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Global Branding - Essay Example

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The report examines the reasons why some companies adopt similar names for their products in different countries and the circumstances when this may not be favourable. It may be necessary to maintain the same brand name in international markets if there is a need to portray certain good qualities about the mother company, if a company has expanded through organic growth, if the company sells a limited range of products or if the company employs similar technology, if there is a hierarchal organisational structure and if there is a wish to leverage domestic power to other international markets…
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Global Branding Essay
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Global Branding

(Aaker, 1996)
The world is becoming increasingly global. Companies are not just focusing on local markets in their service and product provision. They are now looking for new and more promising markets outside their borders and also need to incorporate market forces coming from their global competitors. The corporate world is now characterised by a fast flow of products internationally, advertisement is also done across borders and there is a need to ensure that marketing strategies reflect these changes. (Kapfer, 1997)
Brands are a fundamental part of any company's key strategy. This is because brands give firms an identity. Keller (1998) asserts that brands help to strengthen their customer base and also to take away power from retailers alone. Aaker and Keller (1990) go on to add that a brand helps to solidify ones position in any market. However, there are some key questions that arise when dealing with the issue.
Firms need to ask themselves whether they would like to maintain the same brand name in a different countries and locations. ...
These questions need to be addressed so as to ensure that a given company take advantage of all the opportunities available in the international market.

Reasons why a company should market its products under a global brand name
Some companies may have made quite a name for themselves in the domestic markets. Their products may have such a unique place in their product markets such that they have considerable influence there. It would therefore be advisable to maintain the same brand for such companies when venturing into global markets. Caller (1996) asserts that this will go a long way in ensuring that such companies are able to leverage their power in the domestic market to international markets. A good example of such a company is Coca Cola. It started with a very strong image in its domestic market and decided to maintain its name throughout its market.

Another aspect that could make certain companies stick to the same brand name is the integration of regional markets. For example in Europe, there are numerous countries that are now operating under the same currency and targeting each other. Consequently, it would be advisable to create brand names that can accommodate numerous countries all at once. The European Union has changed the traditional approach of locally centred products. There is a need to incorporate brands for the EU markets. (Featherstone, 1990)

Some companies may be dealing with certain products that have relatively equal levels of demand in the target markets they are dealing with. A good example of such a company is Shell. The Company deals with various petroleum products. These are items that are in high demand in different parts of the world. It was therefore advisable to create the same ... Read More
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