...Stanford A. Westjohn MKTG 3140-001 25 March 2013 “How Global Brands Compete” Article In this article “How Global Brands Compete,” the author discusses the influence of global brands and non-global brands on consumer purchases. The author also expresses the idea of products and services in which Theodore Levitt perceived the global market. As the economy continues to integrate, global branding seemed to decrease. Consumers in most of the world countries have trouble relating to the generic products and communications that resulted from companies’ least-common-denominator thinking. They also completed research to determine the brands and their impact on consumers in different countries. For example, the two-stage research they created in 2002. They conducted research in 41 countries and identified characteristics of consumers that associate themselves with global brands. They also surveyed 1,800 people in 12 nations to determine the importance of consumers purchasing products. In “How Global Brands Compete”, the author suggests the characteristics that consumers search for with global brands. The three characteristics that were provided were quality signal, global myth, and social responsibility. Quality signal is very important in which consumer’s judge their decisions based on reasonable prices. Quality signal makes up for 44% of the brand preferences. Global myth suggests the symbols of the global brands. “Global brands make us feel like the citizens of the world, and… they...
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...Name: Nnamdi Okechukwu Class: Bus 651, Strategic Marketing Communications and Brand Management NIKE: BUILDING A GLOBAL BRAND When Nike established itself in the marketplace, it used branding to achieve this goal by making its products immediately identifiable and recognizable in the marketplace. Nike’s brand image had a lot of characteristics, but the major ones were Awareness; Nike promoted their products by making sure that potential consumers recognized their brands and correctly associated the brand with a particular product. Consistency in the Marketplace: Nike has done an excellent job in keeping their products consistent in the marketplace. The consumer knows Nikes products for their quality, durability and most importantly its product differentiation from other competitors. Nike has developed strong brand equity in the United States due to its high level of brand awareness. Nike’s sources of brand equity in the US include; Brand Image, Price, Packaging, Brand Awareness and Positioning. These sources of brand equity have created unique, durable, and efficient products that are recognized worldwide leading to higher volume sales and higher profit margins against competing brands. Nike’s effort to become a global corporation has affected its sources of brand equity and brand image in the United States, Europe, and Asia positively. They achieved this by establishing their name in popular sports like soccer, track and field and tennis in Europe, basketball in America...
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...Top 100 Most Valuable Global Brands in 2013 Brand Value, Mission & Vision: APPLE Brand Value: Founders of Apple Steven Wozniak and Steven Jobs both dropouts of school Apple was incorporated in the state of California on January 3, 1977 Apple II debuted at a local computer trade show No. 20 on “Brand of the Year 2009” award The recession won’t take a bite out of this Apple Revenue of first quarter $15.68 billion in 2009 ($3.98 billion more than 2008). Apple has a branding strategy that focuses on the emotions Lifestyle & simplicity “ Easy use” Religion = Trust, safety, Loyalty & love It is a big tribe, everyone is one of them. You are part of the brand Brands are more important than products. Designed in 1977 The Apple logo is one of the most famous logos in the world The mystery of identity Computer term ‘byte’ Stripes to rebel Aqua logo 2001. It's always about people “ For Apple it is not about money. It is about the people you have, how you are led, and how much you get it. Apple are no longer selling products, they are selling brands. Apple is gaining market share in every category and, given the premium price of their products, that is a significant achievement. Mission & Vision: Apple recognizes that by integrating awareness of the environment, health and safety management practices into all aspects of our business; we can offer technologically innovative products and services while conserving and enhancing resources...
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...[pic] Going global, acting local - communicating global brands to global markets. Student Id : W12030873 Program : International Business management (Year 4) Course Code : IBM1BNN01A Module Code : MK0389 Word Count : 1997 Dead Line : 13/05/2013 Contents page Introduction 3 PART A: Promotion and Branding in Global World 3 Standardized and Localized Strategies 4 Case Study: Nike 5 Case Study: PizzaHut 5 Discussion 6 PART B: Future Environmental issue 6 Changing Social Trends 7 Case Study: Nike 7 Case Study: PizzaHut 8 Conclusion 8 Reference List 9 Introduction With the growing pace of globalization, companies’ marketing departments are faced with a substantial challenge of designing successful marketing strategies promoting their products and services (Keller, 2010). The ongoing academic debate has pointed out the tension between standardization and localization practices (e.g. Whatley, 2012). While the benefits frequently associated with the standardization practice revolve around the promotion of a single consistent message to the global market (Aaker, 1991), the localization paradigm emphasises the particular differences between individual markets and thereby the need to adapt marketing strategies to suit the needs of the local population (Gillespie, Jeanner & Hennessey, 2010). The aim of the presented paper is to critically...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...
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...Global Brand Situation in Saudi Arabia The issue of global brand presence in Saudi Arabia was reviewed by Assad (2007. The research established that both local and global factors had a crucial role to play in consumerism in Saudi Arabia. Some of the issues that have promoted the growth of the lifestyle of Western consumerism in the country include proliferation of the shopping center, urbanization, and manipulative advertising. This is an indicator of the existence of a strong relationship between the market in Saudi Arabia and global presence in the state. It was also established that this issues has a bigger impact on the younger than the older generation. In general, global brands are more preferred than the local brands in the country. A similar study that established findings by Assad (2007) was conducted by Opoku (2012). The aim of Opoku’s (2012) study was to evaluate the impact of peer pressure on university students in the county. He established that most young students bought items based on the existing culture. This has been influenced by the presence of global brands in the country. Peer pressure makes most buyers...
