IPM Script SoSe 2018

International Product Management:
International Brand Management
1
Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management
Content and Objective
- Brands, categories
- Brand significance
- International brand management
Familiarisation and in
practical exercises, apply case studies
to prepare for a task in the IPC
2
3
1. Tasks in international marketing management
Differences between consumer goods and capital goods
Product Price Communication Distribution
B2C Differences Often large Mass Indirect

often not price ranges communication distribution via
perceivable retail chains
Low price Mass media
Me-too transparency Specialist
Brand creation
trade
Low
involvement
Emotionality
B2B Comparison of Price / Sales dialogue Direct to
performance performance customer
Catalogues
characteristics ratio
Trade Fairs
Rationality
B2C: Marketing with key focus on brand creation / management (mass)
B2B: Marketing with key focus on sales and distribution (individual)
4
Tasks in international business
B2C Multi-national No local International Co-ordination and

brand operative brand consultation with local
strategies business management partners and
subsidiaries
B2B Export Local Local sales Direct customer
strategies operative dialogue contact
business
B2C: International marketing co-ordination (strategies)

B2B: International sales and exports (operative business)

Important Skills in international product management:
Activities prioritised by parent company

Control of marketing instruments
International market research
International and global strategies
International brand strategies
Analysis skills
Foreign languages
People skills
Implementation without formal hierarchy
Communicate know-how internally and externally
Team expertise

2. The Brand Concept
Various interpretations of the term “Brand“

"Branded product"
"Brand as image in the mind

of the consumer"
"Trademark"
Source: Meffert, Heribert, Burmann, Christoph, Koers, Martin: Significance and

Purpose of Brand Management in Meffert, Heribert, Burmann, Christoph, Koers, Martin
(Publ.) Brand Management (Gabler) Wiesbaden 2002, p.3-15, p. 7
7
What is a brand?
Brand
…is an image of a product or a service…,

a system or a supplier, that is
established in the psyche of the
consumer.
(from Meffert/Burmann/Koers 2002)
Branding
…is the sum of

all communication measures
needed to build up
a brand
Brand is synonymous with communication at all levels!
8
Brands are…
Brand functions
Branded article: Product characterised by

-------------------------------------------------------------------------------------------- Functions of a branded article for:
-----------------------------------------------------------------------
• Branding (unmistakability through a company logo, Manufacturer
Ê Heterogenise the product, thus removing direct price
slogan or image identifying its origins and
comparison
• Standardised product properties (consistent Ê Meet the strength of demand from trade
appearance, consistent or improved quality) ÊThe brand is a link for advertising and other marketing
(§38a Para. 2 GWB) measures
Additional criteria for "strong" brands: Trade

• Unique association with the brand by customers and Ê Reduce the sales risk (strong brands "sell themselves")
other target groups ÊReduce own advertising
• Positive image
•(Highly recognisable) Consumer
Ê Identification (habitualise purchase)
•(Ubiquity ("available everywhere")
Ê Quality guarantee/creates trust
Ê(Emotive) Performance promise
Ê Image function/provides identification possibilities
9
Benefits of the brand
Benefits of the brand Benefits of the brand

from the customer from the supplier
perspective perspective
• Orientation aid (identification • Preference formation
function) • Differentiation from the
• Trust function competition
• Prestige function • Customer retention
• Identification function • Sector-specific market cultivation
• Quality assurance function • Platform for new products
• Relief function • Price flexibility
• Increased value of the company
10
Effect of brands on how customers create preferences
Blind test Test with brands shown
Prefer Brand A Prefer Brand B Both equally good Prefer Brand A Prefer Brand B Both equally good
Source: DeChernatony, Leslle; MacDonald, Malcom: Creating Powerful Brands,

