Since the beginning of the twentieth century, brands have existed in individual countries but it's a new phenomenon in international marketing. According to Bradley (2002), many features of a brand already successful in a domestic market may be used in international marketing: the logotype and symbols, the name, positioning product features, packaging, advertising copy and other element of the marketing mix to a lesser extent. Indeed, brands add value to the product and communicate a message to the consumer by reflecting the company image.
Doole (2004) explains that brands allow customers to identify products or services which will promise specific benefits, such as performance, price, quality or image. This is an ambiguous term because it can be confused with products or companies.
This report will first define what a brand is and its importance in domestic markets. Then, it will point out the main environmental factors, which affect branding in an international context. Finally, it will argue the principal branding strategies for a company who want to extent overseas. Should the company treat the world as one marketplace, approached with standardized brand marketing, or make local brand adaptations?
[...] “This emphasizes customer convergence as the initial starting-point and separates the demand, or market-driven factors, from the supply- or efficiency- driven factors.” Finally, the marketing strategy of the brand reflects the overall strategy of the company and the globalization of this one represents several factors that require an adaptation strategy: “Think global, act local”. Bibliography Books Crane, A. and Matten, D. (2004), Business Ethics, Oxford University Press, Oxford. F. Bradley, International Marketing strategy, fourth edition Prenctice Hall I. Doole and R. [...]
[...] The main brand strategies by Doole (2004) Doole (2004) analyze four recognized branding strategies: - Corporate umbrella branding is used by firms such as Heinz, Kellogg's and Cadbury's. The corporate name is used as the lead name for all their products. For example, Disney includes the word "Disney" in the name of many of its products. - Family umbrella names are used to cover a range of products in a variety of markets. For example, Aldi use their Dia brand for foods, toiletries and many other range of product. [...]
[...] 347) defines is the set of human characteristics associated with a brand.” And as it is mentioned before, a brand is a legal property which allows companies to achieve a competitive advantage. Thus, branding reflects the marketing strategy of the company, which involves a rigorous work in order to drive the company activity. De Chernatony et al. (1995) cited by Doole (2004) identify two components of brand planning: the core concept (the essence of what the brand stands for in terms of its added value positioning) and its execution (the detailed implementation through packaging, product contents, tactical promotions and media policy). [...]
[...] For example, Coca-cola uses Coke Lite as a brand name instead of Diet Coke in Japan because Japanese women do not like to admit to dieting because it means sickness or medicine Ethic A company has to study their customer's behavior before reaching a market. In an international context the approach is the same but the behaviors are different governed by the ethic factor. Ethic is defined by Crane (2004) as code of moral principles and values that govern the behavior of person or group with respect to what is right or wrong”. [...]
[...] Brand standardization Company that want to standardize their brand overseas are faced with environmental factors as explained in the second part. These factors drive the company into certain branding decisions to reach the foreign market. According to Alden (1999) “consumers may purchase certain brands to reinforce their membership in a specific global segment, such as teenager, business, government/diplomatic, elite, etc This means that brand standardization can be applied to a cultural segment. Hypothesis: A company of luxury product can associate its brand with global consumer culture such as Calvin Klein for their underwear clothes. [...]
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