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1、Managing Global Brandsfor Economic ProsperityManaging Global Brandsfor EcoWhy Global Brands MatterTransfer of culture and ideas across bordersEconomic engines of growthCreate jobsImprove the lives of peopleInstill trust and confidence1Why Global Brands MatterTransfGlobalization ChallengesGlobalizati

2、on of commerce and media creates a marketplace divided not by national borders but “cultural neighborhoods.”Balancing global brand integrity with local cultural authenticity.Brands without a “local touch” are perceived as “foreigners”.Culturally relevant brands perform better everywhere both in the

3、U.S. and around the world. How you manage your brand will determine its success or failure in the global marketplace.2Globalization ChallengesGlobalSource: RoperASW, July 2003The Shifting Landscape of Global BrandingPresents serious implications for American companies abroad:Rising nationalism: incr

4、easing numbers of global consumers have grown “wary” of American cultureEconomic uncertainty: of nearly 40 leading global brands, 11 of the top 12 American multinationals saw their brand power decline; 9 non-American brands experienced improved ratingsCorporate scandals: In ranking the trust-level o

5、f leading companies worldwide, the study found American organizations dominating the bottom of the list.3Source: RoperASW, July 2003TheThe Worlds 10 Most Valuable BrandsRankBrand2006 Brand Value (Billions)1Coca-Cola$67.02Microsoft 56.93IBM 56.24GE 48.95Intel 32.36Nokia 30.17Toyota 27.98Disney 27.89M

6、cDonalds 27.510Mercedes-Benz 21.8Data: Interbrand Corp., JP Morgan Chase, Citigroup, Morgan StanleySource: Business Week, August 7, 20064The Worlds 10 Most Valuable The Biggest Gainers Reflect New Breed of CompaniesRankBrand2005 Brand Value (Billions)2006 BrandValue (Billions)Percent Change24Google$

7、8.46$12.38+46%91Starbucks 2.58 3.10+20%47E-Bay 5.70 6.76+18%69Motorola 3.88 4.57+18%75Hyundai 3.48 4.08+17%Data: Interbrand Corp., JP Morgan Chase, Citigroup, Morgan StanleySource: Business Week, August 7, 20065The Biggest Gainers Reflect NeWhat Is A Brand?What Is A Brand?“A brand is a name, term, s

8、ign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competition.”American Marketing Association7“A brand is a name, term, signWhat Is A Brand?Asset that drives premium pricing and futur

9、e cash flowsSignal of quality and a trust markShorthand way of simplifying complexity when making choicesRelationshipA set of rational and emotional associations that identify and differentiate a company or its offerA form of self expression8What Is A Brand?Asset that dri“It takes 7 to 10 times the

10、cost and effort to secure a new customer as it does to keep an existing customer”“An increase in customer loyalty of only 5% can lift lifetime profits per customer by as much as 95%”“50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibil

11、ity and trust.”CustomerLoyaltyandAdvocacyPremiumPricing“I would buy again”“I would highly recommend”“I would travel farther”“I would wait longer”“I would pay more”Determinants of Brand Strength9“It takes 7 to 10 times the coUltimately, a brands meaning to consumers represents the sum total of the co

12、nsumers experiences with the brand either through direct or indirect means.10Ultimately, a brands meaning The Role of MarketingCreate superior customer experiences that drive unshakable loyalty, advocacy and profitable revenue growthManage, protect, leverage and enhance brandsEngine of innovation an

13、d ideas that drives business11The Role of MarketingCreate su“The business enterprise has two and only two basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs.”Peter Drucker12“The business enterprise has tThe Allure of Global BrandsEconomies of

14、scale across multiple marketsUniformity of imageResponsiveness to global customersEnhanced marketing leverageEfficiencies in scope in extending product/service lines under established brand across channels.13The Allure of Global BrandsEco“There is a trade-off between efficiency and effectiveness in

15、global brands. Operational efficiency comes from our strategic umbrella brands. But we believe there is no such thing as a global consumer, especially in a sector as psychologically and culturally loaded as food.”Peter BrabeckChairman & CEO, NestlSource: Financial Times, February 22, 200514“There is

16、 a trade-off between Managing Global BrandsFor SuccessManaging Global BrandsFor SucSix Steps to Managing Global Brands for SuccessEstablish Brand Strategy and ArchitectureDetermine Governance StructureDefinetheBrands IdentityEstablishaDistinctive PositioningAlignAll TouchpointsMeasureandReport Progr

