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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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