Taking A Brand Global Ten Steps To Success Essay Example

'best friends,' brands have evidently become increasingly significant in consumers' lives. In fact, they have transitioned from being mere objects with identity to taking on identities disguised as objects.

The trend has reached a point where individuals are now speaking the language of brands and marketing themselves as brands. There are multiple published books focused on the idea of developing oneself as a brand to ensure success. According to Giles Lury, brand consultancy director of Springpoint, branding has become one of the most significant commercial phenomena in recent history, with almost everything being branded nowadays. Examples provided by Lury include Manchester United, a football team that effectively markets self-branded clothing, ketchup, and beer; The Spice Girls, known for their "girl power" message and distinct sub-brands like Scary Spice and Baby Spice; and Tony Blair's New Labour party, which reinterpreted core values to achieve success. Even cities are now being branded, evident in the European Cultural Capitals for 2001, Rotterdam and Oporto, commissioning new logos for the occasion as noted by Adrian Shaughnessy of Intro in Design Week on March 16, 2001.

The cities are part of a new wave of urban brand makeovers aimed at enhancing consumers' awareness of them, not to mention tourism and trade. 'We are deluged with zippy logos,'; Shaughnessy writes.

Defining The Global Brand

What is a global brand? Is it the same as a 'multinational,'; 'international,'; 'worldwide,'; or 'cross-cultural'; brand, or are these distinctions irrelevant? According to brand expert Paul Temporal, writing in Branding in Asia John Wiley & Sons, 2000, specificity about this is indeed important, because understanding what a global brand means is critical to developing an appropriate strategy for managing it.

In fact, he notes, 'true global brands are relatively few in number,'; probably because they manage the difficult task of consistency. In every market they play in, global brands have a consistent: Name Personality or positioning Consumer segment or (group of segments) An example of a fully global brand, according to Temporal's schema, is Marlboro cigarettes. The Body Shop and McDonald's are global as well, even though they offer somewhat different products by market, because the factors listed above are consistent.

Guinness is an international brand available globally, but its positioning varies depending on the target market. Similarly, Nescafe also fails to hit the mark as it alters the formula of its products to cater to local tastes. However, Sony understands the importance of consistent positioning as a global brand. In an article for Brand Marketing in January 2001, Dale Buss explores Sony's future plans in light of its top ranking among American brands according to a recent Harris poll. Sony's brand custodians reveal that their strategy is to elevate Sony from being merely a strong identity in various entertainment-related businesses to a unified uber-brand that represents the "Sony experience." This strategy is remarkable as it links all of Sony's products, from the Walkman to PlayStation2 to the Memory Stick, and creates a common association in the user's mind.

What is that association? One answer lies in the name itself: 'Sony'; connotes 'a very small group of young people who have the energy and passion toward unlimited creation.'; (The name combines 'sonus,'; the Latin root for 'sound,'; and 'sonny,'; or 'son.';) Yet as the company works 3 through its master positioning, they may find that its actual

essence is somewhat more abstract. Recalling his observation of diverse Manhattanites all wearing headphones, T. Scott Edwards, the senior VP of brand and marketing communications at Sony, remarked: 'they may be enjoying entirely different experiences, but they're all enjoying an escape moment. That's a powerful thing that goes beyond mere products. Our competitors in the consume electronics set haven't been able to do that.';

The Importance of Global Brand Strategy

A brand may be recognized as powerful in its 'home'; market.

While it is not automatically a candidate for global expansion, having a sound business strategy based on established global branding principles is crucial. Such a plan can determine the difference between success and failure, as well as between significant profits and meager earnings. According to Young ; Rubicam's BrandAsset Valuator findings yr.com/bav, managing brands for consistent meaning has financial implications, resulting in higher margins, better return on assets, and stronger growth. Branding expert Paul Temporal emphasizes that successful branding in any market relies on a knowledge-based strategy, which involves understanding the audience, adapting to their unique needs, and effectively communicating with them (Temporal, p. 225). Temporal outlines three main goals for this process: obtaining insight into the consumer, defining the brand's vision and mission, and communicating the brand effectively. Ultimately, the desired outcome for a global brand is to maintain consistency in name, identity, and typical consumer across all markets.

