Managing Brands in Global Markets Product Component Model

Managing Brands in Global Markets

Product Component Model SUPPORT SERVICES COMPONENT PACKAGING COMPONENT Repair and maintenance Trademark Installation l Brand name Instructions Other related services Legal Product platform Deliveries Price Quality Warranty Design features Functional features CORE COMPONENT Package Legal Spare parts Styling Legal

What is a brand? FA name, term, sign, symbol, or design, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors (Kotler, 1991)

Brand Strategies Global Brands National Brands Global/National Brand Mix Private Brands

Global v. Local Brands F Global brands provide: – Scale economies in the Development of advertising, packaging, promotion, etc. – Exploitation of: Media overlap u Exposure to customers who travel u – Associations of a global presence u of the “home” country u F Local brands provide: – Names, symbols, and associations that can be: Developed locally u Tailored to local market u Selected without the constraints of a global brand u – Reduced risk from “Buy Local” sentiments

Brand Name Decisions F Arbitrary or invented word F Recognizable English (or foreign language) word but unrelated to product (Cheer) F Recognizable English (or foreign language) but suggestive of product (Mr. Clean) English (or foreign language) word descriptive of product but may not be understandable to outsiders (Pampers) F (Lexus) F Geographic place or common surname Fried Chicken) (Kentucky F Device, design, number or some other element (3 M)

Global v. Local branding F In 1989, Mars changed the name of Kal Kan cat food to Whiskas. F Why? – Sharing of ideas in global corporation – Pet owners travel and might switch if their familiar brand was not available somewhere. – Two years earlier, Mars had created to other global brands Kan dog food Pedigree in U. S. u Mealtime dry dog food Pedigree Mealtime u Kal – High market share in U. S. – Brand associations

What is brand equity? FA set of brand assets linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers.

Components of Brand Knowledge F Brand Awareness – Recognition – Recall F Brand – – Image Type Strength Favorability Uniqueness of Brand Associations

Hyundai and Kia F Hyundai Motor Co. and subsidiary Kia Motors Corp. unveiled their global brand slogans last week. F Hyundai has adopted the slogan" Drive your way, " meant to reflect Hyundai's "refined and confident" brand attributes. F American officials for both automakers are trying to decipher what impact the global slogans will have. F Marketing analysts expressed concern that the global brand concepts are vague and too focused on what the brands mean in South Korea. (Jan 2005)

Philips – “Sense and Sensibility” F Philips is already using the Sense and Simplicity strategy in a brand campaign designed to be more vocal about who they are and the value they deliver. F Since the beginning of the campaign in September 2004, Philips' awareness in the U. S. among its target demographic, which is professionals aged 35 to 54, has increased almost 50 percent on an unaided basis. F Philips’ Sense and Simplicity directive challenges its teams to develop and market products using meaningful applications that are intuitively easy for customers to use.

How Foreigners View US Brands F F F American Express, AOL, Starbucks, American Airlines, Marlboro, and Mc. Donald's are seen as arrogant and "very American. " But Visa, Calvin Klein, Kleenex, and Kodak are viewed as trustworthy and likeable. 50% of overseas consumers distrust U. S. companies, and 68% say they formed a negative view due to the Iraq war. Brands with "America" in their names are targets for scorn Others are seen as exporting the worst of the U. S. -- a fast -food culture -- franchise by franchise. Source: Global Market Insite