FREE ESSAY ON GLOBAL BRANDING

GLOBAL BRANDING

When corporations market a product globally choosing a brand name is a major factor in the
success of that product. Handi-Wrap is a very well known brand in the United States, but
in other parts of the world like the United Kingdom and Australia, the brand's name is
considered funny but still effective, but what about in other countries like: Germany,
Sweden or Japan? The brand Handi-Wrap works in the United States because English is the
official language of the nation; it works in the United Kingdom and Australia for the
same reason, but does the brand name lose its effectiveness in nations where languages
other than English are routinely spoken or does the brand remain effective even there?
Should multinational corporations market a single brand internationally or change their
brand names to the local cultures? Studies have shown that brands can be as effective
internationally as they are in the US (Shoham and Kropp 114). Coca-Cola and Handi-Wrap
are common brands in the US; people all over the world understand the name of Coke, but
what of Bayer Aspirin or Ford Motor Company should multinational companys market their
products as a nation-specific product, a single brand or choose a middle route? 
There is an obvious advantage when using multiple names in different nations. Handi-Wrap
may be a slang term in English; however, its meaning can be clear in all English-speaking
nations. In China, or in other countries, its meaning could be considered vulgar or rude,
if understandable at all. It can be advantageous to use names specific to chosen
languages, and that has been the way that many have chosen in the past. Their marketing
and advertising efforts have been targeted to a specific language, though the culture of
the nation must also be taken into account. For example, like a play on words that works
well in the United States may be completely worthless and meaningless in the United
Kingdom. However, those brands using the same names for their products regardless of the
nation or culture in which they are being marketed, still appear to have greater success
today. For example the success of L'Oreal cosmetics has been built on promoting different
brands in different nations, choosing which to promote were based on views of the local
cultures (Anonymous 24). For people interested in finding the most American product
possible, the French company uses the name Maybelline. Those preferring the most French
are given the L'Oreal brand, there are even Italian brands for other preferences. All the
different lines are sold in all of the markets, but only one is excessively promoted. The
result of this is L'Oreal has been able to maintain double-digit growth for more than a
decade. L'Oreal's net profits rose 15% in 1998, to $768 million, while its stock has
soared 900% in the late 90s. Whether it's selling Italian elegance, New York street
smarts, or French beauty through its brands, L'Oreal is expanding out globally to
millions of people across a larger range of incomes and cultures. This is what sets
L'Oreal apart from one brand marketers such as Coca-Cola Co., which sells one brand
globally to all cultures (Anonymous 24).
Single brand corporations like "McDonalds" sell to all nations of the world, regardless
of the language spoken in each their brand is recognized. The people in the local
markets, in which McDonald's burgers and fries are sold, understand just what to expect
when ordering any number of choices available on their menu (Green 34). Similarly,
Wal-Mart is understood in all nations containing a Wal-Mart store; whatever the words may
or may not mean, the quality of the brand is known worldwide. Though the term Wal-Mart
may have no meaning in the language of the country it is located in; the local people
understand exactly what to expect from any store they enter seeing the Wal-Mart name and
logo on the front of the store. One major advantage of using a single global brand name
is that language is not so ignorant now. While it was not always possible to promote a
successful single brand name in the past, it is common now to see articles written in a
specific language referring to business enterprises that carry these names completely
foreign to these cultures, expressed in terms of the words they use in their everyday
life. McDonalds is a highly foreign-sounding collection of characters and symbols in
China, yet the McDonalds' locations there perform well and are very profitable. Aaker and
Joachimsthaler (1999) write, Brand builders everywhere think they want global brands;
however, global brand leadership, not global brands, should be the priority (137). This
is not saying that a global brand must be exactly the same in every market. For example
Visa changes its logo in some countries; Heineken means something different in the
Netherlands than it does abroad (Aaker and Joachimsthaler 137). A major consideration in
building a global brand is how advertising will be received in specific markets.
Advertising generally reflects cultural characteristics in a given country's values,
beliefs, and trends. These need to be clearly understood and recognized to make sure that
the specific message is heard and understood in the way a company wants it to be (Inso
Corporation int00006). Advertising that can be fun and effective in the United states can
be seen as highly vulgar and looked down upon in the United Kingdom or Japan. Yet Proctor
& Gamble keep its brands and its promotions identical throughout the world. IBM spends
much less in advertising by creating a single global advertising campaign than it would
to create different campaigns for all its markets (Aaker and Joachimsthaler 137). The
approach is much easier to manage than many country specific strategies, but it is also
harder to succeed. In addition, any poor choice in advertising is much more costly in
that it is not contained in a single market, but is spread to all markets all over the
world. Their is a difference in creating a global brand and creating a global advertising
campaign. Aaker and Joachimsthaler (1999) write that advertising often is the cornerstone
of the global brand-building effort, when focus instead should be concentrated on making
the brand the leader in each market it competes. This was the approach of Coca-Cola in
the early days. Today it is able to consolidate its advertising internationally because
it is a leader in each of its markets, not because it is trying to become one. Developing
a global strategy also can work against the effort to create economies of scale through
consolidating global advertising. No campaign is suitable for all markets of the world,
and adjustments usually are needed to be made either for each market or type of market
even when the general advertising message remains consistent. It is sometimes cheaper and
more effective for companies to create ads locally than to import ads and then adapt them
for each market (Aaker and Joachimsthaler 137).
Several companies have chosen a middle route to
international marketing. For example, in Europe, Audi uses the best of both ways; it
selects one agency from a group of five chosen to compete for its international marketing
efforts. The winning agency develops campaigns and directs the course they will take, but
the four agencies not winning the top slot are still able to manage the campaigns in
their own countries. The result is all advertising is controlled, but there are five
company's involved instead of only one. Each company is still able to compete in the
future with each other and each maintain a relationship with Audi (Aaker and
Joachimsthaler 137). Smirnoff Vodka has an effective middle-road approach to
international marketing and brands. With the theme of pure thrill, all of Smirnoff's
worldly advertising is distorted pictures that become visible when viewed through the
Smirnoff bottle. This way the local market culture is in the scene that appears: the
scenes change from country to country, in order to appeal to the market in that country.
For example in Rio de Janeiro, the ad shows the city's statue of Christ with a soccer
ball, and in Hollywood, the 'W' in the hillside sign is created with the legs. (Aaker and
Joachimsthaler 137).
No method of brand marketing works for all markets of the world, and there are not any
specific formulas for deciding what is the best way for corporations to approach a
certain market. Corporations must take into consideration the specific cultures, the
products they are promoting, and the impact they wish to gain form advertising. The
decision should be made on the desired results that the corporation wishes to achieve.
Bibliography
Bibliography
Aaker, David A. and Erich Joachimsthaler. The Lure of
Global Branding. Harvard Business Review, vol. 77,
(1999): November-December, p. 137.
Anonymous. L'oreal: The Beauty of Global Branding.
(L'Oreal's international marketing effort pays off).
Business Week, I. 3635, (2000): June 28, p. 24.
Green, Michael. Stars and stripes. (American firms are growing their European presence).,
Swiss News, I. 10,
(1999) : October, p. 34.
Inso Corporation. International Marketing: The Importance of Good Marketing., At
http://www.wellsfargo.com/inatl/hsbctrade/wrldalmn/intr
o/int00006/, (2000).
Shoham, Aviv and Fredric Kropp. Explaining international
performance: marketing mix, planning, and their
interaction., Marketing Intelligence & Planning, vol.
16, (1999): March-April, p. 114.