International Advertising.3

Christopher Tugendhat, Vice President of European Commision1981-1985

Told about

Multinational enterprise

Factors that influence in the development of multinational industrial.

Forming of mass market.Improvement of transportation

system and technologyGrowth of protection policy.

Strategic Alliances / Strategic Partnership

1. To get more competitive advantages with efficient risk and cost.

2. To get economic scale and business partner in same area of business.

Strategic Alliances / Strategic Alliances / Strategic Strategic PartnershipPartnership

3. Sharing cost to get effective and efficient proces of business.

4. To break up culture obstacles

5. Extend reach of distribution.

How multinational industri develop global brand

Develop the perception of global brand.

Understand global consumer.

Develop strategic communication.

Perception of Global Brands

BrandBrand Country of originCountry of origin RankRankHoldenAudiRenaultAlfa RomeoFerrariGellyRoverTataProtonVolvoCitroen

Important Perception Factors in Choice of Car

JapanJapan USAUSA EuropeEurope

Personal Comfortable Self expression

Comfortable Personal

Drving sensation Self expression Comfortable

Quality Driving sensation Value for money

Sporty Innovative Driving sensation

Self expression Sporty Innovative

Quality

Key strategy Select target audience and

positioning theme Set specific campaign objectives

(strategic and operational) Determine the promotional

budget Develop the message strategy Decide on the media strategy Monitor and assess campaign

effectiveness

Global Branding StrategiesAbility to dominate marketsRetailer power.World markets.Economies of scale.Exploitation of great ideas.The nature of corporate management.Investment

The most expensive brands in the world(dalam juta US$)

Marlboro 31.0Coca-Cola 24.4Budweiser 10.2Pepsi-Cola 9.6Nescafé 8.5Kellogg’s 8.3Camel 4.4

Developing global brands1. Expand established brands and

develop a national strategy into global strategy

2. Create a new brands.

3. Purchase local brands and internationalize them.

4. Globalize by developing extensions

5. Employ a multi-local strategy

Global Advertising Continuum

Adapted Standardized

Standardized AdvertisingAssumption: Consumers everywhere

share the same wants and needsMaintaining consistent imageReducing confusion among world travelersImplementing single-coordinated campaign

across countriesReducing development, media, and other

costs

Adapted Advertising

Assumption: Insurmountable cultural, economic, infrastructural, and political differences across countriesIncreasing effectiveness by tailoring ads to

local conditionsGiving more freedom to subsidiaries

AssignmentHow we face Indonesian market, which what strategy will you use.