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...MICROSOFT CORPORATION Global Myth "Computers have become household products," Haxthausen says. "If you have a computer in your house, most likely it has Microsoft [software]. There's a scale effect there that happens." Domination in the Technology Industry One of the reasons why Microsoft has actually gained a space in the top ten global brands is because of its dominance in the technology industry. If you’re about to ask users about what operating system they are currently using, they would certainly say Microsoft. Now the question would be, why? Why choose Microsoft over Apple and any other Operating system to be installed in your PCs and even in your laptops? The advantage of using a global brand is because of the identity that it creates, making its users belong to a certain group in a society. Microsoft acquired this through its leading position in the market that is undeniably true. Hardware companies now preferred to be acquainted with Microsoft as they view the partnership in their advantage. As a result, many hardware products now employed Microsoft as their operating system enabling the company to an increase in the number of their customers. As they sell their products, it is the same way they are selling Microsoft products. It connects people Since there is an existence of wide users of internet all over the world due to our generation’s technological necessity, people now are engaged in exploring what these technological inventions can bring us to. Fortunately, Microsoft...
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...How Global Brands Compete When a brand is marketed around the world, that fact alone gives itan aura of excellence-and a set of obligations.To maximize the value of global reach, companies must manage both. 68 HARVARD BUSINESS REVIEW by Douglas B. Holt, John A. Quelch, and Earl LTaylor I More than two decades ago, Harvard Business School professor Theodore Levitt provocatively declared in a 1983 HBR article, "The Globalization of Markets" that a global market for uniform products and services had emerged. He argued that corporations should exploit the "economics of simplicity" and grow by selling standardized products all over the world. Although Levitt did not explicitly discuss branding, managers interpreted his ideas to mean that transnational companies should standardize products, packaging, and communication to achieve a leastcommon denominator positioning tbat would be effective across cultures. From that commonsense standpoint, global branding was only about saving costs and ensuring consistent customer communication. The idea proved popular in the 1980s, wben several countries opened up to foreign competition and American and Japanese corporations tried to penetrate those markets with global brands and marketing programs. T'S TIME TO RETHINK GLOBAL BRANDING. While tbe world economy continued to integrate, experiments with global branding soon slowed. Consumers SEPTEMBER 2004 in most countries bad trouble relating to the generic...
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...Dashawn Gumbs ADV 330: Section: 731 Global Brand Face Off Purpose The purpose of this memo is to provide strategic insight on how Espoir should go about taking its new branding initiative global. As well as the follow up course of actions that need to be set in place in order for it to be a success. Background/Situation Analysis One of the many key issues underlying a successful global launch for Espoir is the mixed reactions to a global campaign. Mazur head of Eastern Europe marketing wasn’t thrilled by the idea at all, while Dubois head of Europe marketing supportive about a global launch surround the upcoming Diana’s she Devils sequel movie seeing as thought rival competitor Revlon used the same strategy in the James Bond film, Die Another Day. Lastly Narayan head of South Asia marketing was willing to give it a shot due to the growth in India that was mentioned with sightings of Espoir products in smaller retail stores. The success of a Global launch is going to heavily factored in by the commitment and willingness of the regional marketing heads if it has a chance to succeed everyone will be required to be on the same page and comply with Natasha and her team. Each region is unique in its own way. Eastern European culture is a lot different than Southern Asian culture as Mazur pointed out what works in India might not work in Eastern Europe, him being the regional marketing head there he would know what works best in said market. Cosmetic Differences will play...
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...1) The benefits of that approach is that it will lead to an increase in sales because the products are made custom to what the people in that particular place want. So, that can only benefit Unilever. Some drawbacks, however, is that they would then have to continuously change their product(s) to suit the wants of their consumers, which entails a lot of work. 2) I think Unilever chose to move away from its local customization because first, their initial method caused their financial performance to suffer. They also wanted to portray a better message of beauty to women of all types. What made this feasible were the workshops, which led to projects and led to a lot of publicity. Their Dove Campaign for Real Beauty is really what sparked a multitude of attention. 3) I don’t think Unilever could have pursued the same basic strategy 30 years ago simply because of the fact that the media didn’t influence people’s perception of beauty back then as it does now. Nowadays people turn to the media in order to keep up with what is accepted as beautiful. So in turn, the media now, is what has allowed Unilever to prosper. 4) Unilever tweaked the Dove campaign from nation to nation because it still has to conform to what it is a certain nation desires. The consumer behavior varies depending on where you are, therefore, people won’t buy a certain product if it doesn’t necessarily pertain to them in a certain...
