You are on page 1of 98



Globalization has been the battle cry of the last decennium of the 20th century. This phenomenon is not new or unique to this period. The process has only been given an added impetus by the political, technological and economic developments that have been unique to the last ten years of the century. The demise of communism, the liberalization of trade are only few of the driving forces of this latest round of intensified globalization. The effect that this globalization has had on brands has been spectacular. New brands are seemingly born global, or at the very least e perience a quic! rollout from home or lead countries into other mar!ets. "any traditionally local brands are sold, fazed#out or face transition to a new regional or global brand name and subsequent harmonization. $rand portfolios, which have been built#up through decennia of acquisitions, are rationalized in order to focus attention and resources on a limited number of strategic brands. %ong established brands have enhanced their dominant positions across the globe, threatening less mar!eting#savvy local brands, but also encountering stern opposition from local brands that find ways to fight bac!. &ome of the global brands manage to become local institutions by filling a local role in the societies where they operate, while others dominate their category as global monoliths. 'ebates have also flared over the supposed supremacy of global brands and the inadequacy of (multi#) local brands. This paper argues that this viewpoint is incorrect and that the each individual global or international brand has specific opportunities and limitations when it comes to standardization or localization. *nly a thorough understanding of a variety of factors that influence brands in their global and local conte ts helps determine the best course for them.


$rand strategy is aimed at influencing people,s perception of a brand in such a way that they are persuaded to act in a certain manner, e.g. buy and use the products and services offered by the brand, purchase these at higher price points, donate to a cause. - global brand needs to provide relevant meaning and e perience to people across multiple societies. To do so, the brand strategy needs to be devised. "c'onald.s, "icrosoft, Ni!e, &tarbuc!s, /oca#/ola, &ony. There is hardly a corner of the earth where their names are not !nown. They are global brands, yet few people would have any difficulty identifying their countries of origin. There are several corporations with a global presence, but we have yet to see the emergence of the global corporation. $randing is a way to differentiate your company, product or service from competitors, and to provide it with a personality that is both unique and appealing to potential customers. 0t is a multifaceted, multilayered process and discipline. 0ts beneficial for

smaller companies to have well#focused and consistent attention to branding, and to creating favorable, memorable positioning of their product1service in the minds of prospects and customers is the most effective way to compete, to rise above the static and become a factor in the competitive arena in which they,ve chosen to participate. -s we cross into the ne t century, the issues facing brand and identity managers will become increasingly comple . Globalization, industry consolidation and mar!et fragmentation are only a few of the challenges to be addressed. $ut no matter what new obstacles arise, and no matter which new audiences must be reached, success is


impossible without an effective identity management strategy, a strong brand management organization and a wor!able plan for implementing ideas. The last two decades we have seen an ongoing globalization of mar!ets, industries and competition. - still increasing number of firms pursue international mar!et e pansion in order to satisfy global customers and to capture economies of scale in, for e ample, production and advertising. 2irst of all, this leads to an increase in a firm,s country portfolio. "oreover, nowadays products are not longer developed for the domestic mar!et only. -fter the product is launched in the domestic mar!et, sooner or later products will often be introduced in foreign mar!ets. /onsequently, product launch decisions are not longer constrained to one particular mar!et, but involve multiple mar!ets. 3e found that consumers perceive there to be three main types of global brand 4 "aster brands, 5restige brands and Glo/al brands, with two additional groupings of importance.


Definitions of “brand”
Descartes said: “Refine the meaning of words, and you would sa e humanity from most of its delusions!" 5hysical 7words8 are refined so meticulously that any physicist will give you identical definitions of 7voltage,8 7force,8 or 7neutron capture cross# section.8 ("ar!eters will give hundreds of definitions of 7mar!eting.8)

Now, let,s e pose our 5hys to the definition of 7brand89 7- name, term, design, symbol, or any other feature that identifies one seller,s good or service as distinct from those of other sellers.8 5hys,ll be stunned 4 the definition does not stand the easiest test9 suppose we give our cow some name, say, /leopatra. 0t perfectly identifies her as distinct from cows of other sellers, thus meeting the definition. 0s our darling /leopatra a brand: 0f "ercedes tomorrow becomes 'olores, will it stop to be a brand: *r, if 5entium were dubbed 0ntellect or 5ro/hip, will it sell less:

5hys,ll find that while many serious branding te#ts de facto ignore the dated definition, regarding names and symbols simply as identifiers, many companies are na;ve enough to believe (courtesy that definition) that branding is <ust about naming and designing. That,ll give 5hys a clue to why most of new introductions fail in the mar!et.


$uture of %rands
3hile mar!eters of brands clearly face ma<or challenges on the three core issues4 localization, politicization and the reaction against homogenization 4 the future of these brands appears to be a healthy one. They will need to react creatively to the challenges of wave three branding and some global brands will no doubt fail to ma!e the transition. $ut in a fluid, time#stressed world consumers will respond powerfully to mar!eters who stri!e the right balance between global reach and local feel, between individualized identity and membership of a global tribe. $rand builders everywhere thin! they want global brands. $ut global brand leadership, not global brands, should be the priority. -s more and more companies come to view the entire world as their mar!et, brand builders loo! with envy upon those that appear to have created global brands 4 brands whose positioning, advertising strategy, personality, loo!, and feel are in most respects the same from one country to another. 0t,s easy to understand why. >ven though most global brands are not absolutely identical from one country to another ?isa changes its logo in some countries@ Aeine!en means something different in the Netherlands than it does abroad # companies whose brands have become more global reap some clear benefits. "anagers who stampede blindly toward creating a global brand without considering whether such a move fits well with their company or their mar!ets ris! falling over a cliff. There are several reasons for that.


$irst, economies of scale may prove elusive. 0t is sometimes cheaper and more effective for companies to create ads locally than to import ads and then adapt them for each mar!et. "oreover, cultural differences may ma!e it hard to pull off a global campaign9 even the best agency may have trouble e ecuting it well in all countries. 2inally, the potential cost savings from Cmedia spilloverC 4 in which, for e ample, people in 2rance view German television ads ## have been e aggerated. %anguage barriers and cultural differences have made realizing such benefits difficult for most companies. &econd, forming a successful global brand team can prove difficult. 'eveloping a superior brand strategy for one country is challenging enough@ creating one that can be applied worldwide can be daunting.

&d antages of %randing
The advantages of branding include economies of scale in advertising. The uniform image can appeal to globetrotting consumers. Global $rands are also important in securing access to distribution channels. 0n cases in which shelf space is at a premium, as with food products, a company has to convince retailers to carry its products rather tcyhan those of competitors. Aaving a Global $rand may help persuade them because, from the retailers standpoint, a Global $rand is less li!ely to languish on the shelves


& BRAND is one that has the same name, design, and creati e strategy e erywhere in the world and is mar(eted in most of the ma)or regional mar(et bloc(s! - $rand gives a company a uniform worldwide image that enhances efficiency and cost savings when introducing other products associated with the brand name, but not all companies believe in a single Global approach is the best. 0n addition to companies li!e Eoda!, /oca 4 /ola, /aterpillar and %evi,s that use the same brands worldwide. *ther multinationals such as Nestle, "ars, 5roctor F Gamble, and Gillette + have some brands that are promoted worldwide and others that are country specific. -mong companies that have faced the question of whether or not to ma!e all their brands global, not all have followed the same path. $uilding a brand is inherent in using a standardized product. 0t success depends on a growing convergence of consumers tastes and preferences and coordination of global advertising and promotion. -lso important is the development of communication media with multinational reach, such as the simultaneous transmission around the world of the summer *lympics. 0n such cases, because the same transmission is received around the world, firms benefit if the brands featured in the transmission are familiar to the world audience. - successful brand is the most valuable resource a company has. The brand name encompasses the years of advertising, good will, and quality evaluation. 5roduct e perience, and the other beneficial attributes the mar!et associates with the product. $rand image is at the very core of business identity and strategy. /ustomers everywhere respond to images, myths and metaphors that help them define their personal and national


identities within a global conte t of world culture and product benefits. Global $rands play an important role in that process. The value of Eoda!, &ony, /oca#/ola, "c'onalds, Toyota and "arlboro is indisputable2. *ne estimate of the value of /oca#/ola, the world,s most valuable brand, places it at over H6B billion. 0nfact, one authority speculates that brands are so valuable that companies will soon include a statement 7 statement of value8 addendum to their balance sheets to include intangibles such as the value of their brands. Naturally, companies with such strong bands strive to use those brands globally. >ven for products that must be adapted to local mar!ets conditions, a Global $rand can be successfully used.

Benefits Attributed to Brands
*fficiencies of +cale,%everaging production, distribution and mar!eting
e penditures over a greater number of mar!ets can yield significant economies of scale.

'lobal * ent +-onsorshi-,*nly globally consistent brands bac!ed by strong
mar!eting budgets can truly leverage (and afford) sponsorship of high#impact events such as the *lympics and the 3orld /up.

.e eraged &gency Relationshi-s,2irms awarding global advertising accounts
can gain greater leverage with e ternal agencies by commanding better service and talent.


Res-onsi eness to 'lobal Customers,&tandardized products or services under a
consistent brand improves the ability of firms to meet the needs of global business customers and increasingly sophisticated and information#rich consumers.

*fficiencies in +co-e,Global brands offer unique opportunities for e tending
product or service lines under an established brand across established channel relationships, boosting speed to mar!et and product launch.

/hat0s In a Name?
The name you select should loo! good. /an it readily morph into a wor! of art: Thin! Ni!e and their logo. 'oes it sound good: Thin! in terms of e posure via radio or personal recommendations. Try 0$". %astly, does it translate well into other countries, alphabets and writing systems, such as J!an<i, in Kapan, or into their languages, such as 5epsi /ola, which is considered a luc!y name in /hinese, meaning9 7hundred happy things.8 2amous brands li!e e$ay and -mazon en<oy high levels of customer awareness, and serve as virtual homes#within#the#home for many of us. They attained their huge success by being first at the starting gate and playing important roles in the personal and professional lives of their users.


%uilding a 'reat %rand
Aere,s a si #step process to building a great brand9 +. 2. 6. Target our message ## define our target customer group precisely. "a!e each initial customer contact our absolute best. Give our brand a dynamic personality ## people want to have fun while they e plore. =. /reate an e perience for our customer they won,t forget, for oftentimes customers forget the brand but come bac! for the e perience (thin! &tarbuc!s, big timeM). 2or 7e perience,8 read 7adventure8 ## something that wor!s to gain and sustain interest. - strong brand can boost stoc! value as well as sales. B. 'eliver on our promises time and time again. *ur customers come to us because we offer them a value that no one else can. 'o what we say we are going to do, and more. D. $e our customer,s soul mate ## stay in constant quality contact over the long haul.


1a)or Issues Concerning 'lobal %randing
>veryone is tal!ing about global branding these days, as a follow# up on globalization. 3e need to be careful how we use the word CglobalC. &o often it is used to mean that a company can sell anywhere in the world. $ut that is not what counts9 sales count, and sales only occur when the mar!et is aware of a company.s product or service. There is a world of difference between using the words CglobalC and CinternationalC in a company name and its mar!eting1communication... versus actually developing the mar!ets in other countries, one by one. The only way to spea! about CglobalC and really mean it is on the granular level... country by country

.The Branding Strategies
This ob<ective introduces four general brand strategies and e amines the internal and e ternal factors that influence these strategies for brands. "anagers of global and international brands must understand these issues in order to assess the potential for standardizing their brands across diverse societies, the factors that necessitate specific brand adaptations, and the prospects for competitive advantages. %i!ewise, managers of local brands need to understand the particular strengths and wea!nesses of the strategies of their global competitors and use this !nowledge to devise their competitive responses.

