MOD001194 International Marketing

Lecture 7 International branding

strategies and product decisions

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Lecture 7: International Branding Strategies & product decisions

• Brands and branding

• COO

• The rise of own label brands

• Product/Communication – Standardisation v Adaptation

• Elements of a brand

• International brand names

• The process of creating a brand

• Brand adoption model

• Product decisions

• Product policy

• Product adaptation v standardisation

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Brands and branding

• What is a brand?

• The development of branding

• Country-of-Origin Effects

• Own brands

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Country of origin (COO)

Definition “the country of manufacture or assembly”

“Is one criterion of product evaluation”

e.g. “Japanese electrical products are the best in the world”

COO may not be correctly perceived by consumers e.g. Sanyo, Toyota, Nissan (UK)

Other criterion include price, brand, design

Baker and Currie (1993)* argued COO concept should be part of marketing mix

Research shows does affect product evaluation, disagreement on how much influence

* Baker, M.J. and Currie, C.A. (1993) “Country of origin: the fifth element of the m.mix?” Marketing Education Group Conference, 1993

COO – BA’s tailfin rebranding fiasco

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The rise of own label brands

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Product brand strategy – What do these two brands have in common?

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Own label brands – pushing the boundaries of IPR infringement?

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Standardisation v adaptation (Product/Communication)

Strategies appropriate for companies operating in international

markets:

Adaptation ‘Making changes to fit a particular culture/environment conditions’ Ghauri and Cateora, (2010)

- Standardise product/communication e.g. Coca Cola

- Standardise product/adapt communication (e.g. Horlicks is promoted as a relaxing bedtime drink in the UK and as a high energy booster in India)

- Adapt product/standardise communication (e.g. washing powder, message is the same)

- Adapt product/adapt communication e.g. Nescafe

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NESCAFÉ – Product adaptation and communication adaptation

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One of the reasons NESCAFÉ is so popular around the world: it adapts its products to local coffee culture and tastes. In fact, there are over 100 different local recipes available.

Source: http://www.nescafe.co.uk/coffee_culture_en_co_uk.axcms

Elements of a brand

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Legal instrument

Elements of a brand

Logo

Company

Shorthand

Risk reducer

Identity system

Image

Value system

Personality

Relationship

Adding value

International brand names • When considering international brand names,

international firms need to take into account the following:

• 1) The name must be pronounced and understood across diverse linguistic contexts + cultures

• 2) Avoid spreading advertising budgets too thinly e.g. Marathon in the UK became Snickers:

• 3) Consider the potential for an international extension of regional brands

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The process of creating a brand

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Analyse the competition

Understand target audience

Choose positioning strategy

Develop a consistent Marketing communications strategy

Develop the right ‘brand mix’

Measure brand equity and performance

Brand adoption model

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Awareness

Retrial

Consideration

Trial

Adoption

Recommendation / referral

Of course, like most marketing models, this is not always a straightforward linear process!

Factors influencing international product decisions

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Product decisions for international markets

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Adaptation and standardisation can relate to all of these, as well as: Product size, usage and slogan

Product policy based on:

• Company’s growth & profit objectives • Experience, philosophies and attitude of the

company to international development • Characteristics of the markets • Requirements, expectations and attitudes of

the consumers

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Product Policy based on (cont)

• The products themselves • Support the product requires from other elements of the

marketing mix • Environmental constraints e.g. legal constraints can impact

branding:

• Level of risk the company is prepared to take

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Factors influencing product adaptation versus standardisation

• Stage in product life cycle

• Legal/standards constraints

• Product innovativeness

• Cultural differences

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Next week

• Read: Ghauri and Cateora (2010) Ch.12 & Ch.15, pp.285-309.

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