Question

Topic: Student Questions

Playing With Branding In International Market?

Posted by Anonymous on 2/28/2005 at 1:43 AM ET 250 Points
I came across a Korean cosmetics brand in Hong Kong and was surprised by how it was positioned there.

In Korea, that brand is targeting low- to mid-end segments but in HK it is positioned as a very prestigious upscale brand and priced high.

I'm wondering if many global companies use this kind of strategy (having different brand identities in different countries) and whether thoese strategies have been successful.
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RESPONSES

  • Posted by Mushfique Manzoor on 2/28/2005 at 9:26 AM Accepted
    hi semosemo

    yes, many MNC companies position their brands in different ways in different countries. some examples apart from what Sanjeev has already said.

    #1. in south asian and ASEAN countries, Toyota positions its Camry as a modertely luxury car in upper segment, but in Hong Kong you will find Camry is used as Taxi.

    #2. fast food giants like McDonalds, Pizza Hut, Domino's are all positioned in convenience segment while they are positioned in premium segments in South Asia

    examples can go on and on.

    this kind of strategies do work but also depends on which market you are actually enterng with this strategy. MNCs usually follow this strategy in markets whose income level and economy is not at par with the home market and the new market has a premium segment which will give the brand the desired revenues/profits.

    hope that helps.

    cheers!!
  • Posted by SRyan ;] on 2/28/2005 at 11:46 PM Accepted
    Consumers simply may not know any better.

    Here's another cosmetics example for you: Lancome.

    In the U.S. it's an expensive department store brand. My friend in France says it's more like a drug-store brand there, like Maybelline or Revlon.

    Who knew??
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