'*N*R&. %R&ND +TR&T*'I*+
$rand strategy is aimed at influencing people,s perception of a brand in such a way that they are persuaded to act in a certain manner, e.g. buy and use the products and services offered by the brand, purchase these at higher price points, donate to a cause. 0n addition, ++

most brand strategies aim to persuade people to buy, use, and donate again by offering them some form of gratifying e perience. -s branding is typically an activity that is underta!en in a competitive environment, the aim is also to persuade people to prefer the brand to competition. - global brand needs to provide relevant meaning and e perience to people across multiple societies. To do so, the brandstrategy needs to be devised that ta!es account of the brandNs own capabilities and competencies, the strategies of competing brands, and the outloo! of consumers (including business decision ma!ers) which has been largely formed by e periences in their respective societies. There are four broad global brand strategy areas that can be em-loyed:2

%rand Domain! $rand domain specialists are e perts in one or more of the brand
domain aspects (products1services, media, distribution, solutions). - brand domain specialist tries to pre#empt or even dictate particular domain developments. This requires an intimate !nowledge, not only of the technologies shaping the brand domain, but also of pertinent consumer behavior and needs. The lifeblood of a brand domain specialist is innovation and creative use of its resources. - brand domain specialist is li!e a cheetah in the &erengeti preying on impala and gazelle. The cheetah is a specialist hunter with superior speed to chase, and the claws and teeth to !ill these animals. The cheetah is also very familiar with the habits of its prey. 0t finds ways of approaching, singling out and capturing its prey. The cheetah is one of the most accomplished of hunters within the wild cat species@ it catches up to G0O of prey that it hunts.

%rand Re-utation. $rand reputation specialists use or develop specific traits of their
brands to support their authenticity, credibility or reliability over and above competitors. +2

- brand reputation specialist needs to have some !ind of history, legacy or mythology. 0t also needs to be able to narrate these in a convincing manner, and be able to live up to the resulting reputation. - brand reputation specialist has to have a very good understanding of which stories will convince consumers that the brand is in some way superior. - brand reputation specialist is li!e a horse. 0t can be purebred, have certain nobility and bearing, and e hibit qualities that can be traced bac! to these (e.g. grace, speed, temperament, loo!s). %i!e a horse, the brand reputation specialist can also thrive on association with celebrities.

%rand &ffinity. $rand affinity specialists bond with consumers based on one or more
of a range of affinity aspects. - brand affinity specialist needs to outperform competition in terms of building relationships with consumers. This means that a brand affinity specialist needs to have a distinct appeal to consumers, be able to communicate with them affectively, and provide an e perience that reinforces the bonding process. - brand affinity specialist is li!e a pet dog. - dog is generally considered to be man,s best friend, due to its affection, its obedience, its loyalty, the status and the protection it provides to its owners. 'ifferent !inds of dogs will command a different form of affection.

%rand Recognition! $rand recognition specialists distinguish themselves from
competition by raising their profiles among consumers. The brand recognition specialist either convinces consumers that it is somehow different from competition, as is the case for niche brands, or rises above the melee by becoming more well# !nown among consumers than competition. The latter is particularly important in categories where brands have few distinguishing features in the minds of consumers. 0n some cases, a brand recognition specialist needs to be able to outspend competition to gain unbeatable +6

levels of awareness. 0n other cases, a brand recognition specialist needs to convince a loyal following of consumers that it is unique. - recognition specialist is li!e a peacoc!. "ost of us will !now little about birds, but we can recognize a peacoc! from.

Ty-e of %randing
There are different strategies global companies can follow with respect of branding. 2irst, there is the choice between different brand types, described below#

+ingle2-roduct brands or 1onobrands# an e clusive name is assigned to only
one product. The brands main purpose is to give added value to the product. > amples are %ion, -fter >ight, 5epsodent, and /lub med. The vast ma<ority of e isting global brands were developed as single product brands that were built to position within national and international boundaries.

Range brands or line %rands2 a group of products is ranged under one name,
under one promise or positioning. The purpose is o give a product a place in a range of other products. -n advantage of range products is that products can share brand awareness and meaning. > amples are &chweppes

(tonic,bitter,lemon,soda,water), $udweiser,"ercedes.

Umbrella %rands or Cor-orate %rands: # different products or brands are
mar!eted under one name. The name can be the company name or an umbrella brand name of a company. The umbrella name can be used as an endorsement to indicate the source9 Nestle name on the pac!age of Nescafe, "aggi, or 'airy crunch means it endorses the quality. G" endorses 5ontiac, $uic!, *ldsmobile, and /hevrolet. > amples


of corporate brands are9 $enetton, "itsubishi, 5hilips, $raun, /anon. > amples of $rand names are9 Nivea, /artier.

+ince the early 34450s there ha e been two main trends in 'lobal %randing +trategies! They are as follows2 1. $rom 1onobrands to *ndorsement %randing - the cost of launching
and developing new brands is so enormous that international companies increasingly choose endorsement strategies or line e tensions.

2. %rand Rationali6ation or Concentric %randing2 changing diverse
multinational portfolios into a limited number of global brands. > amples are the change of the "arathon candy bar into the &nic!ers bar, and Treets and $onitos being replaced by "F"s.

The 7erce-tion of %rands
"any successful $rands have an international image, but this is not a necessity for success. - brand may be sold worldwide and show all the characteristics of a brand, but that does not necessarily ma!e it a brand that is perceived as global by the consumers in all the countries. There are few brands that are perceived as global by the consumer. &uccessful global brands can be perceived as local in certain countries9 for e ample Nivea, a brand of $eiersdorf in Germany. - number of studies have shown that consumers do not care whether brands are domestic or imported, local or global, as long as the brands offer good value for money. 0t may well be that part of the success of a global is its integration into the local culture. 0t is the consumer who ma!es a brand


successful by buying it and being loyal to it. "ost often the need for a brand is in the mind of the producer, not in the mind of the consumer. "ost strong brands, even if they are distributed worldwide, still have a strong national base and a very unequal mar!et position in other countries. "oreover, brands that are now classic e amples of $rands did not become global overnight. &ome brands globalize faster than others. $rands that have become strong $rands are usually very old. /onsumers have good memories, even for brands that have not been advertised for some time. *nce a brand is !nown to consumers, it cannot easily be erased from consumers mind=. -n interesting e ample is the German cigarette brand >rnte 26, which had become very wea! in 3est Germany over the past decades, after the $erlin 3all came down, the brad became very strong in &a ony in former >ast Germany. 5eople remembered the 7good old days8 which were e pected to return after reunification. 5articularly in >urope, many brands have a very unequal status in countries other than their home country, for e ample 'anone is a prominent leader in 2rance, but a challenger in Germany and the Pnited Eingdom.

Understanding the Core 7roblems
Challenge 83: Instilling a 'lobal *thic


3hile their support is crucial to effective e ecution of brand management, local mar!eters commonly react negatively because of9 • - fear of erosion of local autonomyQin particular, a reduced control over the use of the brand in local mar!etsQbut a continued requirement to ma imize local sales. • - lac! of awareness of the brand,s shared characteristics and challenges across mar!ets, and instead a focus on the perceived uniqueness of local mar!ets.

Challenge 89: &ccelerating :nowledge Transfer

'espite the unique opportunities for cross#mar!et !nowledge sharing found in companies that brand globally, few such firms can boast of e cellence in this area because of9 • • %imitations of standard communications systems that restrict idea e change. -n unwillingness among mar!eters to ma!e the time investment needed to share practices. • - lac! of awareness of the value of local mar!eters, practices or the needs of mar!eters in other regions.

Challenge 8;: *nsuring %rand Consistency


%ocal mar!eters frequently adapt a brand,s message, position or even logo, straying from brand standards because of9 • 0nadequate support provided by corporate mar!etersQtypically in the form of static, infle ible, perishable brand guideboo!sQthat grossly under serves local needs. • The perception by local mar!eters of little or no benefit in adhering to centrally created or approved mar!eting materials B.

1&:IN' & %R&ND +UCC*++$U.
'eveloping a brand largely depends on the brand.s ability to e plore fresh avenues and sustain its competitive advantages in terms of economies of scale and productivity. brand is one that is perceived to reflect the same set of values around the world and removes national barriers and linguistic bloc!s while being mar!eted internationally. The basics of brand building apply to global branding strategy also. 2or a brand to become successful, a genuine demand or a psychological need must e ist in the target mar!et. Today, when we loo! at the global mar!et, we need to realize that at the most basic level all human beings share common physiological and safety needs as e plained by -braham "aslow in his Rhierarchy of needs.. 3hat separates one customer in one part of the world from another somewhere else are the comple social, cultural and esteem needs each of them has, depending upon the stage at which the civilization1 nation is in the process of development. -nd despite centuries of technological development, these needs have remained as crucial as ever. -t best they have undergone changes or modifications due to cultural and social processes. +I

The real challenges for a brand manager come when he has to ma!e the consumer aware about the product1service offered using a distinctive pattern, perhaps with a name, logo or colour, so that the strategy enables the customer to correctly identify and choose the brand from a cluttered bas!et. The brand.s strength is not confined to the degree of reconcilability and the quality of the product offering. &trong global brands cater to strong emotional needs. - brand such as Ni!e tal!s about believing in one.s limitlessness, while one such as Sin spea!s about destroying dirt, which is presented as a threat that disrupts the neat orderly world that we live in. +B - strong brand while addressing a fundamental human motivation caters to this

motivation in a distinctive way. 0t is driven by a distinctive brand idea, with the product being seen in the mar!etplace merely as an e pression of the brand idea. The product merely translates the brand idea into a tangible form, with features and styles, which is delivered to the consumer. 2or e ample, the brand idea associated with 'ettol is the complete protection it provides users from dirt and infection. The company has adopted this idea across the globe irrespective of the cultural domain it targets. - successful mar!eting strategy has two options in creating a mar!et presence. 0t can !ill competition by constant communication and advertising or use communication to ma!e customers e perience the brand and discriminate in its favour. - strong global brand creates associations in the consumers. mind to ma!e them see differently by guiding consumers to attach distinct functional and emotional benefits and appropriate meanings and beliefs to the brand. -s a response to this effort, the consumer is willing to pay a premium for these brands only if they represent added value whether as superior quality or a clear emotional benefit.


$rand communication should also communicate and connect to people. The lin!s between $ritannia and health are felt all over the world. This connectivity is the rational <ut &uccessful brands live beyond generations due to this ability to connect. 0t is also not <ust a question of satisfying customers of different countries with varied cultural bac!grounds, but also one of connecting with new generations of consumers with new sets of values, hopes and ambitions. 2or a brand to be successful globally, it has to clic! across the vertical class of generations and horizontal mass of global mar!ets. 0n a global economy, organisations must reach customers in mar!ets far from their home base. &trong brands act as ambassadors when companies enter new mar!ets or offer new products. They also help in rectifying the corporate strategy to define which initiatives fit within the brand concept. 5rofessional services companies such as -ndersen /onsulting re#branded as -ccenture have realised that conveying a sense of trust and shared mission is as important as technical competence in winning multi#million dollar contracts across the globe. 0nformation and the media have made us all global citizens. This presents an organisation with the opportunity to broaden mar!et scope by internationalising product and service mar!eting in order to reap the benefits of economies of scale. /itification for people to overcome the e tra spending required to acquire the brand. "ar!eters manage final demand by positioning global products, brands, and services. company,s international product positioning defines the global differentiations of its products from their ma<or competitors. That is, the central benefits of each product is to be determined independently of the country 4 mar!ets to bee served. *ne of the most basic reasons for ta!ing your firm global is to grow your business. To provide the central


benefit defined in the product or the brand positioning statement to individual customers in various country#mar!ets, adaptation of product features or of processes which result in those features may be needed. Not only are the cultural, legal, and the economic

environments of the served# country mar!ets different, but individual customer e pectations and needs vary continuously depending on given circumstances. &uch differences have made many companies adapt their product positioning to local mar!et characteristics. Nestle, for e ample uses the brand name $olino to offer its instant soups to young 2rench singles as a snac!.+D

<O/ DO =OU 7O+ITION T<* %R&ND+ '.O%&..=>
+T*7 3: D*?*.O7 & '.O%&. 1IND+*T
The first barrier that the firm will face is ma!ing the decision to mar!et the product or the brand globally. The global mindset should consist of the following9 # +. - decision (and commitment) to sell the brands in international mar!ets. 2. - choice of + or 2 product lines that have potential overseas. 6. - choice of 7international championship8 within the company. =. - mental time frame for first sales. B. - mental picture of how you will service the business.

+T*79: D*T*R1IN* /<*T<*R T<* 7RODUCT <&+ & '.O%&. 7OT*NTI&.

<ere there are two -hases of mar(et research2 3! 7reliminary 1ar(et Research: 2
 'etermine which regions and countries have the potential for the brands or the products.  0dentify the local competition#their products, prices and so forth

 'etermine the distribution channels.

