Global Branding

Alexander Consulting Enterprise 5/6/2020

Top Ten Most Valuable Brands 2014¹

1. Google 2. Apple 3. IBM 4. Microsoft 5. McDonald 6. Coca-Cola 7. Visa 8. AT&T 9. Marlboro 10. Amazon ¹ https://www.millwardbrown.com/brandz/2014/Top100/Docs/2014_BrandZ_Top100_Chart.pdf

Alexander Consulting Enterprise 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020

Common Features of Global Brands

 Consistent Positioning  Alludes to Similar Consumer Needs Worldwide  Geographical Sales Balance Alexander Consulting Enterprise 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020

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 5/6/2020