Managing Brands Over Boundaries Powerpoint Templates Page 1
Managing Brands Over Boundaries Powerpoint Templates Page 1
The Issue of Brand Boundaries Cultural Boundaries can represent both barriers and opportunities for Brand success. Regional Boundaries exist where consumer differences naturally occur in: • Brand benefits • Brand associations • Channels • Buying behaviors Demographic Powerpoint Templates Page 2
Questions for Brand Managers Before deciding to cross any brand boundary, companies should ask several key questions: Support Duration Results • Can we support it? • Will the outcome be enough to justify? • Will markets shift on us afterwards? • Is it sustainable? Powerpoint Templates Page 3
The Inevitable Forces for Global Services Ubiquitous Needs Economic Convergence Global Social Network Competitive Parity Global Branding Powerpoint Templates Page 4
Regional Boundaries Powerpoint Templates Page 5
Regional vs Global Markets Regionalization and Globalization are opposite brand strategies. The difference in approaches include: • Level of customized branding / marketing • Leveragability of costs • Ability to reach more focused segments Regional Powerpoint Templates Global Page 6
Why Select a Regional Branding Strategy The desire to create regional brand approaches are many. Some key areas: • • 15% inventory customization Can lead to 3% boost in annual revenue Markets are becoming smaller and more unique by region Buying patterns change due to economics etc Markets Splinter Economies Differ Cultural Diversity Response to Marketing Competitive Differences Powerpoint Templates Page 7
How Regionalized is “Regionalized” ? Texas The degree to which a region is defined varies. • • • Eastern versus western Europe Provinces in China Regions of the USA Sweden within Nordic Nations Islands in South Pacific Nations in Southeast Asia Sichuan Tonga Powerpoint Templates Nordic East Africa Page 8
Some Examples of Regionalized Brands • Macy’s in Atlanta and Washington State • Busch beer in Texas • Campbell’s Chilli • Craft Beers • Mc. Donalds Powerpoint Templates Page 9
Regional Branding Challenges • Local Infrastructure • Increased local Competition • Weather and Climate • Diluted Brand identity • Resources Spread Thin • Increased Costs Tsunami Who Is BK Powerpoint Templates Local Roads Page 10
Elements of Regional Branding Brand Awareness Sub Brand Local Design Brand Meaning Price Points Product Features Brand Response Localized Service Promotions Powerpoint Templates Page 11
HOW CAN A BRAND EXPAND WHILE STAYING LOCAL? Global Branding Powerpoint Templates Page 12
Staying Local Does Not Mean Staying Put Expande d Services Better Locations New Markets Global Branding Powerpoint Templates Page 13
Cultural Boundaries Powerpoint Templates Page 14
Millennials in Canada don’t have the same attachment to the Kraft name as previous generations—and the brand would love to see that change. Few may know that Kraft’s roots are in Canada, as the company was founded by general store clerk J. L. Kraft, who grew up on a dairy farm in Ontario and moved to Chicago in 1903 Now his namesake company is making a counterintuitive move in his homeland to remove the Kraft name from its popular Kraft Dinner line, as it’s called in Canada (vs. Kraft Macaroni & Cheese in the US). North of the border, it’s now officially known as KD, the acronym that Canadians have called the brand for some time. KRAFT DINNER REBRANDS TO KD IN CANADA AND CUTS COSTS, JOBS IN THE US POSTED JULY 31, 2015 BY MARK J. MILLER http: //brandchannel. com/2015/07/31/kraft-canada-073115/ Powerpoint Templates Page 15
The move follows Kraft’s move to remove synthetic colors (or in Canada, colours) and ingredients from its iconic mac’n’cheese recipe—in short, becoming more authentic and, well, less cheesy. Meanwhile, back in the US, now that Kraft has merged with Heinz, it’s looking at a variety of ways to tighten its belt, including eliminating some jobs and cutting back on travel, electricity use and office supplies “The way Canadians refer to Kraft Dinner as KD is as much a term of endearment as when you call a relative or a friend by a nickname, ” she added. “It’s such a love mark for them, and we should be reflecting that. ” Company research in Canada has shown that the percentage of shown consumers saying Kraft Dinner is the “brand for me” dropped over the past year. That led to the decision to rebrand under the KD name. The rebranding campaign hashtag is #KDisnow. KD https: //twitter. com/kraftdinner/statu s/626727511246815232 http: //brandchannel. com/2015/07/31/kraft-canada-073115/ Powerpoint Templates Page 16