 $elow are the following questions while ta!ing the above points in consideration9 # • • • 3hat is the mar!et potential for the products going global:

3hat are the ris! factors:

3ho and where are the customers:

3hat are the competing products:


9! In2De-th 1ar(et Research
Aaving determined that there is a strong possibility that there is significant mar!et demand and potential for the product and services in a country, the ne t step is to conduct in depth research that will provide the following information9 +. /ustomer,s attitudes and preferences. 2. 5ricing studies. 6. -ccurate mar!et sizing data. =. 0dentification of distributors, <oint ventures, strategic alliances and so forth.

+T*7;: +*.*CT T<* '.O%&. &77RO&C<
&elect the high potential mar!ets for the products or the brands. 0dentify the competitors@ develop a sound mar!et entry strategy and establishing profitable operations in these countries. >ssentially there are 2 main approaches9 T

&--roach 3: Ready, &im, +hoot
$ased on the preliminary research, select one country and send a team or personnel to the country to initiate the following effort. • "a!e customers contacts


• •

'evelop distribution channels

&elect representatives

This is a very targeted approach. The advantage of this approach are that on will concentrate ones efforts on one country and that one can use the country as a test mar!et for similar countries in the same region.

&--roach 9: The “+hotgun”
2or this approach identification of an international general within your country and send him or her out to determine the products potential in various countries throughout the world. The advantages of this approach are the following9# • • 0t accelerates globalization effort. 0t enables to gain the perspective of the mar!et opportunity in several countries on a global basis. • 0t ma imizes the resources on a regional basis.

+T*7@: +*.*CT &N INT*RN&TION&. C<&17ION
-fter selecting the approach to globalization, you have to identify someone to be the international champion. This person should be your champion for international growth. This person will standardize the sales presentation; yet adjust the sales pitch to the


cultural nuances of each country. Some countries may require more time to digest the sales presentation of the brands.

+T*7 A: :**7 =OUR 1&R:*T *NTR= CO+T+ .O/
The initial e penses should consist of e penses such as travel, communications and promotions of the brands. 0nitial avoidances of e penses such as hiring staff, leasing an office should be !ept to the minimum.

+T*7 B: 1&INT&IN T<* %R&ND CU&.IT=, +*R?IC*
0n many respects, once established, international accounts are more loyal to the brands and have more long#term relationships with suppliers than the domestic mar!et. 0t is very important to service the internatioLnal distributors, customers and affiliates. 3hen competing a brand globally all that is there is the brand reputation.

+T*7 D: '.O%&. %R&ND &D?*RTI+IN'
*nce a product is developed to meet target mar!et needs and is properly priced and distributed, the intended customers must be informed of the product,s availability and value. -dvertising and promotion are basic activities in an international company,s mi . - well # designed promotion mi includes advertising, sales promotion, personal selling,


and public relations with are mutually reinforcing and focused on common ob<ective. *f all the elements of the mar!eting mi , decisions involving advertising are the ones most often affected by cultural differences among country mar!ets. /onsumers reflect their culture styles, feelings, value systems, attitudes, beliefs and perceptions. Seconciling an international advertising and sales promotion effort with the cultural uniqueness of mar!ets is the challenge confronting the international or global mar!eter. The basic framewor! and concepts of international promotion are essentially the same wherever employed. 2ive steps are involved9
• • • •

'etermine the promotional mi 'etermine the e tent of worldwide standardization 'evelop the most effective messages &elect effective media

Global brands generally are the result of a company that elects to be guided by a global mar!eting strategy. Global brands carry the same name, same design, and same creative strategy everywhere in the world. > ample are /oca#/ola, 5epsi#/ola, "c'onalds etc. &ome global companies have successfully capitalized on the worldwide popularity of pop music stars in their global advertisements. > ample "ichael Kac!son and Tina Turner are featured in 5epsi#/ola advertisements.

%rand meaning management: new o--ortunities


>conomics is everywhere at wor! in the mar!etplace but normally we can,t see it. 0t doesn,t feature in Aollywood movies or popular novels. 0t ma!es no cameo appearances on the sit coms, no courtesy calls on the tal! shows. The Nobel 5rize recipients are mentioned briefly and with scant regard. (0t,s clear that the newspapers care so little about this story they have now standardized the reporting formula. C3hen did 0 get the news: 3ell, actually it was my daughter1wife1manservant1cat who too! the call. -t the time, 0 was out standing in my garden1garage1helo pad.8 >ditor, choose one.) >conomics is part of the infrastructure of the consumer society, everywhere at wor!, no where in sight. >conomics doesn.t usually Cshow through.C $ut that,s changing. 0 give you the label on Aonest Tea9 0t doesn,t ta!e an econ 5h.'. to brew teaQbut $arry has one and sometimes it actually helps. Aere,s how. &ugar, li!e most goods, has a declining marginal utility. *ne teaspoon ta!es away tea,s bitterness. -nother adds a nice sweetness. That,s where we stop. "ore sugar add calories but not much more taste. $y the time you,ve got teaspoons per serving, it,s liquid candy. Green dragon Tea is organic and <ust a tad sweet. Aonestly yours, &eth and $arry. Aere economics is helping to ma!e the P&5 and to build a brandM *h baby. This is a real measure of how far we,ve come in the world of mar!eting. 0 want you to imagine this pitch at the /oca#/ola /ompany. CUeah, and 0 want the label to tal! about marginal utilityM8 This brand is proud of its difference, its difficulty, of the fact that it


departs, in pac!aging and formula, from the cola standard. The P&5 (unique selling proposition) here is a P&'(ifference). $rand difference of this !ind has always wor!ed well in the /&' (carbonated soft drin!) category. "any of the most successful brands have come up by Cpushing off8 against the mainstream player, /oca#/ola. Thus did 5epsi, Gatorade and &napple find a place on the shelf. Given the brand typography of the /'& category, difference sells. There are of course lots of different differences to choose from for branding purposes, and $arry and &eth chose carefully. There is a little New -ge spirituality, tea vs. coffee gentleness, wisdom sourced from other cultures (-sian and aboriginal), a Csavor the moment8 pitch (tea as an e perience vs. coffee as a stimulant), naturalness sourced from an organic positioning, a little authenticity (in the naming and pac!aging), a whiff of &eattle in the pac!aging, all of this done in a design approach that is has a certain gentrified aplomb and grace. 0t is, in sum, a well balanced brand portfolio, and it gives Aonest Tea depth, breadth and mobility. $ut the piece of meaning management that really caught my attention was the diminishment of sugar and the dialing up of taste. "any drin!s in -merica are Cliquid candy8 and all liquid candy tastes the same. $y dialing down the sugar content, $arry and &eth opened up some interesting taste e periences at <ust the moment that -mericans are, than!s to -lice 3aters, among others, spending more time with smaller portions that have been very carefully managed to ma imize the intensity and variety of tastes in play. This allows &eth and $arry to evo!e a new set of meanings, and then to build these bac! into the brand. Aey presto, there is now a more real and sensual connection between


brand and consumptions, and, more to the mar!eting point, a powerful set of meanings for the brand. *ne Aonest Tea (and sorry 0 can,t remember which one) puts you in mind of the 'enver airport. $y dumping the sugar, $arry and &eth have made the taste much larger, airier, as if, somehow, filled with light. 0t provo!ed a !ind of synesthesia (a perceptual confusion in which the sensations from one sense are perceived as those of another, e.g., seeing sounds or hearing colors). Taste buds now operate li!e eyes and ears. Aey, presto. The consumer is happier and the brand is richer. 0 believe this is what they mean by win, win. All the best consumer experiences, with food, clothing, automobiles, domestic architecture and interior design, movie making, graphic design, all of these are getting richer and more nuanced. This is good for the consumer, but it is also, as I say, good for the marketer. It means we have new, and more powerful sources of meaning emerging from the moment of consumption, and we may use these to confirm, revise, renew, rework the meanings of the brand as communicated by our opening moments of contact (advertising, direct mail, etc.). The uestion is whether we have the research methods and conceptual models for this new and promising aspect of the meaning management process and I think the answer is !no."



'isintermediation is the term that means elimination of distributor@ it was first suggested for distributors in the early +LL0.s no a response to new technology and increasing pressure on the supply chain to cut costs. 'istributors were perceived as middlemen who added cost to supply chain through redundant inventory, services and information handling. 0t scared logical that if suppliers and end users could C-utomatic out in efficiencyC they could eliminate the distributor. This logic follows from the reasoning that a shorter supply chain is inherently more inefficient . Pntil recently, most distributors described their core competency as =G relationshipsC. The statement covers the need for the following two roles. 2irst is that of a channel leader, who determines where the sources of supply are and how to access them. The second role is that of a manager of customer information for manufactures. -s such the classical relationship of these functions (0nventory management, financing for small customer, supplying technical info) became unchanging or CfrozenC, the classic business# relationship has become CunfrozenC by business forces li!e Kust in Time (K0T). The technological revolution caused by the 0nternet and advanced information system. Traditional relationships are in flu . 0t is unclear now new channels and new bus models will be structured. To eliminate the distributor from supply chain, channel members must eliminate the services the distributor currently supplies. Thus this means eliminating some services following others. -ll in all, distributors sound li!e a rather noble bunch#always rising to occasion for customer, willing to deal with uncertainty, provide fle ibility and focus as customer service


/<&T I+ $1C'>
$1C' refers to consumer non#durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month. The sector covers a wide gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams, powders, food products, confectioneries, beverages, and cigarettes Typical characteristics of $1C' products

 0ndividual items are of small value. $ut all 2"/G products put together account for a significant part of the consumer.s budget.

 The consumer !eeps limited inventory of these products and prefers to purchase them frequently, as and when required. "any of these products are perishable.


 The consumer spends little time on the purchase decision. Sarely does he1she loo! for technical specifications (in contrast to industrial goods). $rand loyalties or recommendations of reliable retailer1 dealer drive purchase decisions.

 Trial of a new product i.e brand switching is often induced by heavy advertisement, recommendation of the retailer or neighbours1 friends.

 These products cater to necessities, comforts as well as lu uries. They meet the demands of the entire cross section of population. 5rice and income elasticity of demand varies across products and consumers The $1C' sector has been the cornerstone of the 0ndian economy. Though, the sector has been in e istence for quite a long time, it began to ta!e shape only during the last fifty#odd years. To date, the 0ndian 2"/G industry continues to suffer from a definitional dilemma. 0n fact, the industry is yet to crystallize in terms of definition and mar!et size, among others. The sector touches every aspect of human life, from loo!s to hygiene to palate. 5erhaps, defining an industry whose scope is so vast is not easy. -fter witnessing booming sales and flooding mar!ets with innumerable products, 2"/G companies have had to abruptly apply the bra!es and loo! for various ways to save costs. The Rs.43,000 crore (listed com a!ies" #$%& industry in 0ndia, which has been on a roll for many years, faces tough times ahead, although many segments still shows good growth.


Transformation of Euantity into Euality
0nquisitive 5hys,ll discover that decades ago it too! guts to 7brand8 a product to distinguish it from a sea of commodities, thus inviting possible criticisms and re<ections. To survive, branded products had to be su-eriorF and, when proven to be superior, they sold better and made more money. That,ll e plain to 5hys the 7name#and#design8 definition 4 there was no need to stress the implicit financial aspectsM 5hys,ll also discover that things have changed radically ever since. Now, with nearly all products 7branded8 in the old sense, sim-ly naming a -roduct would NOT automatically generate e#tra cash any more 4 a case of quantity transforming into quality. The scenario of a big fish in a small pond was replaced by that of thousands of shar!s in an ocean. To 5hys that,s li!e a leap from Newton to >instein in physics. 3ith products in any category being almost equal, 5hys will perhaps thin! of *rwell,s words9 7-ll animals are created equal, but some animals are more equal than others.8 -nd so the tas! of branding now is to create and maintain -roducts that are “more eEual than others!" .

