With a value of $1.1 billion Espoir Cosmetics belongs to the best known cosmetic companies in the world. Natasha Singh, the executive vice president and global marketing officer proposes to associate Espoir’s new summer line with the launch of Supreme Studio’s second Diana’s She Devils movie. Espoir’s chairman and CEO, Ed Johnson, is not sure if this would be a good approach since a global brand strategy has not been used so far and consequences are not known for sure. Some companies that have introduced global branding strategies succeeded and came ot strengthened but on the other hand many have failed. In order to understand the challenges as well as the opportunities of a global branding strategy, advantages as well as disadvantages are presented in the following text.
Exercise 1: What are the advantages and disadvantages of Espoir sponsoring Diana’s She Devils?
Definitely important to mention is the fact that the company has not released any global campaigns so far. All campaigns and strategies have been adapted to specific areas. This means, first of all, that a lot of resources, time and money, needs to be invested in order to develop a suitable global strategy. Furthermore, when a strategy is developed it is not said that the strategy would be successful after all. All countries vary in cultures and also in needs, wants and preferences. Thus, it is not assured that a global campaign would be appealing to the current customer groups because it is not specifically made for a specific area. Especially Eastern Europe differs a lot from the rest of the world when it comes to the attitude towards beauty. Consequently a decline in market share and sales could be expected when introducing a global branding strategy, a ‘one-fits-all’-strategy. A global branding strategy does not just leads to being less responsive to local needs or trends, moreover it can also lead to being less quick and less tactical because of