BrandsOvercoming!Geographic!Boundaries! Alina!Kazanova! · More and more businesses are expanding...
24
Brands Overcoming Geographic Boundaries Alina Kazanova
Transcript of BrandsOvercoming!Geographic!Boundaries! Alina!Kazanova! · More and more businesses are expanding...
Brands Overcoming Geographic Boundaries
Alina Kazanova
2
Abstract
More and more businesses are expanding on a global scale; and as
companies develop their operations internationally, they face difficult challenges
and decisions. One of the most difficult concerns is growing their brand image in
new markets--keeping the image true to the original, while at the same time
relating the image well to the new target market. Using research and case
studies, the thesis examines the international branding process. The thesis
analyzes the motivation behind globalization, the stages of the product life cycle
that provide the best opportunity for global expansion; and the distribution,
placement, and promotion options. Also investigated is the effect globalization
has on other stakeholders beyond the company, i.e., the customer and the
shareholders. International markets create opportunities for companies to grow
and gain competitive advantage, but marketers must be able to objectively
analyze the new environments and the readiness of their products to insure
success. Companies are responsible for outcomes beyond their own immediate
circles, and they need to take into consideration other stakeholders when
entering the globalization process. International operations is an enticing
possibility for many companies and can lead to immense rewards when brands
are positioned appropriately.
3
Table of Contents
Introduction .............................................................................................................................................. 4
General Issues Companies Face With a Global Strategy
Advantages of a Global strategy ...................................................................................................................... 5
Issues Companies Face by Going Global........................................................................................................ 7
Choosing a Point of Entrance Into New Markets .......................................................................................11
Entering a New Market
Strategies ...............................................................................................................................................................13
Cultural Adaptation ...........................................................................................................................................16
Globalization Effects on Local Population.....................................................................................................19
Conclusion...................................................................................................................................................................20
Bibliography...............................................................................................................................................................23
4
I. Introduction
As our big world is getting smaller and the fish bowl is becoming too limiting
for competing companies, it is becoming more and more important to look beyond
the established home base market and search for new segments internationally.
Establishing and maintaining a strong international brand identity is a challenge for
many companies and a very significant contemporary issue. Especially as a brand
becomes more popular and grows in its market, there is always a possibility and a
drive for that brand to become a “landmark” brand. Where becoming a “landmark”
brand means that the brand is widely regarded as being distinct from the rest of the
competition and either claims the entire category or is considered the “gold
standard” of the category. 1Based on brands that are currently considered to be
landmark brands, such as the Coca-‐Cola and Nestlé brands, it becomes obvious that
for a brand to become truly landmark it is crucial that it establishes success beyond
its home market and achieves global recognition, and not only recognition but
preference and affiliation from the customers. There are many questions a company
needs to answer for itself before, while in the process, and after taking its brand
global: (1) considering the advantages and disadvantages of globalizing the brand,
(2) assessing the readiness and the ability of the company to sustain this global
expansion, and (3) assessing the worth of globalization to the brand, the company,
and external stakeholders (e.g., any ethical repercussions from the brand on the
local population). 1 Sicco Van Gelder. Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures & Markets. (London: Kogan Page, 2003). 152.
5
II. General Issues Companies Face with a Global Strategy
A. Advantages of a Global Strategy
A company planning to enter the global market must assess the capabilities
of the corporation in its entirety as well as the product being introduced. As more
and more companies enter the global marketplace, the thought of being a global
corporation becomes more and more enticing. There are a lot of positives that come
along with global trade, which will only continue to increase as the world becomes
more integrated.
A new consumer class has formed in the emerging world, i.e., all countries
other than the developed West (United States, Canada, Western Europe, and Japan).
