Introduction Ericsson equipment is used in 40% of all mobile phone communications in 130 countries. This makes it, besides its competitors Motorola and Nokia, one of the leading mobile phone producers. As 90% of Ericsson's turnover is generated outside of Sweden, the company needs a excellent knowledge of international marketing strategies and of its different markets it is operating in. This case study deals with the issues of brand vs. product advertising in the international market. In 1997 the company was divided into 3 business areas which are Radio Systems, Infocom Systems and Mobile Phones and Terminals, in order to concentrate on the specific customer needs. One year later Ericsson decided, after extensive research into consumer needs and perceptions, to invest some of its advertising budget into the creation of brand awareness. This campaign was widely criticized and it was questioned if this was the right move towards a growing market share. Therefore we have to question, what Ericsson should do next, or more specifically, if the Brand campaign should continue in its present form. Moreover one could argue if the campaign should be limited with product specific advertising at the local or international levels and how. In order to answer the questions this essay is divided into 4 main parts. Firstly it explains the meaning of Branding and looks into the diffusion process. Secondly the essay discusses the problems and opportunities faced by the company. Thirdly alternatives to solve the problem are stated and discussed. Finally recommendations based on the alternatives will be provided. 1. Why does Ericsson need a global brand campaign? 1.1. Brand vs. product advertising In order to understand the reason for Ericsson's global branding campaign one argument for and one against the global branding campaign should help to get a general picture of the companies move.
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