...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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...How Global Brands Compete When a brand is marketed around the w orld, t hat fact alone gives it an aura of excellence-and a set of obligations.To maximize the value of global reach, companies must manage b oth. 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 that 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, when 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 the world economy continued to integrate, experiments with global branding soon slowed. Consumers SEPTEMBER 2004 in most countries had trouble relating to the generic...
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...How Global Brands Compete When a brand is marketed around the world, that fact alone gives it an 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 that 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, when 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 the world economy continued to integrate, experiments with global branding soon slowed. Consumers SEPTEMBER 2004 in most countries had trouble relating to the generic...
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...What’s in a name? Branding: what it means to you and your customer t is quite ironic that the words ‘‘brand’’ and ‘‘branding’’ have become so widely used in the business arena over the past few decades yet so many people fail to agree on what they mean. To illustrate the point, David Haigh and Jonathan Knowles, both executives in branding, offer three of the definitions in currency: I 1. ‘‘A logo and associated visual elements.’’ This, the most focused of the definitions, sees a brand as simply the trade names, trade symbols and trademarks that a company creates and legally protects as a way of differentiating itself from its competitors within the marketplace. A logo becomes a brand when it becomes associated with positive values through the extensive provision of good products and good services. 2. ‘‘A larger bundle of trademark and associated intellectual property rights.’’ Beyond the visual elements of branding, this definition includes intangible marketing tools such as domain names, packaging, written copy, advertising and product design rights – all of which can be registered and legally protected. Further than this, though, the term ‘‘property rights’’ often also takes into account those other assets that are required to deliver the promises of the brand. These may be specific knowledge and expertise, perhaps in the form of research, data, or software, or processes such as business models, supply chain figurations and manufacturing techniques. Intangible...
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...five years global health consciousness will drive the demand for the company's products (Vyth, Steenhuis, Roodenburg, Brug, & Seidell, 2010). To capitalize on this growth the Kellogg Company will expand its healthy product line. The company will spend more money on Research and Development (R&D) to include healthier food choices. Current Economic Landscape The current economic landscape has seen decreased profits in the global breakfast cereals market but has demonstrated steady growth over the past ten years. According to Datamonitor (2011) estimates, the global breakfast cereals market generated total revenues of $28 billion in 2010, representing a compound annual growth rate (CAGR) of 3.7% for the period spanning 2006 to 2010. Ready-to-eat cereal sales proved the most important for the global breakfast cereal market in 2010, generating total revenues of $24.4 billion, equivalent to 87.2% of the market's overall value. The performance of the market is forecasted to accelerate with an anticipated CAGR of 4.1% for the five-year period 2010 to 2015, which is expected to drive the market to a value of $34.2 billion by the end of 2015 (Datamonitor, 2011). Kellogg’s is the world's leading producer of cereal and controls over 32% of the market share (Datamonitor, 2011). The company is thus well positioned to exploit the growing breakfast cereals market and enhance its top line and profitability. Trends in Market and Customer Preference Current trends show that global markets have...
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...2010 Launch of small efficient cars 2008 Raise cash the old fashioned way, start relieving 2008 Raise cash the old fashioned way, start relieving 1998 Bestselling vehicle 1998 Bestselling vehicle 2006 Planned to perform cardiac resuscitation 2006 Planned to perform cardiac resuscitation III. Objective * To be able to identify why Ford committed failure * To be able to determine what are the competitive advantage of the company * To be able to discuss where to position the brand * To be able to help Mullaly in making decision * To enhance the reading and analytic skills of the student IV. Statement of problem 1. After 10 years of operation, Ford’s revenues, market share and brand equity fell down. 2. Does the external environment affect the decision of the company. 3. Can Mulally succeed in too much focused on small cars. 4. Sync System already exists, can Ford fully capture the eye of consumers. 5. Global Economic conditions still remain fragile, can Mullaly stick to one strategy....
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...Nike Case Questions 1. In the United States, what is Nike’s: a) Brand image, and b) sources of brand equity? a) In the United States, Nike’s brand image is built on being a high-performance, innovative and aggressive brand. The company associates the brand with top athletes through sponsorships. Since inception, Nike has placed performance as a top priority for the brand. Through designing high performance shoes and apparel, as well as sponsoring high-profile athletes and teams the brand has developed a reputation as being high-quality. Nike’s high tech products have allowed the brand to be perceived as innovative in the minds of consumers. Nike is continually introducing new products to the sports market as a way to improve performance. Through high performance and innovation, Nike has been branded as arrogant as the company has a high regard for the spirit of competition and portraying a rebellious spirit. b) Source of Brand Equity Description Logo Nike’s logo is a check mark. It is commonly referred to as the “swoosh.” As of 2000, 97 percent of American citizens recognize the brand logo. Nike has been seen as aggressive in the overabundance use of the “swoosh” with the symbol being placed on shoes, jerseys, hats, billboards and soccer balls across the globe. This ubiquity has been criticized as diluted the “swoosh”. Advertising Advertising has allowed Nike to portray its rebellious spirit and “nasty boy” image. However, this approach in advertisement has...