A good FMCG brand
Technically, a good 2"/G brand is a good 5S*'P/T per se, with good 0'>NT020>S&, good -&&*/0-T0*N&, and good -?-0%-$0%0TU. Generally, a brand needs good advertising, but there are some brands that fare perfectly all right without any advertising of note. 5hys will find it amazing that the literature generally o erloo(s a ailability! Aowever, any practitioner !nows that an e cellent 2"/G brand that is only available at 20O of


mar!eting outlets, will hardly outsell a poorer product available at +00O outlets. 0ntroducing the availability gives9

$1C' -roduct

Id en ti fi ers



-ssociations X -vailability




*n careful consideration, 5hys might suggest to replace the misleading term 7product brand8 by something li!e 7winning8 or 7best#selling8 product

$1C' industry su--ly chain today 'e!dors

Contract 1anufacturers

()!ed la!ts


%e!tral *areho+se

Re,io!al distri-+tio! %e!ters

+u--ly chain -lannin g and *R7 softwar e


+u-er stoc(iest



Retail chain stores


.ocal wholesaler




Raw 1aterials +u--liers

7ac(ing 1aterials +u--lier

1anufacturing units in2house, third -arty

<ead office
Solling sales forecasts F m!tg plans

&ll2India buffer de-ot

Regional offices

Regional buffer de-ot


GIT godowns





Distribution Networ( •

0n 2"/G sector, one of the most critical success factors is the ability to build, develop, and maintain a robust distribution networ!. -vailability near the consumer is vital for wider penetration as most products are low unit value products and frequently purchased. 'istribution networ! refers to the consumer buying points where products are available (almost always). 0t ta!es enormous time and effort to build a chain of stoc!ists, retailers, dealers etc and establish their loyalties. There are entry barriers for a new entrant as a new product is typically slow moving and has lesser consumer demand. resources and time. Therefore dealers1 retailers are reluctant to allocate

>stablished players use their clout to inhibit new entrants.

Aowever, when a product offers a strong brea!through (such as Nirma in late I0s), equity we build up rapidly and so does the distribution networ!. 6D

Thus we see that distribution is the critical factor that at times even drives the brand equity factor.

Rural distribution
0ncreased focus on rural distribution has increased logistics spend for the leading companies.

Role of the 7ac(aging
0n global mar!eting, pac!aging tends to be the one element most li!ely to undergo modification, if for no other reasons than to accommodate the local mar!et,s language and legal requirements, such as labeling. 5ac!aging role relates to 2 factors, physical and psychological. The physical construction of pac!age is order to arrive at the international destinations undamaged and unspoiled in mar!ets with essential undifferentiated brands or products and a high degree of price sensitivity, economical and effective methods of physical distribution may well be a !ey selling point to channel distributors. The psychological pac!aging features such as shape of the pac!age, the colours, logos, symbols etc will vary from one mar!et to another based on social economic and cultural factors.


3arranties and after sale services are also !ey mar!eting tools for differentiating products or brands from its competitors or local competition and positioning the brands as having superior quality. The role of pac!aging has increased significantly in recent times, partly due to improvement in pac!aging technology. Traditionally, pac!aging was e pected to serve the purpose of protection and economy. Then, pac!aging was e pected to fulfill the ob<ective of convenience. Today, pac!aging is used as an effective tool for promotion. $esides, new pac!aging technology has enabled most 2"/G companies to significantly reduce their pac!aging costs.

INDI&N 1&R:*T 7*R+7*CTI?* %&C:'ROUND
-t the time of independence (+L=G) "N/s were allowed to operate in 0ndia, but the 0ndian mar!et was too small for global "N/s. A%% had a manufacturing base, /olgate and Nestle mainly undertoo! only trading activities. 0n the early .D0s, several "N/s set up manufacturing base in the country. The government policies continued to be

protective, modelled on socialistic pattern with strong emphasis on self sufficiency. -s a result economic growth was slow (around 6.BO pa which many economists dubbed as Aindu rate of growth) and 0ndia.s share in international trade was nominal (even today 0ndia.s share in international trade is only 0.DO). &low growth was aggravated by ma<or set bac!s in the late D0.s due to drought and in the early G0.s due to oil shoc!. 0n +LGI, the new Government in power reserved several product categories for small#scale. 0t also forced "N/s to dilute their equity sta!e to =0O or leave the country. 0$", /oca#/ola 6I

and several others decided to leave. -mongst ma<or "N/s, Pnilever (A%%) was the only one which managed to retain B+O foreign sta!e by complying with the Government conditions of minimum +0O e port and D0O turnover from priority sectors. Thus A%% got into the business of fertilizer and chemicals. 0n the .I0s, when the underlying factors for the economy were strong such as ma<or oil discovery at $ombay Aigh, satisfactory monsoon, stable oil prices etc, the economic growth averaged BO pa, much lower than its potential. &everal 2"/G products such as toiletries and cosmetics which are essentially mass consumption items, became lu ury products due to e orbitant burden of e cise duties, sales ta (which added up to over +B0O on basic price). %ocal players sans technology and capital were not able to provide good quality products.

.iberali6ation /a e
2oreign e change crisis in +LL+ (precipitated by Euwait war) proved to be blessing in disguise, due to which 0"2 suggested reform process began. continued over the last few years. The economic growth rate is averaging B#DO pa which is li!ely to continue. This growth rate in G'5 will imply =#BO volume growth in mature categories and I#+0O pa growth in upcoming categories where penetration levels are low. "ore importantly, the The reforms have

organized sector will witness even a faster growth at the cost of the unorganized sector.

7ositi e $actors $or +trong Demand 'rowth


2"/G products are e pected to record strong demand growth, with improved standard of living, and greater awareness and penetration levels. The following are the !ey factors which are e pected to trigger growth in the sector •

'uty rates have been slashed. There has been a progressive reduction in e cise duties on ma<or 2"/G product categories.

%icensing restrictions have been eased considerably. There is a general political consensus on these reforms and the process seems irreversible.

'ominance of local unorganised players will decline with level playing field to technologically and financially stronger "N/s.

"edia reach has increased at a rapid pace. - considerable part of rural population now has access to cable T?, as a result of which aspirations and lifestyles are changing fast.

>conomic growth is li!ely to accelerate, which will result in more than proportionate growth in most product categories, as the current penetration levels are very low.

1a)or Issues for New 7layers
New "N/ entrants will face several hindrances in converting the latent potential of 0ndian mar!et as 9 •

0ncome levels are low and consumers are highly price sensitive. %ocal1 unorganised players operating at low overheads will continue to give stiff competition. =0

'istribution is handled by an incredible Bmn no of retail outlets. &uper mar!ets virtually do not e ist in 0ndia. This ma!es logistics particularly for new players e tremely difficult.

0nfrastructure such as cold storage, road transportation is woefully inadequate and inefficient. Prban transport system is overloaded.

To (now the brand im-act of %rand *Euity
$rand equity refers to the intangible asset in the form of brand names. The consumer.s loyalty for a particular brand is due to the perception that the product has distinctively superior and consistent quality and also satisfies his1 her s-ecific needs. 2urther provides better value for money than other competing brands. 0n 2"/G products, brand equities are relatively stronger as the consumer is reluctant to try un!nown brands1 unbranded products as most of these products are for personal use. 0t is often difficult to

differentiate a product on technical or functional grounds and therefore little reason to switch from a !nown brand. - successful brand generates strong cash flow, which enables the owner of the brand to reinvest a part of it in the form of aggressive advertisement1 promotion to reinforce the perceived superiority of the brand. The worth of a brand is manifested in the consumer.s insistence on a particular brand or willingness to pay a price premium for the preferred brand. =+

+hort2Term Im-act &ssessment H1ar(eting 1i# 1odel"
'etermine the impact of mar!eting investments and business drivers (e.g. distribution, price, competition, seasonality, economic trends, etcY) on short#term sales.

&hort#term incremental mar!eting contributions to sales and S*0,s (direct effects).

&ources of volume change.

2. <ierarchy of *ffects &ssessment >valuate the impact of mar!eting and !ey business drivers on brand equity metrics and establish lin!ages between these metrics.

&ummary of consumer metrics and trends. 5erceptual mapping of the competitive landscape.

&tatistical measures of the relationships between causal influencers and interim measures.

- mapping diagram describing lin!ages between mar!eting and other factors with interim measures and sales.


3. .ong2Term Im-act &ssessment H%rand *Euity 1odelI: 'etermine the impact of brand equity and !ey business drivers on sales.

0dentification of brand equity metrics that drive long#term sales benefits. Zuantification of the recurring sales impact from improvements in brand equity metrics.

/omprehensive S*0 assessment (short#term and long#term).

*h1 $$A?
""- has been the thought#leader, innovator, and trusted mar!etingsciences advisor to some of the largest global companies for more than +G years. 3e provide visibility into


past, present, and possible mar!eting decisions to improve business performance, benchmar!ed by our e perience with more than +,000 brands of 2ortune B00 companies9

7ositioning Of & %randJ: 2
- strong brand position means the brand has a unique, credible, sustainable, and valued place in the customer,s mind. 0t revolves around a benefit that helps your product or service stand apart from the competition8 &cott 'avis, $rand -sset "anagement The term, 75ositioning8 has been used in a mar!eting conte t since the late +LG0,s. &ince then it has been used and redefined, often by those who missed the point of what positioning really is and its significance.

7ositioning defined: 3hen -l Sies and Kac! Trout labeled and defined the term
7positioning8 in their brea!through boo!, Positioning the !attle for "our #ind, they ==

stated anyone in any business will establish a 7position8 in the collective mind of their customers and the prospects who !now about them. That position is built through the accumulation of contacts with the company and its competitors@ through their e periences and their impressions based on everything from the color of a salesman,s tie to the overnight e press service they use. 0n other words, the position is built through the sum of all the e posures, direct and indirect, positive and negative, that customers e perience about you and your competitors. /ustomers will <udge and then label a company1product1service based on these e posures, and it,s e tremely difficult to dislodge that label once established, whether it be positive or negative. /ompetitors compound the problem because they, too, have made impressions and have occupied specific positions in the collective customer mind, and they are almost impossible to dislodge. Trying to occupy a position preempted by a competitor is ne t to impossible. /ustomers tend to 7pigeon hole8 and ran! suppliers, and only through a ma<or event or circumstance will they wish or need to reevaluate their initial opinions. &o positioning is not, as many people interpret it, something a mar!eter can fabricate in a vacuum, or on a neat cluster analysis based on product features, price and quality. 5ositioning is all about the perception of your brand in the minds of those who populate your target mar!et(s) as <u taposed to the perceptions of your competitors .

Com-etiti e arenas 2 -roduct categories: 0f you wish to occupy a favorable
position in your customers, and prospects, minds, it,s best not to attempt to try to unseat


a competitor from their established position. Sather, attempt to find an equally positive, unoccupied position. 0f this is not possible, or if you,re see!ing a leadership role in a product category, try to reposition your product in another category or create a new category in which to compete. += 2or e ample, in the mid +LG0,s, Te!troni had a hefty lead over Aewlett#5ac!ard in the analog oscilloscope mar!et. $oth companies introduced 7digital oscilloscopes8 in the same time frame, but A#5 established a different playing field by naming a category, 7digital analyzer8, and forcing Te!troni to compete in this new category where Te! and A#5 competed as equals for a while. A#5 became the undisputed leader in the new category in less than two years.

7ositioning in action: $y determining what attributes of a particular category of
product or service are important to customers, and measuring how individual companies ran! in these attributes, the positions of the competitors can be determined. Their strengths and wea!nesses are e posed. Thus, you can identify positive, important positions, which are unoccupied (customer needs not being adequately met). Uou can also determine which positions to steer clear of because of entrenched competition. "oreover, you will be able to differentiate your offerings from competitors in a way that,s meaningful to customers. *rganizations see! to develop and pro<ect brand perceptions based on internally driven needs and goals. 0n Kac! Trout,s boo! 7'ifferentiate or 'ie,8 he presents evidence that supports his theories on consumer behavior and interpretation. -lthough these concepts seem self#evident on the surface, organizations tend to ignore these immutable laws in


their daily branding activities. "inds /an,t /ope 'ue to the shear volume of messages we encounter on a daily basis, the human mind can,t begin to cope with interpreting them all. Trout notes some statistics9 [ Aumans tolerate constant daily electronic bombardment [ 5rinted !nowledge '*P$%>& every = 4 B years [ =,000 boo!s published around world every day [ 333 grows by +,000,000 pages each dayM [ Uou,ve watched +=0,000 T? commercial by the age +I

%rand .oyalty Defined:
8Uou learn that creating customer loyalty is neither strategic nor tactic@ rather, it is the ultimate ob<ective and meaning of brand equity. $rand loyalty is $rand >quity8 'aryl Travis, >motional $randing &o, what constitutes brand loyalty: -ccording to $loemer and Easper, brand loyalty implies that consumers bind themselves to products or services as a result of a deep# seated commitment. To e emplify this point, they rendered a distinction between repeat purchases and actual brand loyalty. 0n their published research, they assert that a repeat purchase behavior 7is the actual re#buying of a brand8 whereas loyalty includes 7antecedents8 or a reason1fact occurring before the behavior. $loemer and Easper further delineate brand loyalty into 7spurious8 and 7true8 loyalty. &purious %oyalty e hibits the following attributes9


[ $iased [ $ehavioral response [ > pressed over time [ $y some decision#ma!ing unit, with respect to one or more alternate brands [ - function of inertia. True brand loyalty includes the above, but replaces inertia with a psychological process resulting in brand commitment (Sef9 Kournal of >conomic 5sychology, ?olume +D, 0ssue 2, Kuly +LLB.) Ne t, let,s turn to how this psychology plays out in the branding process.

