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Global
Branding: What makes brand truly global
Aishwarya
Natarajan,
Post-Graduate Programme in Management
Amity Business School, Noida
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Developing
a global brand largely depends on the brand's ability to explore fresh
avenues and sustain its competitive advantages in terms of economies
of scale and productivity. A global brand is one that is perceived to
reflect the same set of values around the world and removes national
barriers and linguistic blocks while being marketed internationally.
The basics of brand building apply to global branding strategy also.
For a brand to become successful, a genuine demand or a psychological
need must exist in the target market. Today, when we look at the global
market, we need to realize that at the most basic level all human beings
share common physiological and safety needs as explained by Abraham
Maslow in his `hierarchy of needs'. What separates one customer in one
part of the world from another somewhere else are the complex social,
cultural and esteem needs each of them has, depending upon the stage
at which the civilization/ nation is in the process of development.
And despite centuries of technological development, these needs have
remained as crucial as ever.
The real challenges come when marketers have to make the consumer aware
about the product/service offered using a distinctive pattern, perhaps
with a name, logo or color, so that the strategy enables the customer
to correctly identify and choose the brand from a cluttered basket.
The brand's strength is not confined to the degree of recognition and
the quality of the product offering. Strong global brands cater to strong
emotional needs. A brand such as Nike urges us to believe in our limitlessness,
while one such as Rin speaks about destroying dirt, which is portrayed
as a threat that disrupts the neat orderly world that we live in.
A
strong global brand while addressing a fundamental human motivation
is driven by a distinctive brand idea, with the product being seen as
an expression of that brand idea. The product merely translates that
idea into a tangible form, with features and styles, which is delivered
to the consumer. For example, the brand idea associated with Dettol
is the complete protection it provides users from dirt and infection.
The company has adopted this idea across the globe irrespective of the
cultural domain it targets.
These brands send market signals consistent with the idea they stand
for. Starting from the tangible attribution of the brand through the
product to the integrated marketing communication, the brand consistently
sends the same signal in every market. The more consistent this marketing
signal, the clearer the brand image across the country for global brands.
Research suggests that strong brands are built over time. Trust in a
brand gets built over a large number of interactions across a range
of situations. Hence a strong global brand is like a network of complex
psychological and market structural issues that include situations,
associations, behaviors, feelings and symbols held together by a strong
and powerful central idea.
A successful marketing strategy has two options in creating a market
presence. It can kill competition by constant communication and advertising
or use communication to make customers experience the brand and discriminate
in its favor.
A strong global brand creates associations in the consumers' mind which
guides them to attach distinct functional and emotional benefits and
appropriate meanings and beliefs to the brand. Brand communication should
also communicate and connect to people. The links between Britannia
and health are felt allover the world. This connectivity is the rational
justification for people to overcome the extra spending required to
acquire the brand. Successful brands live beyond generations due to
this ability to connect. It is also not just a question of satisfying
customers of different countries with varied cultural backgrounds, but
also one of connecting with new generations of consumers with new sets
of values, hopes and ambitions.
Every organization must address two issues before considering global
branding. They include the relative strength of globalization pressure
in that particular industry and the degree to which the company has
internationally transferable assets. If globalization pressures are
weak and the company's assets - including the brand - are not transferable,
then the company need not go in for a global brand. It should concentrate
on creating a higher brand value in the domestic market. If globalization
pressures are weak and the company has transferable assets, then it
should look at extending these to a similar market using a global brand.
A strong brand proposition in the home market can be used as a platform
for building brands in selective markets that are similar to the home
market in terms of consumer preference, geographic proximity, cultural
similarity or even government regulation. Bajaj Auto's extension to
the South Asian market for its three-wheelers is an example of brand
success in an analogous market. By this the company can reap added revenue
and scale economies with valuable international marketing experience.
The success of Indian films with a typical emotional branding is another
example of brand success.
Companies can look for countries with a common cultural and linguistic
heritage. The success of Ramanand Sagar's serial Ramayana in the Asian
market is another example. The story of Asian Paints in the Indian market
has made it to go in for global branding in countries such as Nepal,
Fiji and Korea with its typical low cost formulations and service delivery
propositions to support the brand name `Asian Paints'.
For having a global brand one has to take into consideration a different
set of opportunities and constraints. The low cost of wages and proximity
to raw materials also gives domestic companies a competitive advantage
to go global. The success stories of Infosys and Wipro as brands in
the global market are examples of global branding successes in the hi-tech
industry. However, there are many complex factors that can affect a
global marketing strategy. These include the nature of the product (for
example, consumer durable products being more suited to standardization
than non-durables), features of a particular market and even organizational
history.
For a brand to be successful globally, it has to click across the vertical
class of generations and horizontal mass of global markets. In a global
economy, organizations must reach customers in markets far from their
home base. Strong brands act as ambassadors when companies enter new
markets or offer new products.