Why did Kellogg’s Fail in India? 6 Kellogg’s Powerpoint Templates ANSWER Page 17
Lack of Local Adaptation Powerpoint Templates Page 18
8 Head & Shoulders What is the name for Head Shoulders’ strategy to move into China? Powerpoint Templates ANSWER Page 19
Powerpoint Templates New Market Leverage Page 20
Demographic Boundaries Powerpoint Templates Page 21
The Millennial generation, 1634, is in the driver’s seat, 79 million strong compared with waning Boomer’s 76 million. They wield hundreds of billions of dollars annually as influencers of commerce, culture, business and brands – and their clout will only increase as they move into their peak spending years FROM HIP-ENNIALS TO GADGET GURUS, BCG PARSES THE MILLENNIAL CONSUMER POSTED APRIL 19, 2012 BY SHEILA SHAYON http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 22
In order to better understand the Gen Y (or as some call them, “Generation Lost”) cohort born in the 1980 s and ’ 90 s, The Boston Consulting Group, along with Barkley, and Service Management Group, have collaborated on a new study, “The Millennial Consumer: Debunking Stereotypes. ” FROM HIP-ENNIALS TO GADGET GURUS, BCG PARSES THE MILLENNIAL CONSUMER POSTED APRIL 19, 2012 BY SHEILA SHAYON http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 23
“Don’t believe the hype that Millennials consume less than previous generations, ” said Christine Barton, a partner at BCG. “Those companies that truly ‘get’ this generation will have an opportunity to differentiate themselves and forge profitable long-term relationships with Millennial consumers. ”[more] FROM HIP-ENNIALS TO GADGET GURUS, BCG PARSES THE MILLENNIAL CONSUMER POSTED APRIL 19, 2012 BY SHEILA SHAYON http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 24
The research identified six distinct segments of U. S. Millennials • Hip-ennials (29 percent)—“I can make the world a better place. ” • Millennial Moms (22 percent)—“I love to work out, travel, and (22 percent)—“ pamper my baby. ” • Anti-Millennials (16 percent)—“I’m too busy taking care of my business and my family to worry about much else. ” • Gadget Gurus (13 percent)—“It’s a great day to be me. ” • Clean and Green Millennials (10 percent)—“I take care of myself and the world around me. ” • Old School Millennials (10 percent)—“Connecting on Facebook is too impersonal, let’s meet up for coffee instead!” http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 25
For marketers wooing the Millennial consumer, which has been through 9/11, the Great Recession and years of dire jobs outlook, Barton cautions that “a onesize-fits-all effort will fail to connect with every Millennial segment. ” Highlights from the BCG survey include: • Millennials use social media platforms to engage with brands, as well as friends. They are significantly more likely than non-Millennials to explore brands in social networks (53% vs. 37%) and when it comes to making purchases, Millennials are far more likely to favor brands that have Facebook pages and mobile websites (33% vs. 17%). http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 26
To a surprising degree, U. S. Millennials are a generation actively engaged in consuming and influencing. Millennials are far more engaged in activities such as rating products and services (60 percent versus 46 percent of non-Millennials) and uploading videos, images, and blog entries to the Web (60 percent versus 29 percent). They also put a premium on speed, ease, efficiency, and convenience in all their transactions. They shop for groceries at convenience stores twice as often as non. Millennials rely much more on recommendations from friends or peers than from “experts. ” They trust people with firsthand experience, ideally a peer or close friend, rather than corporate spokespeople or professional/academic experts. “Crowdsourcing”—tapping into the collective intelligence of the public or one’s peer group—has become particularly popular among Millennials. http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 27