(Butterworth-Heineman) Oxford et al, 1992, p. 9
11
3. Brand classification: Brand types
Brand owner
Manufacturer Trade brand Service brand
brand
Single brand Mon Chéri Bahncard
Tandil (Aldi)
(Monobrand) Odol AOL
Number of
products Brand group Pritt Deka Aktienfonds
Mibel (Edeka)
supplied (Brand family) Vichy Intercity
under the Umbrella brand
brand VW
(Company OBI
Dr Oetker
brand)
High Excellent,
price/preferenc Cartier Grandius Robinson Club
e level (Luxury Sheba (Globus McKinsey
brands) Gruppe)
Middle
Price Privileg
price/preferenc Igloo Mister Minit
preference Whiskas
(Quelle)
Volksbank
e level (Classic Elite (Kaufhof)
positioning brands)
Lower
Rutger´s Jal (Rewe-
price/preferenc Kochlöffel
Club Gruppe)
e (B, C and Pitstop
Proton Tip (Real,-)
Generic brands)
Also: regional/national/international brands
12
Brand systemisation I
Institutional position
of the brand holder
Manufacturer
Trade brand Service brand
brand
13
Brand systemisation II
Vertical range in
goods process
Disappearing Accompanying
Finished
pre-product pre-product
product brand
brand brand
14
Brand systemisation III
Number of branded
goods
Family
Single brand brand/product Umbrella brand
group brand
15
16
Comparison between private labels and manufacturers brands
Manufacturer Generic
Classic Trade
branded brand (no
brand
article name)
Product Basic and extra Basic and limited
Basic utility only
utility utility extra utility
Appropriate to
Price performance, Medium Low
mostly higher
Product Mostly price Price advertising

Advertising advertising advertising only
Only in individual Only in individual

Distribution Widely distributed trading trading
companies/groups companies/groups
Source: Meffert, Heribert: Strategic Options in Marketing in Meffert, Heribert, Burmann,

Christoph, Koers, Martin (Publ.) Brand Management (Gabler) Wiesbaden 2002, p.133-
165, p. 158
17
Private Labels: Development of Market Share
Market share trend of store brands
Based on: groceries retail trade = 100%
18
Private Labels: Share in selected Product Categories
Market share trend of store brands

Based on: groceries retail trade = 100%
19
Europes markets for private labels 2016
Country Turnover Market Share (%)
Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management 20

Quo vadis, brand?
21
Brand systems: Mono brand strategy
Mono brand strategie

Marketing one highly specialised brand for the
overall market
Advantages Disadvantage
-High costs on brand
introduction
+Unmistakable brand personality
-No access to existing
+No potential negative image
awareness and acceptance
transfer
of existing brands
+Little coordination required
-No synergy effects in media
expenditure
22
Brand systems: Multiple brand strategy
Multiple brand strategy

Marketing at least two brands for the
overall market simultaneously in the same
product area
-Cannibalisation of own
brands
+Safeguarding competitive position -Suboptimal use of
through internal competition financial
+Better brand exploitation and employee company
+Wider shelf-space coverage resources
-Danger of over-
segmentation
23
Brand systems: Umbrella and family brand strategy
Umbrella and family brand strategy
Marketing several or all products of

a company under one brand
-Possible negative
+Address new target groups
radiation effects
through brand extension (brand
-Higher coordination
transfer)
costs
+Reduced flop risk
-Danger of substitution
+Mutual brand strengthening
relationships
+Relatively low cost of brand
-Deprofiling of umbrella
formation through the use of
and family brand
synergies
through inadequate
brand competence
24
Portfolio adjustment by manufacturer:
Unilever‘s “Path to Growth“ strategy
Global brands Lipton, Bertolli, Knorr

Brands Portfolio
International positioning Iglo, Langnese, Rama

Regional/local brands Lätta, Brunch
Local jewels Bifi, Pfanni, Mondamin
Migrate DanteàBertolli, Yofresh à Lätta
Maintain/Harvest Sanella, Biskin, Livio
Sell Ubena, Raquletto, Heisse Tasse
De-list Cortina Frischkäse
èReduction from 1600 brands to 400

