Research Articles Base: Global Branding

Global Branding

Introduction             Selling products with famous and renowned names, rather than bulk merchandises or generic commodities, has long been a smart and feasible industry to be in. There is a global mentality that if a good is branded, it cost more than those that are unbranded. Customers are paying extra for the celebrated name on food products, clothing, hi-fi, shoes, as well as cars (Anholt 2003, p. 2).             One of the most productive and abundant but still basically uncultivated progresses in the global marketing aspect is the global branding. It is considered as the natural result of the huge 1990s research about the brand equity. A unique brand name and logo are used, by most of the global companies as their major standardized aspect of their marketing strategy. Still much of the traditional branding research typically acknowledges the global character of powerful brands only implicitly. Different global brand researches shows that it is important for the global brand to takes important about the global dimension of the known brands (Weitz & Wensley 2002, p. 471).             Global branding is considered as a kind of universal truth. All of the companies in different part of the globe have their own brands that are involve in same issues. All of them are facing different problem with regards to the local culture such as language differences, governmental regulations, politics and other issues (Gregory & Wiechmann 2001, p. xv).             Global branding during the 1980s was influenced by a famous 1983 Harvard Business Review article entitled The Globalization of Markets. The article focuses on the topic that different companies must leverage their “economic of simplicity” as well as sell different standardized products in different part of the world. The article also discusses the benefits of the said strategy, and that is to lower the costs as well as maintain the consistent communication of the company to their target customers (Wreden 2004). The next generation of branding was in 1990s, and it focused on the global approach. Different companies centralized their production, research, together with the technology, but localize their different marketing approaches such as the marketing distribution and Public Relations or PR in order to accommodate and meet the different cultural as well as geographical differences (Wreden 2004). What is Global Brand?             Brand is considered as the translation or conversion of the business strategy into a consumer experience and practice that conveys in relation to a specific behavior of consumer (Van Gelder 2003, p. 15). Global brand on the other hand, is the one that is available in most of the countries in the world that eventually contributes to the similar strategic principles, positioning as well as marketing in each and every market in the world, although there is a big possibility that the marketing mix might be different. It has a considerable market shares in all of the countries and equivalent brand loyalty or also known as the brand franchise. Another important characteristics of global brand, is that it holds the same logo or brand name (Wreden 2004). It has a large amount of geographic reach, by being available or accessible in all of the major markets as well as the most minor ones (Gregory & Wiechmann 2001, p. 1).             Even though there is a lack of official definitions of global brand in the literature, it is universally established that they are considered as those brands that consumers can find under the same name in several countries with usually similar and centrally synchronized and harmonized marketing strategies (cited in Steenkamp & Batra 2003, p. 53).             Global brand has its three most important dimensions: First is that, global brand signals quality; second is that, it represents different international positive attributes; and the last is that, it represents different vehicles that are used for social responsibility (Wreden 2004).             The first dimension of global brand, which is the quality signal, signifies to the fact that different global brands carry their individual brand reputation for quality (Wreden 2004). That is why the place where it was made is no longer that important. Global brand also stands for different positive attributes such as Apple says cool in each and every country (Wreden 2004). The last dimension and considered as the most important dimension of the global brand, is the social responsibility. Social responsibility and roles of each and every international company in the world is also an important marketing strategy that can help them to maintain their position in their industry in the global market.             Nowadays, different aspects such as technologies, knowledge-based economy, innovations and other intangible assets of the global brand is regarded as one of the most important driver or motivator of the corporate value as well as growth (Gregory & Wiechmann 2001, p. 3). Global Branding              Global branding is an important activity or task that must be done by different businesses or companies that are planning to get involve in the global market, more importantly in launching their global brand. There have been many multinational companies that are altering their brand portfolios in order to cater to the needs of their global brands (Steenkamp & Batra, p. 53). For instance, Procter & Gamble or P&G as well as Unilever both reduced the number of the brands that they are marketing around the world by disposing those products or brands that has a limited global potential (cited in Steenkamp & Batra , p. 53). Another example is the case of the telecom giant Vodafone, the company had replaced their local brand name by global Vodafone name (cited in Steenkamp & Batra, p. 53).             In global branding, the surface of the brands submitted to are usually the formal brand identity such as the logo, symbol, trademark, brand name, colors as well as the shapes; the brand position, the different marketing mix, the distribution, different strategic principles as well as the advertising (Mooji 2005, p. 14). All of the major examples of global brands are using their fully globally standardized techniques (Mooji 2005, p. 14).             