International Marketing Questions about brands January 2007 Question 1 : Degree of transferability Mean Fuchsschwanz 1.14 Dr Oetker 2.36 Baygon 3.79 Daewoo 4.00 Bosch 4.07 Daewoo/Nexia 4.79 Bayer 5.21 Pizza Rustica 5.43 Mars 5.79 Pentium 5.86 Dolmio 5.86 Intel 6.75 Not transferable at all 1 2 3 4 5 6 7 Fully transferable worldwide Question 2 : Degree of transferability Mean Ishikawajima Harima Heavy Industries 1.21 Schimmelpenninck 1.29 Douwe-Egberts 1.79 Teisseire 2.21 Roi des Montagnes 2.43 Procter & Gamble 3.14 Hewlett-Packard 3.29 Müller 3.36 Club Méditerrannée 4.50 Kuoni 5.29 Barilla 6.29 Not transferable at all 1 2 3 4 5 6 7 Fully transferable worldwide Question 3 : Chambourcy (Nestlé) and China • Chambourcy has some difficulties to evoke the category in other contexts than in its original one (Sopad-Nestlé = France); the denotative effect is not transferable enough => difficult to adapt (sound and sense) • => Decision to replace the brand name by Nestlé (category name). Before there was a coexistence of the two names. • Simplification of the marketing strategy by reducing the number of branding levels => focus on category name + (sometimes) product name => reduction of advertising costs. => Less confusing for the customers. • BUT at the beginning, new costs due to new label and new yoghurt cups Q3 (cont’d) : Chambourcy (Nestlé) and China • China does not have an important consumption of dairy products => it makes sense to market these products with one name • If one product has some problems (e.g., listeria), Nestlé as a whole will suffer • Differentiation? Add a Chinese name to the products? • Use the same logo everywhere with a different brand name (cf. Unilever and ice cream)? • Nestlé may be not very easily transferable => choose another corporate name? • Be careful to keep the same packaging in order to recognize the product (to avoid confusion) Q3 (cont’d) : Chambourcy (Nestlé) and China • Quality reputation of Nestlé: Chinese people tend to buy the most famous brands • Be recognizable internationally is a wise method of marketing across countries • Easier entry for new products because of familiarity with Nestlé • Take over a well-known brand in China and use it for this market? But again, Chinese people do not eat much dairy products: there may not be any Chinese well-known brand in this segment.