Global branding of Unilever and Nestle

Résumé du document

This report describes the global branding strategy of Unilever Plc. and Nestle companies. It shows the importance of cultural differences and problems that might arise if they are omitted in advertising. It explains why to adapt the products locally rather than standardize and the way how each company perform it. The report sets the recommendation for both companies to focus on emerging markets with high demand for basic products and to try to gain their share on mature markets again, which offer a big potential due to the changing socio and economic patterns.

Introduction
The world has become increasingly globalized, a term that Levitt (1983) used in his work, to point out that firms can be using the same standardized products all around the world, where both parties, the firm and the consumer would benefit. The power of technology and similar social behaviors would allow this idea to be adopted resulting in economies of scale and bringing cheaper products to customers. However, the world of international marketing is not that straightforward and to succeed, different strategies might have to be applied to extend the same message, vision, names or logos. Brands have to figure out whether standardization is the way forward, which is offering an efficient and economical way of managing a product portfolio or on the other hand, the idea of a specific brand to link to a deeper meaning for the customer. Even though people might be the same around the world; since their needs, habits and beliefs are not, brands such as Unilever or Nestle have to choose carefully whether to standardize or adapt and the way how to perform it.

Extraits

[...] Last accessed at: HYPERLINK "http://adage.com/globalnews/article?article_id=142461" http://adage.com/globalnews/article?article_id=142461 ARENA, N. et al. (2010). Nestlé's Nescafe International Advertising Strategy. San Diego, San Diego State University. BARNEY, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management 99-120. BRANDFREAK.com. (2009). [...]

[...] Marketing Research (September), 24-33. HOFSTEEDE, G. (2001). Culture's Consequences, Comparing Values, Behaviors, Institutions, and Organizations Across Nations. SAGE Publications. KELLER, K.L. (2001). Building Customer-Based Brand Equity: A Blueprint for Creating Strong Brands. Working Paper, Cambridge, MA, Marketing Science Institute (01-107). KELLER (1998). Strategic Brand Management: Building and Measuring Brand Equity. [...]

[...] Global Branding 1. Standardization vs. regional adaptation To create a strong brand identity with right meaning and getting positive responses from the customer is a hard task. (Keller, 2001) Global branding is an excellent way to spread the brand name internationally and to promote the name of the products ensuring that will not get unnoticed. One product is marketed across the globe in the same way, but for instance packaging, price or distribution could be adapted to local markets and specific conditions. [...]

[...] Axe deodorant going to clubs and offering free samples and performing a live show. Their Noodle Pott with Sticky Rib flavour has been advertised by rappers and Lady Gaga. Their products are a lifestyle, part of everyday lives. In China, Unilever has introduced a very unique project by making a 36 TV episode love story based on their antidandruff shampoo Clear. Nestle is lacking in their advertisement innovation style and on the other hand is trying to incorporate celebrity endorsement by promoting their products with known faces such as George Clooney with John Malkovich in their Christmas ad for Nespresso Ethical issues Ethical issues within advertisement are a very sensitive topic. [...]

[...] People would become more ethical conscious perhaps looking for organic or fair trade food, no animal testing etc. and most importantly would be willing to pay for it. (Laroche, 2001) Unilever and Nestle would have to focus even more on the quality standards in the production, Nestle is negatively linked to many product recalls and more total quality management is needed, packaging would have to be adapted too to give more information demanded by the consumers. According to a study, only 7 out of 100 Asians and Russians use deodorants (The Economist), a cultural habit, however Unilever might change this very soon as people would be willing take more care of them. [...]