However, according to Temporal, brands operating internationally will constantly face the dilemma of choosing between 'efficiency', which entails uniformity, or 'relevance', which involves adaptation. The 'efficiency' approach saves money but sacrifices local significance, while the 'relevance' approach takes culture into account but risks losing consistency. The ultimate challenge

for global brand strategy is to achieve meaningful consistency by integrating efficiency and relevance. In his book Another One Bites The Grass: Making Sense of International Advertising, published by John Wiley ; Sons in 2000, Simon Anholt offers various suggestions for achieving the best of both worlds.

In terms of brand ideation, the author argues for consistency in isolating a single concept that the brand can represent universally, such as fun, freedom, escape, or luxury. However, it is also important to consider localization by hiring local individuals who can execute that concept in a way that aligns with the local culture. McDonald's adopts this approach, where the brand always emphasizes fun value, but the specific food offerings vary depending on what 'fun value' means in each location. Nevertheless, achieving true consistency through centralized management is indeed a challenging task.

There are specific tactics and approaches that can be used to achieve the goal of effective branding. These strategies are outlined below.

4 1. Brand Sincerely Branding is currently popular, as noted by Nick Shore in Brand Marketing January 2001. However, for it to be successful, it must go beyond surface-level efforts. According to Shore, a brand encompasses the energy, personality, and structure of a company. Therefore, companies that want to take branding seriously should integrate it into all aspects of their operations.

Creating a fully integrated brand across all operations is key to achieving success for companies. This means that the brand should be present in every employee interaction, including brand statements, product samples, posters, and even furniture. Every point of contact with consumers must strengthen the credibility and value of the brand rather than diminishing it. It is

crucial to have one person responsible for safeguarding the brand in the long-term, with support from the CEO. Virgin serves as an excellent example of effectively embodying a brand.

The company's essence, known as 'virginity,' permeates its extensive range of suborganizations, products, and services. In a recent interview with Martin Firrell and William Maughan of Brand Strategy 2 November 2000, James Kydd, Virgin Mobile's brand director, discussed the operational factors that contribute to the company's resilience. Kydd emphasized founder Sir Richard Branson's long-term vision centered on trust and delivering. The ultimate goal is to enhance the consumer experience. With a clear brand essence, employees are granted autonomy to achieve strategic goals. This combination of a well-defined vision and employee accountability, responsibility, and freedom allows the company flexibility in implementing the brand across various domains.

According to Kydd, if we do those things well and if those things conform to what people expect of Virgin, it is not exhaustion. People trust the Virgin brand. Starbucks is also a strong, global brand that consistently filters its essence throughout the organization. Temporal's Branding in Asia suggests that Starbucks targets twenty- and thirty-something consumers in all target markets with the same promise: a unique experience and a chance to slow down and savor life. Employees are taught about the brand using phrases like 'one cup at a time, one customer at a time.' According to Jane Martin, International Marketing Director of Starbucks Coffee International, everything everyone does affects the brand, so it must be protected and built. Since employees' personal commitment is crucial in conveying the brand essence, Starbucks invests in extensive training and offers stock options to give employees a

sense of personal ownership in the brand.

The physical environment of a company is important for maintaining consistency. This can be achieved by incorporating similar visuals such as logos, signs, and counters. Additionally, culturally appropriate food is provided, following a strategy similar to McDonald's.
In companies with multiple brands, deciding which ones to invest in globally can be challenging. However, streamlining the brand portfolio can be beneficial. Tom Andrews from The Value Engineers suggests using "power branding" as an effective approach. One reason for this is the 80:20 rule, where 80% of value comes from just 20% of brands.
To illustrate this point, Andrews provides examples like Procter & Gamble where their top 10 brands generate 50% of revenue; L'Oreal where 10 global brands account for 87% of cosmetic sales; and Colgate where 6 global brands contribute to 70% of sales.

