Managing Brands in
Global Markets
Product Component Model
SUPPORT SERVICES
COMPONENT
PACKAGING
COMPONENT
Repair and
maintenance Trademark




Installation
Instructions
 Brand
name



Other related
services
Legal

Product platform
Deliveries
Price


Quality
Warranty
Design features
Functional features



CORE
COMPONENT

Package

Legal

Spare parts
Styling

Legal
What is a brand?
 A name,
term, sign, symbol, or design, or
combination of them which is intended to
identify the goods and services of one
seller or group of sellers and to
differentiate them from those of
competitors (Kotler, 1991)
Brand Strategies
Global Brands
National Brands
Global/National Brand Mix
Private Brands
Global v. Local Brands

Global brands provide:
– Scale economies in the
Development of
advertising, packaging,
promotion, etc.
– Exploitation of:
Media overlap
 Exposure to customers who
travel

– Associations
of a global presence
 of the “home” country


Local brands provide:
– Names, symbols, and
associations that can be:
Developed locally
 Tailored to local market
 Selected without the constraints
of a global brand

– Reduced risk from “Buy
Local” sentiments
Brand Name Decisions

Arbitrary or invented word

Recognizable English (or foreign language) word but
unrelated to product
(Cheer)

Recognizable English (or foreign language) but suggestive
of product
(Mr. Clean)
English (or foreign language) word descriptive of product
but may not be understandable to outsiders (Pampers)

(Lexus)

Geographic place or common surname
Fried Chicken)
(Kentucky

Device, design, number or some other element (3M)
Global v. Local branding
 In
1989, Mars changed the name of Kal
Kan cat food to Whiskas.
 Why?
– Sharing of ideas in global corporation
– Pet owners travel and might switch if their
familiar brand was not available somewhere.
– Two years earlier, Mars had created to other
global brands
Kan dog food  Pedigree in U.S.
 Mealtime dry dog food  Pedigree Mealtime
 Kal
– High market share in U.S.
– Brand associations
What is brand equity?
 A set
of brand assets linked to a brand, its
name and symbol, that add to or subtract
from the value provided by a product or
service to a firm and/or to that firm’s
customers.
Components of Brand Knowledge

Brand Awareness
– Recognition
– Recall

Brand Image
–
–
–
–
Type
Strength
Favorability
Uniqueness
of Brand Associations
Hyundai and Kia
Hyundai Motor Co. and subsidiary Kia Motors
Corp. unveiled their global brand slogans last
week.
 Hyundai has adopted the slogan" Drive your
way," meant to reflect Hyundai's "refined and
confident" brand attributes.
 American officials for both automakers are trying
to decipher what impact the global slogans will
have.
 Marketing analysts expressed concern that the
global brand concepts are vague and too focused
on what the brands mean in South Korea. (Jan
2005)

Philips – “Sense and Sensibility”

Philips is already using the Sense and Simplicity strategy in a
brand campaign designed to be more vocal about who they
are and the value they deliver.

Since the beginning of the campaign in September 2004,
Philips' awareness in the U.S. among its target demographic,
which is professionals aged 35 to 54, has increased almost 50
percent on an unaided basis.

Philips’ Sense and Simplicity directive challenges its teams to
develop and market products using meaningful applications
that are intuitively easy for customers to use.
How Foreigners View US Brands





American Express, AOL, Starbucks, American Airlines,
Marlboro, and McDonald's are seen as arrogant and "very
American."
But Visa, Calvin Klein, Kleenex, and Kodak are viewed
as trustworthy and likeable.
50% of overseas consumers distrust U.S. companies, and
68% say they formed a negative view due to the Iraq war.
Brands with "America" in their names are targets for
scorn
Others are seen as exporting the worst of the U.S. -- a
fast-food culture -- franchise by franchise.
Source: Global Market Insite