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...segmentation process, Why can we say that having an excellent global positioning is one of the principal assets of a brand, What criteria should global marketers consider when making product design decisions, Identify several global brands. What are some of the reasons for the global success of the brands you chose? Abstract The study identifies segmentation processes and how it can be introduced to management to accept them. Often than not if management do not understand the process of segmentation and found out that what has been presented differ from what they know they quickly reject the proposed segmentations (Yankelovich & Meer, 2006). In segmentation, it allows the researcher to knowing how important a product or service is to the customers and this help in deciding what their expectations and are most likely to reveal their willingness to purchase your product. The study further identifies reasons why segmentations fail and steps needed to be taken to correct these errors. The literature elaborate on brand positioning and settling the confusion of brand positioning by managers straight. Consumer culture both local and global is also considered with it effect on brand positioning showing the reader the essence considering or adopting a hybrid type of positioning (Holt, Quelch, & Taylor, 2004). After going through this studies the reader will appreciate the essence of brand positioning using five recognized global companies which used various strategies to achieve increase...
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...Global Executive MBA – FGV (2015) Assignment # C3 Nike, INC.: Cost of Capital Jul 31st, 2014 Case Approach As required in the instructions, the group will answer each of the questions regarding the case, along with its justifications. In addition, a spreadsheet will be attached with all the calculations regarding this case. Q1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? WACC is defined as the weighted average cost of capital, which is the minimum rate of return the project (or the firm) must generate in order to attend the suppliers of capital´s expectations. The implications behind WACC definition is straight simple. The cost of capital of any firm depends on the composition of the equity and debt in its funding. By composition, we mean the percentage and the costs related to each of its components, as it can be summarized in the formula below: WACC = [Cost of debt x D/D+E] + [Cost of equity x E/E+D] In this sense, to obtain a WACC of any firm (or project) we must have the cost of debt, the percentage of the debt in the firms’ funding following by the cost of equity and its percentage. Taking a look at Joanna Cohen´s WACC calculation, there are some important things missing in her analysis: * Capital Sources: Mrs. Cohen used the book values to calculate the total capital employed by Nike. However, the correct approach would be to obtain these values...
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...Studies in Business and Economics THE GLOCAL STRATEGY OF GLOBAL BRANDS DUMITRESCU Luigi Lucian Blaga University of Sibiu, Romania VINEREAN Simona Lucian Blaga University of Sibiu, Romania Abstract: A few years ago, globalization was the new paradigm in international business, however from a branding perspective it has lost its initial efficiency giving the fact that consumers do not seem to feel a connection anymore with the standardized products of global corporations, catered to them in mass marketing communication programs. With their centralized decision making, most companies simply stopped having a connection with the new global marketplace and neglected its emergence. Hence, the influence of local characteristics arose, and with that a new term that encapsulates the global and the local – glocal. “Glocalization” encourages companies to “think global, act local”, and they could do so by using the global brand, while localizing certain elements of that brand in order to suit a particular country. Keywords: global brands, globalization, glocal strategy, glocal marketing. 1. Introduction In 1983, Theodore Levitt published a provocative Harvard Business Review article entitled “The Globalization of Markets”, in which he stated that a new global market, based on uniform products and services, had emerged. He asserted that large scale companies have stopped emphasizing on the customization of their offers to providing globally standardized products that are advanced...
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...evening-wear dresses, shoes, bags, and accessories from the latest ready-to-wear collections. In July 2008, ES opened its first U.K. boutique at Harrods. The company planned to increase its worldwide retail presence through opening new stores in major cities around the world, including in the United States and Asia. While the company was witnessing impressive growth, management was dealing with the challenge of selecting the right partners, identifying new markets with the greatest growth potential and, most importantly, protecting the brand from dilution. From the start, its goal was to “attract, select and maintain customers who place significance on high-end, one-of-a-kind designs made from the finest fabrics and materials.” The case covers the challenges and opportunities of the company as it expands internationally. Learning Objective: * To underscore the importance of traditional branding principles for building a sustainable global brand. * To explore the changes of strategy as a company moves through the stages of the product lifecycle. * To examine the threats to and sustainability of...
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...VF Brands: Global Supply Chain Strategy Historically, VF had been an apparel manufacturer, so it was proud of the internal manufacturing capabilities and believed that those capabilities offered the company a significant competitive advantage. For VF’s heritage businesses, jeanswear and imagewear, 60% of which production was mainly targeted at the US market. Hence, the company should focus on quick response, rapid replenishment, and low cost. So, VF should take “cut and make” (CM) contracts. In such case, VF stroke separate contracts for suppliers at each stage of the production process and coordinated the flow of product from one supplier to the next one. Therefore, VF could maintain very tight control over costs at each stage and remain total ownership of supply chain. On the other hand, VF used outsourcing for 100% of its lifestyle apparel, footwear, and backpacks. These product lines were acquired by VF recently so their supply chains were more globally diversified. Also, lifestyle brands have very short life cycle, so product design was considered “king”, in these product lines, cost was not a critical issue. There were significant differences in product requirements across regions. For example, jeans were considered as a non-fashion clothing item in the American market, while in Europe, jeans were worn as a fashion clothing item and the prices were much higher than those in America. After taken these factors into consideration, I recommend that VF use the second approach...
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