided as noisy, dirty, unreliable foreign toys
•C.H.Rolls and F.H.Royce – founders of Rolls-Royce
•This is not A Silver Ghost Rolls-Royce, this is THE Silver Ghost Rolls-Royce
•Product Quality Dimensions
•Factors influencing customers price decision
•The segmenting strategy
•Rolls-Royce sales and exports

Brand Strategy
Emerging economies have many countries, cultures, business practises and customer segments.
More complex markets in the US and Europe.
Still developing economies, western brands looked up to.

Petroleum companies
Not big in asian market.
Mostly state owned.
Exploit natural resources. Azerbaijan -
Not one of biggest developing countries
Oil in 2007 was 52.7% of GDP
BP have 30 year oil contract.
BP top ten british brand
Logo is a helios, example of global advertising.
Does not link it to the countries that it sources from eg Azerbaijan. Marketed as global and not british
Promotes change in the world
not specific to its comitments Question - Critically evaluate the importance of emphasis on ‘country of origin’ in the brand strategy of brands from developed economies attempting to penetrate an emerging market/s Today’s market is a global one in which the emerging economies look towards the leading companies in the world to try and copycat their success. We believe that the country of origin is very important when entering a new market we feel in today’s economic climate that companies are in a way disguising their original country in order to create a global brand rather than country specific branding. When looking at country of origin itself it relates to consumer perceptions to that individual company but if a company develops a brand strategy such as BP and Unilever which we have looked at it means it is not so much specific but based on the product itself.
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