2 This new market makes up a large and continuously growing world segment in
terms of buying power. As the Western markets slow in population growth, and
technology becomes more readily available to the world in its entirety, companies
lose out by not targeting this segment. The longer a company waits to enter the new
markets, the less brand power it will have in facing its competitors. The incentive
for companies to go global has been there for a while, beginning after the end of the
Cold War when the high demand for Western products could finally be answered
2 John A. Caslione, and Thomas Andrew R.. Growing Your Business in Emerging Markets: promise and Perils. (Westport: Quorum Books, 2000). 15
6
with supply. 3 Some larger companies have had more success abroad than in the
U.S., such as the Max Factor brand that has been pulled from retailers in the U.S., but
will remain in the Russian and U.K. markets due to higher sales in those markets. 4
Global markets can prove to be successful for firms in terms of continuous
growth and value added to the brand. By implementing product, production, and
distribution design, a company can assure success in terms of deliverability of the
brand. The first mover advantage increases pressure on competing companies; to
stay ahead of competition firms are always looking for new markets or new
expansion plans. There are some factors that a company must consider to guarantee
success, such as whether the new market shares similar conditions to the current US
market, whether the target customers are global and whether there are global
channels available. 5 In assessing these factors for success, companies must analyze
their strengths and weigh those strengths not only against their own weaknesses,
but also in comparison to their competitors.
Opportunities for advantage and driving forces for internationalization are:
the industry, the company, the competition, profit, and cost. As the company’s
industry becomes more competitive, the company may choose to find a new target
market and stay ahead of the competition by moving internationally. A company
operating in more than one market can achieve a competitive advantage by being
3 John A. Caslione, and Thomas Andrew R.. Growing Your Business in Emerging Markets: promise and Perils. (Westport: Quorum Books, 2000). 25 4 Ellen Byron. “Max Factor Kisses America Goodbye.” Wall Street Journal. 5 June 2009. 23 March 2010. <http://online.wsj.com/article/SB124414272231986091.html> 5 Michael R. Czinkota, Ronkainen Ilkka A., and Tarrant John J.. The Global Marketing Imperative. (Lincolnwood: NTC Business Books, 1995). 4
7
able to balance the costs or losses in one market with the profits from another. 6
Competition will also drive the company to differentiation, promoting the product in
an environment that has not yet been exposed to its competitors. With a well
thought out marketing strategy, a company can take advantage of the world market
in finding the lowest costs for its production materials. As international presence
increases and with it sales volume, the company will be able to easily take
advantage of economies of scale even if it was not able to in its previous market. 7
The most important driver is the company itself, and whether it wants to see its
brand on the international playing field.
Especially true for unique products with low product research costs as well
as products that may be losing their base sales in the U.S., export is a potential
possibility for a new path. 8 In either case, the company is trying to extend its brand
and make it more relevant in new markets. By taking the brand international, the
company will not only gain respect and acceptance in new markets, but may also
increase acceptance and recognition in its home market. As the company chooses its
incentives as reasons for going international, it should weigh the decision carefully.
B. Issues Companies Face by Going Global
6 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 20 7 Ibid. 21 8 A Basic Guide to Exporting. (International Trade Administration, 1998. Unzco.com. 24 March 2010). < http://www.unzco.com/basicguide/c4.html> ch1
8
Global strategy has many enticing opportunities for the company to expand
its brands and operations. There are also many issues a globalizing company must
consider; going global is not an easy task and is not done in a day. Besides the
research and preparation that goes into expanding the brand globally, there are also
many roadblocks that can prevent the brand from gaining any international success,
and the entire process may not be worth the resources. Some of the issues go
beyond the brand; companies have to judge appropriately the conditions in the
market and not focus solely on the brand or the company.
There are many difficulties associated with internationalizing a brand:
cultural differences between the company and the new market, expense and risk of
the process itself, logistical difficulties, and problems associated with the new region
or country in terms of politics and economy. Before globalizing a brand, a company
needs to conduct extensive research into the market it is planning on entering and
the customers that are to be targeted. For some products only slight modification is
needed to make them easily adaptable in a new environment, such as altering the
current and the look of a plug. For other products a great deal of modification is
required to make them suitable and accepted in the new market, such as a changing
the recipes to either poultry or vegetarian in Indian McDonalds restaurants. In some
cases the cost of entry may exceed the cost of waiting, at which point the firm needs
to reconsider its plans for globalizing or adapt its production processes to reduce
the cost of the necessary change. 9 Before even considering the costs of going into
production, the firm must also assess the value and the worth of researching the 9 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 37
9
new markets. Research can be expensive, but it is an essential part of
internationalizing a brand. Research reduces the risk of failing. There are countless
examples of firms that took their brands global without conducting research or not
conducting enough research into their markets. The better outcome of this situation
is the brand failing to resonate with the customers, and the worse outcome is a
brand failing and damaging its reputation to the point where it is very difficult to
restore customer faith in the brand. One example is of Kentucky Fried Chicken. KFC
is the most famous international brand in China, conquering the Chinese with clean
restrooms, fine décor, and food that is considered good for you by the people.10 KFC
did make a mistake when entering the Chinese market with a slogan that translates
back into English as “eat your fingers off.” Although this mistake did not stop KFC
from succeeding, in other cases consequences of bad marketing could be worse.