•400 brands currently make up 77% of sales (Pareto rule)
•Build-up of power brands to use budgets in a more targeted way
•Focus on core business
•Purchase of 453 and sale of 281 companies since the 80s
Source: Sachs, Andreas: Portfolio Management at Unilever in: Marketing Journal , 21st year 2002, No. 2, p. 8-17, p. 12
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26
4. Value and Function of Brands
27
Reasons behind brand necessity
Performance homogenisation Price pressure
Brand
Performance complexity Reduction in long-term

business relationships
28
5. Brand internationalisation
Implementation
Defining the Target Group…
29

Typical arrangement of a house in the Sinus Environments
Quelle: Sinus Sociovision 2008
30

31

32

Seven meta environments in Western Europe
35

Traditional Consumer Materialistic
Security and status quo-oriented; adherence to Consumer-materialistic orientation;
traditional values such as sense of duty, consumer standards correspond to the
discipline and order mainstream but often socially
disadvantaged and uprooted
Established
Motivation and leadership claims, status-
Sensation Oriented
conscious and marked need for exclusivity
Seek out fun and action, new experiences
and intense adventures; live in the here and
Intellectual
Cosmopolitanism and post-materialistic values; now, individualism and spontaneity,
marked cultural and intellectual interests; provocative and unconventional style
strives for self-realisation and personality
development Modern Performing
Young, flexible and socially mobile,
Modern Mainstream intensive living in terms of success and
Desire for a pleasant and harmonious life; fun; high qualification and motivation,
strives for material and social security multimedia fascination
38

Overall structures
Commonality between Sinus environments from different countries
39

40

41
42

43

44

45

Migranten Milieus 2016
46
Aussagen von Flüchtkingen zu ihrer Situation in D und zu D als
Migrationsland
47
Basic principles and implementation
Workshop:
Work out the different environments of three

countries of your choice and consider whether a
standardised strategy for luxury consumer goods
(e.g. skincare products) could be suitable in
these countries.
48

Implementation
5.1 Quality is an overall issue

What does “high quality“ mean for an item of clothing?
Quality is market and customer-defined
Quality standards vary internationally
Objective quality
Subjective quality (Montblanc v. Pelikan)
Consistent quality
49

Implementation
IPC:
Observe differing standards (production, technology)
Observe differing consumer habits
Quality assurance system for licensees/subsidiaries
Define quality standards in writing
50

Implementation
5.2 Specialisation
Supportability of a brand
Single brand v. umbrella brand
Transfer potential
Various image types:
Product-oriented
Benefit-oriented
51
Implementation
IPC:
Observe differing brand developments in the various
countries (lifecycle phases)
Caution: New products
Caution: New ranges
Observe differing consumer habits
Prepare for international brand transfer
Work with licensees/TGs to define brand status
(avoid frustrations)
52

Implementation
5.3 Identity
Presentation
Behaviour Performance
53
Implementation
IPC:
International identity in brand image
Consistent quality everywhere
Price adjusted in line with local market
Advertising consistent with product quality
Distribution consistent with product quality
Market all other products under the brand according
to the same principles
54
Implementation
5.4 Individuality
Set a standard!
Logo
Colour
Shape
Enhance recognition
55
Implementation
56

Implementation
IPC:
Standardise brand image
Internationalise colours, shapes, logos
Compile design- and brand manual
Communicate brand manual and implement with licensees
and subsidiaries
57
Implementation
5.5 Integrity
Confidence creates sales
Misleading relaunch
Fudged packaging
Misleading advertising
Copyrights
No fouling
58
Implementation
IPC:
Work according to the highest not the local lowest value
standards
Possibly waive sales
Local misconduct is internationally penalised
59
Implementation
5.6 Continuity
It takes time to build confidence
Consumers find changes difficult to comprehend
Examples:
60

Implementation
IPC:
Avoid rapid changes
Avoid rapid relaunches
Observe local brand status
Never change brand core anywhere
61
Implementation
5.7 Flexibility
Adaption to long-term trends
Despite standardisation:
Adaption to local situations
Language
Forms
Communication
Ranges
Price
Distribution
62
Implementation
5.8 Permanent presence

