Unit 7 - Brand Analysis and Strategy across Multiple Markets (New)

There are four benefits to the global brand proposition model:

- analyze brands in local and global context - define brand influences in specific markets - remove global vs. local tensions - inform strategy development

Brand recognition involves two types:

- brand discrimination - brand connections

Brand perception has three areas:

- brand domain - brand reputation - brand affinity

Brand concept is influenced by three factors

- brand positioning - brand identity - brand personality

There are three types of conventions in branding:

- category - needs - culture

Measurement tools for gathering information on the external environment include:

- category conventions (promotional analysis) - needs conventions (lifestyle and qualitative studies) - cultural conventions (anthropological and qualitative studies)

Brand reputations have three qualities:

- contextual (based on region or founder) - intrinsic (based on excellence) - associative (based on endorsement)

External analysis focuses on three areas:

- conventions - brand perception - brand recognition

Established domestic brands expand into foreign markets for four reasons:

- economic downturns - slow growth rate - price erosion - product life cycle reasons

Seven misconceptions should be avoided in developing business strategies:

- equating first mover advantage with guaranteed success - making reach a primary goal - using brand extensions to soon - relying too much on a partner (co-branding) - disregarding differences - overemphasizing technology - assuming similar needs require similar solutions

There are four dimensions of brand affinity:

- functional vs. emotional - cosmopolitan vs. native - ego vs. society - empathy vs. association

Masculine society consumers are influenced by:

- innovation - price conscious decision making

Uncertainty avoidance society consumers are influenced by:

- innovative products - brand loyalty - impulse buying behavior - reaction to over-choice

Consumers categorize brand as four types of domains:

- leaders - contenders - also-rans - flankers

Brand discrimination categorizes brands into six types:

- niche - landmark - indistinct - navigation point - labyrinth - sanctuaries

Individualism societies are consumers that are:

- not afraid to make mistakes - express tier individuality through purchases - rely on many information sources

Internal analysis looks at three areas:

- organization - brand concept - marketing

Brand reputation analysis includes various aspects:

- pedigree and origin (contextual) - quality and promise (intrinsic) - endorsed and personality (associative)

There are six different types of brand reputations:

- pedigree brand (e.g. YSL) - quality brand (e.g. British Airways) - endorsed brand (e.g. Colgate) - origin brand (e.g. Deutsche Bank) - promise brand (e.g. The Body Shop) - personality brand (e.g. Mandarin Oriental Hotels)

Maslow's hierarchy of needs includes five levels:

- physiological - safety - social - esteem - self-actualization

Companies should meet three basic requirements before taking a brand global:

- poses a valuable intangible asset - existing demand in new markets - consumer experience should be replicable

Internal conventions have four elements:

- power structures and control systems - rituals and routines - stories and myths - symbols

Brand domain analysis includes four aspects:

- products and services - media - distribution - solutions

Brand domain covers four areas:

- products and services - problems the brand solves - how consumers learn about the brand - how to obtain the products or services

High power distance consumers:

- relate quality with prestige and power - are more brand conscious

The degree of solidity in conventions depends on five factors:

- ubiquity - uniformity - stability - significance - depth

Business strategy includes three areas:

- vision and mission - strategic objectives - competencies and resources

An example of brand personality scale is

Aaker (1997) - sincerity, excitement, competence, sophistication, and ruggedness

What are the requirements for a domestic brand to be successful abroad?

It must possess a valuable intangible asset, there must be existing demand in the new market, and the consumer experience needs to be replicable abroad.

Global brand proposition model can be considered a

SWOT analysis for global brand management

Kraft improved the Oreo cookie to make it have more chocolate. Oreo's brand slogan is:

Twist, lick and dunk

Religious beliefs also

affect consumption (e.g. McDonald's India has no beef or pork products)

For brand extension, external analysis is used to

assess the fit and draw conclusions

External analysis should conclude with an

assessment of the brand's relation to other brands (brand recognition)

Brand recognition is how

aware consumers are of a brand and how they perceive it in relation to other rbands

Cultural conventions include people's

beliefs, values, customs and symbols

Brand affinity is the

bond brands build with consumers

Brand connections show how the

brand is evaluated in comparison to non-competitive brands

Strong brand personality impacts

brand performance, especially for products with experience qualities

For the brand to be able to operate value, the

brand strategy and business strategy should be aligned

Flankers are

brands for adjacent categories that offer slightly different products or services