Millennials are “digital natives” and consider themselves fast adopters of new technologies and applications. More Millennials than non-Millennials reported using smartphones (59% vs. 33%) and gaming platforms (67% vs. 41%), and are more likely to multitask while online across multiple platforms —mobile, social, PC and gaming. While 49% of non-Millennials reported watching TV 20+ hours a week, only 26% of Millennials did so. Millennials are more likely to watch TV on their computers (42% vs. 18%). http: //brandchannel. com/2012/04/19/from-hip-ennials. Powerpoint Templates to-gadget-gurus-bcg-parses-the-millennialconsumer/ Page 28
Global Boundaries Powerpoint Templates Page 29
• After experiencing food safety scandals in Russia and China and declining sales in the US due to the growing trend of fresh and healthy alternatives (i. e. Chipotle) Mc. Donald’s sales have plummeted. • Their strategy for regaining global dominance: Brunch and Technology. • They are considering Tablet ordering systems such as those used in Panera and integration with Apple Pay to regain market share. • They are also looking to spice up the menu with expanded breakfast hours. • But is it enough? Or is the Mc. Donald’s brand forever tainted? Can Poor Quality be Compensated by Good Technology? Brand Channel: Mc. Donald's, Hurting Globally, Turns to Digital Pay Platforms —and Brunch? Powerpoint Templates Page 30
Mc. Donald's trademarks the term 'Mc. Brunch' The move comes as fast food franchises like Taco Bell, Dunkin’ Donuts and Burger King have been ramping up breakfast options. Even Chick. Fil-A is now offering more unique food products to their breakfast line, with chicken biscuit sandwiches, bagel sandwich and breakfast burritos. Burger King tested a brunch menu four years ago in select markets, which featured nonalcoholic mimosas, a BK Ciabatta Breakfast Sandwich and a Whopper burger. Burger King scratched that idea and in May launched a "Burgers at Breakfast" program with Whoppers offered in the morning. Published September 10, 2014 Powerpoint. Fox. News. com Templates Page 31
Burger King’s All Black Japanese Burger • Meanwhile, Burger King’s global innovations are focused on their menu offerings. • The Kuro Burger features black buns, sauce, and cheese blackened by a bamboo charcoal mixture and a healthy dose of squid ink. • It has received mixed media response – some calling it the “goth burger, ” while others are intrigued. NBC: • Do you think this is a Burger King Releases a 'Black Burger' smart move? How should in Japan other fast food chains Powerpoint Templates respond? Page 32
Strong global Branding means Leveraging Globally Recognized Identity within A locally unique character Global Branding Principle Powerpoint Templates Page 33
WHAT ARE THREE REASONS FOR GOING GLOBAL? Powerpoint Templates Page 34
When to Go Global Star. Bucks Reduce Future Risk • • • Mature Products Slower Growth New Competitors Supply Issues Labor Costs BRANDING STRATEGY Coca Cola Google Economy Of Scale Opportunity Mc. Donald’s. Facebook • • • Product Develop Production Costs Marketing Costs Distribution Costs of Goods Powerpoint Templates • • • Emerging Markets New Segments Weak Competitors Brand Extensions Product Incubator Transference Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu Page 35
Positive Factors for Going Global Cost Advantages Costs Access to New Markets • Current is Mature New Markets Global Branding • • • Economy of Scale {Nestle} Labor Availability and Cost Taxes, Rent, Overhead Reasons To Go Global Absorb Need to Absorb Risks Risk • • Economic Downturn Competition Market Shifts Deteriorating POP Powerpoint Templates Page 36
What are the Risk Factors of Global Expansion? Powerpoint Templates Page 37
When Not to Go Global Avon Regional Difference Too Great • • • Price Elasticity Product Needs Brand Elements Kindle Difficult to Compete EBay • • • Political Barriers Channel Access Location Access Cultural Barriers Infrastructure 9 BRANDING STRATEGY of 11 Powerpoint Templates • • Prius Market Isn’t Ready Familiarity Level of Use Buying Power Economic Position Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu Page 38
