international marketing management session 15: building an international brand architecture 1

INTERNATIONAL MARKETING MANAGEMENT

SESSION 15:

BUILDING AN INTERNATIONAL BRAND ARCHITECTURE

1

Increased attention to brand-building

- visibility

- channel power

- cost economies

Strong brands as a valuable asset in

international markets

Branding as a central component in

international marketing strategy

THE ROLE OF INTERNATIONAL BRANDING

2

3

KEY DRIVERS OF BRAND ARCHITECTURE

Internationalization of markets

Industry consolidation

Increasing power of brands

Rising media costs

4

WHAT IS AN INTERNATIONAL BRAND?

Brands available in multiple countries

- Global brands (Coca-Cola, Disney, Kit

Kat)

- Regional brands (Good Humor, Ariel)

- Multi-country brands (Marmite, Walls,

Algida)

- Same brand name, different

positioning (Mars)

5

WHAT IS A GLOBAL BRAND?

Geographic reach

Uniform positioning and image

worldwide

Perceived by consumers as global

6

SOME EXAMPLES OF GLOBAL BRANDS

Coca-Cola

Shell

NikeMcDonald’s

7

ADVANTAGES OF INTERNATIONAL BRANDS

Strong customer recognition/reassurance

Economies of scale and scope

Leverages power with retailers

Consolidates efforts across countries

Potential for extension

8

DRIVERS OF A FIRM’S BRANDING STRATEGIES

Geographic extension of ‘power’ brands

- e.g. Mars, Coca-Cola

Acquisition of local (national) companies and brands

- e.g. Best

Integration of country-centered organizations

- e.g. Unilever, Nestlé

Growth of brand alliances (co-branding)

- e.g. Cereal Partners, Snack Ventures

9

A TYPOLOGY OF BRANDS

Corporate brand names

- e.g. Shell, Kellogg’s, Philips, Heinz

Product brands

- e.g. Tide, Marmite

10

A TYPOLOGY OF BRANDS…CONTINUED

House/family brands

- e.g. Good Humor, Pedigree, Nivea,

Goya

11

BRAND HIERARCHIES

Corporate-dominantCorporate-dominant

MixedMixed

Brand-dominantBrand-dominant

Corporate brands (Shell, Philips)

House brands (Walls)

Dual brands (Philips, Whirlpool)

Endorsed by corporate brand (Nestle,

Cadbury)

Mono-brands (Tide, Pampers)

Brand extensions

12

PRESSURES FROM BOTH ENDS OF HEIRARCHY

Corporate identity/endorsement

Brand extensions

More mixed strategies

13

INTEGRATING THE INTERNATIONAL BRAND PORTFOLIO

Portfolio ofmono brands(Mostly local)

(Akzo Nobel)

Portfolio ofmono brands(Mostly local)

(Akzo Nobel)

Partially integrated structure

(Kleenex)

Partially integrated structure

(Kleenex)

International brand

heirarchy

(Nestlé)

International brand

heirarchy

(Nestlé)

Unintegrated Unintegrated Transition to integration

Transition to integration

Integrated Integrated

14

CUSTODY DRIVERS

Structure of international brand portfolio

Organizational structure

Power of local brands

Management vision

15

ALTERNATIVE CUSTODY STRATEGIES

No international

management strategies

Negotiation between

corporate H.Q. and local

country managers

Brand champions

Corporate guidelines (brand

manuals)

Centralized control

Degree of Centralization

Degree of Centralization

16

CUSTODY ISSUES

EXISTING PRODUCTS

Establishing and Maintaining

Brand Harmonization

NEW PRODUCTS

Monitoring Brand Extensions

Monitoring Line Extensions

ContentContent

ProcessProcess

17

IMPLICATIONS

Role of branding in strengthening firm’s global

image

Importance of establishing international

branding strategy/brand architecture

Appropriate balance of global, regional and

local brands should be determined

Need to assign responsibility for custody of

international brands