what is a global brand

7/31/2019 What is a Global Brand

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What Is A Global Brand?

Today, another request from the BSI Emailbag.Georgina, a student of marketing at MidlandsState University in Gweru, Zimbabwe asksWhat is a globalbrand? How can anorganization build and sustain a global brand?Georgina, thanks for your question, were

happy to answer it. Global brands are brandsthat are recognized throughout much of theworld. Companies intending to create globalbrands need to do the following:

Identify the relative attractiveness ofeach market for your brand

Conduct attitude and usage studies ineach country in which you are consideringentering
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Identify the sequence of brand launchby country/region of the world

Know the category and brand indicesin each country in which your brandoperates

Establish a branding scorecard thatcan be applied country by country

Agree to which decisions are made

centrally and which ones are made locally Through research, understand if there

are any parts of your brands identity

that wont work in a given country or for a

give language. Consider the name itself,

the symbols, the colors, the tagline, etc.

To some small degree, with the pervasivenessof the Internet, all brands that are in cyberspacehave the potential to become global brands,however being on the Internet does notguarantee top-of-mind awareness or distribution

ease. A comprehensive, well-funded and well-executed global marketing plan is required forsuccessful global brands.


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JUNE 24, 2010

Sponsorship Should Not Be A Random Act

Somewhere inside the Istanbul headquarters ofTurkish Airlines there must be a very largewall. And on that wall are plastered randomimages of people and organisations that allhave two things in common. First, they haveabsolutely no association with Turkey or itsnational airline.

Second, they are extremely expensive. I havenot seen the wall, but one would imagine anarbitrary assortment of movie stars,supermodels and famous sporting clubs.
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Written across the top of this wall a largebanner probably reads Turkish AirlinesPotential Sponsorship Partners.

Then, it seems, once a year Turkish Airlinesembarks on marketing planning by invitingits chairman, Hamdi Topcu, to put on theceremonial blindfold, stand 20 feet from thewall and throw the all-important Turkish

Airlines Dart of Truth. The airlinesmarketing team then rush to the wall todiscover who or what they will recruit for thecoming years sponsorship strategy.

In 2009, the dart landed on movie star KevinCostner. Despite the fact that Costner had

never been to Turkey, ever flown TurkishAirlines, or had ever expressed even the mostpassing interest in Turkish Airlines - the Dartof Truth was infallible. Costner wascontacted out of the blue, and paid a smallfortune to fly to Istanbul and make a series of

TV and print ads in which he was made tofeel like a star on Turkish Airlines businessclass service.


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Continue reading "Sponsorship Should Not BeA Random Act"

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Technorati Tags: Branding, HamdiTopcu, Kevin Costner, Turkish Airlines

FEBRUARY 02, 2009

Sponsorships: Threatening Brands?

What is the link between financially strappedcompanies and expensive sporting tie-ups?

Back in 2004, in an earlier, more innocent age,Northern Rock was proud to spend 25m onsponsoring Newcastle United FC. NorthernRock chief executive Adam Applegarth lookedahead to five successful seasons together and

spoke of 'a long-term relationship'. Barelythree years later, everything had turned sour.

It was a similar story in 2007 for West HamUnited. A 7.5m deal, worth 2.5m a year,
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was agreed by package holiday firm XLHolidays. But with two years of funding still tobe paid, XL went bust and West Ham was left

sponsorless. Last month, Manchester Unitedsuffered the same indignity when AIGannounced that it would not renew its four-year sponsorship deal when it expires in 2010.AIG is also exploring options to terminate itscurrent 56m deal. With 80% of the insurerowned by the US taxpayer and 97% of itsshareholder capital lost, a glamorous globalsponsorship looks a little incongruous thesedays.

Three big-money sponsors. Three business

debacles. Coincidence? There are plenty moreexamples. Take Royal Bank of Scotland -currently the biggest business basket case inBritain. Aside from losing a whopping 28bnlast year, RBS is also notable for the extraordi-nary largesse of its sponsorship department.

Despite its imminent nationalisation, you couldstill spot the brand on Andy Murray's rightsleeve in Melbourne last week, and it will beall over the British and US Open golftournaments this summer. It's the main


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sponsor of the 6 Nations rugby tournament andits brand is proudly plastered across its own F1racing car.

Could there be a link between the kind ofcompanies that embark on gratuitous levels ofsponsorship and those currently suffering themost in these difficult times? I think so. Theirtroubles are not being caused directly by their

sponsorship deals - though the millions off thebottom line hardly help. The real connection ismore indirect. Big, dumb sponsorships arealways going to be popular with the kinds ofcompanies that think big, and don't sweat thedetails.

Continue reading "Sponsorships: ThreateningBrands?"