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...Differentiator and value proposition Today every brand in the market speaks of the health benefits of tea. To that extent this valuable claim is now a generic claim. Looking deeper into the market one notes that it is the strength of the individual brands that dominate the market. The global leaders Lipton, Tetley, Brook Bond and the like have won the ‘trust’ of their consumer and have the strength to market leading tea variants without any association to Ceylon Tea. Of course they have Ceylon Tea products too. However, the fact is that the strength of their individual company brand makes it possible for them to market the larger share of their volume and variants without the Ceylon tea story. Looking into the shelves of supermarkets particularly in the developed markets we note many tea brands with no reference to Ceylon Tea at all. Given this scenario it is time for us to ask the question, is Ceylon Tea losing its power to influence the consumer with a relevant, credible and differentiating value proposition? Call for urgent consumer research We often speak of Ceylon being famous for quality tea, and some may assume that the entire world knows about it. However, when have we last verified this assumption through in depth research in the key markets? Is it our own perception or that of those involved in the tea trade, or only in the minds of the older generation? Does today’s ‘new consumer’ know about it? Even more important, when another brand of tea (local or foreign owned) uses the...
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...things to understand about a brand is that its value is highly individualized. A customer might grow tired of a brand, or more enamored [sic], independent of how other customers are responding to it. (Rust R.T et all, 2004).In this essay, there will be an analysis of how the consumer affects a brand and how the brands try their best in order to get consumers to buy their products and how that defines the consumers themselves. However, firstly what is a brand? It appears that ‘each expert comes up with his or her own definition of brand or nuances of definition’ (Mishra P, 2012). One view is that ‘a brand name is nothing more or less than sum of all the mental connections people have around it’ (Jacoby J et all, 1997) but the general definition is a unique design, sign, symbol, word or a combination of these, employed in creating an image that identifies a product that differentiates it from its competitors (Business Dictionary). Consumers define brands but brands also define consumers. When people see certain brands, they associate it with specific statuses or lifestyles. A study showed that when shown a video of a person and asked for their first impressions. Their judgements of qualities such as friendliness and assertiveness differed depending on whether the video depicted the person with expensive material possessions or not. People use materials/ brands to express who they are and construct a sense of who they would like to be (Dittmar H, 2004). Brands have become an important...
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...Contemporary Issues in Management Case study: Global Strategic Analysis Adidas and Reebok Merger Acquisition ABSTRACT 3 INTRODUCTION 4 LITERATURE REVIEW 5 ANALYSIS AND FINDINGS 8 VMOST 7 VISION 7 MISSION 7 OBJECTIVES 7 STRATEGIES 7 TACTICS 7 ACQUISITION 8 SWOT ANALYSIS 9 BEFORE ACQUISITION WITH REEBOK 9 STRENGTHS 9 WEAKNESSES 10 OPPURTUNITIES 10 THREATS 11 AFTER ACQUISITION WITH REEBOK 11 STRENGHTS 11 WEAKNESSES 11 OPPURTUNITIES 12 THREATS 12 CONCLUSION 13 REFERANCES 14-15 ABSTRACT The purpose of this report is to evaluate the impact of adidas pending acquisition of Reebok on the sporting goods industry in relationship to Nike position. Evaluation of background information and corporate culture combined with VMOST and SWOT analyses to helped form the arguments presented in this report and have assisted in answering the question, Will adidas forthcoming takeover of Reebok help the new company achieve sustainable competitive advantage over industry leader Nike?. This research was based on the subject that is illustrating an evaluation of the impact of Adidas from acquisition reebok. Furthermore, an investigation of the strengths, weaknesses, opportunities and threats (SWOT) related to companies in the sports industry was conducted. On the one hand it was found that Adidas historically grown...
