International brand management: the cases of Nike, Danone and Coca-Cola

Résumé du document

Globalization is a business strategy. Globalization has allowed developing countries to earn money on assets through investments. The related absence of government intervention enabled reduction in corruption, elimination in trade regulation, liberalization of capital markets and an increase in competition. While these processes kept going, jobs were created, technology spread, investment became deep and wages converged. According to David Dollar (2001) globalization demonstrated increased average growth rates and a stable gap between the rich and the poor countries. In the past, local brands were leading the market but these days most of the companies are going global and they are trying to make their brands global, regional or sometimes hybrid (both global and regional). Three main reasons have forced the companies to create global and regional brands (Peter Doyle & Philips Stern). The most important reason for this branding strategy has been reducing the cost.

Extraits

[...] Because in this era of globalization and internet; it is easy to build a global brand. Also global brands have a sustainable competitive advantage and they are making a lot of money via loyal customers. For example Procter & Gamble consistent on improving European brand strategy; it is trying to have the same products, the same name, the same packaging, the same positioning, and use the same advertising in whole Europe. Also it is trying to have a brand portfolio for consumers' needs. [...]

[...] The analysis of this success will be done in comparing the 4P's of the marketing MIX used by Danone in France and in United States. It will show how Danone adapted its brand Evian, its product and its general marketing MIX to the American market in order to become efficient in using a local brand strategy. The product The products line in France and in the United States for the brand Evian is already different. Furthermore, the colour, the packaging and the general presentation of the different bottles in France differ from those in the United States and, then, show a different positioning for instance. [...]

[...] However, the choice is more complex for companies, as there is no universal efficient strategy: several factors have to be considered, such as the nature of the product, the size and composition of the market This is why some companies opt for a hybrid strategy, by finding a right balance between the brand feature that have to be globalize and some that should be adapted to local environments. In this way, Coca-Cola is maintaining its worldwide success and worldwide identity by adapting discreetly its brand to every local environment. Thus, internationalize brands is a complex and unsure process: every company has to adopt the strategy that fits the most with its particularities. [...]

[...] As soon as competitors introduce similar products Nike lowers the price to sell the segment below early adopters, Nike skims the market by receiving the maximum price from the different segments in the market. The company uses the global pricing strategy and the price for the products is same in every country. For example one Air Max shoe of Nike is nearly $44 for all countries where it is possible to see Nike products. The Distribution Nike system of distribution can be designated as a multi channel system. [...]

[...] (American Marketing Association) A core product upon which basic marketing features and then augmented attributes are superimposed to differentiate and add value to it. (Doyle & Stern, 1994) Brand equity: Additional cash flows generated for a product because of its brand identity. (Doyle & Stern, 1994) Brand image: The set of beliefs that customers hold about a particular brand. (Kotler) Brand expansion: The exposure of a brand to a broader target customer market, geographic market, or distribution channel. (DNA Institute) Brand identity: A unique set of associations that the brand strategist aspires to create or maintain. [...]