Global branding is one of the answers in the problem that is caused by the fast growing and developing global market that is pushed or caused by the globalization, different technologies as well as the innovation. Advantages of Using Global Brand Name             In most of the categories as well as industry in the business world, companies are not competing with their products but with their brands. It is a battle between the improved and better products that are distinguished and well positioned against the other brands in the same category (Mooji 2005, p. 13).             There are many reasons or advantages in moving towards the global brands. Yip (1995), said that globalization can help to yield the economies of scale as well as the scope in R&D, manufacturing as well as marketing (cited in Steenkamp &  Batra). Hassan & Katsanis (1994) also added that the strategic appeal of the global brand increases as the meaningful segments of consumers around the world develop together with their similar demands and preferences (cited in Steenkamp & Batra). The most important aspect is that Neff (1999) said that the globalization can help to speed up the time of a brand in order to market by helping to reduce the time-consuming local modification (cited in Steenkamp & Batra). Global Branding can help to improve the R&D and Innovation Processes             One of the most important characteristics of the global brand is its availability in most of the countries in the world (Mooji 2005, p. 14). The said character is mixed with the principle that was implemented by P&G, thinking global but acting local. The said principle and characteristics pushes different companies who are practicing global branding, to improve their R&D and innovation by letting their franchise from their partner countries to innovate on their own.             One of the most important example or case that is suited in this advantage is the McDonald’s. In 2004, the company is already offering their services and products via more than 30,000 distribution points in over 119 countries in the world. The company is already serving their 47 million customers everyday (Mooji 2005, p. 14).             Innovation and R&D is important because it can help the company to maintain their efficiency by offering their customers something new. Although the company has their standard specifications for their technologies, client services, hygiene and other operations systems, other aspects of the company are working locally like its products as well as its communications and communications to their customers (Mooji 2005, p. 14).             Global branding can help many companies to communicate to their customers in local way but maintaining their quality and standard in international or global way. The aspect had helped the McDonald’s to be successful by offering their advertisements and other customer relation activities as well as offering different products and services that has a local touch. Examples of this is that McDonald’s is offering different types of burgers for different part of the world such as the Kiwi Burger of New Zealand, the Maharaja Mac of India, the Prosperity Burger of Malaysia, the Teriyaki Burger of Japan, the McKroket of the Netherlands, the McLaks or the grilled salmon burger of the Norway as well as the Croque McDo or the hot ham and cheese sandwich in France (Mooji 2005, pp. 14 – 15).             Global branding had also helped the company to become sensitive to the culture and custom of their customers. This pushes or motivates the company to focus their innovation activities to the religions and beliefs of their target customers. One of the most important innovations that was done and implemented by the company was their offering of the meal-less Friday sandwich. They offered their Fillet-O-Fish as their consideration to the belief of the Catholic during their meatless Friday, by letting them enjoy the delicacy of McDonald’s even in the said day (Commonwealth Department of Immigration and Multicultural and Indigenous Affairs 2007).               Another important innovation of the company that is related to the said subject is their offering of their very own Halal burger. The said strategy had helped the company to get the attention of their Muslim customers by offering them other menu aside from salad and desert (Commonwealth Department of Immigration and Multicultural and Indigenous Affairs 2007).             The ability of the company to manage their innovations and R&D, together with their courage to enter into the global branding had helped them to become of the world’s most renowned or famous restaurant or fast food chain. Another important thing is that the company was one of the top 10 best global brands in 2006, having its position in top 9.  See appendix A to see the list of top ten best global brands.             Global branding had helped the company to grow in the international market as well as create a local image that capture the hearts of their local customers at the same time, helping the image or the reputation of the company as a whole. Global Branding can help to Increase the Strategic Appeal of the Company             Advertisement is one of the most important factors in order to help the brand name or the reputation of the company to level up. It also has a huge part in helping to increase the demands and eventually the sales of the products that the company is offering. One of the best examples for this advantage is the case of the Coca-Cola. The said beverage is already sold in over 200 countries around the globe (Mooji 2005, p. 14). The most important factor that helped the company to be in its position in the global market is its ability to campaign using their different global advertising as well as their ability and activities to increase their relationship to their local country partner (Mooji 2005, p. 14). This had helped the company to become the number 1 in the top global brands in 2004, far from its position in 2003 as being ranked as the number 4 and continued its success trough 2006.             