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...Proctor & Gamble vs. Unilever Dominic Williamson BUS. 508 Prof. Garabedian 11/3/2013 Determine how each corporate culture differs from the other. The consumer goods market has been historically dominated by Unilever and Procter & Gamble (P&G). Both companies boast of strong brands. Unilever has brands such as Dove, Axe, Vaseline, Comfort, and Lipton. P&G is equipped with brands such as Head & Shoulder, Olay, Pantene, Gillette, Crest, Oral-B, Duracell, Gain, Tide and Pampers. Each company has a lot of similarities which have helped them be successful in the industry. Along with those similarities come vast differences which allow them to successfully compete with one another. Unilever is one of the world's largest and fastest growing consumer goods companies in the world. The company is headquartered in the UK and the Netherlands (Unilever, (n.d). Unilever Plc). With headquarters in London and Rotterdam, Unilever was one of the few companies to focus on emerging markets. Their culture focuses on “What we believe in and how we act collectively.” They believe in targeting emerging markets to contribute to their total sales. Unilever expects emerging markets to account for 70% of total sales by the end of the decade (Procter & Gamble Vs. Unilever: Comparing 2 Consumer Staples Giants, 2013). They also believe in a high standard of corporate behavior and ethical standards for both people and the environment. Unilever executives provide...
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...Angel Rose Munoz American Intercontinental University Unit 5 Individual Project MKTG 205 – Principles of Marketing August, 17, 2012 Abstract The following information provided in this paper explains how a specified company utilizes proper and effective marketing methods in order to sell their products on a global scale. Furthermore, in reference to the company, their tactics, methods, and constraints within the business involving the target market, pricing strategy, and company competition are demonstrated in this paper as well. The specified company referenced in this report is Mars Inc. Unit 5 Individual Project Introduction The principles of marketing apply to every business and operation that produces and sells some type of commodity in exchange for profit. The marketing mix contains specific tools, which help companies and their marketing team to build and evaluate a product, structure the price based on the value, effectively promote the product, and place the product with best-suited channels of distributions. For a company that operates on a global scale, such as Mars incorporated, these tools are even more important to assess. Describe Main Line of Business of the Company Mars Inc. is one of the largest privately owned companies in the U.S.A alone (FAQs, 2012). Best known for their chocolates and candies; the company offers a diversity of other products from segmented areas within their company concerning pet care products, symbioscience, drinks, gum...
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... | |Wide supplier network |Total quality approach | |Wide distributor network |Solid financial position | |- |- | |Inadequate range, especially in middle segment |No European presence | |Reputation for poor quality |Poor styling for European tastes | |Excess manufacturing capacity |Too small to compete successfully with the majors | |Loss making...
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...Product and Brand Management Ikea Assignment 1 Is Ikea a successful global brand? Why has it been successful? Ikea is a very successful global brand, not because it has 226 stores in Europe, Asia, Australia and the United States with 410 million shoppers a year, not because other global brand like Wal-mart stumbled in Brazil, Germany and Japan but for Ikea’s unique cultural branding that merges the value and fashionable design to ensure the creation of an affordable contemporary household goods (not just the furniture with 5-10% sales in each country with Ikea stores) for the middle-class. This uniqueness of its corporate DNA is the main reason why the Ikea is so successful globally. The frugality of the founder of the Ikea with his desire to create “better life for many”, these two tenets are deeply embedded into Ikea’s corporate DNA. The frugality combining with the obsession with design forming a unique brand that became a global cult brand. As a global brand Ikea stands for 1) Unique household products with contemporary design, affordable prices that will inspire consumers 2) A gathering place the global tribes that are sensible in cost, design, and green environment. 3) Egalitarianism. The Ikea as a corporation is very flat, the executives performs first-line employees’ job in an “Anti-bureaucracy Week” 4) High Competitive. Constantly dropping the price (2-3% annually) to provide the best values for customers (consumers). What is the relationship between Ikea’s...
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...Strengthening a company’s market position by expansion: Disney aims to expand globally and exploit the business opportunities in the emerging market since the domestic market is about to be saturated. * Become aware of what the company should do to achieve operating excellence: Instead of letting technology throw threats at the company, Disney decides to embrace technology to enhance quality of products and improve customer experience. Disney’s success is highly dependent on technology. * Become aware of the strategic benefits and risks of expanding a company’s horizontal scope through mergers and acquisitions: Disney has a very clear acquisition strategy, and they have successfully acquired some valuable brands. Acquisition also benefits Disney for global expansion. ANALYSIS The Walt Disney Company (“Disney” or “the company”) was a broadly diversified median and entertainment company. In 2012 the company’s business units were organized into five divisions, which include media networks, parks and resorts, studio entertainment, consumer products and interactive media. According to the company’s 2011 revenues, park and resorts is the largest division, which constitutes 41% of the total revenue of Disney, as shown in the table below. The media network is also a very large division, which generated 39% of Disney’s total revenues in 2011. The interactive media is the smallest division, which contributed negative...
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