According to Andrews, the importance of brand extension and licensing is increasing. The strength of a brand determines its potential for leverage. A 'power brand' is based on an idea rather than a specific product, such as clothes care or teeth and smiles. Procter & Gamble generates most of its revenue from a few key brands, which explains why they have adopted a 'power branding' approach. In an article by Anna Morton in Brand Strategy on October 4, 2000, it was reported that Procter & Gamble has a diverse brand portfolio across countries but this can be costly and inefficient. To tackle this issue, the company has been acquiring local brands and replacing them with global ones. They have successfully launched global brands like Febreze, Dryel, and Swiffer with consistent branding, formulations, packaging, and marketing strategies in all

regions. As a result of their success, Procter & Gamble decided that all future launches would also be global.

Unilever, a competitor of P&G, has announced its plan to classify its brands into 'power brands' and 'the rest'. Power brands will receive marketing funds while the remaining ones will either be spun off or given less investment attention. Despite being associated with sweetness and innocence, Hello Kitty is regarded as a sophisticated player among power brands. According to Wei Leng Tay's report in Asiaweek on March 9, 2001, Hello Kitty's strong appeal contributes to an extensive licensing program. At present, there are approximately 15,000 licensed Hello Kitty products available. Sanrio, the parent company, introduces around 100 new items each month. Additionally, about 500 licensed companies are involved in producing Hello Kitty merchandise. Although the market offers a wide range of Hello Kitty products, one may assume that saturation has been reached.

According to Tay, consumers have a strong desire for Hello Kitty-branded goods and are willing to pay premium prices for them. Examples of these products include a $38,460 diamond Hello Kitty watch by Swarovski, a $13,000 Daihatsu Move Hello Kitty Jeep, a $4,000 special edition wedding-dress clad Hello Kitty doll, a $900 Hello Kitty Personal Computer, and a $60 Sanyo waffle maker with a Hello Kitty mold. In addition to these items, there is also an extensive range of other Hello Kitty merchandise available such as stationery, lunchboxes, pens, and more. Once the commitment to branding is established and the brand portfolio is simplified, the next step involves determining how to apply the brand in different countries. Various options for this process include creating a multinational

brand that can be adapted to meet the needs of different markets.

For the purpose of this discussion, we will focus specifically on global brands - brands that maintain consistent name, message, and consumer across all locations. As mentioned earlier, this challenge presents a difficulty in adapting a single concept to fit multiple local cultures and as a result, there are only a few truly global brands. How does a company appropriately translate the core message of a brand to achieve consistency? How much standardization should be implemented and how much should be localized to cater to specific markets? While there are no definitive answers to these questions, there are distinct strategies for both the global or centralized aspect of branding as well as the local or adaptive aspect. Now, let's turn our attention to each of these areas individually. Standardization can be approached through the concept of 'smart centralization,' as proposed by Simon Anholt in his book Another One Bites The Grass. Anholt, a seasoned professional in international advertising, provides valuable insights that can be easily applied to the broader context of global branding.

According to Anholt, the issue is not standardization but monoculturalism. He believes that the assumption of a team from a single culture being able to create a campaign that will automatically succeed internationally based solely on creativity is flawed. Anholt asserts that true international thinking arises from diverse teams. He emphasizes that the work generated by these teams should start with a common ground or central motivational insight that applies to all cultures and markets. Afterward, the differences specific to each culture or market are considered in order to effectively communicate the

essential idea.

In summary, Boots is working diligently to establish and utilize a consistent brand in foreign markets. Originally a regional chemist chain, Boots has expanded its global presence by emphasizing expertise-driven health and beauty treatments. Their objective is to become the leading global provider of health and beauty products and services by utilizing their knowledge and experience across various consumer channels. Instead of replicating their entire UK strategy in new markets, Boots modifies their approach to be locally relevant. For example, in Japan, they emphasize "women's personal care with European products" due to the popularity of health and beauty items in that market. While the success of Boots' endeavors is still uncertain, their focus on a standardized brand essence rather than a commodity promise demonstrates strategic thinking. Additionally, the BBC/Granada Media holds a 13% share in the global prime-time television viewing market, making British TV second only to the U.S. during peak viewing hours according to Claire Murphy's report on June 22, 2000.

