An interesting observation from the data is that nearly all of the global brands (those with a presence in at least two of the megamarkets) hail from the countries included in this study. The only exception is Denmark-Based Lego, which is in the top 50 for esteem in seven of the eight markets.
Global branding will arguably face different challenges by product category. Certain categories, such as automobile and computers, are deemed more global in term of the similarity in consumer preferences. Of the brands in these two industries, the majority were present in more than one market. The results corroborate the perception that sectors such as food and drink are more multidomestic and do, therefore, require a “local” presence. Even in soft drinks, the percentage of brands in more than one market was only 35%. This doesn't mean that global brands don't have an opportunity, but marketers may have to tread more carefully in imposing global brands names especially at the expense of wellestablished local ones. Global marketers may be better advised to leverage global technology platforms to the benefit of an existing local brand.
The issue with global brands is not so much whether to globalize or to localize, but how much of each to do. The fact that brands do get a consistent lift from being present in multiple markets, coupled with the need to exploit economies of scale, creates a powerful argument for marketers when they make choices on brand portfolios but to be the best global while being best of local, the same marketers need to factors in uniqueness and relevance of a local brand as well as the level of “globalness” in the product category.
Note
This research was sponsored by Honda Motor Co. and the McDonough School of business. Thanks are due to Landor and Young & Rubicam for providing data and advice. Cipriano de leon provided data analysis and research assistance.
An interesting observation from the data is that nearly all of the global brands (those with a presence in at least two of the megamarkets) hail from the countries included in this study. The only exception is Denmark-Based Lego, which is in the top 50 for esteem in seven of the eight markets.Global branding will arguably face different challenges by product category. Certain categories, such as automobile and computers, are deemed more global in term of the similarity in consumer preferences. Of the brands in these two industries, the majority were present in more than one market. The results corroborate the perception that sectors such as food and drink are more multidomestic and do, therefore, require a “local” presence. Even in soft drinks, the percentage of brands in more than one market was only 35%. This doesn't mean that global brands don't have an opportunity, but marketers may have to tread more carefully in imposing global brands names especially at the expense of wellestablished local ones. Global marketers may be better advised to leverage global technology platforms to the benefit of an existing local brand.The issue with global brands is not so much whether to globalize or to localize, but how much of each to do. The fact that brands do get a consistent lift from being present in multiple markets, coupled with the need to exploit economies of scale, creates a powerful argument for marketers when they make choices on brand portfolios but to be the best global while being best of local, the same marketers need to factors in uniqueness and relevance of a local brand as well as the level of “globalness” in the product category.NoteThis research was sponsored by Honda Motor Co. and the McDonough School of business. Thanks are due to Landor and Young & Rubicam for providing data and advice. Cipriano de leon provided data analysis and research assistance.
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