In the mind of the consumer
In the trade
Correlation
Zusammenhangbetween market share
zwischen and advertising
Marktanteil expenditure
und Werbeausgaben
35
30
in % Marktant.
Market share
25 Advertising expenditure
Werbeant.
20
15
1987 1988 1989 1990 1991 1992 1993
63
6. Practical Management Tools
BRAND INTENTION
Brand intention (= brand strategy) is the fundamental document for all brand
activities.
It defines the fundamental marketing objectives for each and every product, its
prime objective being quality.
The brand intention’s fundamental message can have an international character.

The specifics, however, must focus on the needs of the national market in question.
The brand intention has strategic character, i.e. it has a strategic validity horizon of
3-5 years.
The brand intention is always part of a briefing (= instructions to act, orders).
64
Structure of a brand intention
1. Product
- Description of the product
- Product performance
- Physical, chemical, medical, electronic and other characteristics
- Benefits and drawbacks in relation to the competition
- Position in the product life cycle
2. Positioning and concept

2.1 Positioning strategy
Description of market needs, description of consumer problem to be solved. The
product itself is not yet mentioned. Only the market and/or problem to be solved are
described.
2.2 Concept
Description of the solution, i.e. the actual product itself – in other words, the answer
to the positioning strategy.
- Intended (ideal) positioning

- Consumer needs
- USP, Benefit, Reason Why
65
3. Target group
- Socio-graphic and/or psychological description
- Users, buyers, opinion leaders
4. Objectives
(Mid to long-term and quantified according to feasibility)
e.g.
- Increase market share by x% in y years
- Attain market leadership in x years
- Increase profitability by x% in y years
- Increase consumption by x% in y years
5. Strategy
Categorised by marketing instruments
- Product policy
- Pricing policy
- Distribution policy
- Communication policy
The following issue is addressed at this point: Which means will be employed to
achieve the objectives?
The individual strategic initiatives must therefore be clearly assigned to the
corresponding objectives.
66
Briefings
As a result of increasing divisions of labour, more and more specialists are being
employed for increasingly smaller regions, because their knowledge is significantly
greater and more detailed that that of all-rounders.
In this sense, product managers and marketing managers are all-rounders and by
contrast, market researchers, advertising experts, designers, packing developers or
media planners are specialists.
Every activity to be carried out by a specialist, e.g. advertising agencies, media

agencies, market research institutes, promotional agencies or research &
development departments, must be initiated by a briefing.
Briefings, therefore, are instructions for action or orders against which subsequent
performance can be measured, i.e. it is possible to verify the extent to which
supplied services actually conform to the order formulation.
Briefings always take the written form as the individual to whom the briefing is
issued (e.g. customer advisor of an advertising agency) is not generally the
individual who is to subsequently provide the service (e.g. advertising copywriter).
If briefings were to be issued verbally, the risk of information loss or even potential
falsification would be too high ("Tacit Post Effect").
67
In order to be able to subsequently evaluate the service, so-called Action Standards

are defined at the outset.
They specify the time at which a service can be regarded as having been provided
and is qualitatively good. Action Standards may take the form of consumer or media
tests, e.g. consumers only permit use of a service (e.g. a certain promotional film) to
enter the market only when acceptance of the service (e.g. of a promotional film)
has reached a certain percentage.
The following must be clarified in advance
- Methods of testing
- Relevant verification criteria
- Critical (limit) values are indicated.
68
Advertising briefing
1. Reasons for the briefing

For example, change to the current campaign due to inefficiency, new product
positioning, changed competition situation
2. Brand Intention
Usually appended
3. Current images
of one’s own product / of the main competition
4. Advertising objectives
4.1 Communication objectives
For example, market awareness, confirmation of current buyers, image
improvement, changes to buying/consumption behaviour etc.
4.2 Basic copy strategy

