Question

Topic: Branding

Global Or Local Identity?

Posted by jplacroix on 50 Points
When should firms consider not following a global identity standard? We are constantly being asked when should a firm consider strict rules on how their identity and packaging is being applied around the world and when should they provide latitude to reflect local needs. What are the five to six characteristics that corporations and brand marketers should consider when making these decisions? I am writing a white paper and welcome your comments. Also let me know if I can quote your information in my paper.

Cheers
To continue reading this question and the solution, sign up ... it's free!

RESPONSES

  • Posted by Linda Whitehead on Accepted
    I have had experience with a global designer apparel brand we manufactured under license. The logo and brand colors should remain consistent across markets, although there should be consideration given to having more than one option of brand color standard. For example, in certain markets, certain colors may not be accepted by consumers and this needs to be taken into consideration.
    Packaging needs to have more flexibility. Different packaging formats are necessary to satisfy the needs of different markets and fixturing. Just ensure that the overall branding is maintained and consistent.
    Of course, different features may be more important in some other markets than others, and terminology will vary. The packaging copy should adjust as needed.
    It does happen that a brands positioning does vary from market to market, depending on the overall composition of the market. For example, the global brand I am referring to was viewed as medium to high end in North America, but definitely only a mid market brand in Europe. To increase the perceived brand positioning in Europe, packaging quality and format was designed to reflect a more competitive positioning in the mid to high end of the market.
    Hope this helps.
  • Posted by wnelson on Accepted
    Jean-Pierre,

    In general, aiming for universal packaging and identity is more desirable because of economies of scale. If you can buy more of the same materials and manufacture them identically and promote an identity uniformly globally, the company's product cost position will be better. When the benefits of uniformity are outweighed by the benefits of locally optimizing minus the costs of locally optimizing, then the correct position becomes locally optimized identity and packaging. Because of this, within the early stages of brand strategy, packaging design, and product design, much consideration must be given to designing globally with local optimization capabilities. This is where market research and analysis efforts pay off big.

    Some of the characteristics to consider when deciding on a globalization versus localized optimization are as follows:

    1. Local laws: In many cases, localities around the world have different packaging requirements based on local laws and sales outlet customs. If this is the case, then latitude for local needs must be contemplated, or you simply can't do business. For example, a product with packaging designed for the US market might need to be modified for Japanese or European sales because of packaging ecology requirements. You could design the package as "universal," but the cost might be prohibitive then.

    2. Local standards: In some localities, units of measure are different and need to be accommodated for local success. This is prevalent throughout the clothing industry. Sizes of shoes and clothing are different in the US, Asia, and Europe with European countries having differences too. Additionally, the UK and USA use the English system of measure versus the rest of the world uses the metric system. This aspect, in particular, can affect the packaging design, since some packages might not fit on the shelves if designed in the wrong unit system.

    3. Local customs: Local customs related to culture and/or religions may cause a need for local provisions in packaging and identity. In China, product or packaging colored red is considered lucky. In Japan, red is considered unlucky. As a manufacturer, you may choose not to offer red at all or you may choose to offer red for China and the rest of the world - whichever option provides the best benefits/cost scenario.

    4. Local language: In some cases, sale of a product NOT in the local language inhibits sales. An example of this might be a product with French, English, German, and Spanish text on the package, product, and instructions. These four languages would cover a large part of the world. However, when you want to sell it in China or Saudi Arabia, the language would have to be changed to suit the local needs.

    5. Local competition: If you have local competition in each locale and they are tailoring packaging and identity to the local market and fit the needs better than you, this could limit your market share. The packaging and identity may have to be locally optimized in this case.

    I hope this helps. And yes, you may quote me on this. I would appreciate a copy of the white paper and permission to reproduce it for purposes of sharing it with my prospects and clients.

    Wayde D. Nelson
    B$olutions, LLC

Post a Comment