Although expansion into new markets will most likely increase the volume of
production for a given company, the company is faced with up front costs that could
deter it from going global. There are costs associated with finding a channel of
distribution, transportation, sales force, and staffing.11 Depending on the business
and product type, some sort of infrastructure may also be necessary; for example, if
the product is usually sold in convenience stores adjacent to gas stations, there is a
problem if there are no or few gas station/convenience stores in the new region or
country. Many developing countries have a very different governmental and
economic structure from that of the Western world; the company should study the 10 People's Daily Online. Survey shows ten most favored brands of Chinese. 1July 2000. 10 April 2008. http://english.peopledaily.com.cn/english/200007/01/eng20000701_44397.html. 11 John A. Caslione, and Thomas Andrew R.. Growing Your Business in Emerging Markets: promise and Perils. (Westport: Quorum Books, 2000). 40
10
political situation of the new market and determine whether the risk of entering an
unstable market is worth the potential reward in profits. In some cases the
governments are run by dictatorships that will forcefully take over a successful
business in the name of protecting or providing benefit to its people, Venezuela
being one of the most prominent examples.12
Whether the company sees it self as a borderless enterprise or just involved
in limited international distribution, it must weigh all of its options, and possible
outcomes. There are many attractive aspects of global brand positioning that can
attract a company to global trade. The company benefits from economies of scale,
continuous growth in face of its competitors, possibly the reward of greatly
increasing its market share, and more importantly, establishing the brand globally
(which would help the brand as a whole to become rooted deeper with its
customers and help build strong affiliations with the brand). There are also many
possible risks that need to be considered and weighed against there enticing
rewards. Politically and economically unstable markets, the changes that need to be
made to the product based on cultural differences (and the risk of diluting the brand
that these changes bring with them), the upfront costs of establishing a channel of
distribution or operation, and the research costs (in terms of money as well as time)
may be sufficient enough factors to keep many companies out of international
markets. Those companies that do decide that the advantages of competing on a
12 Rachel Jones. “Venezuela government takes over Tulsa company’s natural gas plant.” AllBusiness.com 5 June 2005. 23 March 2010. <http://www.allbusiness.com/company-activities-management/company-structures/12498381-1.html>
11
global level outweigh the challenges of establishing a global brand face more
decisions along their path to international brand positioning.
III. Choosing a Point of Entrance into New Markets
Based on previous experience we can analyze the product types that are best
suited for international trade or production and the point on the product’s life cycle
curve when it is advisable to expand internationally. We can also determine the type
of international expansion the company should undertake in (joint venture, export,
affiliation).
Upon entering the international market the company faces some of its most
difficult decisions before it even puts together a marketing plan. One of the issues is:
whether to use the company already established resources abroad or to work with
an international distributor and outsource the distribution channel.13 Based on this
decision, the company can employ varying strategies for international operations:
exporting and trading with international companies, cooperating through joint
ventures or licensing, direct exporting through a distributor or a franchise, and
establishing a national subsidiary or a branch of the company.14 A lot of factors play
into the process of making the decision; these factors stem from the internal
structure of the company itself as well as the state of the market it plans to enter.
13 Erin Anderson, Anne T. Coughlan. “International Market Entry and Expansion via Independent or Integrated Channels of Distribution.” Journal of Marketing. Vol. 51 (January 1987): 71-82. JSTOR. < http://www.jstor.org/pss/1251145> 14 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 71
12
The more risk the company is willing to take by fully entering the market, the more
control over the operations the company can retain.