Risk Factors for Going Global Differing Service Needs • Social Media • • • Response to Marketing • Social Media • Advertising • Relationships Marketing Response Entertainment Sustainability Service Life Cycle Risks to Going Global Existing Conditions • Infrastructure • Domestic Competition • Channel Access • Political Requirements Global Branding Powerpoint Templates Page 39
Global Placement is a Choice Between Two Different Roads Localization Global Branding Globalization Powerpoint Templates Page 40
Making The Global Decision Region Selection Global Branding Offer Strategy Powerpoint Templates Mode of Entry Page 41
Choosing Where to Expand Buyers Behavior Channel Brand Preference Markets Growth Substitute Providers Region Safety Access Resources Global Branding Powerpoint Templates Page 42
Choosing What to Offer Extend Same Core Service Channel Location & Time Adapt Improve Localize Support Create Displace Global Branding Revamp Powerpoint Templates Combine Page 43
Choosing How to Enter Provide directly either online or sending your consultants overseas Export Partner with a local Service provider Joint Venture License Franchise Sell IP to Local Firm Invest Set up a Physical Location / Retail Chain Global Branding Powerpoint Templates Page 44
Global Brand Strategy Powerpoint Templates Page 45
Study the Brand Landscape Global Brand Success is as much about making the right selection …. As it is about anything else. Keys to Selecting the right locations to expand include: • How do customers buy and use the product • Are global brands accepted or preferred • What is the economic environment • Does the infrastructure support business • Are channels in place Target Regional Tastes Product Use Buy Behaviors Infrastructure Powerpoint Templates Execute Channels Promotion Localized Page 46
Successful Image Migration Global Brand Image does not always translate equally and positively in every area. Successful Home Image Migration requires attention to: • History and heritage elements that carry Brand Story over Name • What elements are Slogan relevant to local markets Packaging • Negative perceptions Uses need to be reduced • Differences in how characters, slogans and packaging is Powerpoint Templates translated Global Image Logo Association Product Uses Character Local Culture Page 47
Redefine Brand Position Credible The Positioning characteristics that made a brand strong within its home country may or may not carry over to new locations: Quality • What signifies QUALITY in each location? • What performance is RELEVANT to new markets Superior • Is the Brand message CREDIBLE • Are you still SUPERIOR given local competitors Powerpoint Templates Relevant Page 48
Standardize or Customize? The most basic issue for marketers to resolve when expanding overseas is the degree to which they should customize their marketing mix to the unique nature of each location: 1. Product: changes in ingredients {Mc. Donalds} 2. Packaging: Shapes and sizes, colors, utility 3. Promotion: Advertising, endorsers, media use 4. Pricing: Premiums, Vertical brand extensions Standardize Customize Product needs vary widely Market needs are Identical The Global Brand already exists Powerpoint Templates Accessibility varies Affordability is an issue Page 49
ADVANTAGES OF STANDARDIZED MARKETING PROGRAMS Costs Production , Distribution & Marketing Global Image & Association Leveraging Marketing Practices and Ideas Powerpoint Templates Page 50
Disadvantages of Standardized Marketing Programs Differences in Customer Needs and Product Uses Varying Market Responses to Branding and Marketing Legal and Political Regulations and Protection Powerpoint Templates Page 51
