Question

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The emergence of global brands
Global brands work well when:
1. The name of the brand is the same or similar in different regions, and is easy for the local population to pronounce.
2. The brand is popular in many different regions.
If most of the profit from a brand comes from a single region, it may be better for the company to focus on keeping the brand’s popularity in that region, so a local brand strategy may be more effective. However, if the profits come from a wide range of regions then it is better to give the brand a global focus.
3. The positioning of the brand is similar in all different regions.
This is how the company wants the brand to be seen by the people. Some brands will be portrayed as being cheap but effective, while others will be more expensive but higher quality. Some may be “family friendly” products, while others will be shown as being good for singles or young people. In short, this is who the company wants to buy their product.
4. The brand represents the same type of products in different regions.
5. The way the product is sold is similar in different regions. For example, the price, packaging, and way it is advertised.
In reality, very few global brands will have all these properties, as companies will often adapt some of these things to suit local markets if they think it will be beneficial to the sale of the brand.
Brands will usually target the same groups of people (3, from above) in all regions.
A branding continuum
This section talks about all the branding strategies which fall between the local and global brand categories.
Most brands are not truly global brands. Some brands are very consistent over all regions they are sold in, such as Coca-cola and Nike, while others operate very differently in different regions, while using the same brand name. So, it is possible for brands to have properties of both local and global brands, so in reality lie in between these two extremes. Some food producing companies will use different brands in different regions because eating habits are very different in different parts of the world, so it is important to adapt to the local population’s tastes.
Companies will often use both global and local brands to sell their products. Sometimes a brand will also have a number of sub-brands as well.
A brand can have any number of smaller sub-brands with it. The main brand, or “umbrella brand” is used with another sub-brand, allowing more flexibility for the company. In this way a company can use the reputation and familiarity of the umbrella brand to attract customers, then the sub-brand to give a particular product its own identity within the brand. It is common for the umbrella brand to be a global brand, while the sub-brands can be specific to individual regions, allowing the company to target these sub-brands to that region.

Answer 1

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