Brand

Management
Managing Brands Over Geographic
Boundaries and Market Segments
By

Farooq Hyder Shaikh

 Key Concepts
• Understand the rationale for developing a Global
Brand
• Main Advantages and Disadvantages of developing a
standardized Global Marketing Program
• Define the Strategic steps in developing a Global
Brand Positioning
• Unique Characteristics of Brand Building in
Developing Markets
 Brand Architecture
• One of the most important issues facing brand managers is
how to revitalize a brand & keep it relevant and up to date
with current trends
• Honest and rigorous dedication is required to build strong
brands
• The brand needs to attract new customers years after
years, so that volumes and revenues can be generated
• At the same time, the brand experience, which include
brand promise, brand delivery, communication, etc., also
needs to be consistent, so that it does not alienate the
existing customers
• For example: Cadbury – has been able to reposition
itself and has successfully attracted new customers and
at the same time been able to retain the existing
customers
Advantages of Global Marketing Programs
Advantages of Global Marketing Programs
• Economies of Scale in Production and Distribution
– Manufacturing efficiencies
– Lower costs driven from higher production volumes and distribution
– Strong experience curve effect exists

• Lower Marketing Costs

– Standardized/Uniform Packaging
– Standardize Advertising, Promotions and other Marketing
Communication Activities
– For example:

– Lorea’l’s Head of Luxury Brand Said “You have to be local and as

strong as the best locals but backed by an international image and
Strategy”
Advantages of Global Marketing Programs
• Power and Scope
– Global Brand communicate Credibility
– Consumer belief stronger on high product quality and convenient to use
– Admired Global brand signal social status and prestige
– For example: Avis Rent a Car - High quality Car Rental
anywhere in the World – “ We Try Harder”

• Consistency in Brand Image

– Common Marketing Platform helps in maintaining consistency of Brand and
Company Image particular more relevant where consumers move often or
media exposure
– For example: Gillete Razors
“Functional Superiority” and “an appreciation of human character and
aspirations”
– American Express communicates the prestige
and utility of its card world wide
Advantages of Global Marketing Programs
• Ability to Leverage Good Ideas Quickly and Efficiently
– Globalization increases sustainability and facilitates continuous
development of core competencies within the organization various
functions like manufacturing, R&D, marketing and sales and
competitive intelligence
– For example: IBM – Web based communication tool to share ideas
– Master Card – shares best practices across the organization

• Uniformity of Marketing Practices

– Simplify coordination and provide greater control of communication
in different countries
– Marketers can focus on refinements across markets and focus more
on its effectiveness
– For example: Master Card - Priceless Campaign
“The best things in life are free. For everything
else, there’s Master Card”
Disadvantages of Global Marketing Programs
 Disadvantages of Global Marketing Programs
• Differences in Consumer Needs, Wants and Usage Pattern
for Products
– Difference in cultural values, economic development etc. lead t customers to
behave differently. Per Capita consumption of Tea/Beverage vary
– Product Strategies that work in one country may not work in other country
continuous development of core competencies within the organization
– For example: Tupperware – Indonesia – 57% of sales from emerging
markets, tailored their product range for different markets as per their need
– I-Phones – Middle East versions does not have face time feature

• Difference in Consumer Responses to Branding Elements

– Linguistic differences can twist or change the meaning of brand name
– Cultural context is the key
 Disadvantages of Global Marketing Programs
• Differences in Consumer Responses to Marketing Mix
Elements
– Consumers in different parts of world feel differently about Marketing
Activities like US consumers are cynical towards advertising whereas
Japanese consumers are more positive towards it
– Advertising Styles also vary in different parts of the world
– Price sensitivity, promotion responsiveness, sponsorship support, and
other marketing activities differ by country and competitive
intelligence

• Difference in Brand and Product Development and the

Competitive Environment
– Products may be at different Product Lifecycles in different countries
– Perceptions and brand positions may also differ across countries
– Competition may also differ
 Disadvantages of Global Marketing Programs
• Differences in Legal Environment
– Constantly changing Legal Restrictions vary from country to country
posing a challenge for marketers to design a Global Ad Campaign
• Commercials must be produced in native country as per the stipulated
laws in Venezuela, Canada and Australia at one time
• Most countries have banned Prescription drug advertisement – Canada,
Pakistan etc.
• Use of children in Commercials were banned Austria
• Comparative advertising in Singapore and
• Product placement on Public Television Channels in Germany
• Difference in Marketing Institutions
– Channels of Distribution, Retail Trade Practices, Media Availability and
Media costs vary significantly from country to country resulting in
difficulty to implement a uniform marketing strategy
– Penetration of Smart Phone, Cable Televisions, Supermarkets etc. may
vary considerably from country to country especially in developing
countries
 Disadvantages of Global Marketing Programs
• Differences in Administrative Procedures
– Practically it might be challenging to achieve the control required to
implement a Standardized Global Marketing Programs
– Local Office may resist as their autonomy is threatened
– Local Manager may suffer from “Not invented here” syndrome and
raise objections unnecessarily that Global Marketing Program misses
some key elements/dimension of local market
– Local Managers may loos motivation