17、essStep 1Step 2Step 3Step 4Step 5Step 616Six Steps to Managing Global BCreates the strategic framework for the relationships among the master or parent brand and other brands in the portfolioDrives clarity in the organization regarding the operating philosophy for the use of the brand and its roleSt

18、ep 1Establish Brand Strategy and Architecture17Creates the strategic frameworCompany Type Affects Branding ApproachUses single master brandSpans multiple products and servicesDescriptive names used with master brandCombines use of master brand with secondary brandsStand-alone brands used strategical

19、lyMultiple stand-alone brandsNo visible connection of brands to parentHouse of BrandsBranded HouseHybrid Brand House18Company Type Affects Branding ExamplesVirginVirgin AirwaysVirgin ColaVirgin RecordsBMWX5325525SONY WalkmanApple ipodTouchstone PicturesPlayStationProctor & GambleTideCrestPampersUnil

20、everAXEDovePondsHouse of BrandsBranded HouseHybrid Brand House19ExamplesVirginSONY WalkmanProcAlternative Global Branding ApproachesExamplesMaster brandSONY, BMW, Virgin, IBM, McDonalds, Starbucks, DellEndorserAn IBM CompanyIngredientIntel Inside, Powered by HPStand-aloneTouchstone Pictures, Tide, C

21、rest, PlayStation20Alternative Global Branding ADisney WorldDisney Theatrical ProductionsDisney ImagineeringDisneyland ResortsDisneyHandDisney Cruise LineDisney RadioDisneyland Paris/TokyoABC TelevisionESPNBuena Vista TelevisionMiramaxTouchstone PicturesHollywood RecordsCareful application of the Di

22、sney master brand allows it to remain true to its core essence while penetrating new markets using stand-alone brands.Profile of the Walt Disney Companys BrandingCore Essence: Wholesome Family Entertainment21Disney WorldABC TelevisionCareGovernance structure must align with and support brand strateg

23、y and architectureDegree of centralization determines level of control and flexibilityGovernance model must focus on executional challenges and core problems inherent in managing a global brandStep 2Determine Governance Structure22Governance structure must aligCentralizedEmphasizes brand as a core a

24、ssetMonitors consistency of brand positioning across multiple marketsTypically involves senior executives and CEO as brand championEnsures adoption of brand requirements across organizationLimits flexibilityDecentralizedEmphasizes flexibility and adaptation to accommodate local needsManaged by globa

25、l brand team that seeks support from upper managementNo single person “owns” global brandOrganization Structure23CentralizedDecentralizedOrganiCore ProblemsFear of losing local autonomy while being held accountable for resultsLack of awareness of the brands shared characteristics and challenges acro

26、ss marketsPoor communications that restrict idea exchangeLittle understanding of local marketers practicesInadequate support from corporate center and inflexible and static guidelines24Core ProblemsFear of losing loProvides organizational touchstone, both internally and externallyBasis for strategic

27、 roadmap guiding brand positioning, communications, brand extendibility and measuresStep 3Define the BrandsIdentity25Provides organizational touchsBrand Identity Provides Strategic DirectionBrand EssenceSummary of the brands identity the heart and soul of the brand.Core IdentityCore values, key comp

28、etencies and associations that remain consistent across products, markets and through time.Extended IdentityElements that provide texture and completeness; personality, organization, product characteristics.26Brand Identity Provides StrateVirgins Brand IdentityBrand EssenceCore Identity ElementsExte

29、nded Identity ElementsRichard BransonValueInnovationServiceQualityFun &EntertainmentPersonalityUnderdogIrreverence27Virgins Brand IdentityBrand E=Irreverence=Performance, passion for driving=Authentic, real, original=Wholesome family entertainment=Innovation=UbiquityAll Brands Must Articulate Their

30、Brand Essence And Manage It Consistently28=IrreverenceAll Brands Must AWhat is positioning?Grows out of the brands core identityThe case you make which establishes your relevance and superiority vs. the competition. It is the space you want to occupy on the consumers mental map that distinguishes yo

31、ur brand while redefining your competitorsStep 4Establish a Distinctive Positioning29What is positioning?Step 4EstaBMWs Brand PositioningBrand EssencePerformancePassion for drivingCore Identity Elements Heritage/engineeringQualityStylingLogoExtended Identity Elements FunYouthfulNimbleStatus“The Ulti

32、mateDriving Machine”30BMWs Brand PositioningBrand ERole of a TaglineAccelerates and reinforces understanding of brand by enhancing meaning, relevance and/or appealFunctions as a succinct, catchy and compelling phrase to communicate what the organization is, how it does business or its benefits to au

