Dynamics of Global Brand文档格式.docx
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and
C.SamuelCraig
SternSchoolofBusiness
NewYorkUniversity
April2002
PaperpresentedatResearchinInternationalMarketingConference.
CIBERUniversityofConnecticut;
October19,2001.
ContactAuthor:
SternSchoolofBusiness,K-MEC7-67
44West4thStreet
NewYork,NY10012-1126
Phone:
(212)998-0418
Email:
sdouglas@stern.nyu.edu
TheauthorswishtoacknowledgesupportprovidedbytheUnileverFoundationforthisresearch.
Abstract
Brandsplayacriticalroleinafirm'
sinternationalmarketingstrategy.Acoherentinternationalbrandarchitectureisakeycomponentofthefirm'
soverallinternationalmarketingstrategyasitprovidesaframeworktoleveragestrongbrandsintoothermarkets,assimilateacquiredbrands,andrationalizethefirm'
sinternationalbrandingstrategy.Thispaperlooksatthevariouscomponentsofinternationalbrandarchitectureandthedifferenttypesofarchitecturefoundamongasampleoflargeinternationalconsumergoodscompanies.Basedontheseinitialinsights,somekeyissuesthatneedfurtherresearchareidentified.
Introduction
Brandingisakeyelementofafirm’smarketingstrategy.Strongbrandshelpestablishthefirm'
sidentityinthemarketplace,anddevelopasolidcustomerfranchise(Aaker,1996;
Kapferer,1997;
Keller,1998).Owningthenumberoneortwobrandintheproductcategoryprovidesmanufacturerswithaweapontocountergrowingretailerpower(BarwiseandRobertson,1992).Astrongbrandnamecanalsoprovidethebasisforbrandextensions,whichfurtherstrengthenthefirm'
spositioninthemarketplaceaswellaspotentiallyenhancingthebrand’svalue(AakerandKeller,1990).Asfirmsmoveintointernationalmarkets,brandingplaysanimportantroleinitsmarketingstrategy.Inparticular,ajudiciousbrandingstrategyprovidesameanstoenhancethefirm’svisibilityandintegratestrategyacrossnationalmarkets(seeKhermouch,HolmesandIhlwan,2001).
InmarketsoutsidetheU.S.,theconceptofbuildingstrongbrandsinordertoestablishmarketpositionisrelativelyrecent(Courtetal.1997).Marketsareoftenfragmented,characterizedbysmall-scaledistribution,andlackthepotentialorsizetowarranttheuseofheavymassmediaadvertisingneededtodevelopstrongbrands(BarwiseandRobertson,1992).Inaddition,firmshavetypicallyexpandedthegeographicscopeofoperationsonapiecemealbasisbyacquiringcompaniesinothercountriesorenteringintoalliancesacrossnationalboundaries.Asaresulttheyoftenacquirenationalbrandsoroneswithlimitedvisibility.Consequently,companiesoperatinginternationallyneedtoidentifyopportunitiesforstrengtheningtheirpositionthroughimprovedco-ordinationandharmonizationofbrandsacrosscountriesandbuildingacohesiveandeffectivearchitecturefortheirbrands.
Aninternationalbrandarchitectureprovidesastructureandarationaleforbrandingdecisionsatdifferentlevelsoftheorganizationandfordifferentgeographiclocations.Inessence,thisarchitectureprovidestheprinciplesthatguidetheeffectiveuseofbrandssoastodevelopastrongpositionaladvantageininternationalmarkets.Itshouldestablishwhichbrandsshouldbeemphasizedatwhatlevelintheorganization,i.e.corporate,productbusinessandproduct,howbrandsareusedandextendedacrossproductlinesandcountry,andhowfarbrandingisharmonizedandcoordinatedacrossnationalborders.Withoutawell-conceivedinternationalbrandarchitecture,thefirmwillbeatacompetitivedisadvantage,sufferingfrominconsistenciesinbrandidentityacrossnationalmarkets,lackofastrongcorporateorproductidentityininternationalmarkets,andtheinabilitytomaximizethevalueofbrandsacrossnationalboundaries.
Thepresentpaperdevelopsaframeworkforunderstandingthedesignandcompositionofafirm’sinternationalbrandarchitecture.Currentperspectivesoninternationalbrandingandbrandarchitecturearefirstexamined.AconceptualframeworkidentifyingtheelementsofinternationalbrandarchitectureisdevelopedbasedonthefindingsofafieldsurveyoftheinternationalbrandingstrategiesofanumberoflargeconsumergoodscompaniesinEurope.Eachofitscomponentsandthetypicalpatternsofbrandarchitecturefoundinthesecompaniesarethendiscussedinmoredetail.Finally,somedirectionsforfutureresearcharesuggested,designedtoprovideimprovedunderstandingofthisimportantareaofresearch.