Broadcasters Granada Media and the BBC have achieved success in creating high-quality content with a central idea that appeals to international viewers, either in its original form (subsequently dubbed in the local language) or adapted into a "new" show with a similar theme. An excellent example of the former is the immensely popular Teletubbies, which became the top exported program by the BBC in 1999. Despite the expectation that adaptations would fare better due to their attempt at cultural relevance, they can be rather complex. For instance, Granada's Cold Feet was exported to nearly twenty countries but failed when it was remade into an American version of itself in the U.S. Conversely, London

Burning and The Knock found success overseas, which Granada Media International managing director Nadene Nohr attributes to their "universal themes of teamwork and adventure." By capitalizing on a core theme while incorporating a local twist, the BBC distributes Top of The Pops to Thailand, France, Germany, and Switzerland by exporting the essential program (which includes performances at BBC studios) and allowing individual countries to include footage of local bands.

The Olympics presented a challenge when it came to establishing a global theme in a way that would not offend local cultures. Anholt shares a cautionary tale in which a fast-food company at a recent Olympics attempted to showcase the international spirit of the games. Unfortunately, their approach backfired when they printed the flags of all participating nations on special editions of their food wrappers and takeout boxes. Anholt emphasizes the importance of being mindful and intentional in such situations to avoid any unintended damage.

The Saudi team discovered and protested when they realized that flags have different meanings to different nations. To the Saudis, the flag symbolizes religious integrity and unity, featuring the words 'there is no God but Allah, and Mohammed is his prophet on Earth.' Therefore, reproducing the Saudi flag in a cheap and trivial manner, especially on the packaging of a religiously objectionable meat product, was seen as insensitive and insulting. As a result, the incident damaged the brand image of the parent company. The marketing director was fired, the agency responsible for producing the wrappers lost the account, and the packages were discarded. Once a leverageable core concept is developed, localization becomes the next step in executing it on a local

level.

There are two primary considerations in this regard: determining a consistent consumer target and adapting the message to cultural differences. The first step is identifying the type of person, worldwide, who would be interested in engaging with the brand. Once this target audience is defined, the message can be tailored to accommodate variations in cultural context that may impact its reception. For instance, Starbucks provides different food options in different countries but consistently focuses on appealing to individuals aged 25 to 35. Whether the target audience consists of "math geniuses," "mothers of 8 infants," "nature-loving retirees," or any other specific group.

However, it is important for the brand to have a clear image in order to address the key cultural differences. When defining a brand and its targets, selecting the right outreach mediums for each market may seem straightforward: determine what the target audience engages with, such as their preferred television shows, reading materials, etc., and advertise there. However, gathering such information can be challenging due to Europe's fragmented media landscape. According to Marketing Week's report on March 22, 2001, the abundance of media outlets and technologies like TiVo, which allow viewers to skip commercials, creates uncertainty regarding who is watching which content and when.

Given the current situation, it is becoming increasingly unclear whether consumer targets can be categorized effectively based on their media usage. However, the positive aspect is that 'the typical European consumer;#8230;actively consumes more media;#8212;traditional and new;#8212;than ever before.' For instance, in terms of television viewing, Finns have witnessed a 64 percent increase over the last decade (although their viewing time is still relatively low, at around 2 hours). Italians have seen a

32 percent increase, the Spanish 9 percent, and the British 6 percent. Additionally, they have better access to satellite and cable TV, as well as the Internet and other media platforms. The growing challenge of locating target audiences may require a greater emphasis on lifestyle research and consumption habits.

Sainsbury's attempted to bring Western supermarket techniques into the 40-year-old socialist retail scene in Egypt. The company aimed to effectively target and please customers in a confusing and fragmented marketplace. Initially, Sainsbury's was well-received with their Western-style weekly sales, discounts, and other marketing techniques. However, as Susan Postlewaite reports in Ad Age Global on 12 March 2001, the company faced challenges in locating their target audience and ensuring their satisfaction.

Even now, a year later, an Egyptian employee interviewed for the article expresses their delight with "the service, the products, the prices." However, Egyptian consumers are experiencing a cultural conflict where Western-style products and their associated culture are both appealing and threatening. Consequently, the chain has become embroiled in controversy that has escalated significantly. Leaflets distributed on the street accused the store of stealing due to its lower prices compared to Egyptian wholesalers (although the store has made a commitment to stop this practice). Additionally, rumors of Jewish ownership led to protests and attacks on multiple stores. Ultimately, the chain faced a boycott due to its affiliation with other Western brands like McDonald's and Coke.

