Products and Global Brands

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Products and Global Brands
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Session Outline

• Standardisation/Adaptation
• Approaches
• Issues to consider
• Product decisions
• Core product benefits
• Product attributes
• Support services
• Global branding
• Pros and Cons
• Case - Stella Artois

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Standardisation/Adaptation

• Approaches
• Sell the product as it is internationally
• i.e. Oreo cookies in over 100 countries
• Modify the product for different
  countries/regions
• i.e. Coca Cola - sweetness, carbonation, caffeine
  etc
• Design new products for foreign markets
• i.e. McDonalds Chicken Rice (Singapore),
  McFiesta (Paraguay), McKroket (Netherlands),
  Curry Pie (Hong Kong)
• Incorporate all differences into one product
  targeted at a global market
• i.e. Diesel StyleLab

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Issues to consider

• Economic development
• i.e. disparity in income levels ? simplify the
  product/produce a cheaper one, reduce package
  size
• Climate and geography
• i.e. heat and humidity, distance, mode of
  transportation ? packaging
• Culture
• i.e. different tastes and preferences ? food,
  colours
• Legislation
• i.e. pollution, safety, labelling, trademarks ?
  design, packaging, brand
• Language
• i.e. translation of instructions, brand,
  labelling
• Literacy
• i.e. packaging design and instructions

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Issues to consider

• Product
• i.e. industrial, consumer, commodity, fashion,
  food
• Usage
• i.e. electrical voltages, measurement systems ?
  product design, labelling
• Competitors
• i.e. local and global ? positioning and
  competitive advantage
• Target market
• i.e. culturally specific or common needs and
  wants
• Organisational factors
• i.e. resources, capabilities, structure, cost,
  ROI ? constrain ability to both standardise and
  adapt
• Management factors
• i.e. global orientation ? regiocentric versus
  geocentric

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The three levels of a product
Low
Support Services
Brand name
Product Attributes
Style
Standardisation Possibilities
Packaging
Quality
Trademark
Core Product Benefits
High
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GM Opel Corsa

• Sold in 80 countries, manufactured in 16 plants
  on five continents
• Standardisation
• Common base architecture and engineering
• Approximately 40 of the Corsas features are
  standardised
• Influencing factors
• Global need for affordable small cars (except US)
• Common engineering platform allowed GM to reduce
  production costs

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GM Opel Corsa

• Adaptation
• Features
• Each region chooses different engine,
  transmissions, suspensions etc
• i.e. Brazil
• Removed all of the European required safety
  features to lower cost
• Added a 1.0L engine to take advantage of the tax
  break for vehicles with small engines
• Brand
• Vauxhall Corsa, Chevrolet Corsa, Buick Sail,
  Holden Barina

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GM Opel Corsa

• Adaptation
• Influencing factors
• Legal requirements for local content
• Local sourcing to reduce costs
• Accidental global appeal
• GMs regionally based structure and culture
• Difficult to leverage and share resources

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Global Branding

• Global brands
• Brands whose
• positioning,
• advertising strategy,
• personality,
• look and feel
• are, in most respects, the same from one country
  to another

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Global Branding

• Benefits
• Economies of scale
• Packaging
• Advertising
• Bargaining power
• Distributors
• Potential partners
• Basis of differentiation
• Insulation from price-based competition
• Global consumer base
• Value of intangible assets

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Global Brand Value (Interbrand 2003)
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Global Branding

• Obstacles
• Elusive economies of scale
• Forming a successful global brand team can prove
  difficult
• Cannot simply impose identical brand attributes
  on all markets
• Regional renaissance
• Rise in global consumer activism
• Demands for local accountability

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Case Stella Artois
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Summary Key Points

• Factors encouraging standardisation
• Economies of scale in production
• Economies of scale in RD
• Economies of scale in marketing
• Increasing economic integration
• Global target market
• Global competition
• Global position
• Geocentric orientation

• Factors encouraging adaptation
• Different tastes, preferences and values
• Different usage conditions
• Local competition
• Government regulations
• Disparity in income levels
• Language differences
• Organisational structure
• Ploycentric/Regiocentric orientation