Global Branding Strategy

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Global Branding Strategy 全球品牌策略

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Chapter Overview
Brand definition Global, Regional, and Local Brands Brand Equity The pros and cons of global branding Global Branding Strategies

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Defining brands
BRANDS are symbols associated with a product or service that identifies legally the maker of the product. Brands are then legally protected The right needs to be registered in each country where the brand is sold for the protection to hold. As a competitive advantage, a strong brand can be a sustainable advantage – but needs forceful enforcement against piracy and imitators

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Definition of Brand (品牌定義)
值多少錢?

品名 品牌標誌 註冊商標 服務標章 (Yahoo!)
一個名稱、詞語、符號、設計,或是 它們的綜合體,透過品牌可以辨認銷 售者的產品,並和競爭者的產品有效 地區別 4

77,839(U$M)

Many types of brands
Product brands - Tide Corporate brands - Boeing Master brand – Intel, Microsoft Umbrella brands – Pepsico Endorsement brands – Polo by Ralph Lauren Dual branding – Cingular, AT&T Brand extensions – Virgin 5

Global Brands
GLOBAL BRANDS ARE BRANDS ASSOCIATED WITH GLOBAL PRODUCTS WHICH ARE WELL KNOWN IN ALL MAJOR MARKETS OF THE WORLD. Ex's: SONY, MERCEDES-BENZ, MICROSOFT, COCA-COLA.

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Regional and Local Brands
REGIONAL BRANDS ARE BRANDS WHICH ARE UNIFORM ACROSS A REGION (Honda’s Acura/Legend). LOCAL BRANDS ARE BRANDS FOUND IN ONLY ONE OR TWO MARKETS (Ex’s: Fortnum & Mason in the U.K., A&W Rootbeer in the U.S.,) THE TYPICAL MULTINATIONAL FIRM HAS A “PORTFOLIO” OF BRANDS, SOME OF WHICH ARE GLOBAL, SOME ARE REGIONAL, AND SOME LOCAL ONLY. 7

Customer Brand Equity
Customer Brand Equity is the value of the positive associations that consumers have with a product’s brand name. These associations often involve emotional attachments, affinity, positive brand image, and brand identity. They also involve cognitive factors such as familiarity, knowledge and perceived quality, as well as social factors including peer group acceptance. When these associations turn negative (as in antiglobalization sentiments against global brands) the brand equity can go down very quickly. 8

Financial Brand Equity “Hard side”
Financial BRAND EQUITY is the monetary value貨幣價值of a brand in terms of net revenues the brand is expected to generate over time, across all country markets. How to calculate: Check “Interbrand’s Hard Equity Formula” (e.g. the cost of brand sales, marketing costs, overhead costs….) Financial brand equity is sometimes called “hard equity” – while customer brand equity is “soft” equity. For “hard equity” global reach of the brand matters more (品牌是否能 深入世界個地), since the value is computed as a sum across markets and segments. For “soft equity”, affinity to the individual consumer (個人消費者的喜 好) matters more.

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FINANCIAL BRAND EQUITY

THE WORLD’S MOST VALUABLE BRANDS

1 2 3 4 5 6 7 8 9 10

Brand Name 2006 Brand Value ($ billions) Coca-cola 67.0 Microsoft 56.9 IBM 56.2 GE 48.9 Intel 32.3 Nokia 30.1 27.9 Toyota Disney 27.8 McDonald's 27.5 Mercedes 21.8

Source: Interbrand.com 2007
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Global Branding Strategies (1)
Global Brands A truly global brand is one that has a consistent identity with consumers across the world. Economic of Scales: The development costs for products launched under the global brand name can be spread over large volumes (成本分攤). Brand Awareness: A global brand has much more visibility than a local brand. The fact of being global adds to the image of a brand 11

Global Branding Strategies (2)
Global brands are also able to leverage the country association for the product The value of a global brand (brand equity) usually varies a great deal from country to country (three key value dimensions: quality signal: Global brands cannote better quality and offer higher heritage global myth: Gives customer a sense of belonging, of being part of something bigger Social responsibility: e.g. Nike, Shell, Timberland, Kiehl’s 12

Global Branding Strategies (3)
Inter-country gaps in brand equity may be due to any following factors History: much...
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