Global Branding vs Local Branding

Same marketing strategy and mix

in all of the international markets.

Customize the marketing strategy and

mix elements

to each international target market

• Turkey’s first fashion brand that become global
• Leading jeans brand in Turkey for 17 years
• 4000 specialty stores, in 50 countries including the US, Canada, Australia, Germany, Netherlands and Russia.
• target market is who expect a lifestyle and quality from a jean

OUTLINE

Standardized Global Marketing

Adapted Global Marketing

5 Global Strategy about Product and Communication Strategy

Marketing Mix

Examples from Turkey

Mavi Head Offices

Mavi Türkiye / İstanbul

Mavi Amerika / New York

Mavi Kanada / Vancouver

Mavi Avrupa / Frankfurt

Mavi Avustralya / Sidney

Mavi Rusya / Moskova

Mavi The Netherlands / Amsterdam

Mavi Showrooms

Türkiye / İstanbul

Amerika / New York, Los Angeles

Kanada / Vancouver, Montreal, Toronto

Almanya / Frankfurt, Münih, Düsseldorf, Hamburg, Berlin, Stuttgart

Avusturya / Salzburg

Danimarka / Kopenhag

Avustralya / Sidney

Hollanda / Amsterdam

İsviçre / Zürih

Çek Cumhuriyeti / Prag

Belçika / Brüksel

Rusya / Moskova

from http://blogs.zappos.com/taxonomy/term/23417

From http://www.mavi.com/service/denimkitchen

The first and alone state funded brand training program

Think Globally, Act Locally

“Engage with consumers in a way that feels local to them.”

“We’re trying to strike a balance between being mindlessly global and hopelessly local.”

Simon Clift

Head of marketing for global consumer-goods giant Unilever

Standardized global marketing

Global brands from Turkey

• As known “Dünya Markası” in Turkey
• First launch of white durable goods in international markets.
• Over 100 countries
• UK's leading home appliance brand

Adapted global marketing

Beko EcoSmart

Turkey-Turkish

Beko Ecosmart

Belgium_Dutch

Ooo bekoo

BEKO Mother's Day

No day can be this special.

BEKO - Anneler Günü

Hiçbir Gün Bu Kadar Özel Olamaz

References

Adapting a product

to meet local conditions

or wants in foreign markets.

(Nokia for every major market)

Product invention

Creating new products or services

for foreign markets.

(Ford-India , Starbucks- Turkish coffee)

When Standardization is preferred

Problems about standardization

•high costs of adaptation

•high tech products

•convergence and similar taste in diverse country markets

•marketing to predominantly similar countries

•centralized management

•scale of economies in production,

•meeting competition when competitors produce standardized products

•consumer mobility

•positive home country image (country of origin) effect exists

• difficult to implement

an unsuccessful standardized strategy could lead to catastrophic results for the company.

• cultural differences,
• legal differences,
• language and
• communication problems,
• geography, parallel imports, and
• hedging.

Where Adaptation is advantageous;

Consumers in different countries still have widely varied cultural backgrounds

•differences in technical standards

•primarily consumer and personal use products

•variations in consumer needs

•variations in conditions of use

•variations in ability to buy, differences in income levels

•variations in technical sophistication, skill levels of users

•strong cultural differences

•use by competitors.

different needs and wants

Belch, G.E. & Belch M.A. (2009). Advertising and Promotion: An Integrated Marketing Communications Perspective (8th Ed). NY: McGraw-Hill (PP.664-672)

Çetinkaya, Z. (2008). The Evaluatıon Of Glocalızatıon Examples Of Two Cases : Mcdonald’s Mcturco & Starbucks Turkısh Coffee. Unpublished master’s thesis, Yeditepe University.

Kotler, P., & Armstrong, G. (2012). Principles of Marketing (14th ed.). NJ: Pearson Prentice Hall (pp.665-573)

Turquality official website. Retrieved November,17,2013 from http://www.turquality.com/5.aspx

Yip, G.S., 1989, “Global Strategy In a World of Nations?”, Sloan Management Review,29: pp 29-41.

www.mavi.com

www.beko.com

spending power

Advantages of Global Marketing

product preferences

shopping patterns

Economies of Scale

Abilities to exploit good ideas on a worldwide basis.

Simple coordination and control of marketing and promotional program.

Quickly product introduction into various world markets

International brand/company image

Dual Adaptation

Straight product extension

fully adapting

both of their advertising

messages and products.

(McTurco)

Marketing a product in a foreign market

without any change.

(I-Pad, Gillette razors)

Five Global Product

and

Communications Strategies

Communication adaptation

(Kotler & Armstrong,2001)

Product adaptation

Fully adapting advertising messages to local markets.

(Loreal)

standardize

or

adapt?

Adapting a product

to meet local conditions

or wants in foreign markets.

(Nokia for every major market)

Product Invention

Creating new products or services

for foreign markets.

(Ford-India,

Starbucks- Turkish coffee)

PRICE

PRODUCT

NEITHER GLOBAL NOR LOCAL:

GLOCALIZATION

Target Market

Packaging

not too high for poor countries,

not too low for reach ones.

I-Pad:

$600 in US+transportation, tariffs,

importer margin, wholesaler margin

and retailer margin =$750 in UK

Changes in Economic Climate

Actions of Competitors

MARKETING MIX

Interactions between local influences, actors and global forces

(Carpano & Chrisman, 1995).

PROMOTION

DISTRIBUTION

Death

Large scale retail chains

vs

small shops

Language

Cultural differences

Colors

Media

• Limited tv advertisements
• Magazines

Sickness

Mourning

Global Branding versus Local Branding