There are a few types of products that have the most potential to be
successful as global brands. A brand must bring a unique service or product to any
market that it serves.15 For a brand to have success overseas, that brand should be
unique to the new market. At the same time, companies must consider the culture
and habits of their new consumer market; if those habits do not resonate with the
uniqueness of the product, than the brand can face very difficult circumstances. One
example is Kellogg entering India with its cereal in 1990s. Kellogg’s product, ready-‐
to-‐eat cold cereal, was very unique to the Indian market at that point, but the
company did not consider the habits of its potential customers, which were to cook
a hot breakfast each morning.16 Another type of product that fares well in
international markets is a product that represents an aspect of the culture of the
home country that is already well known around the world, such as Belgian
chocolate.17 The problem that could arise from this approach is when entering a
market that is either unfamiliar with cultural stereotypes of the home country, or
does not appreciate those stereotypes and the products that come from them. In the
new markets the products that the company is offering will most likely be at the
beginning of their life cycle from the point of view of the market, unless the
company is following in the footsteps of a competitor. For the company this means
15 Brad VanAuken. Brand Aid: An Easy Reference Guide to Solving Your Toughest Branding Problems and Strengthening Your Marketing Position. (New York: Amacom, 2003). 5 16 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 81 17 Ibid. 110
13
employing marketing strategies pertaining to newly launched products. Going
global with a brand that is in a mature or declining stage of its life cycle is a great
option to give that brand a new life or to be able to adapt the brand to a new market
and use it in a new way. A brand that is new in its home market may be more risky
to launch globally when the company itself is not yet global.
IV. Entering New Markets
A. Strategies
Just as in any product launch, the company must carefully define its global
target market; when applied to an international situation, a company must select the
country or region that it plans on entering. One of the most crucial steps in an
entrance strategy is market research. Many companies down play the significance of
market research, but entering a market with inadequate research can cause the
product to fail and cost the company significant resources as well as precious time.
Once the firm has researched the culture and population preferences, the company
can then use the same marketing segmentation, pricing, and channel tactics as it
would in the home country but applied to the new information it has discovered.
Companies have an excuse for some of the mistakes they make in entering
new markets due to inadequate market research available; however there are a few
mistakes, particularly the ones concerned with proper translation of slogans and
cultural nuances, which should never have been made. For example, Walmart faced
14
some problems from its customers and employees when it tried to duplicate its
customer service and management systems in Germany; the customers did not
appreciate the efforts of the store greeters.18 Market research should not be
confused with completely covering the risk of the new market. The market research
should provide a good look at the potential segments and customers, but research is
incomplete and companies must look beyond the numbers and statistics at the
political, economic and cultural situation as a whole. With the trends for going east,
many companies have been blindsided by the potential of the new markets, but they
should not be too quick to take their products to those markets before conducting
some in-‐depth analysis.
When entering a global market for the first time, firms usually choose to
begin by working with a distributor. As the market continues to grow, so does the
marketing strategy, with the company gaining more control over its distribution
channels.19 With a greater commitment to the new market, the company will change
its entrance strategy to a development strategy, and move from a mass marketing to
a localization strategy. Once the brand has been established, the company can use
the knowledge about the market that it already was not to only harmonize the brand
in terms of the other products that the company offers, but also in terms of how the
brand is viewed globally.20 Once the brand has been harmonized throughout all the
markets and the company and, more importantly, the brand have established a 18 Sicco Van Gelder. Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures & Markets. (London: Kogan Page, 2003). 171 19 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 88 20 Sicco Van Gelder. Global Brand Strategy: Unlocking Brand Potential Across Countries, Cultures & Markets. (London: Kogan Page, 2003). 185
15
reputation, the company can then choose to introduce brand extensions or new
brands to the international market. A brand becomes truly global in the eyes of the
world when it is recognized throughout all the markets.
