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Advantages And Disadvantages Of Global Branding

Posted by Anonymous on 250 Points
benefits and shortcomings of global brand name

  • Posted by Carl Crawford on Accepted
    hi secretmeteora,
    (read the full posting before you visit any links)

    welcome to KHE, i see you have been a member of KHE for some time. we would like it if you filled in your profile a little bit so we could know more about you and therefor be able to help you more.

    please read the Important guide lines (located to the right) #5 would be the of the most use to you for further posting.

    please tell as what YOU think so we can better answer your question and there fore not give you information that you might have already found.

    i am NOT tring to be mean or rude, and am sorry if you feel that i have been.

    Now on to the HELP for you:

    here is a past question:

    it might be of some use to you.

    try this power point presentation, pdfs, word doc, and websites i found:

    [inactive link removed]

    here is the google search i did:

    i came up with over 60,000 sites about the pros and cons of Gobal branding

    the links i gave you are off the frist two pages!!!! think of all the wonderful information that you could get if you just did a little work.

    have a nice day

    Carl Crawford

    [Moderator: Inactive link removed from post. 2/17/2011]
  • Posted by Blaine Wilkerson on Accepted
    WEll, I won't do the work for you, but I encourage you to examine these Global brands and come to your own conclusions (Hint: Benefits are related to profit , shortcomings are related to culture and brand equity)

    Good Luck!
  • Posted by Peter (henna gaijin) on Accepted
    Global Brand Name - Advantage
    - known through out the world
    - people can buy product anywhere in the world, so if they travel, they still can get their product

    Global Brand Name - DisAdvantage
    - expensive - you need to build the brand image everywhere
    - the benefits of your brand don't necessarily work everywhere. For example, a global beer brand won't play well in muslim countries, where alcohol is forbidden.
  • Posted by jose04 on Accepted
    Hello Secretmeteora

    GLobal brands need to first make an entry into the minds of the potential users. The customer's 'mind entry' door will open only when the knock is loud and clear enough. Once the door is open, the global marketer's message should be sensible enough to gain entry, after which sustaining and maintaining the attention and the customer's loyalty creates history. The chief challenge of the global brand (and its name) is to develop systems to understand and work with the globe as a village. How do you settle the geographic distances meaningfully? Other challenges are settling the time, cultural, economic and political gaps existent in various parts of the globe. Each of these challenges, though viewed as a disadvantage if looked at negatively, presents tremendous opportunities to use creativity and innovation in making the product reach out to the foreign cultural and economic variations.

    The great advantage of global branding is that it primarily provides an opportunity to allow the world at large to share in the goodness and righteousness packed in creatively into the product/service. Global product acts as a great feeder to the ambition, drive and guile of the modern entrepreneur.

    THe sustained firepower of brands like Ford, Sony, Canon, HP etc. in keeping the customer mind doors to be open and be receptive over time, is a testimony to their greatness as brand managers cutting across the time, distance, cultural and even racial divides in our world.

    That's it from me.

    Hope these thoughts help!!
  • Posted on Accepted

    How do you define a global brand?

    A true global brand needs to serve at least 34 countries or more according to Booze & Paton. Only Colgate, Lipton, Maggi, Palmolive are sold in 67 countries.

    I believe global branding benefits are mainly driven by common consumer positioning and economies of scale.

    Where industries have high R&D and advertising development the costs can be spread across countries. The global brand can also achieve lower running costs through large plants serving many countries, in addition to economies in bulk purchasing of raw materials, packaging, IT and advertising.

    These can only be taken advantage of if there is a fair level of homogeneity in consumer benefits and usage across countries.

    The trade off is the between the difference in revenue available from meeting local needs and the flexibility, local speed and the motivation of local managers and their teams because of cumbersome processes (P&G people know this too well).

    Other disadvantages to consider:
    Difficulty in achieiving a distinct brand identity
    The quality of products under the global brand name may vary
    Over extension of the brand
    Impact of bad publicity affects global brand

    Hope this helps you.

    Zahid Adil

  • Posted by Michele on Accepted
    The key downside to an undifferentiated global brand is that it does not take cultural differences into account. Search on Hofstader to get a sense of cultural theory.

    Another downside is the difficulty of implementation.

    A benefit that has not been mentioned is the comfort factor for the increasing number of global commuters (think MacDonalds - I know the big mac I buy in Tokoyo is the same standard as the one I buy in Cape Town).

    If you post your own interpretation to this question here you will get more input.
  • Posted by Sharon on Moderator
    Hello all. I am closing this question. This is standard procedure when the question author gets busy and falls out of the conversation for a while – or doesn’t understand the procedure for closing.

    Thanks for participating!

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