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					                     Global Branding




Alexander Consulting Enterprise   12/17/2012
             Top Ten Most Valuable Brands¹

        1.    Apple                      6. Coca-Cola
        2.    Google                     7. AT&T
        3.    IBM                        8. Marlboro
        4.    McDonald                   9. China Mobile
        5.    Microsoft                  10. General Electric




        ¹http://www.brandz.com/output/




Alexander Consulting Enterprise          12/17/2012
                             What is a Brand?

               -Bundle of images and experiences in the
               customer’s mind

               -A promise made by a particular company about a
               particular product

               -A quality certification

               -Differentiation between competing products

               -The sum of impressions about a brand is the
               Brand Image
Alexander Consulting Enterprise      12/17/2012
                             What is a Brand?

      “The Capitalized Value of the Trust Between
       the Company and the Consumer”
            James Burke, ex-CEO of Johnson & Johnson

      A Brand’s Value is Reflected in:
            - Attitudinal versus Behavioral Loyalty
            - Customer efforts to obtain the brand
            - Price Premium
            - Possibilities for leveraging the brand




Alexander Consulting Enterprise     12/17/2012
                              Branding Strategies
     - Combination or tiered branding: allows marketers
        to leverage a company’s reputation while
        developing a distinctive identity for a line of
        products
           Sony Walkman
     - Co-branding features two or more company or
        product brands
           NutraSweet and Coca-Cola
           Intel Inside
     -Brand acts as an umbrella for new products
        Example: Honda cars, motorcycles, and lawnmowers



Alexander Consulting Enterprise      12/17/2012
                     Global Brand Development


    Global Brand Leadership
          Using organizational structures, processes, and
           cultures to allocate brand-building resources
           globally, to create global synergies, and to
           develop a global brand strategy that coordinates
           and leverages country brand strategies




Alexander Consulting Enterprise   12/17/2012
                      Global Brand Development
     •   Create a compelling value proposition
     •   Think about all elements of brand identity and
         select names, marks, and symbols that have the
         potential for globalization
     •   Research the alternatives of extending a national
         brand versus adopting a new brand identity
         globally
     •   Develop a company-wide communication system


Alexander Consulting Enterprise   12/17/2012
    Country of Origin Effect as Brand Element
    • Perceptions about and attitudes toward
      particular countries often extend to products
      and brands known to originate in those
      countries

       Example: Different perception of Swiss watch
       versus Italian watch versus Chinese watch




Alexander Consulting Enterprise   12/17/2012
             Common Features of Global Brands


       Consistent Positioning

       Alludes to Similar Consumer Needs Worldwide

       Geographical Sales Balance




Alexander Consulting Enterprise   12/17/2012
                                  Value of Brands
    “The value of a brand, like beauty, is in the
     eye of the beholder”

    Current Brand Value of Existing Owner
                +            Synergies with existing operations
                +            Increase in Sales
                +            Brand Name Leverage
                +            Preemption of Competition
                +            Psychic Value (Employee Motivation)
    = Potential Brand Value



Alexander Consulting Enterprise         12/17/2012
        Current Brand Value of Existing Owner
                       Equals
  NPV of DCF (or Future Earnings) of Current Business

    Discount Rate Depends on:

    - Risk Free Rate
    - Associated Risk
    - Growth




Alexander Consulting Enterprise   12/17/2012
                       How to Choose a Strategy?

    • Two errors that management makes in
      choosing a strategy
          • NIH (Not invented here) syndrome means
            managers ignore the advancements of
            subsidiaries overseas
          • Managers impose policies upon subsidiaries
            because they assume what is right for
            customers in one market is right in every
            market


Alexander Consulting Enterprise   12/17/2012
                       How to Choose a Strategy?

  •   Cave Dweller – new products launched
      internationally to dispose of excess production
  •   Naïve Nationalist – company recognizes growth
      opportunities outside of home market
  •   Globally sensitive – company views world as
      competitive marketplace




Alexander Consulting Enterprise   12/17/2012

				
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