. %rand loyalty has been proclaimed by some to be the ultimate goal of mar!eting.\+] 0n mar!eting, brand loyalty consists of a consumer.s commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service or other positive


behaviors such as word of mouth advocacy. \2] True brand loyalty implies that the consumer is willing, at least on occasion, to put aside their own desires in the interest of the brand.\6] $rand loyalty is more than simple repurchasing, however. /ustomers may repurchase a brand due to situational constraints, a lac! of viable alternatives, or out of convenience. \=] &uch loyalty is referred to as Cspurious loyaltyC. True brand loyalty e ists when customers have a high relative attitude toward the brand which is then e hibited through repurchase behavior.\2] This type of loyalty can be a great asset to the firm9 customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to

CR1 for +ee(ing and :ee-ing Customers
/ustomer Selationship "anagement (/S") has now a days become a sub<ect of interest for companies and mar!eting professionals especially with the onset of >#/ommerce. There is a need for mar!eters to understand what it is, its impact on the organization, its applicability and its benefit to customers and organization. The main thing to be understood is that /S" is not <ust a sales tool with a short term orientation and it must be practiced with appropriate investment and long term planning.

The conce-t of CR1:
/S" as a concept is as old as mar!eting itself. 2irms in both consumer and business#to #business mar!eting have always (either by accident or design) tried to encourage repeated buying from their customers. - common consumer would have also realized this fact directly or indirectly dealing with their day#to#day buying process. The /S" structure varies for business#to#business and business#to#consumer as the process of


buying and selling differs in both segments. &o, the concept of /S" can be defined as a relationship process which a company can cultivate with its customer groups1segments in such a way that it would benefit both the consumer and the company. &ome mar!eters bear a wrong perception that <ust having a database of consumers for sending direct mails, establishing a social relationship or offering discounts is actually /S" and hence bring bac! disappointment.

The -re2reEuisites of any CR1 -rograms are:
K - strong willingness from both the company and the customers to build a relationship which is based on mutual benefits. K - non transactional orientation on the part of the mar!eter. - transaction in one#off interaction and hence /S" involves a combination of strategies which build the relationship between the mar!eter and the customer over a period of time. K - willingness on the part of the mar!eter to invest in the infrastructure that can implement and operationalise /S", which may include web based hardware1software that could effectively connect the advantage of /S".

CR1 for business to consumer:
&ome research show that only around twenty percent of the consumers under the frequent flier programs in the airline industry contribute to around eighty percent of profitability.


Given the fact, especially when airline companies in our country are facing a hard time due to various circumstances inside and outside the country, it is quite advisable to find out specific segment of customers and try to convince them with the mar!eting strategy which includes /S". &tudies conducted in retail outlets revealed the fact that if customer retention increase by five percent then profits rise by 2B#60 percent as repeated customers spend twice as much in the second and third year then they do in the first si months. &imilarly, the ob<ective of a /S" program for a fast food company must be to increase the frequency of purchase of their offering. To get the repeated purchase from the customers, a promotional program for the brand could be roped in as a part of /S" program. This would, if properly done, result in rebuy from the customers and also word# of#mouth referral to other influence group. 0n 2"/G sector, innovative /S" approach would help in building brand loyalty along with customer satisfaction, which in turn guarantees increased revenues and profits. &imilarly, a manufacturer of consumer durables would find increased sales through /S" program, however repeated buying may not be the case here. $ut this could result in ma imum customer satisfaction, brand loyalty for reference in influence group and, of course, repeated buy in case of new innovations in the products. The company running /S" program is li!ely to give the customer enhanced priority in terms of attention, apart from cost saving in maintenance over a period of time and the customer will get benefit of dealing with the same company with regard to maintenance schedules, e change facilities and other mar!eting promotion activities offered by the company. -part from loyalty and customer satisfaction, communication is a vital aspect of any /S" program, communication with regard to the state of the art offerings concerning the


product category, the efforts of the company, brand to !eep itself updated in terms of benefit offered. &atisfied customers of a /S" program and specific benefit of /S" program may help a mar!eter to !eep in touch with a prospective target segment of consumers who wish to be a part of it.

CR1 for business2to2business:
/ompanies which deal with business customers often find it hard to retain their clients as normally depend on few big clients who buy in bul!. The products in $2$ are often industrial raw materials, accessories required for the final products and the relationship between the buyer and seller plays significant role in continuing the business. 0t may be also essential for a company to ma!e an assessment of the life time value of a customer before designing the /S" program. -part from loyalty and satisfaction, the specific ob<ective of a /S" program should be reducing the cost of distribution, restructuring ordering patterns, ta!ing into consideration the consumption patterns, and also the inventory level at the customers end. 0n $2$ segment, selection of target segment or specific companies is of utmost importance because profitability of such programs will vary across segments or companies.

CR1 and Internet:
0t may be little early to calculate the impact of the /S" through the 0nternet in a country li!e ours where 0nternet penetration is relatively low with urban areas benefiting from it. $ut the e#loyalty seen in which we call developed mar!ets is quite interesting and it would be very useful to !now them, as some day we may need to include it in our mar!eting strategies. >.g. e#stores normally provide additional discounts than the actual


stores as one can find products in with 60 percent more discounts than the actual stores. -part from that, launching the products on the 0nternet and ma!ing the e# stores more interactive are few well wor!ed strategies for /S" program on the 0nternet.

The New 1eaning of a %rand
<ow do you go beyond the brand>
Uou have to really dig in to emotional connections with consumers. The rational side of life isn.t enough. got too much information. 3e do not live in the information age anymore, nor do we live in the age of !nowledge. gone hurtling past that. *nce everybody has information and !nowledge, it.s no longer a competitive advantage. 3e live now in the age of the idea. 3hat consumers want now is an emotional connection. They want to be able to connect with what.s behind the brand, what.s behind the promise. not going to buy simply rational. Uou feel the world through your senses, the five senses, and that.s what.s ne t. The brands that can move to that emotional level, that can create loyalty beyond reason, are going to be the brands where premium profits lie.


0f you read some of the literature, you see that people are struggling and not !nowing where to go ne t. &o there.s antiglobalization, anti#brands. 0t.s very easy to be anti# something. 0t.s very tough to be pro something and to build. &o 0 thin! trying to develop with %ovemar!s a way forward, not <ust an anti, Cwe don.t thin! this is going to wor!C !ind of approach

/hat is a .o emar(>
- %ovemar! is a brand that has created loyalty beyond reason@ it.s infused with mystery, sensuality and intimacy, and that you recognize immediately as having some !ind of iconic place in your heart. -nd 0.ll give you two personal stories of mine. "aybe eight wee!s ago now, 0 was in &eattle tal!ing to 6,000 college professors ## not a very stimulating !ind of way to spend the day. -nd 0 went to the -didas concept store in &eattle. 0 didn.t need anything, nothing. HII0 later and four bags later, 0 staggered out of the -didas store, and 0 felt great, because 0 love -didas and 0 always have. There.s no reason for it. 0t.s beyond reason. 0 didn.t need anything in these bags. 0 bought stuff for my wife, for my !ids, for me. 0 had no guilt, and 0 had no sense of CUou stupid whatever, you <ust dropped II0 buc!s.C 0 didn.t care@ 0 felt great. 0 have loyalty beyond reason to -didas, largely because of their heritage, their authenticity. 0f 0 try to rationalize how developed this ## as 0 was growing up playing rugby, -didas were the best rugby boots ## but there.s no reason really. 0 don.t !now why. They commune with me

/hatLs different today>
The difference nowadays is that there are \more] products than consumers need. ... %ong ago, producers ruled. The consumer was almost sort of panting for the ne t innovation, B=

the ne t new detergent, the ne t brea!through in technology. Now not. There are more products than consumers, and the producer has to have some !ind of different way of selling them. There was a time when brands and brand symbols were mar!s of identification for the producer to say9 CThis is my product. Uou can rely on its consistency, the same quality time and time again.C Nowadays, producers of brands realize that the consumer needs to say9 CNo, this is my product, 0 identify with it. The -pple computer is my computer because it stands for creativity and nonconformism, <ust li!e 0 do,C or, CThe ?3 $eetle is my !ind of car because it stands for antimaterialism, <ust li!e 0 do.C &o the ownership of the brand has switched from the producer saying, CThis is my product,C to the consumer saying, CThis is my brand.C

/ho creates the brand>
Good question. Nowadays, it.s a fusion of both. 0n fact, there are many e amples of brands where the producer has very little to do with how the brand is constructed. The consumer has almost ta!en over. 2or e ample, one brand that we wor! with, $"3 "otorcycles, it.s the motorcyclists themselves who are determining what the brand is all about. 0t.s about the riding e perience. They see themselves as the gritty warriors of the road. Aarley#'avidson riders are seen as wee!end warriors. $"3 riders are seen as the !ind of people who ride +0,000 miles in one trip. The $"3 manufacturers have very little to do with that brand. 0t.s the owners of the motorbi!es themselves who have created that impression and have created a community around the brand, importantly.


The brand has mo ed off the -ac(age to 22
To consumers. minds. -t the end of the day, a brand is simply neural impulses in people.s brains stimulated by the e perience of using it or of someone saying that they recommend it, or pac!aging, or whatever. 0t.s simply a neural impulse. The item itself is almost secondary.

/hat do you mean by Mcult brandingM>
3ell, 0 believe that there is a very, very close relationship between cults and the best cult brands in the sense that people <oin and stay with cults for the e act same reasons as people <oin and stay with brands. The reason why is pretty obvious if you thin! about it9 The desire to belong to something, to ma!e meaning out of something, is universal. 3hat.s changed nowadays is, as become a more consumerist society, the institutions that become vessels for ma!ing meaning or venues for creating community have in turn become more consumerist, so the !ind of functions that cults and religions used to perform years and years ago are increasingly being ta!en over by brands. interviewed people who are brand loyalists of &aturn, and they will use the same vocabulary as someone who is a cult member of Aare Erishna. They will say that other car users need to be saved, or that they are part of the &aturn family. 3hether a retailer or a car driver, they will say, C3e are the &aturn family,C with no hint of irony. They absolutely and completely believe it

/hatLs the difference between a brand and a -roduct>


-re you going to buy the -rm F Aammer: -re you going to buy the /olgate: -re you going to buy the /rest: -re you going to buy 5epsodent for a little blast from the past: That.s where all the money is spent ## to try to influence that decision. 0f you buy the 5epsodent, -rm F Aammer, /olgate and /rest have failed. -nd yet decisions are made to the tunes of billions of dollars every day ## voting for the Cother guy.C &o has advertising pulled your strings: >vidently not. That.s one answer. &ometimes brands are <ust brands. &ometimes there.s actually something inherent, something intrinsic to them that ma!es them different. &ometimes it.s an actual property of the product that.s different, and sometimes it.s <ust an idea. Three of the greatest campaigns in advertising history are built on nothing more than an idea. "arlboro cigarettes9 0t.s built on the idea of rugged individualism, of ma!ing your own decisions, of ta!ing on the world all by yourself, squinting into the sun. -nd Ni!e, CKust do it.C They hire the same slaves in &outheast -sia to ma!e a pair of shoes for H= and then sell them for H+20 as all the other snea!er manufacturers. 3hat has imbued Ni!e with this special something: 0t.s two things9 *ne is "ichael Kordan, who was this e traordinary athlete doing seemingly impossible, virtuosic things, and they borrowed that interest at great e pense. The other was CKust do it,C because hitherto, no snea!er manufacturer had ta!en upon itself to say to the audience, C3hy don.t you <ust get up off your fat ass:C They began to own the aspirational quality of sport, and the campaign grew to have them own all of the emotion of sport, the drama of sport, the grit of sport, the aspiration, the triumph and so forth. They own the idea of all


of the really powerful emotional sentiments that we attach to sport. They own them because they bought them, and they bought them by advertising this idea again and again and again and again and again. There.s <ust not a whole lot of difference between the most e pensive Ni!e shoe and the most e pensive Seebo!. $ut got much, much, much, much larger share of the mar!etplace on the strength of an advertising idea. C- diamond is forever.C Aow is it that the diamond is the default demonstration of lifelong love and affection: Aow did that happen: -n advertising idea. They turned a commodity ## a roc! ## into the ultimate e pression of enduring love. 0t was <ust an advertising idea, and it has penetrated societies throughout the world for +00 years. That.s pretty e traordinary.