The company proudly said that the reason behind their success is their ability and action to meet the demands of local tastes as well as cultures with nearly 400 brands in over 200 countries in the whole world (cited in Mooji 2005, p. 15). Example of this is their activities in the Middle East; the company had added the sweetness of their drinks in the said country in order to meet the demand and preferences of their prospective customers who prefer sweeter drinks (Mooji 2005, p. 15). This is different from other countries where in their customers prefer drinks that are not that sweet. Another important thing is that the company had also offer their no sugar coke in order to cater to the taste of those figure or health conscious customers.             McDonald’s is also one of the best examples for the said case. The reason behind the success of the company is its ability to relate their advertisement and other marketing strategies to the local market that they are catering to. For example, in France, the company uses the idea of Asterix and Obelisk, or the most famous historical cartoon of the nation (Mooji 2005, p. 15). It had appeal their customers in France, but it doesn’t mean that it will also affect their customers from their other partner countries.             That is the reason why, the company is establishing different image in different countries like, there are some places where in McDonald’s is considered as a place to go to for different children’s parties, like in the Philippines, while other countries prefer it as a place as a typical family restaurant, like in India (Mooji 2005, p. 15).             In China, the image of the restaurant is entirely different, it is considered as a place to go for a date, due to the fact that it presents or shows a typical Chinese restaurant by using tables for two that will allow and provide privacy (Mooji 2005, p. 15). Global Branding can help to reduce the Time that is spent in Local Modification             Due to the fact that global brands carry one brand name and/ or logo, the manufacturer or the company that offers a given product will no longer have to spend much of their time in launching their products or services. The reason behind this is the fact that the global brand or name of the company had already established its name in the market. The reason behind this is due to the mentality of the       customers. There are many reasons why the customers prefer different global brands: Kapferer (1997) said that global brands are associated or connected to the higher prestige (cited in Steenkamp & Batra 2003). The said reason can make the customers feel that if they are using or availing different products and services form a global brand, they are somewhat in or in higher level of society. Kochan (1996) and Bearden & Etzel (1982) added that, global brands are admired because of its being prestigious, together with its being relative to scarcity as well as higher price judge against the local brands (cited Steenkamp & Batra 2003). In addition to that, global brand can create aspirational and prestige appeal (cited Steenkamp & Batra 2003).             Example of this is the brand of Sprite that is part of the Coca-Cola Company. Although, Sprite is considered as another brand, global branding had helped it to become successful and feasible for many teenage. Due to the fact that the said brand is carrying the same brand, which is Coca-Cola, many of the Sprite ads are running worldwide, unchanged, while there are some that are made exclusively for different local. It had helped the company to save their time and effort by creating and establishing different local advertisement for different partner country of the company. The advertisement of the Sprite focuses only one basic theme and that is the self-reliance and to trust one’s instincts. Another important effect of global branding to the company is that it enables them to create new products or brand that focuses on a given group of their customers. Sprite focuses on the teenagers, and it had helped them to lessen their effort in doing and implementing their marketing campaign. It is due to the fact that there is a strong resemblance that is common to teenagers no matter which country is concerned (Kimmel 2005, p. 94). It had helped the company to build universal sentiments of the teens with regards to the softdrinks and other similar products (Kimmel 2005, p. 94). Conclusion             Global branding had helped many companies to be noticed by their target market as well as to be in their current position in their industry in the global market. There have been three most important advantages or reasons why companies must used the strategy of global branding. All of the said reasons can help the company to grow in terms of size, sales as well as their position in the market. Although there have been many successful stories about global branding, there are many hindrances that can be encountered by different companies. One of this is the culture factor; it can affect the preferences, taste, demands as well as the behavior of the customers towards the products. So it is important to think and plan about the local culture and custom aspect of the partner country and use those differences in planning and implementing different marketing strategies.             Another important factor is the insatiable or ever-changing taste of the customers. That is why it is important to manage and maintain the level of innovation. Innovation can help different global companies to maintain the level of interest of their customers towards their different brands that is under one global brand.             The last factor is to maintain the high quality of the each and every brand that is included in the global brand. The reason behind it is that if one of the brands failed to satisfy the demands and needs of the customers, it can affect the name of the global brand as a whole. Credit:ivythesis.typepad.com

