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