(= basic advertising message)
Written definition of the advertising message’s fundamental content to be conveyed
4.3 Media
(TV, radio, magazines, posters etc.)
69
4.4 Fundamental remarks for visualisation

- Applications
- Restrictions (e.g. moral concerns)
- Corporate Identity Elements
4.5 Action Standards
5. Budget
- Competitors: Advertising expenditure (Share of Voice)
- One’s own budget
- Sub-divided into production budget (for producing advertising material),
merchandising, media budget
6. Legal and financial aspects

- Copyrights
- Costs (creative service, working material etc.)
- Working and decision-taking steps
70
7. Schedule
- Briefing
- Discussion on briefings/re-briefing
- Advertising platform (=fundamental advertising concept)
- Treatments (first, detailed, written drafts)
- Storyboards, layouts (advertising medium represented in image and/or as text)
- Production
8. Appendix
- Brand Intention
- Marketing plan
- Existing market survey
etc.
71
72

73

74

7. Case Study
I. Case study on sanitary towels in Greece
1. The market
Year -2 Year -1 Year 0
Value (T€) 33.535 47.620 60.000
Development (%) 136 142 126
2. Segmentation
Three main segments:
- Super towels 23% (Towels with an additional

layer to increase
absorbency)
- Regular towels 15%
- Thin towels 62%
75
7. Case Study
For some 3 years now, a new segment has existed, the triple-folded (and) individually
packed sanitary towel (3g&ev). Over these 3 years, this segment has acquired an
overall market share, which for Year 1 is forecasted at 14%. An additional product is
an ultra-thin towel, apportioned to the thin towel segment. For next year, yet another
segment is anticipated: Because thanks to its volume, it can be worn for at least 8
continuous hours, the maxi-towel offers night-time protection during heavy periods. Its
market share will increase steadily over the next few years and is expected to achieve
approx. 3% for the launch year.
3. The competition
There are currently more than 20 sanitary towel brands on the Greek market. Just six
of these brands have captured 80% of the total market volume. The market, originally
dominated by 3 brands manufactured locally has in recent years seen a significant
sharpening of the competitive situation as a result of international brands being
launched.
76
7. Case Study
3. The competition
There are currently more than 20 sanitary towel brands on the Greek market. Just six of these
brands have captured 80% of the total market volume. The market, originally dominated by 3
brands manufactured locally has in recent years seen a significant sharpening of the
competitive situation as a result of international brands being launched.
3.1 Market shares in %:
Year -2 Year -1 Year 0
Brand 1 23.4 23 21.7
Brand 2 6.2 6.6 8.4
Brand 3 4.9 2.5 1.4
Brand 4 31 23.7 14.5
Brand 5 2.9 11.1 15
Brand 6 11.4 13.1 17.2
A/A 20.2 20 21.7
77
7. Case Study
In recent years, Brands 2, 5 and 6 have intensified their marketing strategy at

product, retailing and communication levels. One of the most important reasons
is the ceasing of Brand 4 (bankruptcy), which, once remaining stocks are sold-
off, will disappear from the market completely.
3.2 Ranges
Super Maxi Regular Thin Ultra 3g&ev Ev
Brand 1 x x x x
Brand 2 x x x x x
Brand 3 x x x
Brand 4 x x x
Brand 5 x i.Vorb. x x x x x
Brand 6 x x x x x
78
7. Case Study
3.3 Pricing policy

With the exception of Brand 5 (high-pricing policy, high trade discounts), the
brands are highly price-competitive.
3.4 Brand images
From the consumer’s point of view, Brand 5 is without doubt the “Top Brand“
when it comes to quality. Its price is regarded as high, although commensurate.
It can be regarded as the "Mercedes" among sanitary towels. Brands 2 and 6
are regarded as slightly better than the rest as their ranges include the 3g&ev
towel.
Brands 1, 3 and 4 are regarded as largely similar;

- average quality
- the same material
- nothing special in respect of quality and appearance
- lacklustre, old-fashioned packaging
- reasonably priced
79
7. Case Study
3.5 Communication
Target group Media Category Tonality
Brand 1 25 - 3O yrs. TV, Print Range serious,