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Technorati Tags: AdamApplegarth, AIG, AndyMurray, Apple, AT&T, Branding, BritishOpen,BT, Lloyds TSB, Manchester
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United, Newcastle UnitedFC, Nortel, Northern Rock, P&G, PGA ofAmerica, RBS, Royal Bank ofScotland, Sponsorships, Tesco, USOpen, West Ham United

SEPTEMBER 01, 2008

Event Sponsorships: Forgetting the ROI?

It all started with a flash of American

superiority and a bruised royal ego. In 1851, ayacht owned by the New York Yacht Clubeasily beat 15 of the fastest British yachts in arace around the Isle of Wight. Surprised at theresult, Queen Victoria was reported to haveasked who had come second and was politely

informed: 'There is no second, your Majesty.'The America's Cup had begun.

After 156 years and 38 contests, the finallyreturned to Europe. In April of last year,yachts from 11 nations began competing inValencia to see who would eventually race the

current holder, the Swiss yacht Alinghi. Italways is a massive event, but arguably thosewith the most to lose are not the yachtsmen orcountries involved. In fact they play an almost
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peripheral role compared with the companiesspending nine-figure sums to associate theirbrand with the event.

As I walked around Valencia, Spain's newlydesigned marina it could easily be likened tovisiting an exotic menagerie of big brands withsome of the fattest marketing budgets on theplanet. BMW and Oracle had joined forces with

Allianz to sponsor the American yacht. A fewmeters away the French boat sponsored byAreva, the French nuclear power company. Forreasons that werent immediately obvious,New Zealand's entrant was sponsored byEmirates. Most companies pay upwards of

$100m to be a sponsor. Meanwhile, supporterbrands such as Vodafone (the official phonenetwork), Nespresso (the official coffee) andAdecco (the official HR supplier) were alsostumping up millions to be a part of it.

With stunning locations adorned with

glamorous yachting fraternity, it would be alltoo easy for marketers to lose their focus andfall into the ancient trap of assuming anyonespending this kind of money must know what


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they are doing. It is exactly these big-moneyevents at which a marketer must maintaintheir ROI focus. How, we should ask, can a B2B

software company such as Oracle justifyspending that kind of money on a yacht race?What, we may wonder, is the link betweennuclear power and yachting? And what hasEmirates got to do with the Kiwis?

INTRODUCTION

Globalisation has been the battle cry of the

last decennium of the 20

th

century. This

phenomenon is not new or unique to this

period. The process has only been given an

added impetus by the political,

technological and economic developments

that have been unique to the last ten years

of the century. The demise of communism,


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the ICT revolution, the liberalisation of

trade are only few of the driving forces of

this latest round of intensified

globalisation.

The effect that this globalisation has had

on brands has been spectacular. New

brands are seemingly born global, or at the

very least experience a quick rollout from

home or lead countries into other markets.

Many traditionally local brands are sold,

fazed-out or face transition to a new

regional or global brand name and

subsequent harmonisation. Brand

portfolios, which have been built-up

through decennia of acquisitions, are

rationalised in order to focus attention and


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resources on a limited number of strategic

brands. Long established brands have

enhanced their dominant positions across

the globe, threatening less marketing-savvy

local brands, but also encountering stern

opposition from local brands that find

ways to fight back. Some of the global

brands manage to become local institutions

by filling a local role in the societies where

they operate, while others dominate their

category as global monoliths.

Debates have also flared over the supposed

supremacy of global brands and the

inadequacy of (multi-)local brands. This

paper argues that this viewpoint is

incorrect and that the each individual


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global or international brand has specific

opportunities and limitations when it

comes to standardisation or localisation.

Only a thorough understanding of a variety

of factors that influence brands in their

global and local contexts helps determine

the best course for them. Therefore, this

paper concerns those involved in global

and local brand management, as well as

managers of local brands who often

struggle with global competition.

We introduce four general brand strategies

and examine the internal and external

factors that influence these strategies as a

brand extends across multiple societies.

The general strategies themselves consist


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of a total of more than 20 strategy subtypes. A

discussion of these strategy subtypes exceeds

the limitations of this paper.

Suffice it to say that each requires its own

particular capabilities and competencies,

each has its particular competitive

advantages, and each offers consumers

some distinct appeal. The author is

currently writing a study that examines

these strategy sub-types. The purpose of

this paper is to offer a fresh perspective on

global brand strategy and management

without attempting to be exhaustive.

GENERAL BRAND STRATEGIES

Brand strategy is aimed at influencing

peoples perception of a brand in such a


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way that they are persuaded to act in a

certain manner, e.g. buy and use the

products and services offered by the brand,

purchase these at higher price points,

donate to a cause. In addition, most brand

strategies aim to persuade people to buy,

use, and donate again by offering them

what is a global brand

Documents