Besides distribution strategies, companies have another difficult task
selecting pricing strategies. When introducing a new brand in a familiar market,
marketers can choose from a penetration strategy, by offering the new product at a
low price to entice the customers to try the product, or a premium or skimming
strategy, when the product being introduced is either trying to establish a prestige
reputation or is a technologically advanced product. When entering new
international markets, especially if those markets are in developing countries, there
are other factors that marketers have to consider when selecting a price. The
company must also consider just how fluid trade is becoming and how the trade
borders are decreasing around the world.21 Pricing differently from country to
country may no longer be a viable solution to reaching as many customers as
possible at the highest price they are willing to pay.
Beyond transportation and overhead costs, there are also taxes, fees, and
duties that affect international price. International market fluctuations can serve as
an advantage if the company is able to look ahead and make decisions effectively. In
one example, during the 1980s’ drop in the value of the dollar many U.S. companies
also operating in Europe had a great advantage over their European counterparts
and were able to drop prices while maintaining high revenue and low costs.22 Some
21 Michael R. Czinkota, Ronkainen Ilkka A., and Tarrant John J.. The Global Marketing Imperative. (Lincolnwood: NTC Business Books, 1995). 133 22 Ibid. 134
16
of the pricing decisions can come from examining market research and the
demographics of the new markets. While skimming pricing is effective in the
markets with a large proportion of the population being able to afford the premium
rate and the product is unique among the competition, penetration pricing is more
effective in the case where production is cheaper, the market volume is large, and
consumers are not able or willing to pay a high price for the product.23 For example,
it is possible to introduce a technological product to a western market with a
skimming strategy, while the penetration strategy would be more effective in an
eastern market that is high in population growth but low in buying power. To be
able to use the penetration strategy, companies can lower the cost of production by
assembling the product overseas, using lower cost materials, or taking a greater
control over the channel of distribution.24
B. Cultural Adaptation
Cultural differences affect all aspects of brand globalization and entrance into
new markets, from determining which products should be globalized, to which
markets to enter, to the price and distribution channel that would work best in the
given situation. The product is not the only aspect of the strategy that should be
adapted to the culture of the market; marketers should also adapt the promotion
23 Michael R. Czinkota, Ronkainen Ilkka A., and Tarrant John J.. The Global Marketing Imperative. (Lincolnwood: NTC Business Books, 1995). 137 24 Michael R. Czinkota, Ronkainen Ilkka A., Donath Bob. Mastering Global Markets: Strategies for Today’s Trade Globalists. (Mason: Thomson South-Western, 2004). 226
17
used to communicate with the customer and to position the product within the sales
channel.
When promoting the brand it is important that marketers go beyond the
obvious general brand interpretation and create something that will resonate with
the market and reflect their culture. To have an effective brand communication
strategy, the brand and its value have to be communicated successfully through all
of the channels and levels of the organization.25 The company’s goal is to export the
value that the brand provides to the customer. To leave room for the product to be
able to adjust the meaning behind the brand on a country-‐by-‐country basis, the true
objective of the company should be to export the brand image in terms of the
physical aspects associated with the brand (logo, packaging, etc.), but not the
meaning.26 The meaning evoked by the brand should portray the cultural ideals of
the market. Bringing forth the idea of glocalization, where the brand essentially
represents one product globally, but the associations with the brand meaning differ
on a country or region basis.27 An international marketing campaign should position
the product well within a given market and target various audiences, all the
stakeholders associated with the brand. Cultural differences will give rise to
problems with media availability and limits in communication.
Beyond political limitations on the way marketers can advertise from
country to country, there are also cultural and technological differences that can
25 Muhlbacher, Hans, Dahringer Lee, and Leihs Helmuth. International Marketing: A Global Perspective. (London: International Thomson Business Press, 1999). 667 26 David Arnold. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. (Upper Saddle River: Financial Times Prentice Hall, 2004). 114 27 Ibid. 115
18
prevent traditional advertisements from being effective tools. For example, time is
either limited or prohibited for TV advertisement in Germany and Sweden.28
Culturally, the ad campaign may have to be altered either for the content or the
channel. For example, an ad for perfume in Saudi Arabia would have more of a
conservative positioning and instead of a the models of the opposite sex touching
hands, as in a similar ad in Europe, it would display them brushing fully clothed
arms.29 Customers’ habits are also a key to the way the advertisement and the
product are positioned. All of these differences could lead to problems in
communicating with the customer. And thereby reduce the control that marketers
have over their advertisements. Even though English is considered an international
language, most countries require advertisements to be in the local language, and
thus translation has to be done carefully to retain the full meaning of the
advertisement.30 Some of the most difficult brands to adapt to different markets are
the food brands, since taste is such a big part of the product; one brand that has
managed to adapt well to various markets around the world is Nestlé.31 Nestlé wins
the hearts and pallets of its consumers all over the world by not only adapting its
own products to the tastes of the consumers, but also adapting the tastes of
consumers to their products; they are confident in their products’ ability to succeed
in the market and establish a category where there might not have been one before.
