STRATEGIC BRAND MANAGEMENT

MODULE-8
Making Brands Go
Global

STRATEGIC BRAND MANAGEMENT

MODULE 8
Making Brands go Global:
Geographic extension, sources of
opportunities for global brand, single name to
global brand, consumers & globalization,
conditions favoring marketing, barriers to
globalization, managerial blockages,
organization for a global brand, pathways to
globalization.

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Geographic extension
It is built in to the brand concept.
It depends the brands growth & its ability to
explore fresh avenues & to sustain its
competitive edge in terms of economies of
scale & productivity.
Its a principle of international expansion.

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sources of opportunities for global

brand
The global brand is a necessary where as in many
other cases it is a means exploiting & taking
advantage of new opportunities in communication.
The single brand is a necessary whenever the
clients themselves are already operating
worldwide.
The single brand permits a product to adopt to
new international opportunities.
1. As tourism develops.
2. International media develops.
3. When brand goes international scope for retailers.
4. Single international brand is easing the process of
brand extension.

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Single name to global brand

Global marketing implies the wish to extend a single
marketing mix to a particular region or even to the world.
It also denotes a situation in which a firms competitive
positioning in one country can be significantly affected by
its position in other countries.
The global approach sees the role of individual countries
as only part of a wider competitive action.
The aims of marketing in each country are no longer
determined by the local subsidiary but are decided upon
according to the global competitive system.
Some companies develop the marketing mix for its new
products & tests its capabilities in home country before its
extension to other countries.
Certain countries are assigned to develop know how on a
particular brand or a type of product brand.

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Examples: Magi ready snacks were

launched 3 countries with 3 different
names:
1. Germany: Maggi 5 minutes terrine.
2. France: Bolino.
3. Switzerland: Quick Lunch/ Quick Meal.

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Global brand leads to

profitability

It cuts out duplicated tasks. Ex: Single Ad for

all countries.
It helps to eliminates the problems which
arise when a product appears at staggered
intervals from one country to another.
Globalization allows a firm to exploit good
ideas wherever they come from.
A global policy allows a firm to slip the
stranglehold of the major retailer.
Example: P & G is following the above same
global policies in all countries.

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CONSUMERS & GLOBALISATION

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Conditions Favoring Global

Brands
Social & Cultural changes provides a
favorable platform for global brands.
Part of the market no longer identifies with
long-established local values & seeks new
models on which to build its identity.

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Barriers to globalization

Homogenizing character of technology.

The convergence of life style
The
global
village
created
by
transnationality of the media.
Economies of production.
Mobility of buyers because of tourisam.

the

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Managerial Blockages
Barriers to globalization come from 2 sources: External
& Internal.
The difficulties arising from structural market differences
& from behavioral patterns in different countries.
Attitude is above all an automatic means of defense on
the part of organizations does not always reflect the
reality where individual countries are concerned.
Many companies prefer an approach adapted to each
market due to their corporate culture.
Whether or not brands are managed on a global basis
the R/S B/W the mother country & other various
country.
There is indeed a close R/S price positioning & market
positioning.

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Organization for a global brand

Globalization necessarily entails a change in decision
making procedures & in these general underlying structure.
As for advertising, globalization implies adopting a single
network.
Global does mean transferring the marketing function,
which used to be very decentralized operation up to
headquarters, or at least to regional headquarter.
Some companies appoint an agencies in the network as
head of production & initiator of advertising campaigns due
to significance of market..
Globalization requires structures & procedures for
information, persuasion, coordination & approval.

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PATHWAYS TO GLOBALIZATION

Duplicating progressively: the success

factors of the local strategy.
Consists of launching the brand from
scratch simultaneously in several
countries.
It consists of unifying the local brands
inherited during the growth of the group.
Communication way.

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