Managing Brands Over Geographic Boundaries and Market Segmen

1. Global marketing program- Advantages & disadvantages

2. Global brand strategy

3. Standardization vs customization

4. Developing vs developed markets

5. Building global CBBE

Rather the lowering performance, the customer was kept at the center of the process offering a distinct service.

New features for the new target market.

Simplicity, less parts than the razors sold in developed markets.

Designed a new razor to accommodate Indian culture and standards.

Reverse innovation to penetrate price sensitive Indian market.

Simple and cheap “good enough” razors.

“The relationship with its customers is an important channel of information that reflects shoppers’ reactions, desires and demands – its secret to success lies in feedback given from a wide range of people from different cultures and generations.”

http://businesstoday.intoday.in/story/gillette-innovated-improved-its-market-share-in-india/1/204517.html

http://www.nicekicks.com/2012/06/19/controversial-kicks-sneakers-offend-folks/

http://www.complex.com/sneakers/2013/07/greatest-sneaker-controversies/air-bakin

http://www.chicagomag.com/Chicago-Magazine/August-2006/Ban-Wagon/

http://www.medicalnewstoday.com/articles/5753.php

http://zarafashion2013.wix.com/zara

www.wikipedia.com

Thank you for your attention !

Building global CBBE

Building global CBBE

Building global CBBE

10 Commandments of Global Branding:

Understand your customer !

Recall :

A critical success factor for many global brands is : - their manufacturing

- their distribution

- their logistical advantages.

Guide line

McRice Burguer (Asia)

McArabia (Middle East)

McPinto (Costa Rica)

“McDonald’s gets over 90 percent of its raw materials from local suppliers and will even expend

resources to create the necessary inputs if they are not locally available.”

1. Similarities and differences in the global branding

2. No shortcuts

3. Marketing infrastructure

4. Embrace integrated marketing communications

5. Brand partnership

6. Balance in standardization and customization

7. Balance global & local

8. Operable guidelines

9. Global brand equity measurement system

10. Leverage brand elements

Mega Sausage (Japan)

McSpaghetti (The Philippines)

McLobster (Canada)

Building global CBBE

Building global CBBE

Global brand strategy

Global brand strategy

Balance your global and local control !

Global brand strategy

Have an integrated marketing communication and brand partnership !

Global brand strategy

Some brands prefer a centralization, others decentralization and others a combination of both, as almost all the big companies (Coca Cola, Levi’s, P&G,…)

CBBE elements

Advertising campaign in ZARA stores

ZARA case

Ben & Jerry’s ice cream brand made a contest in order to give new names to its ice creams:

- Jhon Lemon

- Agatha Crispie

Brand perception

Sett an operable guideline in order to the regions understand what they do and what they are

Performance

Imagery

Salience

Heineken is selling in more than 170 countries where operates with established local brands.

- Word of mouth

- Competitive advantage: market orientation strategy

- High recognition of the brand

-Differentiating style

- Reasonable prices

- High quality

- Reliable and durable

- Fashionable

- Service effectiveness

- Elegance

- Stylish

- Freshness

- Casual

- Trendy

1st Zara shop in a country:

- In the most representative city

- High population

- Access to a large market

Zara culture : high quality clothes appealing in particular young customers

Well trained managers + competent staff in the stores

Stylish apparel

Constant change in the style of fashion.

Resonance

Judgement

- Well-known Spanish brand

- Innovative clothing for the target market

- Great margin of superiority in the market

- Loyal customers that purchase constantly in all over the world

- Positive on-line customers reviews

Advantages of global marketing programs

Uniformity of marketing practices

Economies of scale in production and distribution

Power & scope

Communicate credibility (services)

Consistency in brand image

Customization vs Standardization

Customization vs Standardization

Lower marketing costs

Leverage good ideas quickly & efficiently

American express

L'Oréal example

"The United nations of beauty"

East European market

African immigrants in Europe

"Dark & lovely"

Asian markets

"Maybelline"

and

Many counterexamples

Harvard Professor Ted Levitt 1983.

Pricing strategy

Product strategy

Big mac price

Customization

Standardization

Customization

Standardization

$1.31

$3.10

$5.21

Promotion strategy

Place strategy

Customization

Standardization

Customization

Standardization

Australia

Home delivery in India

Japan

Swiss rail system dining car

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Disadvantages of global marketing programs

"The most compelling disadvantage of standardized global marketing programs is that they often ignore fundamental differences of various kinds across countries and cultures." - Keller

Differences in:

1. Consumer needs, wants, and usage patterns for products

2. Consumer response to marketing mix elements

3. Brand and product development and the competitive environment

4. The legal environment

5. Marketing institutions

6. Administrative procedures

Customer needs

Legal environment

Response to branding elements (cont'd)

Gillette & different markets

Response to branding elements

Response to marketing mix elements

Red Bull example

Nike Air Baking - 1977

Guy Laroche example

Legal restrictions : % of caffeine allowed in drinks

Cultural risk

Air Grill, Air Melt and the Air B-Que

Promotion adaptation

Language Barrier :

United States in means : “okay”

Mediterranean regions : “zero”

Japan : “money”

Tunisia : “I will kill you”

2004 : Red Bull subject to bans in France, Denmark and Norway.

The ban has been lifted in Norway and Denmark.

In UK, Morrisons has banned under-16s from buying energy drinks like Red Bull unless they're with an adult.

Ignoring cultural differences strong reactions of consumers.

French case

The French government was forced to legalize the drink.

Thus the ban was challenged by the European Commission and (partially) upheld by the European Court of Justice in 2004.

Arabian countries

European countries

References

Developed vs Developing market

References

Managing Brands Over Geographic Boundaries and Market Segments

Marie Daccache

Charlotte de Pontville

Tomeu Alcina

Alessandro Battistin