28 Michael R. Czinkota, Ronkainen Ilkka A., and Tarrant John J.. The Global Marketing Imperative. (Lincolnwood: NTC Business Books, 1995). 242 29 Michael R. Czinkota, Ronkainen Ilkka A., Donath Bob. Mastering Global Markets: Strategies for Today’s Trade Globalists. (Mason: Thomson South-Western, 2004). 316 30 Curry, MBA, Ph.D, Jeffery Edmund. A Short Course in International Marketing: Approaching and Penetrating the Global Marketplace. (San Rafael: World Trade Press, 1999). 129 31 Paul Stobart. Brand Power. (New York: New York University Press, 1994). 53
19
Another example of a successful global campaign is Gillette in 1995. One of
the reasons for its success is that it has the resources to promote the brand; if they
invested initially over $1 billion in developing and marketing its new razor.32 The
support from the manufacturing side, to be able to produce at high capacity,
harmonized marketing and packaging, and flexible pricing strategy were all crucial
aspects of the success the campaign enjoyed.33
V. Globalization effects on local population
As markets expand and the world’s boundaries become harder to define, and
as the eastern markets gain more potential and buying power in the eyes of the
capitalist west, it is easy to forget that the company, the product, and its
shareholders are not the only ones affected. There are many arguments for and
against globalization. As businesspeople in the current crisis we are also faced with
ridicule and questioning of the ethical standards in business. On one hand,
internationalization allows many customers to get many different products, quickly,
cheaply, and easily. On the other hand, the production and delivery of the product
could have a negative effect on the local population in the target market, as well as
on the employees of the distributors, suppliers, or manufacturing facilities.
The International Labour Organization estimated in 1995 that there were
200 million children working in dangerous facilities in order to provide for their
32 Glenn Rifkin. "March 3: Anatomy of Gillette's Latest Global Launch". Best Practices in International Marketing. (Fort Worth: Harcourt College Publishers, 2002). 183 33 Ibid. 184
20
families.34 Child labor is one of the biggest problems that occur with globalization.
The uneven distribution of income in the underdeveloped world, that often is one of
the biggest reasons why the end product’s price is low due to saving on labor costs,
gives rise to crime, corruption, and labor conditions that would not be acceptable in
the developed world. The laws in the developing countries are in the process of
being developed, which means there is always room for producers or suppliers to
interpret the laws in their favor. For example, even though tobacco marketing is
heavily restricted in U.S. and Europe, it is often not the case in most parts of the
world, which allows the tobacco producers to advertise their products as they see
fit.35 Besides the influence on the consumers and employees of the producers, the
presence of big brands in the developing world could completely eliminate the local
competition. Most of the business operations are conducted by small, local
producers in the developing world, and these small businesses create revenue that
is the direct source of income for many families. Since the big, international
companies have more resources, they are able to utilize those resources as well as
their economies of scale to reduce price and drive out local competition,
destabilizing the local markets. Although the World Trade Organization is trying to
control world trade, there is not a strong international governmental power that is
able to control the many issues that arise from globalization.