Michael Jordan has had plenty of victories in his life, including against aliens in Space Jam, but this week the NBA Hall of Famer is taking his turn in the losers’ locker room. Jordan has lost a court battle in China that dates back to 2012 and went all the way to the country’s highest court, with a countersuit in 2013 by Qiaodan to keep Jordan’s lawyers hopping. The trademark case centered on the Chinese spelling of Jordan’s name, Qiaodan, and was filed against a Chinabased sportswear company Qiaodan Sports Co. Ltd. TRADEMARK WATCH: MICHAEL JORDAN LOSES FINAL QIAODAN APPEAL IN CHINA POSTED JULY 30, 2015 BY MARK J. MILLER http: //brandchannel. com/2015/07/30/michael-jordan-qiaodan. Powerpoint Templates Page 52 073015/
The Beijing high court’s ruling is the third and final decision against Jordan, leaving Qioadan—a phonetic translation of Jordan’s surname, pronounced “Chow Dan” in Chinese—free to continue operating under its (cough, shady) name and logo because the NBA star has once and for all failed to invalidate its trademarks. TRADEMARK WATCH: MICHAEL JORDAN LOSES FINAL QIAODAN APPEAL IN CHINA POSTED JULY 30, 2015 BY MARK J. MILLER http: //brandchannel. com/2015/07/30/michael-jordan-qiaodan. Powerpoint Templates Page 53 073015/
Jordan’s website devoted to the case argues how well-known he is as “Qiaodan” in China: “Since the 1980 s, thousands of media reports in well-known publications such as the People’s Daily, Economic Daily and China Sports Daily have continuously and extensively reported on Michael Jordan’s career, influence and achievements – consistently referring to him as Qiaodan (�丹). ” TRADEMARK WATCH: MICHAEL JORDAN LOSES FINAL QIAODAN APPEAL IN CHINA POSTED JULY 30, 2015 BY MARK J. MILLER http: //brandchannel. com/2015/07/30/michael-jordan-qiaodan. Powerpoint Templates Page 54 073015/
But as Quartz notes, “Qiaodan” isn’t the only way to say Jordan in Chinese and the sportswear company is careful not to use the word Michael on any of its products or marketing, although it has used his old Chicago Bulls number 23. What’s more, Qiaodan’s products carry a silhouette of a leaping basketball player resembling the Jumpman logo—only holding the basketball out to the side—used by Nike’s Air Jordan brand. TRADEMARK WATCH: MICHAEL JORDAN LOSES FINAL QIAODAN APPEAL IN CHINA POSTED JULY 30, 2015 BY MARK J. MILLER http: //brandchannel. com/2015/07/30/michael-jordan-qiaodan. Powerpoint Templates Page 55 073015/
Even with this legal victory against Jordan, Qiaodan isn’t thriving. Three years ago, its products were in more than 5, 700 mainland China stores and raking in the equivalent of $276 million. Still, it hasn’t been able to proceed with the IPO as planned as its image has been tarnished by the Jordan suits and its bank accounts drained by the legal battle. Don’t cry too hard for Jordan. Forbes reports that Nike’s Jordan Brand partnership with the basketball VIP pulled in $2. 6 billion in sales just in the US last year and Jordan himself pulled in $100 million in sponsorship deals. http: //brandchannel. com/2015/07/30/michael-jordan-qiaodan. Powerpoint Templates Page 56 073015/
Take the World To the Movies Brand. Storm Powerpoint Templates Page 57
Brands Go To India SACHIN HYUNDAI SANTRO TENDULKAR Global Branding Powerpoint Templates Page 58
Starbucks Goes To India Starbucks goes plush for India, gives its stores a local flavour Rasul Bailay & Ratna Bhushan, Starbucks entered India in October 2012 ET Bureau Sep 13, 2013, through an equal joint venture between 04. 45 AM IST the Seattle-based retailer and Tata Global Beverages. The alliance has opened 22 stores in India so far — in premium locations like Horniman Circle, Colaba and Bandra in Mumbai, Connaught Place in Delhi and Koregaon Park in Pune. Experts say it's following the same strategy it adopted in China, where it opened in prominent locations to increase visibility to consumers. A person familiar with Starbucks' India strategy, who asked not to be named explained, "Right now, the idea is to familiarise Indians with Starbucks Global Branding Powerpoint Templates Page 59
Starbucks Goes To India So, Starbucks wanted its stores to be as appealing as possible while giving consumers a unique "Starbucks experience", the person familiar with Starbucks plans said. That meant stores in India don't fit the global design For example, the store in New Delhi's template — each store has been Connaught Place has ropes and chatai designed differently, with "local" on the walls and henna patterns on the touches incorporated. floor, with pictures of Indian spices on its walls. The store in Select Citywalk mall has locally-crafted wood paneling, while the Pune store incorporates localised railings and a rich display of antiques and copper. Global Branding Powerpoint Templates Page 60