Global Branding

Introduction Selling products with famous and renowned names, rather than bulk merchandises or generic commodities, has long ...

GLOBAL BRANDING ESSAY INSTRUCTIONS

GLOBAL BRANDING ESSAY INSTRUCTIONS

Identigy and evaluate the key reasons for a company to market its products under a global brand name. explain, with examples, the circumst...

GLOBAL BRANDING ESSAY INSTRUCTIONS

GLOBAL BRANDING ESSAY INSTRUCTIONS

Identigy and evaluate the key reasons for a company to market its products under a global brand name. explain, with examples, the circumst...

GLOBAL BRANDING

GLOBAL BRANDING: KEY REASONS FOR MARKETING IN A GLOBAL BRAND NAME Table of Contents   I.      Introduction.. 3 II.     Marketing Under a Global Brand Name.. 4 A.    Creation of Demand on Other Countries. 5 B.    Strategic Appeal. 6 III.        Brand Management in the Global Setting.. 7 A.    Value Creation in Branding.. 8 B.    Using Brand Equity. 9 C.    Consumer-Centered Brand Management. 10 IV.       Issues to Consider.. 11 A.    Buying Behavior of the Consumers. 11 B.    Possibility of Replacing of Global Brand Names. 12 V.    Conclusion.. 13 VI.       References.. 14   I.        Introduction In this day and age, consumers automatically relate a product to the name of a particular brand. More specifically, the reputation of the said brand tends to trigger signals of whether a product is cost-effective, superior in quality, or even equate to a particular social status. Numerous studies have maintained that brands have become powerful tools in modern marketing. It has become one of the major factors that consumers consider in their purchasing decisions. Any commercial organization knows this as a fact. That is why they are inclined to place their attention to brands and the demands of the consumers. It has become an indispensable component of the marketing operations of the modern organization. For existing multinational companies, having a global brand name has been immensely helpful in expanding their operations the world over. Presenting their products and services as the top alternative in the market nowadays is not enough to ensure the success. In this era where the consumer is sovereign, every company needs to build a brand that will be universally recognizable in any market. Companies seek to establish a global brand with the ends of acquiring a bigger market share and a better position in the market. Though it is a common belief that having a global brand name equate to success in terms of business, there are still existing issues that comes with it. This paper will be considering the minutiae of establishing a global brand name. Similarly, the key reasons why this is being considered by most, if not all, companies will be taken into account along with the other alternatives that these companies have in marketing a global product.        II.      Marketing Under a Global Brand Name The term “global brand” is often interchanged with the term “global product.” However, there are studies that pointed out that the two are completely different terms. Basically, a global product connotes merchandise sold all over the world that share standardized attributes. ( 2003, 53) This means that these products tend to have a uniform set of characteristics and normally take on common brand names. On the other hand, a global brand tends to characterize the identity and image attached to a specific product. More importantly, it is the blend of both tangible and intangible attributes that constitute a global brand.  Recent studies of global branding indicate that the said concept is subject to the perspective of the individual consumer. ( 2004, 69) More specifically, the more recent views of international branding strategies tend to reflect the demands of the consumers. As   (2004, 70) puts it, these global brands are subjected to the global culture. In its simplest terms, global culture pertains to a set of consumer tastes and values. These tastes and values do not necessarily share the same standards and often show conflict with one another. Thus, global brands have to take on a certain level of flexibility in their operations.     In its face value, this seems quite a daunting task for any company. However, this does not stop them from seeking to establish a global brand name and engage in global branding strategies. Why? The reason is that despite these complex concerns of the consumers, these brands have become embedded in their consciousness. ( 2004, 70) The bottom-line is that, despite their best efforts, consumers cannot ignore global brands. The following parts will discuss the other advantages that companies enjoy in operating a global brand.    A.    