B Reasons /hy Customer .oyalty 7rograms $ail
-s a blogger and author, 0 continuously find myself reading smart1pithy lines from other bloggers and authors that 0 wish 0 had written. Ae is choc!full of so many smart1pithy lines that this blogger and author is envious. 0,m especially envious of how "arty brea!s down the fallacy of loyalty programs li!e 7frequent shopper8 programs from retailers., 0 write about the fallacy of loyalty schemes but "arty,s musings on why loyalty programs don,t wor! is $S0%%0-NT. Ais brilliant ta!e ma!es my ta!e rin!y#din! in comparison.


*n page +00 of "arty outlines si reasons why customer loyalty programs li!e 7frequent shopper8 cards don,t wor!. C... and here are si reasons why \loyalty programs don.t wor!]9 +) %oyalty programs are based on discounts, which Jtrain, e isting customers to e pect low prices and wait out normal prices, 2) They attract loyal customers who would happily pay a premium, 6) they discourage new customers by ma!ing them feel punished or e cluded, =) they encourage competitors to retaliate with me#too programs, B) they reduce profit margins, which D) reduces the company,s ability to serve customers at formerly high levels. The truth is, loyalty can,t be programmed. -s soon as customers begin to feel Jstal!ed,, they choose Jfight, or Jflight., They either figure out how to game the system, or else they run to another brand.8 0n my last post, 0 briefly touched upon the idea that many retailers were using outdated concepts of customer loyalty, which in turn had the effect of alienating the ma<ority of their customer base. *ne of the most common vehicles 0 totally agree with this....and wish that 0 had said that as wellM 0 briefly touched on this sub<ect in a recent post on my blog $ac!ground Noise. Pnfortunately, so many retailers feel that this their only avenue to a Cloyal customerC, and more importantly the only way to trac! their behavior. The number of truly loyal customers that they are alienating is probably staggering.


Amm 0 want to feel this is right but, when did starbuc! quit their cardsystem: 3as is right after they decided not to focus on being the biggest by aplying cannibalizing strategy amongst other tactics that led to the +6000 stores they have now: Kapser ... &$P^ stopped doing C$uy L, Get + 2reeC cards in the late L0s. The beverage frequency card was primarily used by &$P^ as a Climited#time onlyC mar!eting tactic to support new stores. *nce the store was opened a few months the program would typically stop. Aowever, you might still be able to find a local &$P^ doing this but that would be a mar!et#specific program and not a corporate#driven program. The more well#!nown Cfrequency cardC program &$P^ used in throughout the L0s was the /offee 5assport program. 0f customers purchased a certain number of +12 lb. or + lb. bags of coffee, then they were given free coffee. This /offee 5assport program is one that.s beloved by old school &$P^ partners as its part of the company lore. /ustomers also en<oyed the program. The &$P^ thin!ing behind stopping these frequency programs is .3hy give something away for free when customers will gladly pay for it.. -lso, customers would CgameC the system by saving receipts and simply turn in receipts to receive their free stuff and not use the beverage or bean frequency card. That made for some dodgy customer interactions that &$P^ decided it didn.t want to deal with. &* yeah ... profitability as well as customer service concerns played a role in &$P^ stopping their frequency card programs.


&orry for my emotional reaction, i was under the impression the Cstarbuc!s cardC was offering some !ind of discount.. but appearantly i doesnt. 0 live in a country where there is no starbuc!s (yet) and wor! for a small chain (+0 stores), about to grow substantialy(B0). &ince day one we have a prepaid customer cards wich offer a discount price for each drin!s. 0 thin! it will we be hard on our loyal customers to stop offering this service

/hat can be learned from such failures>,
3hat we have here in this especially interesting as well as informative boo! is Aaig.s version of Cthe truth about the +00 biggest branding mista!es of all time.C 3ith this subtitle, Aaig immediately sets himself up for lively disagreement concerning (a) the reasons for why certain brands fail and (b) his selection of the failures themselves. 0 value this boo! so highly because Aaig (by assertion or implication) challenges his reader to e amine her or his own current problems with branding. 2ran!ly, his e planation of brand failure ma!es sense to me and all of the +00 failed brands he discusses serve seem worthy of e amination. Ae identifies what he calls Cthe seven deadly sins of brandingC9 amnesia, ego, megalomania, deception, fatigue, paranoia, and irrelevance. *ne or more is evident in each of the +00 brand failures on which he focuses. 0 ta!e at least three lessons from Aaig.s boo!. 2irst, even the largest organizations with the greatest resources (including some of the brightest people) can ma!e bad brand decisions and sometimes repeat them with another failed attempt. -lthough they may be able to absorb or overcome such brand failure, almost all small organizations cannot. &econd, that most brand failures result from launching a new product which encounters


insufficient demand or mar!eting a current product for which demand is declining. Aence the importance of mar!et research and especially of as!ing the customer. 2ord did almost no research before introducing the >dsel nor did /oca#/ola before launching New /o!e. $oth line e tensions were disasters. The overwhelming feedbac! from children surveyed indicated that they did not want $arbie.s Een to wear an earring but "attel inserted one anyway. The third lesson is that the !ey to a brand.s success (be it a product or service) is it authenticity. (Uou may prefer the word credibility.) Notice how intensively#hyped films may do well at the bo office the first wee!end but if they are duds, their sales tumble the following wee!end and they are inevitably off the Top Ten list within a month or so, if not sooner. 5eople are willing to try something new if they trust the provider. %ose that trust and there may never be an opportunity to re#earn it.

$ailure doesnLt always im-ly mista(es ,
This boo! is a great collection of brand#related failures, and many of the incidents covered in this boo! are both entertaining and informative. Aowever, while all of these cases show failure, 0 don.t thin! that they all show mista!es. $y .mista!e., 0 mean that the company made a foolish decision that they could reasonably be e pected to have made differently at the time. - lot of these failures we can see in hindsight were because of certain decisions, but it many cases, based on the information provided in the boo!, it doesn.t seem that the decision was wrong given the !nowledge and information at hand at the time. 0n the end, this boo! is definitely a fun read for the most part, but most of the time the .lessons learned. presented at the end of each case seem to be contradicted by some other company somewhere that made the same sorts of decisions and succeeded. $ecause of


this, the only real lesson this boo! can teach is that there are no absolute rules to successful branding, and while there are certain guidelines that can usually be followed, there are always e ceptions to the rules, and quite often the biggest successes have been the companies that defied conventional wisdom.

Could ha e been much, much better!,
0 went into reading this boo! with the highest of e pectations both because of the other reviews on it and because 0 am really interested in the topic. 0t started out interestingly enough but quic!ly went downhill. The first few case studies were pretty in depth and interesting but towards the middle of the boo! they got really short and shallow. 0t is almost as if the writer became impatient with his own boo!. 0f you don.t want to write in detail about +00 brands then <ust don.t. 3rite in depth about a handful but ma!e the case studies meaningful. The subtopics were also not logical for me. 2or me a better format would have been9 /hapter one 1 %esson one9 Sesearch your mar!et. Then give some e amples of brands that failed to do so. /hapter two 1 lesson two9 Eill the product not the brand. Then some e amples. -nd so on. $ut it was not arranged li!e that. 0n fact none of the lessons seemed to tie together that well. &urely the author could have found some more logical groupings.

*verall 0 give the boo! two stars.

<ighly RecommendedN
$randing is a ubiquitous, but critical mar!eting function that can produce spectacular successes and catastrophic blunders. Aighly visible branding failures, such as the ill#fated D6

CNew /o!eC or Aarley 'avidson.s silly attempt to peddle perfume, are first#order mar!eting blunders. Uet, while branding is critical, one wonders if branding alone, as author "att Aaig asserts, is the main reason %and Sover sales declined and General "otors stopped ma!ing *ldsmobiles. *ther e perts might address such failures from a more e pansive perspective, citing financial, competitive, managerial, global and environmental factors. Aaig notes that non#branding mista!es contribute to failure, but focuses on branding as the prime cause. -s a result, his brand#centered e planations can seem strained, but he overcomes this concern with a long list of vignettes that effectively drive home important points about the causes of branding failures. 3e suggest this boo! to mar!eting, advertising, 5S and customer service managers so they can learn from other people.s mista!es.

%rand glossary
- brand is a name, term, sign, symbol, association, trademar! or design which is intended to identify the products or services of one provider or group of providers, and to differentiate them from those of competitors. - brand has functional and emotional elements which create a relationship between customers and the product or service.

%rand &ttributes
$rand attributes are the functional and emotional associations which are assigned to a


brand by its customers and prospects. $rand attributes can be either negative or positive, and can have different degrees of relevance and importance to different customer segments, mar!ets and cultures. $rand attributes are the basic elements for establishing a brand identity.

%rand &udit
- brand audit is a comprehensive and systematic e amination of a brand involving activities (both tangible and intangible) to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage that equity. The brand audit requires the understanding of brand equity sources from the perspective of both the firm and the consumer.

%rand &wareness
$rand awareness is a common measure of mar!eting communications effectiveness. $rand awareness is measured as the proportion of target customers which has prior !nowledge of the brand. 0t is measured by two distinct measures@ brand recognition and brand recall. $rand recognition is the customers. ability to confirm prior e posure1!nowledge of a brand when shown or as!ed e plicitly about the brand (also referred to as aided or prompted awareness). $rand recall is the customers. ability to retrieve a brand from memory when given the product category but not mentioning of the brand (also referred to as spontaneous or unaided awareness).

%rand Cham-ion
$rand champions are internal and e ternal story tellers who spread the brand vision, brand values and cultivate the brand in an organisation. >very organisation needs committed and passionate brand champions. The more employees the organisation can


turn into brand champions, the better will it be equipped to build and maintain strong brand equity. &ingapore -irlines, %.*real, Aarley 'avidson, Ni!e, Google and %>G* are well#!nown e amples of companies which benefit tremendously from their employees being strong and dedicated brand champions.

%rand Culture
&trong brands are managed by organisations characterized by their strong internal brand cultures. - strong brand culture is determined by the internal attitudes towards branding, management behaviour and practices of an organisation. These combined efforts are crucial to build and maintain strong brand equity through competitive advantages from branding. The most prominent person to lead these efforts is the />* and the senior management team.

%rand *Euity
The brand equity concept stresses the importance of a brand in mar!eting strategies, and has become a leading indicator in measuring the strength and value of a brand. $rand equity is defined in terms of the mar!eting effects uniquely attributable to the brand. $rand equity relates to the fact that different outcomes result in the mar!eting of a product or service because of its brand name, as compared to if the same product or service did not have that name. $rand equity can be measured across different dimensions li!e brand awareness, brand loyalty, perceived quality, brand associations etc.

%rand *Euity +trategy
-n organisation wants to build and maintain strong brand equity for the respective brands in their portfolio including the corporate brand. The brand equity strategy serves as a guide for these mar!eting efforts and illustrates the plans and tactics needed to meet the


brand ob<ectives.

%rand *ssence
The brand essence is an articulation of the Cheart and soulC of the brand. - brand essence is typical three to five short word phrases that capture the core essence or spirit of the brand positioning and the values characterizing the brand. The brand essence is the description which defines a brand and the guiding vision of the brand.

%randing *#cellence
$randing > cellence is both an indicator of brand strength and a unique measure of the brand leadership capabilities of an organisation. &trong brands create profitable businesses, and organisations must see! to obtain branding > cellence to benefit and leverage fully from branding. - strong brand is characterized by a unique brand promise, and an outstanding brand delivery, and branding e cellence measures this balance and the outcome including guidance on how to improve. $randing > cellence measures and describes how brand leadership internally in a corporation can add significant value in terms of brand strength and brand value.

%rand *#-ansion
The e posure of a brand to a broader target customer mar!et, geographic mar!et, or distribution channels.

