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Product strategy For International markets

: Branding Issues

Gautam Dutta

Nestles Branding Tree

Branding Issues : International Marketing

Global marketing to multi domestic


marketing.
Impact on branding strategy:

Managers Dilemma:
Develop international brand?
Develop local brand?
Kill local brand?

Local brand : brand that exist in one country or in a


limited geographical area. Such brand may belong to local
, international or global firm.
International brand: brand that have globalize element of
marketing strategy. That use the same marketing
strategy and mix in all target market

Attributes of a global brand


Dominates the domestic market
Meets a universal consumer need
Demonstrate s balanced country-market coverage
Reflects a consistent positioning worldwide
Benefits from positive country of origin effect
Focus is on the product category
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Global brand advantages

Standardized brand can generate significant


cost reduction in all areas of business
system (R&D, any manufacturing,
logistics, packaging, communication,
costs)
Development of unique brand image across
countries.
Speed to market new product get enhanced
Build case for handsome funding support
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Local brand advantage

Better response to local need

Flexibility of pricing strategy

Possibility of responding to local or international


competition

Possibility of balancing a port folio of brands

Possibility of responding to need not covered by


international brand

Possibility of fast entry in to new market

How this debate can be answered ? Local


brand or global brand
Young & Rubicam world wide brand data base and
study of 744 brands (local 397 and global 347 ),
based on interview of 9739 people of European
countries reveals:

Awareness level of local brand is significantly


higher than international brand
Image of trust is significantly higher in local
brands
Local brands are perceived to be more down to
earth
Local brands are more traditional
Perception of prestige for international brand is
not significantly high
Attraction is more for international brand but
preference for local brand while purchase
Trust and no frill is the key that builds the image
for local brand

FRAMEWORK
1. ORGNANISATIONAL LEVEL
CORPORATE: Phillips, Benetton Shell, Apple, Nike
FAMILY: (Unilever) Walls, Algida,
Calvin Klein (Personal Product)
Phillip Moris (Cigarette )
Kraft (Cheese)
Pedigree
PRODUCT: Camay Soap
Pentene Shampoo

FRAMEWORK
2. GEOGRAPHIC SCOPE

1.
2.
3.

1.
2.
3.

1.
2.

Global
Corporate brands
Family- Nivea, pedigree
Product Camay, Pentene
Regional
Walls US , China,India
Tide USA
Cheer USA
National
Unilever- Flora- USA
Promise in USA

A Framework to examine

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The greater the size of the host market, the


higher the likelihood of a brands launch in
a market.
The greater the psychic distance between
the host market and the home market, the
lower the likelihood of a brands launch in a
market.
The larger the size of the host market, the
weaker the effect of psychic distance on the
likelihood of a brands launch in a market.
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Past market launch efforts have effect


on the likelihood of a brandslaunch in
a market.
Global geographic scope has a
positive effect on the likelihood of a
brands launch in a market.
Host-market presence has a positive
effect on the likelihood of a brands
launch in a market.
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