PerspectivesonInternationalBranding
Mostdiscussionandresearchonbranding,whetherindomesticorinternationalmarketsfocusesontheequityorvalueassociatedwithabrandnameandthefactorswhichcreateoraretheunderlyingsourceofvalue(Aaker,1996;
Keller,1998).Considerableattentionhas,forexample,beendevotedtoexamininghowthevalueembodiedinabrandanditsequitycanbeextendedtootherproductswithoutresultingindilutionofvalue(AakerandKeller,1990).Thisinteresthasbeenstimulatedinpartbytheincreasingmarketpowerandvalueassociatedwithastrongbrandandinpartbytheprohibitivecostsoflaunchingasuccessfulnewbrand.Ininternationalmarkets,interesthasbeencenteredaroundglobalbranding-definingthemeaningofaglobalbrand,discussingtheadvantagesandpitfalls,andtheconditionsunderwhichbuildingaglobalbrandismostlikelytobesuccessful(Roth,1995a,b;
Quelch,1999).
WhilethisfocusisappropriateforarelativelyfewhighprofilebrandssuchasNikeorCoca-Cola,itignoresthecomplexityoftheissuesfacedbythevastmajorityofmultinationalfirmswhoownavarietyofnational,regionalandinternationalbrands,atdifferentlevelsintheorganization,spanningabroadrangeofdiversecountrymarkets.Typically,thesebrandsdifferintheirstrength,associations,targetmarketandtherangeofproductscovered,bothwithinandacrossmarkets.Equallytheuseofbrandsatdifferentorganizationallevelsmayvaryfromcompanytocompany.SomefirmssuchasSony,IBMorPhillipsemphasizebrandingatthecorporatelevel.OtherssuchasBeiersdorfmostlyhavebrandsattheproductbusinesslevel,suchasNiveaandJuvena,whileyetotherssuchasP&
G,haveprimarilyproductlevelbrands.
Indeterminingwhethertoemphasizebrandingatthecorporatelevelasopposedtotheproductlevelorwhethertoadoptahybridstructure,thefirmneedstoconsidertheroleofcorporateimageaswellasthediversityofitsproductbusinesses.Corporatebrandsprovidestrongidentityforthefirm'
sproductsinthemarketplace,butdonotenabledifferentiationofspecificproductbusinessesorproductlines.Equally,negativepublicityrelatingtoaspecificproductorthefirm'
spolicieswillaffectallproductsandproductbusinesses.Product-levelbrandsfacilitatedifferentiationfromcompetingproducts,butmaybelesscostefficientandresultinlossofpotentialsynergies.Thenumberofbrandsateachleveloftheorganizationandtherangeofproductlinesacrosswhichabrandisused,mustalsobeconsidered.Parsimonyinthenumberofbrandshelpstoachievecostefficienciesbutmayweakenbrandstrengthenifusedacrosshighlydiverseproductlines.Multiplicityofbrandsfacilitatesresponsivenesstospecificcustomerorsegmentneedsandclearproductdifferentiation,butmaybecostinefficientandhamperbuildingofastrongpositioninthemarketplace.
Asthefirmexpandsininternationalmarkets,issuesrelatingtobrandarchitecturebecomeevenmorecomplex.Inadditiontodeterminingthenumberoflevelsinthehierarchy,anotherdimension,namelythedegreeofbrandcoordinationorstandardizationacrosscountries,needstobeassessed.Ofkeyimportanceiswhethertousethesamebrandnameindifferentcountries,leveragingbrandstrengthacrossboundaries,orwhethertofocusonlocalbrandsrespondingtolocalcustomerpreferences.Usingthesamebrandnameindifferentcountrieshastheadvantageofenhancingvisibilityandreach,butmayhavenegativeconnotationsinsomemarketsorresultinlackofadaptationtolocalmarketconditionsandthecompetitiveenvironment.
Oftenthenatureandcohesivenessofafirm'
sinternationalbrandarchitecturedependsonhowithasexpandedinternationally,andhowitsinternationaloperationsareorganized.Somefirms,suchasP&
G,haveexpandedthroughleveragingstrongdomesticbrandsininternationalmarkets.Consequently,astheyseektoexpandfurther,theyhavetoconsiderwhethertodevelopbrandsgearedtospecificregionalornationalpreferences.OtherssuchasNestlé
andUnileverhavetraditionallyadoptedcountry-centeredstrategies,buildingoracquiringamixofnationalandinternationalbrands.Suchcompanieshavetodecidewhethertomovetowardsgreaterharmonizationofbrandsandintegrationoftheirbrandarchitectureacrosscountries,andifso,howtodoso.Furthermore,ifthecompanyexpandsthroughacquisitionorstrategicalliances,thequestionofwhetherandhowbrandarchitecturesofdifferentfirmsaremerged,arises.Inparticular,howfarandinwhatwaybrandingstructuresareintegratedorharmonizedacrosscountrieshastobedetermined.
InternationalBrandArchitecture
AfieldstudyofconsumergoodscompanyexecutivesbasedinEurope(Douglas,CraigandNijssen,2001)wasconductedtogainsomeinsightsintotheirinternationalbrandarchitecture,andhowthesewereevolving.Ofparticularinterestwerethedominantpatternsofinternationalbrandarchitect