Lecture 6: Global Brands and Place/ nation brands KLPs: - Introduce concept of global brands and branding - Examining role of country-of-origin effect - Understanding the importance of nation branding - Considering effects of treating a nation/ city as a brand Local brands: Focus on a single national market International brands: offered in several markets in a particular region Global brands: have the same name and in most instances the same image/ positioning throughout the world Why become a global brand? - Perception of slow growth and increased competition in domestic markets - Perception of building a global profile as a prerequisite for success - Expectation of enhanced prospects overseas - Desire to reduce costs via economies of scale - Recognition of global mobility customers The 63 Countries with Starbucks Quartz | qz.com Advantages/ limitations of globalising: - Economy of scale - Lower marketing costs - Power & scope - Consistency in brand image - Differences in consumer response to marketing mix - Differences in competitive/ legal/ infrastructure/ political/ cultural envrionment Standardisation: uniformization of marketing mix program, minimising variations in the marketing mix between countries (appropriate when overseas customers seek similar product featuresfi Data: Starbucks.com via Chris Meller
Brand messages lost in translation (KFC) "Eat Your Fingers Off" ??? Solutions to cultural differences: Adaptation (aka local responsiveness in brand name, product or positioningfi Example of this starbucks logo in United Arab Emirates does not feature a woman to appease cultural perceptions Christmas vs Hanuka Merry Christmas M M Power of country of origin: Signals the rbands quality (apple designed in california, assembled in chinafi, meets consumers' stereotyping of nations, it aims to stimulate interest Ties in with nation branding: the concept that certain countries have better attributed images, perceptions, associations of certain countries increase brand image - Technology is more trusted if originated in USA - Engineering is usually best marketed as Germany as country of origin - Switzerland seen for its quality chocolate
- Italy/ France for their high couture products Nation branding is crucial in a country's success in tourism, trade, diplomatic relations and success of its own businesses = a powerful political tool to strengthen a country's economic position and compete against rival superpowers (modern day propaganda?fi Interested in a serious relationship? Seventy seven Nobel Prize winners, more universities and research institutes than any other country in Europe, and a workforce trained to understand the technologies of the future. learn more about the land of Ideas. claudia@invest-in-germany.com www.invest-in-germany.com Invest in Germany ...... Land of Ideas Ā· * Kerrigan, F., Shivanandan, J. and Hede, A.M. (2012fi 'Nation Branding A Critical Appraisal of Incredible India', Journal of Macromarketing 32(3fi: 319-327. Ā· Eckhardt, G.M., and Bengtsson, A. (2010fi 'A brief history of branding in China.' Journal of Macromarketing 30(3fi: 210-21.