%rand *#tension: The application of a brand beyond its initial range of products, or
outside of its category. This becomes possible when the brand image and attributes have contributed to a perception with the consumer1user where the brand and not the product is the decision driver.

%rand 'uidelines

$rand guidelines are internal tools available in an organisation to educate, reinforce and motivate all involved in building and maintaining strong brands. $rand guidelines are crucial in establishing and enhancing a strong and dedicated brand culture. The brand guidelines can ta!e various forms and methods, and could consist of brand vision, brand identity, brand strategy guidelines, a short description of the brand, brand values, brand positioning, positioning guidelines, communication tips, writing style guidelines, design style guidelines, and company#wide contact details to obtain more information from central brand management.

%rand Identity
- unique set of functional and mental associations the brand aspires to create or maintain. These associations represent what the brand should ideally stand for in the minds of customers, and imply a potential promise to customers. 0t is important to !eep in mind that the brand identity refers to the strategic goal for a brand while the brand image is what currently resides in the minds of consumers.

%rand Image
- unique set of associations within the minds of target customers which represent what the brand currently stands for and implies the current promise to customers. The brand image is what is currently in the minds of consumers, whereas brand identity is aspirational from the brand owners. point of view.

%rand .oyalty
$rand loyalty is the strength of preference for a brand compared to other similar available brand options. 0t is measured through a range of different dimensions e.g. repeat purchase behavior, price sensitivity.


%rand 1anagement
$rand management is the process of managing an organisation.s brand or portfolio of brands in order to maintain and increase long#term brand equity and financial value. $rand management is applied by the person or group responsible for designing brand identities, aligning them for ma imum effectiveness, ensuring that they are not compromised by tactical actions, evaluating effectiveness of brand communication programs, valuing financial brand value, and designing appropriate brand crisis management plans among many other strategic and tactical tas!s.

%rand 1a--ing
$rand mapping is a research technique to identify and visualize the core positioning of a brand compared to competing brands on various dimensions.

%rand 7ersonality
The brand personality is the brand image or brand identity e pressed in terms of human characteristics. The brand personality must ideally include distinguishing and identifiable characteristics which offer consistent, enduring and predictable messages and mental perceptions.

%rand 7ositioning
$rand positioning is the Cmar!et spaceC a brand is perceived to occupy in the mind of the target audience. -ll strong mar!eting communications programs need to focus on only few messages to achieve better impact in an increasingly noisy environment. The brand positioning is the part of the brand identity that management decides to actively communicate to the mar!et.

%rand 7ositioning +tatement

- brand positioning statement describes the Cmental spaceC a brand should occupy in the minds of a target audience. 0t serves as an internal document which guides most of a company.s mar!eting communications strategies, programs and tactics. The brand positioning statement focuses on the elements and associations which meaningfully set a brand apart from the competition. 0t is typically constructed in the following format9 CTo (target mar!et), $rand ^ is the brand of (frame of reference) that (point of difference) because (reasons).

%rand 7ower
- measure of the ability of the brand to dominate its product category.

%rand Recall
$rand recall is the customers. ability to retrieve a brand from memory when given the product category but not mentioning of the brand (also referred to as spontaneous or unaided awareness).

%rand Recognition
$rand recognition is the customers. ability to confirm prior e posure1!nowledge of a brand when shown or as!ed e plicitly about the brand (also referred to as aided or prompted awareness).

%rand Rele ance
$rand relevance is the alignment of a brand, its brand attributes, brand identity and brand personality with the primary needs and wants of the target audience.

%rand Re italisation
$rand revitalization of a fading brand or a portfolio of brands is sometimes necessary for G0

an organisation. /hanges in the mar!eting environment, competitors. strategies, consumer behaviour, evolutions of cultures and many other factors can lead to erosion of the brand equity over time. - brand revitalization program is involving strategies to recapture lost sources of brand equity and ways to identify and establishing new sources of brand equity for the brand or the brand portfolio.

%rand +loganO %rand tagline
-n easily and recognisable and memorable phrase which often accompanies a brand name in mar!eting communications programs. The brand slogan and tagline helps customers to remember the brand and reinforces mental associations. /onsistent and well#!nown e amples are Ni!e CKust do itC, A&$/ CThe world.s local ban!C, A5 C0nventC, and &ingapore -irlines C- Great 3ay to 2lyC.

%rand +trategy
The .big picture. plans and tactics deployed by an organisation1brand owner to create long#term brand equity and competitive advantages from branding.

%rand Tribe
The modern consumer is buying e periences rather than commodities hence the importance of branding in many product and service categories. Therefore, the consumer decision process involves brand attributes and brand associations, which are largely image driven, intangible and symbolic. The group as a social institution serves as an important part of these consumer decisions as the importance and strengths of intangible brand attributes and brand values are related to how these factors are perceived and ran!ed in a group or clusters of groups of which the consumer is part of. - brand tribe is


a formal or informal group of consumers whom share the same awareness, passion and loyalty for a brand or a portfolio of brands. $rand tribes can be identified as strong drivers of brand strengths for many international brands li!e %>G*, $ang F *lufsen, Ni!e, Giorgio -rmani, $anyan Tree Aotels and Sesorts, &ingapore -irlines, Timberland and many other unique brands.

%rand ?alue
$rand value is the financial premium derived from loyal target audiences committed to a brand and willing to pay e tra for the brand as compared to a generic product or service in the same category. The brand value can be calculated in financial terms and demonstrates the value of the brand or a portfolio of brands as part of a corporation.s intangible assets. The valuation of brands is important for several reasons. &hareholders and advisors can assess the financial value of their corporate brand, an individual brand or a portfolio of brands.

%rand ?alue 7ro-osition
The functional, emotional, and self#e pressive benefits delivered by the brand that combined provide value to the customer. The brand value propositions provide the rationale (tangible and intangible dimensions and associations) for ma!ing one brand choice over other available brand choices.

1anaging the Credible %rand Image
<ow do you stac( u- as a successful com-any manger by today0s standards and reEuirements> G2

0n short, do you manage for success: -re you achieving: 0t is all about your mar!eting mindset. 0n particular your mindset toward managing your company,s mar!eting communication to establish a credible brand image. This is not managing any brand image. This is about managing a credible brand image so your customers will better accept your messages to move them to achieve your company goals 4 sales for e ample. This is what you need to as! yourself in today,s competitive mar!etplace where product and services differences are made by you.

Do you ha e a clear2cut understanding about the -ersuasion alue of your Credibility %ased .ogo> Uou do if you understand that the only value of a logo communicating with credibility. 0t says you are an 7e pert8 in what you do by symbolizing the company business. Aistorically, Koe the !ey ma!er used a !ey symbol in his shop sign. This says Koe is an 7e pert8 at !ey ma!ing. &ame thing with all logos. > cept now, -TFT, the communication company, must symbolize 7communication8 and loo! 7trustworthy8 or 7believable8 by loo!ing high tech. This is easily done with a contemporary style in the logo design.%ogos are credible if they symbolize what the company does. This is its 7e pertise8 in a design form. 0t also loo!s 7trustworthy8. These are the two ma<or prongs of being credible. 3e call this $redibility !ased %ogo &esign. 0t has proven over and over to achieve company goals. Kust li!e credible people move us as sports announcers or news anchors.

Do you create demand for your -roductsOser ices with a credible brand image, or do


you cost2cut> &urpriseM Uou can be doing both. That is what $redibility !ased %ogo &esign is all about. %ogos are the cornerstone for your branding efforts. %ogos create the brand image in application. /redible logos create demand by supporting why the company says. -dopt a credible logo then apply it throughout all customer touch points such as your letterhead, envelope, business card, vehicle identification, signage, advertising 4 everywhere. This is a powerful mar!eting communication system. 0t wor!s with management attention to consistency and coordination with attention to logo placement on these elements. "anagers create demand and cost#cut.

Do you nurture em-loyees to build com-any substance>
/ompany have to be what they say they are in mar!eting communication. 5articularly in a $redibility !ased %ogo &esign. /ompanies have to live up to the promise. This is nurturing employees to ma!e the company function as it is suppose to. "anagers find that a company brand image wor!s two ways. 0t sets the management outward e pectation. -nd it sets the outward e pectation management wants from employee wor! habits. Notice how this wor!s in a fine restaurant. The wait#help get 7caught up8 in the total mood of this high end dining e perience. *r wal! into a Tiffany then a E#"art. The employees in each level of store give a different customer e perience. 0n fact, the brand image as e pressed in mar!eting communication such as advertising, logos and direct mail is high end1low end too. Not wrong. Kust different positioning requiring a different credibility based brand image 4 from employees to mar!eting communication. "anaging the company credibility based brand image and employees to fulfill the brand


e pectation are essential to bringing strategic vision and direction to the wor!place. This is in pulling the entire organization, internal and e ternal, together to influence customers based on the philosophy that the company must be <udged as credible in order to succeed.

The diffusion of innovation refers to the tendency of new products, practices, or ideas to spread among people. Psually, when new products or ideas come about, they are only adopted by a small group of people initially@ later, many innovations spread to other people. The bell shaped curve frequently illustrates the rate of adoption of a new product. /umulative adoptions are reflected by the &#shaped curve. The saturation point is the ma imum proportion of consumers li!ely to adopt a product. 0n the case of refrigerators in the P.&., the saturation level is nearly one hundred percent of households@ it well below that for video games that, even when spread out to a large part of the population, will be of interest to far from everyone. &everal specific product categories have case histories that illustrate important issues in adoption. Pntil some time in the +I00s, few physicians bothered to scrub prior to surgery, even though new scientific theories predicted that small microbes not visible to the na!ed eye could cause infection. Uounger and more progressive physicians began scrubbing early on, but they lac!ed the stature to ma!e their older colleagues follow.

$rand building in fast moving consumer goods (2"/G) through smart pac!aging

_ "eeting changing consumer requirements in the retail environment _ >nhancing product delivery and performance through smart pac!s and devices _ Technology needs of the 2"/G industry /ompany 5rofile 5rocter F Gamble was founded in +I6G by /incinnati candle and soap manufacturers 3illiam 5rocter F Kames Gamble. The 5FG community now consists of nearly LI,000 people wor!ing in almost I0 countries worldwide supplying products and services of superior quality and value to consumers in +=0 countries. /onstant innovation and dedication to SF' has resulted in significant innovations over the years in business areas as diverse as personal beauty, household laundry and pet nutrition. *ur company has one of the largest and strongest portfolios of trusted brands, including 5ampers, Tide, -riel, -lways, 5antene, $ounty, 2olgers, 5ringles, /harmin, 'owny, 0ams, /rest, -ctonel, and *lay. &ales in the 2006#200= financial year topped HB+bn with a net income of HD.=bn. 3ill /onnolly originally trained as a materials scientist, receiving his $.-. in +LLD and 5h.'. from the Pniversity of /ambridge in +LLL. Ais thesis, in collaboration with 5il!ington Glass, focussed on developing solid state sensors for high#temperature sulphur detection. 0n 200 he <oined 5rocter F Gamble.s Aousehold care pac!aging team at their $russels 0nnovation /entre in $elgium and was part of the core team that transformed the global pac!aging of the 2airy 1 'awn brand, ta!ing sales to approaching +bn bottles per year. 0n 2002 he transferred to 5FG.s Susham 5ar! Technology /entre in the PE to <oin the upstream corporate pac!aging group. This role involves cross#brand support to the


different global business units as well as technology scouting in areas as diverse as biodegradable materials and smart pac!aging.


Consumer Influence: 1easure for 1easure
Com-ete illustrates the first ste-s in measuring the im-act of consumer generated media, and -ro ides a framewor( to hel- auto mar(eters e aluate the influence of this growing industry trend! /onsumer opinion has become a staple of the online shopping process. 3hether it comes from a friend, a family member or blogger, product reviews are now influential go#to media resources, and it.s even beginning to drown out the voices emanating from brands and "adison -venue. Pser#generated media (PG") is playing a !ey role among consumers that are in#mar!et for anything from cameras to household appliances to mobile phones. -nd, its influence doesn.t stop with the purchase itself## consumers influenced by PG" are demonstrating a ripple effect on other buyers, sharing their e periences with family and friends post#purchase. 2or mar!eters who are already embracing this media movement, the shift requires that they improve their analyses of PG".s influence on consumer engagement and purchase decisions. Aow: The attitudes and behaviors of in#mar!et consumers online are the !ey to unloc!ing PG".s impact. To start out, measuring the true impact of PG", and mar!eting.s ability to influence it, requires addressing9

'etermining whether in#mar!et consumers use PG" when considering a purchase

• •

>stimating how influential PG" is -nalyzing whether PG" is more or less influential than other media sources


This framewor! is the first step in mar!eting measurement programs that reflect today.s new mar!eting paradigm.