It is possible for some to find room for compromise: shopper Magda Osman, for example, told Postlewaite that she likes the prices but will only buy Egyptian-made products there, not imported ones. However, the store is uncertain about its future in Egypt and is

currently rethinking its options. 9

Closely Link International Brand Managers

In the ongoing shuffle to shape and maintain the brand character worldwide, it is easy to forget the human dynamics surrounding this effort. However, an important part of the process is coordinating the people behind the brand. This involves two key components: hiring the best people from around the world and connecting them to each other virtually.

According to Laura Mazur Marketing, cultural differences pose significant challenges when it comes to recruiting marketing talent internationally. She points out that even though business class travelers might appear similar, cultural stereotypes become apparent when you strip away the laptops, suits, and business English. This challenge is rooted in the different interpretations of the core concept of marketing. For example, sales promotion may sound the same to a UK marketer and a German marketer, but it can have different meanings. Consequently, the translation of marketing between international colleagues, especially in merged entities, has become a specialized consulting area. Failing to align people's understanding of marketing can have disastrous consequences for the entire organization since marketing drives brand success. To ensure successful globalization, close and democratic channels of communication are crucial, as stated by global business and technology writer Robert Heller in CIO on 1 March 2001.The outdated traditional vertical organizational structure, where foreign offices report to a central headquarters for decision-making, is no longer relevant.

The text highlights the importance of creating a global organization that embraces rapid competitive developments and utilizes technology infrastructure to enable open and productive communication at all levels. It criticizes DaimlerChrysler for operating in a top-down manner, hindering international cooperation. Instead, the ideal is for employees to

have autonomy, communication, and information, creating a global center of excellence where each part contributes equally. The Royal Institution of Chartered Surveyors (RICS) serves as an example of implementing this global communications strategy. RICS aimed to become more global while maintaining cohesion and achieved this through the creation of a central council with multinational representation on an organizational level.

At the same time, offices were equipped with sophisticated communications technology for easy internal communication. Research plays a vital role in global brand strategy, serving as a crucial component. Understanding various aspects such as social, political, and economic trends, as well as individual consumer behavior, is essential in adapting a brand effectively and avoiding potential pitfalls. Thus, thorough research is necessary for brand managers to make informed decisions. Levi Strauss & Co.

The research program at Levi's exemplifies the significance of understanding the consumer and also highlights the limitations of research. Levi's conducts extensive research to analyze if there are any similarities or differences in a supposedly global consumer segment and if local adaptations are necessary. Targeting primarily 15-19 year old males, Levi's consistently conducts various focus groups to comprehend its major consumer group. The company defines its brand with eight characteristics: original, masculine, sexy, youthful, rebellious, individual, free, and American. The objective is to maintain the brand's personality without contradicting cultural norms. Consequently, in Japan, where rebellion is perceived negatively, that aspect of the brand is not emphasized.

In Asia, advertising tends to be more straightforward compared to the West due to lesser recognition of innuendos. A recent study by Millward Brown International, called the Global Brand Equity Study, revealed Levi's as the top-ranked brand among Asians aged

15-29 in categories such as 'quality,' 'sexy,' 'cool,' 'youthful,' and 'sets the trends.' Levi's has taken this consumer focus into consideration and is now considering the future impact of fashion trends on its customers. Consequently, they have introduced new brands like Dockers, Slates, and Silvertab, along with subbrands such as the more affordable Dockers Classic. However, Ian Corcoran from Brandchannel.com expresses skepticism about whether these new initiatives will ultimately strengthen or dilute the parent brand. Despite some signs of improvement in margins and volumes, Levi's has experienced a decline in global brand value according to Interbrand's 2000 Brand Valuation Survey, as well as market share losses.

'Despite its best efforts to reposition the brand and repeated attempts to differentiate itself,'; Corcoran writes, 'Levi's continues to lose ground to its leaner, more