"fuddy-duddy"
Brand 2 2O - 3O J. TV, Print Range & emotional,
separate modern
3g&ev
Brand 3 no advertising
Brand 4 no advertising
Brand 5 Specific TV, Print 3 different modern,

target TVCs serious
group "Testimo-
marketing nial"
depending on
product from
17 - 35 yrs.
Brand 6 18 - 25 yrs. TV, Print Range & serious,

separate rational
3g&ev "Testi-
monial"
80
7. Case Study
4. Consumer requirements
- Confidence (surface material, absorption, no creasing,

no slipping)
- Comfort (freedom of movement)

- Discrete (towels must not spread, as trousers are being worn with
increased regularity, and must be both thin and reliable for several
hours wear away from the home)
Greek consumers are becoming increasingly emancipated; as a consequence
they are more critical, more brand-conscious and are redefining their role
(occupations etc.).
81
7. Case Study
5. Brand 1
5.1 Image
Brand 1 is in fact market leader, yet regarded by the consumer as innovatively

weak and an outdated product.
The products are purchased only because of their acceptable price and for
traditional reasons of brand loyalty - Brand 1 was originally the first brand to
contain thin towels on the Greek market.
5.2Current users
Current users of Brand 1 are characterised by demographic factors

- middle-age
- classic dress code (no trousers)
- low dynamism
- low hygiene-awareness
- characterised by a low-key personality
5.3Other difficulties
- Range is in the maturity phase

- Regressive development
- Small, no longer innovative product range
- as a consequence of competitor’s innovations, Brand 1 has been
degraded to a conventional and outdated product.
82
7. Case Study
Task:
1. Analyse the situation for Brand 1 and develop an initial list of measures covering
- Product/range policy
- Communication
- Pricing policy
2. Draft a Brand Intention including the following issues:

- Positioning Strategy
- Concept
- Target Group
- USP/Benefit/Reason Why
- Marketing Objectives
- Strategy
3. Formulate an Advertising Briefing that includes

- Communication Objectives
- Media Strategy
- Tonality
- Basic Copy Strategy.
83
4. Anmerkungen zur Durchführung und Kriterien der Bewertung
- Bitte halten Sie sich an die Informationen aus der Fallstudie. Fügen Sie
nichts aus vermeintlich eigener Erfahrung hinzu und bauen Sie Ihre
Strategie ausschließlich auf den gegebenen Informationen auf.
- Ihre Brand Intention und Ihr Advertising Briefing sollten logisch in sich und
auch aufeinander aufgebaut sein. Überprüfen Sie regelmäßig Ihre
aktuellen Ausarbeitungen mit den vorhergehenden und schauen Sie, ob
diese zusammenpassen.
- Innerhalb der Brand Intention sollten Sie darauf achten, dass tatsächlich eine
klare Trennung zwischen Positionierungsstrategie (Problem) und
Concept (Problemlösung) besteht und beide Punkte sich nicht
vermischen.
- Sie werden Redundanzen feststellen. Das ist normal und liegt darin
begründet, dass die Brand Intention für unterschiedliche Spezialisten
eine Grundlage bildet, die in den jeweiligen unterschiedlichen Briefings
nach bestimmten Schwerpunkten (z.B. Werbung, Packung,
Produktentwicklung) vom strategischen Papier zur Handlungsanweisung
konkretisiert wird.
Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management 84

8. Internationalisation of brands
Fundamental principles
Aim of international brand management:

To exploit size and synergy effects
Build brand knowledge
(Recognition + Image)
Frequent appeal
Consistent appeal
Permanence! Example: Beck´s beer
To enhance the value of the brand
85
8. Internationalisation of brands
Brand recognition and brand image as determinants of

brand knowledge
Brand recognition ensures:

Brand becomes part of a purchasing decision
Anchor for further brand associations
Familiarity among consumers
Brand image must be

clear
unique
beneficial
86

Creation of brand recognition

Formal integration of creation and
communication
Standardised Corporate Design
87
Conveying brand image