U'1 changes online auto and tra el buyersL decisions
/onsider autos and travel ## two highly considered purchases ## as e amples for measuring PG".s impact. *ur research shows that half of auto and travel purchasers surveyed turn to PG" to narrow their purchasing decision@ nearly one quarter say that consumer review sites influence their purchase decisions and 2= percent change their minds about the type of vehicle1travel reservation they end up purchasing as a result of PG" influence.

0f you recently purchased a new or used vehicle, it.s li!ely you were among the estimated I0 percent of buyers who currently use the internet to research a vehicle before ma!ing a purchase. &cores of informational third#party sites such as > and /, as well as auto blogs, forums and message boards, ma!e it easy for car enthusiasts and shoppers to share feedbac!. PG" is money in the ban! for mar!eters who !now how to tap into the new currency around it. Though mar!eting remains a comple discipline that is one part psychology, one part science and one part art, the internet offers an unprecedented level of real#time information from in#mar!et shoppers to fuel all three parts. "ar!eters must start using the internet to improve their visibility within PG". Aere.s how to begin9

&naly6e in2mar(et consumers! &imply monitoring digital mentions isn.t
enough. -nalyze in#mar!et consumers who are close to the point of purchase,


not simply consumers online in general, to better understand how PG" fits into their lives and the role it plays.

Im-lement beha ioral and Eualitati e monitoring -rograms !
> amine in#mar!et consumer behavior online and conduct a behaviorally targeted survey of connected, in#mar!et consumers to understand the impact PG" has on product preferences and motivations.

1easure! Zuantify how many in#mar!et consumers changed their minds about
the products they purchased as a result of PG", and how many ended up purchasing your product over a rival.s. "easure PG"#influenced buyers. engagement with your brand online by e amining not only how they interact with your site but also the attention they give your brand online overall. 'ollar General and 'ollar &tore are two distinct discount retail chains where most items sell for HB.00 or less.


*verall, for 'ollar &tore customers, blogging has greater influence than 'ollar General bloggers on their purchase. $logging has greatest influence on 'ollar General customers in purchase decisions regarding home improvement, electronics, telecom services and grocery, compared to 'ollar General customers. $logging has very little influence on purchase decision in almost every category, but it does compare favorably on eating out. The above data can start to chart the potential power of the new media influence on concrete purchase decisions by retail channels. "edia planning and S*0 elements by retail channel are important to retailers and manufacturers


The objectives of the research being undertaken are to gain insight into the following: • • 'efinition of branding and global branding 0mpact on local economy@ how global branding impacts the local indigenous brands and how it evo!es competition. Aow global brands effects the employment and balance of payments of an economy. &trategies for branding and positioning9 in this we try to gain an insight into the strategies adopted to enter a mar!et and how should a global brand be positioned. 5olitical and legal situations, language barriers all have to be evaluated carefully before entering a mar!et. 3hat advertising techniques have to be adopted and how an advertisement impacts the customer 0n today,s world consumers don,t <ust want products and brands but demand global brands. $randing has ta!en on a greater significance in the past decade as companies begin to see their brands as assets # as valuable and as tangible as their factories and patents. &o brands have become more than mar!eting slogans and icons today9 they are now closely monitored by the />* and /2*, and assessed by industry analysts and pundits. Uet many business#to#business mar!eters and service providers do not practice, or even appreciate, the value of branding in their businesses. The truth is every business, even a commodity supplier, is building a brand through their actions and their presence even if


that brand is not being intentionally created and nurtured. They acquire a 7position8 in the minds of customers and prospects, a position or identity based on e posure and e perience with the provider in the conte t of a competitive mar!etplace. Global brands benefit if consumers see them as part of their local communities with local accountability. /onsumers respond very positively to outreach initiatives into the local community. They are more li!ely to favor companies with such programmes than they are to re<ect companies who transgress on higher threshold issues. Aowever, these activities need to be relevant though and, if possible, reinforce the basic brand positioning. $oth Ni!e and "c'onald,s are e amples of "aster brands with good local outreach programs (e.g. "c'onalds, while controversial in Tur!ey, was praised for its local response to then 2000 earthqua!e).


T<* R*+*&RC< 1*T<ODO.O'=
The study conducted to achieve the before said ob<ectives was both e ploratory and descriptive in nature and involved personal interviews based on the questionnaire format. The proposed framewor! will be applied to real# life, realistic data, in order to be able to provide reliable suggestions to international mar!eting managers who are responsible for ma!ing global launch decisions. -lso The 'issertation is a 'escriptive &tudy, whereby the ob<ect of a descriptive research is, to portray an accurate profile of persons, events, or situations. This may be an e tension of, or a forerunner to, a piece of e ploratory research. 0t is necessary to have a clear picture of the phenomena on which 0 wish to collect the data prior to the collection of the data.

D&T& CO..*CTION 1*T<OD: #
 5rimary source

 &econdary source

7rimary sources: 2


The data required for the study would be based on9

 5ersonal interviews based on pre#decided format of structured undisguised questionnaire, which would be administered to the respondents.

 5ersonal interview with the /ompany representatives regarding the various data.

 &hort interviews with the customers.

+econdary +ources: #
The secondary data consists of information collected from9

 3ebsites

 $usiness magazines

 Trade guides

 5ublished data on 2"/G industry

The questionnaire would consist of9#

 *pen ended questions9 # To bring out the ideas and pertinent thin!ing of the respondents.


 "ultiple#choice questions9 # These questions made answering procedure more convenient for respondents.




14% 33%
east delhi ghaziabad noida




17% 37%

15! 5 5!35 35!45

% 4%


$igure29 IG

res'on(e on the basis of o((u'ation
3#% 1"%

% $usinesss %vt.&ervice





res'on(e on in(o)e basis
1)% 17% 1"% *1#### 3####!4#### 1"% ####!3#### "%

1####! #### +4####


2* 1* 0* /* .* -* ,* +* * 3es no


1* 0* /* .* -* ,* +* * 'ri(e base 4ua5it3 base


.* -/ -* ,/ ,* +/ +* / * $6G &LL ANY #T&ER BRAND



2* 1* 0* /* .* -* ,* +* * YES N#


-* ,/ ,* +/ +* / *

ra3)o)d (o5our '5us 5o(a5 brand 'etter eng5and an3 other brand


-fter analyzing the data the interpretation of the data can be done as follows. No of people visited are +00 in the region of 'elhi and Ghaziabad. "a imum no of peoples are of 'elhi region i.e. in / 5.

(+) The above pie#chart gives the split of the sample area#wise. The sample constituted B6O of the respondents from Ghaziabad, 66O from >ast#'elhi and +=O from Noida.

(2) The above pie chart gives the age#group wise split of the sample. -ccording to it there were 6GO respondents belonging to group +B#2B years. 2=O were of group 2B#6B years. 22O were of group 6B#=B years and finally 22Obelonged to =B#BB years

(6) The above pie chart gives the income group wise split of the sample. -ccording to this every person belongs the different occupation.

(=) The above pie chart gives the income group wise split of the sample. -ccording to this every person earn the different income.

(B) "ost of the believes in barnding 2"/G product they donot want to ta!e any other local brand but 20O people says that use the branded product because they can purchase the high range product.


(D) This chart is show the different view of the consumer. 60O peoples say that they purchase the product according to the price. $ut G0O peoples say that they purchase the product according to the quality of the brand. 0t means both things should be important in the 2"/G brand.

(G) This chart is show that every consumer used the different 2"/G product in the regular life. 2or e ample -ccording to the data 20 O consumer used the 5FG product, =0O consumer used the A%% product, and =0O consumer used the other brand

(I) This chart is show awareness of the brand .GBO people says that they have !nowledge about the branded 2"/G product. $ut 2BO people says that they have not !nowledge about the branded 2"/G product

(L) This chart is show that when the consumer purchase the shirt then every consumer purchase the different brand .This is a not possible that every consumer li!e one brand, &o we say that every consumer use the different brand. .


Now a day there is many brand come in the mar!et day to day. >very consumer used popular brand. >very company should concentrate on advertising, as it is the main weapon in this media world. 0t should go to tie ups with some nationalized ban!s so that peoples can ma!e trust on it. 0f the company will start road shows that can give the company a competitive edge and a better promotion. >very company should be providing the special offer with the 2"/G product. 3e should ma!e the branded product according to the requirement of the consumer. /ompany should go for relation building e ercise with their distributors and customers. 3e should remove the disqualify product and ma!e a new product with the help of new technology of the world. The price of the brand should not be high so the costs of the brand according to the consumer because every customer can not be purchase the high range brand. 3e should change technology the product time to time. Theses reason is that this time is change very quic!ly. 3e should target the customer because the customer use the product in the daily life.


7RO1OTION&. +TR&T*'I*+

 7ress -ublicity9
 5aper inserts  -dvertisements in newspaper (local and national).  0nterest cards distribution  "ailers1personal invitations to selective section of the society  %eaflets

 Outdoor -ublicity:
 $anners in commercial areas and prime sites.  -ir balloons at shopping comple .  $us stands shelters.  -dvertisements on 'ividers and Sailings.

 1edia:
 %ocal channel advertisement (cable T? scrolls)  -dvertisements in news channels and business channels

 $ace to face:
 5ersonal interaction of mar!eting e ecutives through  "eetings  'etailing about schemes and updating them from time to time  >vent sponsoring in local clubs and social gathering  Soad shows


 /ontacting senior citizens in par!s in morning and evening.

Aow best to manage a brand internationally largely depends on the factors discussed in this paper. $rand strategy is not a given and needs to be constantly reassessed $rand managers must decide what is the best course of action for their brands in particular mar!ets, based on an analysis of the relevant internal and e ternal influences on the brands. 0n certain mar!etplace the 2"/G $rand is a necessity, whereas in many other cases it is means of e ploiting and ta!ing advantage of new opportunities in communications. 3hen a brand goes international it can benefit from the internationalization services. /ertain situations ma!e global communication and brand policy easier. They are lin!ed to the product, to the mar!ets, to the force of brand identity and also to the organization of companies. &ocial and cultural changes provide a favorable platform for brands. Pnder these circumstances, part of the mar!et no longer identifies with the long established local values and see!s new models on which to build its identity. 0n recent years the profile of 2"/G has been changing. No longer are they old style traders, sitting in dusty godowns and !eeping trac! of inventories with hand written account boo!s. Those distributors had mostly been appointed in the pre#liberalization era of low competition, where supply was what mattered. $usiness was a matter of

delivering # and usually rationing # products to a finite number of retailers and ensuring that money flowed reliably to the company


$y concluding the dissertation 0 would li!e to give my opinion that when a company is planning to ma!e its brand global the above mentioned ob<ectives which are 2irstly, the global brand issues and how to build a global brand, &econdly, the global branding strategies, Thirdly, managing a global brand, 2ourthly positioning of the global brand and last but not the least localization of global branding, should be studied thoroughly in order to ma!e the brand successful on international levels. The points e plained in detail in each ob<ectives holds importance as it contributes in the emergence of a successful brand. The research 0 have underta!en as a proper methodology, which was e plained by my supervisor. There were certain issues and concerns, which 0 had to consider while doing my research. Though 0 have used a lot of secondary data for my dissertation, there are many disadvantages to it. 'ata that 0 collect myself will be collected with a specific purpose in mind that is to answer my research questions or ob<ectives. Pnfortunately secondary data will have been collected for a specific reason that differs sometimes with the research question or ob<ective. &econdly, when 0 was collecting the data, gaining access to the data was sometimes difficult and costly. Thirdly when using data that,s presented as part of the report one has to be aware of the purpose of that report and the impact that this will have on the way the data are presented. 2inally, the research was underta!en on this topic, as 0 thin! the trends of 2"/G branding are spreading its roots widely in the world economy, there to understand the emergence of $rands and its success is very important. 0t is a very interesting topic which helped me have a wide spectrum of insights about the brands, elements of global branding, the different strategies used in different countries and how people loo! upon a global brand vis#a vis the indigenous brand.


%I%.IO'R&7<= Q R*$*R*NC*+ 2!ter!et /ites
          business world 0ndia today