Creation of Demand on Other Countries One of the advantages of having a global brand is the possibility of demand spillovers. This means that the marketing efforts held in a particular country could essentially spread out to markets of other countries. Basically, the image of the global brands encapsulates this advantage. (1997, 361) The concept of brand popularity and the country of origin often establish this type of demand spillover.  (2004, 71) share this intimation of demand of global brands. Mainly, they call this dimension of global brands as the “global myth.” Simply put, demand of global brands tends to provide the consumers a feeling of having a “global identity” or having a feeling of being a “citizen of the world.” Studies on the effect of brand popularity on the company maintained that it has major implications on its market share. In the study of  (1997, 361) they pointed out that the company acquires benefits from brand popularity. One benefit is that having brand popularity provides the consumers more confidence in their purchasing decisions with particular reference to giving the implied assurance that a popular brand is better than the alternative. Another benefit of brand popularity is the association of value to the product. ( 1997, 361)  (2004, 71) coined this dimension of global brands as “quality signals.” Thus, issues of price of the product with a global brand are often regarded as “reasonable” because of its perceived high quality among consumers.   B.    Strategic Appeal Another perceived reason why organizations seek to establish a global brand is because of its strategic appeal.  (2003, 53) indicated in their study that global brands tend to have more opportunities than their counterparts in the local markets. This is supported by the earlier studies on the markets in the US, Japan, and EU.  (2000, 39) noted that global brands offers companies an efficient way of exhausting its resources. More specifically, maintaining global brands tend to offer the possibility of lower costs and having the highest quality product. Aside from the earlier fact pointed out on the demand spillover, a consequent outcome of that phenomenon would be the demand for standardized products. (  2000, 39) This means that modifications to meet the local demands are significantly lessened as the demand reflects greater value with the unaltered global brands. In this regard, time and resources in the modification processes is taken away which equates to cost reductions and further profit for the company. On the whole, the creation of global brands creates a much greater economies of scale and scope for companies. (p 43)     III.    Brand Management in the Global Setting Recent marketing initiatives in the global setting have acknowledged the importance of bands in dealing with the dynamic business environment. Recent studies maintained that it is important for companies to treat their brand management initiatives as they treat their strategic management processes. ( 2001, 75) This means that the battle of brands in both their local and domestic counterparts have intensified throughout the years. This increase in the demands on the part of the organizations has given them the responsibility of making their brand management more systematic, scientific and a continuous process. The study of  (2001, 75) basically maintained that companies should bake sure that their brand will be remembered constantly. Be it through logos or taste, the consumer has to readily recognize the brand right away.  This is where brand management comes in to the picture.    There are studies that maintain initially what their brand intends to represent. In doing so, the company is able to find a way to position its brand with reference to the other players in the market. ( 2001, 75) This is seen in the case of global brands like Nike and Coca-Cola. In the case of Nike, they have decided to package themselves as a brand associated with winning. On the other hand, the Coca-Cola brand tends to place value on their universal taste. ( 2003, 198) A case study of Procter & Gamble maintained that a use of a brand portfolio would be able to help a company in managing its brand in the global setting. (2003) With such a tool at their disposal, P&G is able to make sound decisions with regards to their brand management initiatives. In doing so, P&G are able to position their products properly with reference to the other players like Unilever, Kimberly-Clark and Colgate-Palmolive. Studies pertaining to branding strategies and theories point out two important components organizations should consider in their brand management initiatives. These are brand equity and brand value. A.    