https://www.youtube.com/watch?v=JKI

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Regionalization –

i.e. Pepsi divided its US operation into

four regional companies to gear its

marketing locally

Segmentation drives regionalization

More focus on certain consumer goods

One size doesn’t fit all

Compete more efficiently

Marketing inefficiencies

Production cost goes up

Economies of scale is lost

Brand identity may be blurred

May force local competition to become

more competitive

Any market segment however we define it may be a candidate for a specialized marketing program i.e. age, income gender, race, these factors cause differences in shopping behavior

These differences can be the rationale for a separate branding and marketing campaign

Issues: targeted individuals feel that they are being highlighted because they are different, consumers not in the target audience feels left out

Many brands derive much of their sales and

profit from non domestic countries coke,

rolex, benz etc.

› Perception of slow growth and increased

competition in domestic markets

› Belief in enhanced overseas growth and profit

opportunities

› Desire to reduce costs from economies of scale

› Need to diverify risk

› Recognition of global mobility of customers

Economies of scale

Lower marketing costs

Power and scope

Ability to leverage good ideas quickly

and efficiently

Consistency in brand image

Uniformity of marketing practices

Differences in consumer needs, wants and usage patterns for products – i.e. Tea Iraq

Difference in consumer response to marketing mix elements – i.e. GDP, types of media, culture

Difference in brand and product development and the competitive environment i.e. PLC

Difference in legal environment i.e. taxes, advertising to children, 60 days to approve an ad

Difference in marketing institutions i.e. channels of distribution, media availability, media costs

Differences in administrative procedures i.e. resistance from local brand team

100% customized global brand

campaign

Customized Sri Lanka & India

Cheap way of Standardizing India vs. Sri

Lanka

Hybrid Model Sri Lanka vs. International

100% Standardized Male & Female

Need to revisit brand positioning in each

market

Create mental maps

Define core brand associations

Identify points of parity and

differentiation

1. How valid is the mental map in the new market? How appropriate is the positioning? How valuable are the core brand associations, points of parity and points of difference?

2. What changes should we make to the positioning? Do we need to create any new association? Should we modify and existing association?

3. How should we create this new mental map? Can we still use the same marketing activities? What changes should we make? What new marketing activities are necessary?

Global cultures are being formed

Across cultures across countries similarity

in needs and wants are been identified

Brands are identifying them

› Developed vs. developing markets

› Changing landscape for global brands due to global media, technology etc.

Build brand equity

Build brand awareness

Build brand knowledge

A critical success factor for global brands have been their manufacturing, distribution and logistical advantages.

Either create from scratch or adapt to existing marketing infrastructure in other countries

Lean manufacturing practices to reduce costs

Strong dealership and business partners

Low risk and low fixed cost strategies i.e. 3PL

Consistency across all channels

Non traditional communication elements

should be consistent

Global brands have marketing partners of some form in their international markets › JV

› Licensees or franchisees

› Distributors

› Ad agencies

› Legal associates

Lipton provides special tea powder to Pepsi to make iced tea beverage

Geographic expansion i.e. coca cola

Acquire brands from the respective

market i.e. AIA

JV, franchise i.e. ADIDAS, NIKE

Product strategy – consistency vs.

adaptation

Pricing Strategy - taxes, distribution costs,

consumer income play a major role. With

internet

Control centrally or from a head office

Decentralize of decision making to local

markets

Combination between centralization

and decentralization

Logo, brand soul is standardized,

communication, quality, distribution,

price is customized

Brand guidelines i.e. logo color, logo size,

font type font size

Operation guidelines

Use research agencies

Some countries do not have

Equity tracking

This is not similar to tracking the value of

a brand

Proper design and implementation of brand elements can often be critical to the successful building of a global brand

Often brands come across problems in translating elements into various cultures

i.e. Ronald Mc Donald, apple logo, swoosh, colors of brands, music etc.

Even nonverbal elements will have cultural issues i.e. green color in Malaysia symbolizes death and disease

Verbal communication will also have issues i.e. coke’s can’t beat the feeling was translated to ‘I feel coke’ in Japan, ‘unique sensation’ in Italy, in Germany no proper translation was available so they kept the English version

Content Extracted from “Strategic Brand Management” 3rd Edition

Authors: Kevin Lane Keller

M.G. Parameswaran

Issac Jacob

Presentation developed from SLIM Diploma In Brand Management

Students

Presentation developed by Leroy J. Ebert (3rd of May 2014)