VI. Conclusion
34 Muhlbacher, Hans, Dahringer Lee, and Leihs Helmuth. International Marketing: A Global Perspective. (London: International Thomson Business Press, 1999). 23 35 Ibid. 834
21
Globalization opens borders to companies, whether they are manufacturers,
retailers, or exporters. When a company considers taking its brand or product
international, it has various issues to deliberate. The company needs to make sure
that its product is at the ideal stage of its life cycle for expansion, the market in
consideration has all of the conditions for the company to enter into, and the
company has all of the research necessary for the marketing campaign. Depending
on the product, the company may choose different pricing strategies, and depending
on the control the company seeks to hold over the product, it will choose a
distribution channel strategy. The key to having a successful brand launch in a new
market is putting the time and the resources into adapting the product and
researching the customer. Research can not only provide marketers with crucial
information to design a unique advertising approach, but also could allow a
quantitative look at the target market and help make the decision about whether the
company should enter the market. Having a product that is unique in each market,
adapting to the cultural preferences of the customers, as well as a product that
represents the overall brand image and harmonizes well with the company’s image,
is a balancing act. Although the company may strive to relate the product well to the
culture of the market it is penetrating, the brand should reflect the brand image of
the company overall and allow the customers to develop their own brand meanings
in each market individually. Globalization is an alluring concept that attracts many
companies to try and stay ahead of competition and find new, previously untapped
markets, but businesses should remain ethical in their operations whether they are
22
located in the home country or operating internationally. Companies should
understand that their actions have an effect on a wide range of people, not just
consumers, competitors, and shareholders.
23
Bibliography
A Basic Guide to Exporting. International Trade Administration, 1998. Unzco.com.
24 March 2010. < http://www.unzco.com/basicguide/c4.html> Anderson, Erin, Anne T. Coughlan. “International Market Entry and Expansion via
Independent or Integrated Channels of Distribution.” Journal of Marketing. Vol. 51 (January 1987): 71-82. JSTOR. < http://www.jstor.org/pss/1251145>
Arnold, David. The Mirage of Global Markets: How Globalizing Companies Can
Succeed as Markets Localize. Upper Saddle River: Financial Times Prentice Hall, 2004.
Byron, Ellen. “Max Factor Kisses America Goodbye.” Wall Street Journal. 5 June 2009.
23 March 2010. <http://online.wsj.com/article/SB124414272231986091.html>
Caslione, John A., and Thomas Andrew R.. Growing Your Business in Emerging
Markets: promise and Perils. Westport: Quorum Books, 2000. Curry, MBA, Ph.D, Jeffery Edmund. A Short Course in International Marketing:
Approaching and Penetrating the Global Marketplace. San Rafael: World Trade Press, 1999.
Czinkota, Michael R., Ronkainen Ilkka A., Donath Bob. Mastering Global Markets:
Strategies for Today’s Trade Globalists. Mason: Thomson South-Western, 2004. Czinkota, Michael R., Ronkainen Ilkka A., and Tarrant John J.. The Global Marketing
Imperative. Lincolnwood: NTC Business Books, 1995. Gregory, James R.. The Best of Branding: Best Practices in Corporate Branding. New
York: McGraw-Hill, 2004. Jones, Rachel. “Venezuela government takes over Tulsa company’s natural gas plant.”
AllBusiness.com 5 June 2005. 23 March 2010. <http://www.allbusiness.com/company-activities-management/company-structures/12498381-1.html>
Kochan, Nicholas. The World's Greatest Brands. New York: New York University Press,
1997. Muhlbacher, Hans, Dahringer Lee, and Leihs Helmuth. International Marketing: A
Global Perspective. London: International Thomson Business Press, 1999.
24
People's Daily Online. Survey shows ten most favored brands of Chinese. 1 July 2000. 10 April, 2008. <http://english.peopledaily.com.cn/english/200007/01/eng20000701_44397.html>
Rifkin, Glenn. "March 3: Anatomy of Gillette's Latest Global Launch". Best Practices in
International Marketing. Fort Worth: Harcourt College Publishers, 2002. Stobart, Paul. Brand Power. New York: New York University Press, 1994. Van Gelder, Sicco. Global Brand Strategy: Unlocking Brand Potential Across Countries,
Cultures & Markets. London: Kogan Page, 2003. VanAuken, Brad. Brand Aid: An Easy Reference Guide to Solving Your Toughest
Branding Problems and Strengthening Your Marketing Position. New York: Amacom, 2003.
