Replicating a brand’s success internationally can be a great way to multiply its profits. Culture and customs vary across the world, however, so what makes a brand successful in one country does not guarantee success elsewhere. Local brands can tailor their products and communications to the specific mindset and priorities of local people, but international brands can be equally compelling if they have a brand purpose related to a fundamental human need, relevant the world over. Here are some examples in the following illustration.
International brands can also benefit from economies of scale related to production, marketing and innovation, making their products more price competitive and profitable. To realize these efficiencies, international brands need ways of ensuring that brand positioning remains as consistent as possible in all countries so that new products and marketing activities can be shared. From an organizational point of view, a hub-and-spoke model can work well, such as illustrated here.
The central marketing function develops the global brand strategy and positioning, leads product innovation and produces brand development content, all shaped by feedback about consumer needs and preferences from the countries. Local teams decide which innovations to launch, choose from or adapt the centrally produced brand development content and develop their own activation content and media plans. This approach creates a lot of efficiency while providing enough flexibility for local teams to optimize the marketing mix for the culture, market context and media environment.
A common variation of this model involves having several lead countries that develop innovations and brand development for their country and other countries with similar needs. This means that development is led by teams that are closer to the end consumer and works well if countries fall into obvious groups, which may or may not be related to geography, each with distinct needs.
Contributed to Branding Strategy Insider by: Dan White, author of The Soft Skills Book, The Smart Marketing Book and The Smart Branding Book
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