Value Creation in Branding Brand value is the perceived worth of the consumers on the brand. The most notable form of value creation in brands is through advertising. (2003, 53) There are three known approaches in the creation of value in brands: decoration, gluing, and mascot approach. The decoration approach basically shows a branding strategy displaying differentiation by connecting the brand to completely different cues presented by the other players in the market. ( 1999, 51) The gluing strategy of value creation associates their product to certain emotional cues of the consumer. These are seen in advertisements that attempt to stir the emotion of the possible buyers. (1992, 10) The mascot approach on the other hand indicates the use of a human-like entity that is believed to be able to establish a connection to the potential buyers. The use of charismatic non-human characters (Pillsbury Dough Boy) tends to reflect this type of value creation approach in branding.  ( 2004, 188) Basically, these approaches of value creation tend to be influential for the buying decisions of the consumers. In the same regard, the use of brands could also be a way towards building this value to the company. B.    Using Brand Equity The term brand equity denotes the net revenue of the brand which it is expected to amass eventually. There have been instances that local brands have changed its name to build up its brand equity. In the Netherlands, the potato chip brand, Smiths, has acquired the brand name of Lay’s despite being one of the top brands in the market. ( 2003, 53) They pointed out that the shift of brand names is an attempt to capture “affinity” with the global brands and establish more value in their products. This is also seen in the case of Vodafone which operated local brands with different names. (2003, 53) mentioned that these local brands are now employing the brand name Vodafone to establish brand stature and brand validity at par with the other global and local brands operating in the same market. In the international retail industry, P&G started to eliminate the redundant brands in the local markets and started acquiring brands with an existing consumer base. This is seen in their recent acquisition of Gillette which resulted to the expansion of the scope of their market. ( 2003) In essence, the development of brand equity tends to cling on the intangible aspects of the brand. Factors like the consumer awareness and differentiation of established by these brands contribute to the overall equity of the company’s particular brand.     C.    Consumer-Centered Brand Management Looking at the discussions above, it is implied that branding is in the business of giving consumers what they want. Instances of local brands acquiring the brand name of the global brand seem to be the trend so as to ensure greater brand equity and brand value. However, Coca-cola took on a different path. In its acquisition of Parle, a beverage company in India, Coca-Cola kept the local brand name, Thums Up, in operation. ( 2003, 185) In looking at this scenario, Coca-Cola appears to center its attention to the consumers in the market. Before the acquisition, Parle was the leading distributor of carbonated drinks, even surpassing the monoliths Pepsi and Coke. Their product, Thums Up, has become a part of the Indian society. Advertisements of the product emulated the Coca-cola formula of “can’t beat the feeling” campaigns. ( 1998, 250) Though the soft drink consumption is somewhat considered a luxury in India, these advertisements created value for Thums up and prompted the market to take the product as their constant companion in meals and other past times. Thus, instead of the convention of homogenizing the products after acquisition, the decision to keep the Thums Up brand essentially ended up as a great marketing stride for the overtops of Coca-cola in the Indian market.   IV.   Issues to Consider Based on the claims above regarding the dynamic nature of the market, it appears that there are certain issues that companies have to take on in their global brand management initiatives. The following discussions will be covering these issues and how existing companies dealt with it. A.    