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.
Table of Contents
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 Core Themes
The primary objective of this report is to analyze how companies can expand their international presence by utilizing brand management instruments. It explores strategic approaches for entering international markets and the subsequent challenges regarding brand maintenance, identity, and protection.
- International branding strategies through acquisition versus brand/line extensions.
- The process of substituting national brands with international ones (abrupt vs. step-by-step).
- Strategic marketing decisions in international environments including pricing, distribution, and communication.
- The role of the "Country-of-Origin-Effect" in consumer perception.
- Legal and strategic challenges related to brand piracy and counterfeit protection.
Excerpt from the Book
3.2.1 Abruptly Brand Substitution
If an abruptly brand substitution occurs, a brand will be substituted abruptly through a new brand without any time limit. From a very certain day these new products will be exclusively presented under the new brand.
One example would be the substitution of Mannesmann-D2 by Vodafone. Mannesmann was a very strong national brand with an enormous position in the telecommunication sector, but Vodafone desired to be the biggest global player in this branch, therefore they erased the brand Mannesmann-D2 completely from the German market on a certain day.
Using this method without accommodative communicational approaches, the strength of the substituted brand will not be used, instead it will be destroyed. The company might do this on purpose in order to erase memories of the old brand name or less increase and less relevance had been promised for the brand. Intention to use the image, explanation of the brand change could help to bolster abruptly brand substitution. In every case, the old and new brand will be on the market, also in the time of the old brand clearance sale or rather during the replacement of leftover merchandise.
The abruptly substitution needs a carefully planning as well as a preparing analysis because a withdrawal of the decision will cause a lot of acceptance lost in the customer and trade group. Because of the short substitution period of usually a few weeks and the only once existing changes of the marketing mix elements, the abruptly substitution is not a very cost and organization intensive solution. But the abruptly substitution is also a more risky strategy because the new brand has to act like a new product on the market and has to fight for the market position of the old brand.
Summary of Chapters
1. Introduction: Discusses the increasing importance of globalization and the role of brands as a central element for market orientation and trust in international competition.
2. Introduction into Branding and explanation of selected terms in general: Provides foundational knowledge on branding, including definitions of brand equity, brand transfer, and brand loyalty.
3. Brand Internationalization by Acquisition of another Brand: Examines strategies for managing brand portfolios following an acquisition and details the transfer process between national and international brands.
4. Process of internationalization by Brand/Line Extension: Outlines the strategic steps for international expansion, covering country selection, positioning, pricing, distribution, and communication.
5. Brand-Piracy in International Context: Analyzes the risks of product and brand piracy, their consequences for consumers and companies, and potential counter-strategies.
6. Conclusion: Summarizes key insights on international brand management and highlights the essential need for top-management commitment to branding strategies.
Keywords
International Branding, Brand Equity, Brand Transfer, Brand Loyalty, Market Entry, Acquisition, Brand Extension, Brand Substitution, Country-of-Origin-Effect, Brand Piracy, Counterfeiting, Marketing Strategy, Global Market, Positioning, Consumer Perception.
Frequently Asked Questions
What is the core focus of this report?
The report focuses on international brand management strategies, specifically how companies can navigate the transition from local to international market presence through acquisitions or brand extensions.
Which specific areas of marketing are addressed?
The text covers brand positioning, pricing strategies, distribution channel choices, communication tactics, and the management of brand portfolios in foreign markets.
What is the main goal of the research?
The primary goal is to provide a structured overview of the instruments and risks associated with international branding for companies aiming to expand globally.
Which methods are discussed for substituting national brands?
The report compares two main methods: the "Abruptly Brand Substitution" (immediate replacement) and the "Step by Step Substitution" (parallel usage for a transition period).
What does the book say about Brand Piracy?
It identifies brand piracy as a significant risk in international trade and discusses its negative impact on brand image, consumer safety, and company revenues, alongside potential protective measures like lobbying and legal action.
Which keywords best characterize this work?
Key terms include International Branding, Brand Equity, Brand Substitution, Brand Piracy, and Country-of-Origin-Effect.
How does the "Country-of-Origin-Effect" influence branding?
The report highlights that the "made in" label significantly impacts consumer quality perception, often proving more influential than the brand name itself in certain regions like Eastern Europe.
What specific example is used to illustrate Brand Piracy?
The report uses the case of Philip Morris International, detailing the economic losses and safety risks (e.g., higher levels of tar and nicotine) associated with counterfeit cigarettes.
- Quote paper
- Robert Tönnis (Author), 2005, International Branding - An Internationalization Approach on the Marketing Level, Munich, GRIN Verlag, https://www.grin.com/document/67130
