Written task B:
Going Global:
Explore global brands and how large companies have gone global and what lessons can be learnt. Discuss your examples of global and local companies and reference any sources clearly using the Harvard referencing system. Reference at least 3 sources. One reading will be posted on Blackboard to help you get started.
When a brand decides to take the initiative of going global it takes into account the responsibility of reflecting the same set of values around the world. Through economic globalization many businesses have begun to expand to different cultures and markets, with the ease or air travel and technological breakouts businesses have the opportunity to work from remote locations.
As companies begin to expand into new cultures and societies they seek to emphasize and communicate their brand value more as individuals within cultures have a common mindset and may be resistant to change. By changing societal values that may help induce a brand to challenge the status quo. A maximizer bra company found an opportunity to launch push up bras in parts of Asia where women there are used to dressing modestly. With the impact of movies, Maximizer was able to challenge the modesty values and begin a new trend (Gelder, 2003).
The economic globalization has made an increase in the selection of products for consumers allowing them to have a wider variety to choose from. As consumers compare options the transition costs increase, the simplicity and trust worthiness of a brand when entering a foreign market plays a vital role. When Domino’s Pizza first entered the Indian market they decided to offer the same menu, believing that the US tastes are universal. After moving into smaller towns and rural areas they began to present localized toppings such as ‘Chicken Chettinad’ realizing that ‘you cannot change the taste buds that were developed more than a thousand years ago’ (Geissel, 2006).
For a company to succeed in a global market it is vital for them to understand that a society is sturdier than any company or product. Global brands always consider the importance of culture to a consumer, although they can be alienated from it, they cannot be strangers to it. When Kellogg’s first launched Corn Flakes in India, introducing a Western product to a strict society they faced many difficulties. Globalization may be seen to have as a trend but cultural customs and regional identities cannot be changed over night. It is rather easy for brand managers of global brands to perceive the world and its consumers as homogenous but realism is different. “‘There is a bigger opportunity in localizing your offerings and the smarter companies are realizing this,’ says Ramanujan Sridhar, chief executive officer at Indian marketing and advertising consultancy firm Brand Comm” (Haig, 2003).
Hallmark greeting cards is a popular company in both the UK and the United States. With their variety of cards that have a sentimental poem and a few nice words they have been able to win the British and American market. However, when trying to open in France they face difficulties, as pre-printed messages did not appeal to the French. Brands need to acknowledge cultural differences. A very few number of brands have been able to go global without changing their formula to suit the culture, not even Coca-Cola or McDonald’s (Haig, 2003).
Bibliography
Geissel, S., 2006. Global Brands and Culture. Germany: GRIN Verlag.
Gelder, S., 2003. Global Brand Strategy. USA: Kogan Page Limited.
Haig, M., 2003. Brand Failures: The truth about the 100 biggest branding mistakes of all time. USA: Kogan Page limited.