Contemporary success factors in
international branding
Today‘s learning objective and agenda
Today you will…
Contemporary success factors in international branding
▪ … understand the basic concept of a global
brand
1 | Brand concept and application in
international context
▪ … get first idea of global developments
impacting the positioning of brands
2 | Challenges for global brands
▪ … derive possible actions companies apply to
master arising challenges
Contemporary success factors in international branding
3 | Success factors in international branding
4 | Key takeaways and discussion
2
1 | Brand concept and application in international context
A brand is a bundle of benefits of a product or service with sustainable
differentiation potential
Evolution of brand concept over time
Sign
Enables identification of
products and services
Subjective image
Focus on advertising to create
unique symbolic brand images
Bundle of benefits
Bundle of benefits with sustainable
differentiation potential
▪
Definition underlines real value (i.e.,
benefits) instead of illusionary images
▪
Bundle consists of:
- Functional benefits (e.g., technology)
- Symbolic benefits (e.g., status)
▪
Consumer perspective
- Brands give orientation
- Brands minimize risk
- Brands add (symbolic) value
Source: Burmann/Meffert (2005)
Contemporary success factors in international branding
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1 | Brand concept and application in international context
Branding strategy depends on a company’s international business strategy
Examples for international business strategies
Local responsiveness
Low
High
Global strategy
Transnational strategy
One global brand with
worldwide recognition
High
Global
integration
International strategy
Low
Multidomestic strategy
Multiple brands adapted to
regional or local markets
Source: Holtbrügge/Welge (2015)
Contemporary success factors in international branding
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2 | Challenges for global brands
Marketers face multiple challenges when developing a global brand strategy
Selected challenges impacting global brand strategies
Market shift from “Western markets”
to developing countries in Asia, South
America and Africa
Rise of local and regional brands
Increased sustainability requirements
from regulators and consumers
Better educated and informed consumers
which are more skeptical and more willing
to experiment
Global brand
strategy
…
Digitalization of consumer journey
and distribution channels
More aggressive competition with
rapid product launches of higher
quality me-too products
Source: Czinkota/Ronkainen/Cui (2022), Doole/Lowe/Kenyon (2022), Minsky/Geva (2019)
Contemporary success factors in international branding
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3 | Success factors in international branding
Top global brands coming from different industries
Top 10 of best global brands 2021; brand value in USD bn
408
249
210
197
75
57
54
51
46
44
Source: Interbrand (2022)
Contemporary success factors in international branding
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3 | Success factors in international branding
Multiple success factors to be considered in global branding efforts
Satisfy the basics: Provide relevant and engaging products and services
Chose right branding : Select branding strategy which best suits to product portfolio
Be globally local: Develop global approach that increases growth and profit while maintaining local appeal
Be consistent and flexible: Ensure consistency in delivery of communication and customer service
while ensuring certain degree of flexibility
Engage in social media: Use latest communication channels with consumers
Show sustainability effort: Show that sustainability is high on the agenda
Manage risks: Ensure that comprehensive risk management systems are in place
Source: Czinkota/Ronkainen/Cui (2022), Doole/Lowe/Kenyon (2022), Minsky/Geva (2019)
Contemporary success factors in international branding
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3 | Success factors in international branding
Be globally local: Develop global approach that increases growth and profit
while maintaining local appeal
▪
Marketers should communicate global
brand since benefits from consumer
perspective and build efficiencies on
global scale around “back office” activities
▪
But: Consumers find it more and more
difficult to relate to generic standardized
products
▪
Firms have to adopted “glocal” strategies
with customized product features, selling
and marketing to local tastes
▪
Level of glocalization depends on type of
product or service (e.g., tech product more
globalized, FMCG more localized)
Source: Czinkota/Ronkainen/Cui (2022), Minsky/Geva (2019)
Contemporary success factors in international branding
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3 | Success factors in international branding
Engage in social media: Use latest communication channels with
consumers
▪
Use social media channels to increase
loyalty of existing customers and gain
attention of potential new customers
▪
Actively participate with innovative
concepts on a variety of platforms
▪
Balance global and local content
maintaining recognizable presence (e.g.,
brand position) while customizing
marketing efforts to maintain relevance
for local markets (e.g., language,
cultural preferences)
▪
Influencer endorsements help building
brand value (e.g., micro influencer,
celebrities, tech experts)
Source: Czinkota/Ronkainen/Cui (2022), Doole/Lowe/Kenyon (2022)
Contemporary success factors in international branding
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3 | Success factors in international branding
Show sustainability effort: Show that sustainability is high on the agenda
▪
Sustainability credentials are high on
agenda for consumers as well as for
regulators
▪
Consumer behavior towards more
sustainable products, which prompted
brands to become more transparent in
their sustainability efforts
▪
Global brands need to endorse the
concept of ESG and show their
commitment to sustainability
▪
Top global brands show intensified
efforts to support sustainable
development goals (SDGs)
Source: Czinkota/Ronkainen/Cui (2022), Doole/Lowe/Kenyon (2022)
Contemporary success factors in international branding
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4 | Key takeaways and discussion
Summary, outlook and discussion
Summary
Outlook
▪ Brand strategy depends on a
company’s international business
strategy and faces multiple challenges
▪ Top global brands consider multiple
success factors in their brand strategy
▪ Adaption of brands to different
markets in the context of
multidomestic strategies offer further
potential especially in fast-moving
consumer goods (e.g., Nestlé)
▪ These include, among others, a “glocal
approach”, the use of social media
channels and sustainability efforts
▪ Development of global products with
local appeal as complementary
element to brand strategy
Contemporary success factors in international branding
Discussion
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