Brand Management - Managing Brands Over Geographic Boundaries and Market Segments

Brand
Management
Managing Brands Over Geographic
Boundaries and Market Segments
By
Farooq Hyder Shaikh

Key Concepts
• Understand the rationale for developing a Global
Brand
• Main Advantages and Disadvantages of developing a
standardized Global Marketing Program
• Define the Strategic steps in developing a Global
Brand Positioning
• Unique Characteristics of Brand Building in
Developing Markets
Brand Architecture
• One of the most important issues facing brand managers is
how to revitalize a brand & keep it relevant and up to date
with current trends
• Honest and rigorous dedication is required to build strong
brands
• The brand needs to attract new customers years after
years, so that volumes and revenues can be generated
• At the same time, the brand experience, which include
brand promise, brand delivery, communication, etc., also
needs to be consistent, so that it does not alienate the
existing customers
• For example: Cadbury – has been able to reposition
itself and has successfully attracted new customers and
at the same time been able to retain the existing
customers
Advantages of Global Marketing Programs
• Economies of Scale in Production and Distribution
– Manufacturing efficiencies
– Lower costs driven from higher production volumes and distribution
– Strong experience curve effect exists
• Lower Marketing Costs

– Standardized/Uniform Packaging
– Standardize Advertising, Promotions and other Marketing
Communication Activities
– For example:
– Lorea’l’s Head of Luxury Brand Said “You have to be local and as

strong as the best locals but backed by an international image and
Strategy”
• Power and Scope
– Global Brand communicate Credibility
– Consumer belief stronger on high product quality and convenient to use
– Admired Global brand signal social status and prestige
– For example: Avis Rent a Car - High quality Car Rental
anywhere in the World – “ We Try Harder”
• Consistency in Brand Image

– Common Marketing Platform helps in maintaining consistency of Brand and
Company Image particular more relevant where consumers move often or
media exposure
– For example: Gillete Razors
“Functional Superiority” and “an appreciation of human character and
aspirations”
– American Express communicates the prestige
and utility of its card world wide
• Ability to Leverage Good Ideas Quickly and Efficiently
– Globalization increases sustainability and facilitates continuous
development of core competencies within the organization various
functions like manufacturing, R&D, marketing and sales and
competitive intelligence
– For example: IBM – Web based communication tool to share ideas
– Master Card – shares best practices across the organization
• Uniformity of Marketing Practices

– Simplify coordination and provide greater control of communication
in different countries
– Marketers can focus on refinements across markets and focus more
on its effectiveness
– For example: Master Card - Priceless Campaign
“The best things in life are free. For everything
else, there’s Master Card”
Disadvantages of Global Marketing Programs
• Differences in Consumer Needs, Wants and Usage Pattern
for Products
– Difference in cultural values, economic development etc. lead t customers to
behave differently. Per Capita consumption of Tea/Beverage vary
– Product Strategies that work in one country may not work in other country
continuous development of core competencies within the organization
– For example: Tupperware – Indonesia – 57% of sales from emerging
markets, tailored their product range for different markets as per their need
– I-Phones – Middle East versions does not have face time feature
• Difference in Consumer Responses to Branding Elements

– Linguistic differences can twist or change the meaning of brand name
– Cultural context is the key
• Differences in Consumer Responses to Marketing Mix
Elements
– Consumers in different parts of world feel differently about Marketing
Activities like US consumers are cynical towards advertising whereas
Japanese consumers are more positive towards it
– Advertising Styles also vary in different parts of the world
– Price sensitivity, promotion responsiveness, sponsorship support, and
other marketing activities differ by country and competitive
intelligence
• Difference in Brand and Product Development and the

Competitive Environment
– Products may be at different Product Lifecycles in different countries
– Perceptions and brand positions may also differ across countries
– Competition may also differ
• Differences in Legal Environment
– Constantly changing Legal Restrictions vary from country to country
posing a challenge for marketers to design a Global Ad Campaign
• Commercials must be produced in native country as per the stipulated
laws in Venezuela, Canada and Australia at one time
• Most countries have banned Prescription drug advertisement – Canada,
Pakistan etc.
• Use of children in Commercials were banned Austria
• Comparative advertising in Singapore and
• Product placement on Public Television Channels in Germany
• Difference in Marketing Institutions
– Channels of Distribution, Retail Trade Practices, Media Availability and
Media costs vary significantly from country to country resulting in
difficulty to implement a uniform marketing strategy
– Penetration of Smart Phone, Cable Televisions, Supermarkets etc. may
vary considerably from country to country especially in developing
countries
• Differences in Administrative Procedures
– Practically it might be challenging to achieve the control required to
implement a Standardized Global Marketing Programs
– Local Office may resist as their autonomy is threatened
– Local Manager may suffer from “Not invented here” syndrome and
raise objections unnecessarily that Global Marketing Program misses
some key elements/dimension of local market
– Local Managers may loos motivation

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Brand

Farooq Hyder Shaikh

• Lower Marketing Costs

– Lorea’l’s Head of Luxury Brand Said “You have to be local and as

• Consistency in Brand Image

• Uniformity of Marketing Practices

• Difference in Consumer Responses to Branding Elements

• Difference in Brand and Product Development and the

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