33、diencesWorks in conjunction with the name and design system to express overall identityEndures over time, playing a significant role in establishing and maintaining brand identityServes as an internal “rallying cry”31Role of a TaglineAccelerates aTranslation SnafusExampleBraniff Airlines“Fly in Leat

34、her”“Fly Naked” (Spanish)Coors Brewing Co.“Turn it Loose”“Suffer from Diarrhea” (Spanish)ClairolMist Stick Curling Iron“Mist” = Slang term for manure (German)GerberBaby Food PackageAfrican companies put pictures on label of what is inside containerPepsiCo“The Choice of A New Generation”“Pepsi Brings

35、 Your Ancestors Back from the Grave” (Chinese)Purdue Chickens“It Takes a Tough Man to Make a Tender Chicken”“It Takes A Sexually Stimulated Man to Make a Chicken Affectionate” (Spanish)32Translation SnafusExampleBraniPositioning ChallengesRelevance across marketsEnsuring broad understanding across o

36、rganizationDegree of adaptation permissible while being true to brand essenceManagement of partners in consistent implementationOngoing monitoring33Positioning ChallengesRelevancAchieving Cultural Relevance and AuthenticityCultural relevance is all about the seemingly small issues needed to make bra

37、nds feel friendly to a consumers culture, language, lifestyle, mors, habits, values, etc. Cultural relevance is more than translation!Achieving cultural relevance starts with development of communications concepts and messaging strategies that are meaningful globally34Achieving Cultural Relevance Ch

38、allenges in Achieving Local Relevance: Merrill LynchProblem“Tagline “Tradition of Trust” did not work in the society where banks are not trusted.SolutionAdapt the tagline to position ML as an educator whose experience deserves trust.Merrill Lynch Bull in Russia35Challenges in Achieving Local Challen

39、ges in Achieving Local Relevance: Merrill LynchProblemRussians saw nothing but food in the realistic depiction of Merrill Lynch “Bull” symbolSolutionA highly stylized version of the logo was developedMerrill Lynch Bull in Russia36Challenges in Achieving Local Challenges in Achieving Local Relevance:

40、 AllstateTaking into account Chinas “one-child” population control policy, the familiar Allstate “good hands” symbol (which depicted a typical two-child American family) was modified to reflect the reality of consumers lives in China.Making an American BrandRelevant in China37Challenges in Achieving

41、 Local Challenges in Achieving Local Relevance: Coca-ColaWhen Coca-Cola was first introduced into the Chinese market, Chinese characters selected sounded like Coca-Cola but actually meant, “bite the wax tadpole.”New characters were selected that are pronounced, “Coca-Cola” but mean “The taste that m

42、akes you happy.”In Russian, “enjoy” was changed to “drink,” because “enjoy” has a particular sensual connotation, in that language, that doesnt apply to soft drinks.Keeping The Classic Look and Taste Worldwide38Challenges in Achieving Local Challenges in Achieving Local Relevance: Coca-ColaFor all n

43、on-Roman alphabets such as Arabic, Cyrillic, Greek, and many others, unique, proprietary Coca-Cola typefaces were created that are both culturally appropriate and in sync with the companys global image.Keeping The Classic Look and Taste Worldwide39Challenges in Achieving Local Challenges in Achievin

44、g Local Relevance: Mitsubishi “Pajero”Several years ago, Mitsubishi planned to introduce its popular European SUV, the “Pajero,” in North and South AmericaAlthough the word “pajero” carries no negative connotations in the Castilian Spanish spoken in parts of Europe, in Latin American slang the term

45、has a seriously derogatory sexual meaningThe vehicle was renamed and released in the Americas as the “Montero” averting a potential global branding disasterAverting a Branding Disaster in the Americas40Challenges in Achieving Local 4141Market developmentEconomic differencesCulture, sociologyCustomer

46、 perceptionCompetitionPhysical conditionsLawsLevel of customer similarityPolitical environmentMarketing infrastructureTechnologyLocal tastesReasons for Adaptation42Market developmentLawsReasons Every touchpoint with customers or prospects is an opportunity to reinforce the brands position and core m

47、essages everywhere the brand is available.Critical to understand and control all touchpoints across the entire customer experience from the pre-purchase, to purchase, to post-purchase experience.Given instantaneous availability of information and communications, news of a superior customer experienc

48、e will travel fast as will news of a bad experience or product.Step 5Align All Touchpoints43Every touchpoint with customerRelentlessly Drive Your Brand Promise Through All Touchpoints ConsistentlyThe 360 PerspectivePublicRelationsCrisis ManagementAdvertisingEmployeesRetail PresenceSponsorshipsAnnual ReportCustom

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