During the last decades, the globalisation importance has increased a lot. In this term, the crucial globalisation pushing strength – the homogenisation of markets and short PLC – did change the competition on international markets. The internationalisation from companies becomes also more and more important. Due to these challenges lots of companies do not consider to operate their business activity on an international scope, but they are thinking about the aspect of how to act successfully on international markets.
Within the scope of internationalisation brands play an important role. The expansion of business activity on international markets is not thinkable without brands. Especially in terms of uncertain economic activities, the consumer is searching for orientation, trust and identification. The consumer will find all this in the brands.
Regarding a company that decides to expand its international brand politic, there are different possibilities. On the one hand, because of the changing general framework it is necessary to have the integration of international activities. Besides, it is necessary to follow the company’s strategy consistently without considering country-specific differences. On the other hand, critics refer back to existing national even regional distinctions. Therefore demonstrates determination of standardization and differentiation in the literature of Brand Management a very discussable point, especially when you talk about “Global Brand”. Regarding to Specht, who declared: you will find the focal point of market centred activities in consumer goods marketing in the brand, so that there is a direct connection between and the global brand politic and the base of global market activities.
Considering the terminology of international management, most of the brands are just in a status of a transnational, regional or “Euro” brand today. Even brands like Coca-Cola or McDonald´s differentiate parts of their market development in certain countries. For this reason the theory, which has been noted on top, be explained more clearly: you must not understand brand management as a brand that always has to have exactly the same marketing mix. A brand is more global when the brand core, positioning and brand world are consistent.
At a glance
- Grade: 1.3 (1.0 is the best grade)
- Five post-acquisition brand portfolio options
- Contrasts abrupt and step-by-step brand substitution
- Examines Philip Morris International as a brand-piracy example
- Uses secondary research rather than an original survey or interviews
Table of Contents
Executive Summary
Preface
Table of Content
1. Introduction
2. Introduction into Branding and explanation of selected terms in general
2.1 Brand and Brand Transfer
2.2 Definition and Term of Brand Equity
2.3 Brand Loyalty
3. Brand Internationalization by Acquisition of another Brand
3.1 Decision about International Branding Portfolios
3.2 Control of the Transfer from National to International Brands
3.2.1 Abruptly Brand Substitution
3.2.2 Step by Step Substitution
3.3 Controlling of the Brand Substitution
4. Process of internationalization by Brand/Line Extension
4.1 Country Decision
4.2 Brand- and Positioning Process
4.3 The Role of “Country-of-Origin-Effect (COO)”
4.4 Pricing Decision
4.5 Distribution Decision
4.6 Communication Decision
5. Brand-Piracy in International Context
5.1 Definition and Forms of Brand-Piracy
5.2 Consequences
5.2.1 Costumer’s Consequences
5.2.2 Impacts for the Victimized Company
5.3 Philipp Morris a current and International Example
6. Conclusion
Objectives and Topics
This report asks how a company can use brand management instruments to expand internationally. Drawing on secondary research, it examines internationalization through the acquisition of another brand and through brand or line extension, alongside the risks posed by brand piracy.
- Brand transfer, equity and loyalty
- International brand portfolios after acquisition
- Abrupt and gradual brand substitution
- Country selection, positioning and the marketing mix
- Country-of-origin effects on consumer perceptions
- Brand piracy and protective strategies
Excerpt from the Book
3.2.2 Step by Step Substitution
In contrast to the abruptly substitution, the step by step transfer is a substitutive process in which the old and new brand will be used parallel for a certain time. It is important to make clear that this strategy does not include the existing of two different brands on two different packages. This strategy means using two brands on one package.
This step by step substitution justifies the systematically stirring of transfer brand attitudes and image from the substituted to the brand that is going to be substituted. This procedure is useful when the new brand needs the support of the old brand. New brands can just be successful if the customer has the opinion he will buy a product with the same or better quality. If you have to create this trust in the new brand at first, the step by step substitution is more recommended. With this strategy the company transfers the image of the quality from the old to the new brand step by step.
A risk of this strategy is the probably excess of brands on the package and the customer might get irritated. Such danger of brand dilution – it means a soak of the brand image – are tried to avoid by companies with brand hand books. These books describe how a logo, the colour, print etc. has to look. How long such a process can take anyway when the company introduce a new brand very carefully will show the following example: The brand “Toppits” was intruded into the market of wrap paper in Germany in 1988. “Toppits” substitutes with its market introduction the brand “Melitta-wrap paper”. 10 years later still 49% of the consumer mentioned exclusively the name “Melitta” for wrap paper contrasting 16% who mentioned the name “Toppits”. The (real used) combination “Melitta-Toppits” was mentioned by just 28% of the people that attended the polls.
An advantage of the step by step substitution is the opportunity to stop the process without to much confusion for the customers. In an extreme case the substitution can even be withdrawn. For the step by step substitution a time period of a few years can be used. The process consists at least of two steps during the brand transfer concerning the simultaneously decrease of the old and the increase of the new logo. In this long period the company can do constantly adding or take off some decisions.
The disadvantage of the step by step substitution is the cost aspect. Because of the different steps the company has to change in every new step like logo, package, advertising material etc. This means a higher organizational work compared to the abruptly substitution.
Chapter Summaries
1. Introduction: The chapter introduces globalization and the role of brands in international expansion. It frames the tension between standardization and adaptation across markets.
2. Introduction into Branding and explanation of selected terms in general: This chapter introduces brand transfer, brand equity and brand loyalty, including the roles of awareness and image.
3. Brand Internationalization by Acquisition of another Brand: The author considers portfolio choices after an acquisition and contrasts abrupt with gradual brand substitution. The chapter also discusses monitoring substitution against brand and company goals.
4. Process of internationalization by Brand/Line Extension: The chapter examines decisions on country selection, positioning, pricing, distribution and communication. It also discusses country-of-origin effects.
5. Brand-Piracy in International Context: The author describes forms of brand piracy, their consequences for consumers and companies, and a Philip Morris example. The chapter also outlines potential responses to counterfeiting.
6. Conclusion: The final chapter brings together the report’s discussion of internationalization routes, management challenges and risks.
Keywords
international branding, brand management, globalization, brand acquisition, brand portfolio, brand substitution, brand extension, brand equity, brand loyalty, market positioning, country-of-origin effect, brand piracy, counterfeiting
Frequently Asked Questions
What is the report about?
It examines how companies can use brand management when expanding into international markets.
What are its central topics?
The report covers branding concepts, acquired brands, brand and line extensions, international marketing decisions and brand piracy.
What is the primary objective?
The objective is to show how a company can internationalize using brand management instruments.
What research method does the author use?
The report draws on secondary research and published literature rather than presenting an original survey or interviews.
What does the main body discuss?
It considers brand portfolio decisions following acquisition, substitution strategies, decisions involved in brand or line extension, and the risks and consequences of brand piracy.
Which keywords characterize the work?
Key terms include international branding, brand equity, brand substitution, brand extension, country-of-origin effect and counterfeiting.
How does the report distinguish the two brand substitution approaches?
Abrupt substitution replaces the old brand quickly, while step-by-step substitution uses the old and new brands together for a period.
How is the country-of-origin effect discussed?
The report considers how a product’s country of manufacture can influence consumer perceptions and discusses studies involving television buyers and other products.
Which brand-piracy example does the report use?
It discusses Philip Morris International and counterfeit cigarettes before outlining possible anti-piracy strategies.
- Quote paper
- Robert Tönnis (Author), 2005, International Branding - An Internationalization Approach on the Marketing Level, Munich, GRIN Verlag, https://www.grin.com/document/67130