Internal analysis of the organization looks at the

business strategy, internal conventions and internal legacy

If the brand has global appeal, brand management can be

centralized

External analysis helps companies to

compare potential target consumers

Brands that can master all four brand domains gives it

competitive advantage

Harmonizing global brands can only be successful if

consumer requirements are converging

The fictitious company ABC has developed a new chemical that treats water and adds vital plant nutrients to it. When put in flower vases, fresh cut flowers will last up to two months. ABC is planning to name the new product FLOFO, which stands for "Flowers Forever," and introduce it globally. ABC is conducting an external analysis to determine in which countries FLOFO should first launch their product. Which aspects of an external analysis should ABC focus on?

conventions

Economies of scale describes the

cost advantages that arise with increased output of a product

Which of the following is NOT part of the internal analysis of a brand?

cultural conventions

Landmark brands are

distinct and well-known

Niche brands are

distinct but not well known

Brand ambassadors are

employees who share positive feelings about the brand with society

Internal legacy can

empower a brand or stifle innovation

Chew-a-luscious, a fictitious chewing gum brand, is planning to extend their brand in France and Hungary. To this end, they are conducting some preliminary research. Some questions they seek answers to are: "How and when do the French and Hungarians use chewing gum? Where do they buy it and how is it packaged? What is the perception of chewing gum in France and Hungary? How aware are the French and Hungarian consumers of the Chew-a-luscious brand? What do they think about the brand? What are the differences between the two countries?" What term best describes the research efforts of Chew-a-luscious?

external analysis

Conventions range from

flexible conventions that can be challenged to solid conventions that should be followed

What is the best way to harmonize a brand globally?

focus on the core elements that create value for the consumer

To asses brand perception companies can use

functional analysis

To analyze whether to use brand extensions, companies can use the

global brand proposition model

Conventions are the

habits and customs of a culture and how things are done

When competitive threat is on the horizon, companies may want to

harmonize brands to leverage economies of scale

Brand perception analysis determines

how consumers view the brand in each market

External analysis is concerned with

how the brand is viewed and interpreted in the specific market

For corporate brands in dynamic industries its importance to focus on

innovation instead of heritage

Price erosion is usually a result of

intense competition

Brands wanting to expand globally need to focus on

internal analysis

Global brand proposition model links

internal and external analysis

Indistinct brands are

medium distinct but not well known

Navigation points are

medium distinct but well known

An example of category conventions is

milk is packaged in plastic bags in Canada, plastic jugs in the US, and cartons in Germany

Needs conventions are the way

needs are satisfied in each culture and country

Labyrinths are

neither distinct or well known

Brands that tend to expand quickly, compared to mass market brands are

niche market brands

Sanctuaries are

not distinct but well known

Experience qualities are products that can

only be evaluated after purchasing and experiencing

Internal conventions are the

organizational culture of a company

If there is a good fit in the brand's internal convention, there is the

potential for employees to become brand ambassadors

Category conventions are the specific

product categories and how the product is promoted and packaged

Marketing is delivering the brand experience through:

products, price, place and promotion that communicate the brand concept

Brand reputation describes the

qualities a brand stands for in the eyes of consumer

Hofstede's cultural dimensions can be

related to consumer decision-making process

Internal legacy is he

reputation of the brand in the company (e.g. founder, leader, milestone)

Global brand proposition model combines

strategic planning and the brand environment into an analysis tool that can be applied globally and locally

For brand extension, internal analysis is used to highlight

strategic reasons behind the extension and impact on brand concept

If the brand has local or regional differences, brand management can be

tailored to each local culture or region

Global brand proposition model strikes a balance between

the benefits of standardization and the need for adaptation

External analysis for new global brands includes

the types of conventions the brand is likely to challenge

Kraft conducted market research to improve sales in China. They found that Chinese consumers

thought the original flavor was too sweet and bitter

For brands that are global from the start, it's important to develop

unique positions and flexibility to defend against local and global competitors

Brand discrimination is how

well a brand is known and different from competition

Brand domain is

what is known about the brand