Starbucks Goes To India The Horniman Circle store is truly the highend of Starbucks spectrum, " he says. Along with its locallysourced coffee, the outlets offer an Indianised food menu — with items like murg kathi wrap, wasabi kotumbwadi and chicken makhani pies next to the English muffins on offer. "Our stores are designed in-house and the mission of each designer is to create a spectacular third place that is steeped in the local culture and designed to reflect the unique characteristics of each neighborhood, " the Tata Starbucks spokesperson said. However, rival coffee chains don't think this strategy is sustainable. "They would definitely like to make a statement through the first fifty stores. It's very likely that later they will look at kiosks and routine stores, " says the marketing head of a rival coffee chain. "As far as their store ambience goes, Powerpoint Templates they are overdoing it, " he added. Page 61
Brands Go To China Global Branding Powerpoint Templates Page 62
Coca Cola China Tian Yu Di Global Branding Powerpoint Templates Page 63
The Gap Expands In China • • Beginning with four stores, two each in Beijing and Shanghai in 2010, the premier specialty retailer has increased its store counts to 81 at the end of fiscal 2013 across the country. The company now has plans to open 30 more stores in the country by the end of 2014. Moreover, in 2011, Gap became the first international retailer to launch an e-Commerce operation in China, along with opening stores. Global Branding Since its venture into China in late 2010, the company has made extensive analysis of consumers’ buying habits and found that the country’s people preferred to go shopping in groups. Hence, Gap has been increasing its store count in China to attract a higher footfall. We believe that capturing the Chinese market is both a strategic and ambitious move by the company, given the rising middle class and expanding retail sector. The fading brick-and-mortar retailing concept in the United States is another major reason for retailers to expand footprint overseas Powerpoint Templates Page 64
Global Branding Powerpoint Templates Page 65
KFC Tries Again to Boost Slumping China Sales, Using Celebs This Time In China, celebrity endorsements are the KFC is the country's biggest fast food chain, tried-and-true ad formula. And KFC – hard at and the one that got to China first as the work trying to revamp its brand in China -- is country was opening up. It's long been a going with a full-on onslaught of not one but textbook case of success on the mainland, five celebs. To put their collective star power with a 6. 5% share of the local fast food in perspective: One of the actors involved market, compared to Mc. Donald's 2. 4%, has 72 million followers on Weibo, China's according to 2012 figures from Euromonitor Twitter equivalent. International. After 27 years, KFC has about 4, 600 restaurants in China. As KFC introduces 15 items -- 10 of those brand new and 5 relaunched -- in But the brand took a hit starting in late 2012 China, a digital campaign from Ogilvy after Shanghai inspectors found too many Shanghai uses stars to represent new antibiotics in chicken from several suppliers. menu additions. (For example, a tender. An avian flu outbreak also scared consumers hearted reality star plugs new rice-based away. comfort foods. ) Then the celebs compete for "likes" on social media. KFC's same-store sales in China tumbled 13% in 2013 from 2012. Global Branding Powerpoint Templates Page 66
Customization Decisions Does Culture Influence Use Are Global Brands Accepted Is Value Perceived Differently Global Branding Powerpoint Templates Page 67
http: //www. slideshare. net/prince_dj_81/inte Powerpoint Templates rnational-marketing-mistakes Page 68
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Powerpoint Templates http: //www. slideshare. net/aaronkarthik/brands-go-global Page 72
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