Verbal (slogans)
Non-verbal (images, music)
Product formation (WC duck)
Creation of brand worlds
88
Visual brand anchors (profile marker,
Active brand trademarks, colour and design codes)
recognition
Brand
Verbal brand anchors
recognition
Passive brand
recognition Verbal access
Non-verbal access
Brand
Emotional
knowledge Type of brand associations
Cognitive
Strength of brand associations
Verbal
Representation of brand associations
Non-verbal (images, jingles, haptic
Number of brand associations and olfactory images, etc.)
Brand
Comparison Uniqueness of brand associations
image Product-related associations
with the
knowledge Relevance of brand associations
Brand-related independent associations
structure of
the Direction of brand associations
Pleasing
competition
Accessibility of brand associations
Unpleasing

Requirements of
Brand
international branding
internationalisation
1st Stage Inter-cultural acceptance

Internationalisation of Differentiation from local competitors
formal brand presentation
2nd Stage Inter-cultural acceptance

Internationalisation of brand Inter-cultural consumer relevance
image
Step 1: Internationalisation of
core message Inter-cultural acceptance
Step 2: Internationalisation of Inter-cultural transference of core
communication message
Inter-cultural consumer relevance
Differentiation from local competitors
90

Internationalisation of formal brand presentation

Creation of international recognition
Standardisation of brand logo, colours, shapes
Requirement:
Inter-cultural acceptance and no interchangeability with local
competitors
91

Internationalisation of brand image

Dependent on cultures (‘‘Brasil“ in Germany/USA)
First step: Internationalisation of core message
Nivea: Gentle care
Beck`s beer: fresh
Word association test
Lifestyle research
92

Internationalisation of brand image

Second step: Internationalisation of communication
How can the intended core message be trans-

ferred
- Global acceptance
- Promoting consumption of the brand
- Distinction from the competition
Nivea: How can “Gentle care“ be portrayed internationally?

Internationalisation of communication
Beck´s: How can “Freshness“ be portrayed internationally?

Internationalisation of core message, not implementation of
communication
93

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International Product Management:

International Brand Management

B2C Differences Often large Mass Indirect

B2C Multi-national No local International Co-ordination and

B2C: International marketing co-ordination (strategies)

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Activities prioritised by parent company

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Various interpretations of the term “Brand“

"Brand as image in the mind

Source: Meffert, Heribert, Burmann, Christoph, Koers, Martin: Significance and

…is an image of a product or a service…,

…is the sum of

Brand is synonymous with communication at all levels!

Branded article: Product characterised by

Additional criteria for "strong" brands: Trade

Benefits of the brand Benefits of the brand

Blind test Test with brands shown

Source: DeChernatony, Leslle; MacDonald, Malcom: Creating Powerful Brands,

Also: regional/national/international brands

Product Mostly price Price advertising

Only in individual Only in individual

Source: Meffert, Heribert: Strategic Options in Marketing in Meffert, Heribert, Burmann,

Market share trend of store brands

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management 20

Mono brand strategie

Multiple brand strategy

Umbrella and family brand strategy

Marketing several or all products of

Global brands Lipton, Bertolli, Knorr

International positioning Iglo, Langnese, Rama

èReduction from 1600 brands to 400

Performance homogenisation Price pressure

Performance complexity Reduction in long-term

Defining the Target Group…

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Quelle: Sinus Sociovision 2008

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Work out the different environments of three

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

5.1 Quality is an overall issue

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

Hochschule Reutlingen ©Prof. Stefan E. Busch International Marketing Management

5.8 Permanent presence

The brand intention’s fundamental message can have an international character.

The brand intention is always part of a briefing (= instructions to act, orders).

Structure of a brand intention

2. Positioning and concept

- Intended (ideal) positioning

Every activity to be carried out by a specialist, e.g. advertising agencies, media

In order to be able to subsequently evaluate the service, so-called Action Standards