INTERNATIONAL MARKETING
MANAGEMENT
SESSION 15:
BUILDING AN INTERNATIONAL
BRAND ARCHITECTURE
1
THE ROLE OF INTERNATIONAL BRANDING

Increased attention to brand-building
- visibility
- channel power
- cost economies

Strong brands as a valuable asset in
international markets

Branding as a central component in
international marketing strategy
2
KEY DRIVERS OF BRAND ARCHITECTURE

Internationalization of markets

Industry consolidation

Increasing power of brands

Rising media costs
3
WHAT IS AN INTERNATIONAL BRAND?

Brands available in multiple countries
Global brands (Coca-Cola, Disney, Kit
Kat)
-
-
Regional brands (Good Humor, Ariel)
Multi-country brands (Marmite, Walls,
Algida)
-
-
Same brand name, different
positioning (Mars)
4
WHAT IS A GLOBAL BRAND?

Geographic reach

Uniform positioning and image
worldwide

Perceived by consumers as global
5
SOME EXAMPLES OF GLOBAL BRANDS
Coca-Cola
McDonald’s
Nike
Shell
6
ADVANTAGES OF INTERNATIONAL BRANDS

Strong customer recognition/reassurance

Economies of scale and scope

Leverages power with retailers

Consolidates efforts across countries

Potential for extension
7
DRIVERS OF A FIRM’S BRANDING STRATEGIES

Geographic extension of ‘power’ brands
- e.g. Mars, Coca-Cola

Acquisition of local (national) companies and brands
- e.g. Best

Integration of country-centered organizations
- e.g. Unilever, Nestlé

Growth of brand alliances (co-branding)
- e.g. Cereal Partners, Snack Ventures
8
A TYPOLOGY OF BRANDS

Corporate brand names
- e.g. Shell, Kellogg’s, Philips, Heinz

Product brands
- e.g. Tide, Marmite
9
A TYPOLOGY OF BRANDS…CONTINUED

House/family brands
- e.g. Good Humor, Pedigree, Nivea,
Goya
10
BRAND HIERARCHIES
Corporate brands (Shell, Philips)
Corporate-dominant
House brands (Walls)
Dual brands (Philips, Whirlpool)
Mixed
Endorsed by corporate brand (Nestle,
Cadbury)
Mono-brands (Tide, Pampers)
Brand-dominant
Brand extensions
11
PRESSURES FROM BOTH ENDS OF HEIRARCHY

Corporate identity/endorsement

Brand extensions
More mixed strategies
12
INTEGRATING THE INTERNATIONAL BRAND PORTFOLIO
Portfolio of
mono brands
(Mostly local)
Partially
integrated
structure
International
brand
heirarchy
(Akzo Nobel)
(Kleenex)
(Nestlé)
Unintegrated
Transition to
integration
Integrated
13
CUSTODY DRIVERS

Structure of international brand portfolio

Organizational structure

Power of local brands

Management vision
14
ALTERNATIVE CUSTODY STRATEGIES

No international
management strategies

Negotiation between
corporate H.Q. and local
country managers

Brand champions

Corporate guidelines (brand
manuals)

Centralized control
Degree of
Centralization
15
CUSTODY ISSUES
EXISTING PRODUCTS

Establishing and Maintaining
Brand Harmonization
Content
NEW PRODUCTS

Monitoring Brand Extensions

Monitoring Line Extensions
Process
16
IMPLICATIONS

Role of branding in strengthening firm’s global
image

Importance of establishing international
branding strategy/brand architecture

Appropriate balance of global, regional and
local brands should be determined

Need to assign responsibility for custody of
international brands
17