Buying Behavior of the Consumers A key element in for every profit-seeking organization is the recognition of the behavior of the consuming public. Consumer behavior is essentially a product of the culture of a particular market. ( 1992, 239) The seminal study of  (1980,  2000, 119) points the importance of culture for multinational organisation. In his theory, Hofstede intimated that societies could have either “individualism-collectivism, masculinity-femininity, high-low power distance, and high-low uncertainty avoidance.” (p. 120) The theory basically reinforces the claim that consumers tend to base their buying decisions on the existing social conventions. This theory also claims that for every state, there is a distinct buying behavior which could also entail distinctive branding strategies and marketing initiatives. Recent studies like that of    (2000, 119), points out that the national culture contributes to the future performance of an organisation. Other distinctive features of the state like language tend to trigger changes in the packaging of the brand and changing characters that the buying public could understand. This basically manifest that every market has a distinctive way of reacting to certain products or services. The best way to provide some sort of positive reaction is to make the company relate to the consumers. Some companies went as far as changing the menu like that made by Pizza Hut in Hong Kong. ( 1995) B.    Possibility of Replacing of Global Brand Names As indicated in the previous discussions, the awareness of the market should be among the top priorities of the operations of global brands. In terms of using the global brand name or using a local one, the Coca-cola model in India should be very helpful. Good companies like Coca-Cola should realize when and how to use their brand names. For instance, the European operations of Budweiser tend to emphasize the name of their global brand as the “King of Beers.” ( 2007, 62) Prominence on the symbols and letterings are also ensured because there is a similar alcoholic brand that has a slight similarity to the global brand. The said brand is called Budvar. This prompted the Budweiser brand to refrain using the “Bud” label in their beers in their European distribution. In the same regard, they reinforced their brand management initiatives by their “this Bud is right for you” campaign. In the area of mobile phones, the situation of Nokia takes a whole different approach. Being the leading provider of mobile technologies, Nokia is able to acquire local brands and manufacturers all over the world. In this scenario, they tend to change the name of the acquired companies and place their global brand names in all the products that they sell. ( 2004, 175) This makes perfect sense given that Nokia’s brand name has been equated with innovation and top of the line products since the mobile phone surge in the later part of the 90s. Another global brand name is Electrolux. It was the company who are among the early ones who built value on their brand through door-to-door sales. ( 2003, 86) Thus the name is often associated with top house appliance sold all over the world. ( 1999, 173) However, the company holds other brand names aside from Electrolux as they have acquired numerous local companies (like Zanussi) in their years of operation. ( 1995, 162) In the same regard, they have decided to keep the names of the local brands to show diversity in their products. V.     Conclusion The concept of globalization has been the most influential and possibly of furthermost significance in the realm of business and commerce. With the apparent elimination of geographical boundaries, the market has given organizations the opportunity to trade regardless of the size of their company. The emergence of globalization has triggered inclinations towards global products and establishing global brand names. It is this phenomenon that maintained the need for standardization of their products and indispensable condition of brand management strategies. Building up a global brand name is as complex as sustaining the potential of the products in the global scale. As indicated in the discussions above, issues on competitiveness, close consideration in changing of local brand names and the recognition of the consumer behavior in the market could spell the difference between the success and failure of the company in their ventures. Recognition of the demands of the market allows them to make informed decisions and take actions that would essentially place them in a favorable business situation. Elements like consumer behavior, personality, product characteristics and even the culture of the market tend to dictate the direction on which a global product’s life cycle. In the end, the awareness of the company of these elements along with the intangibles of the brand (vitality and stature) will ensure an impressive performance of a global product in the respective markets that it operates. Essentially, as manifested in companies cited above, a fit between the right marketing strategies, brand management, and knowledge of the respective market not only ensures the success of the company but also guarantee its sustainability for years to come.    VI.   References Credit:ivythesis.typepad.com

GLOBAL BRANDING

GLOBAL BRANDING: KEY REASONS FOR MARKETING IN A GLOBAL BRAND NAME Table of Contents I. Introduction .. 3 II. Marke...

Top