Analyze the Advantages and Disadvantages of Using a Global Brand Name

2797 Words Dec 5th, 2010 12 Pages
Mercier du Paty de Clam
Laetitia (10902550x)

Analyze the advantages and disadvantages of using a global brand name

INTRODUCTION
Nowadays the global market is quite attractive for high competition environment. In order to be visible in global market, brands can be used to play an important role. From marketing point of view, brands are the means that consumers use to distinguish products and services based on essential and non-essential attributes and they are a source of business’s differential advantage.
When the company exports a product label, it has the choice between using: specific brands in each market (local brands), or a single brand for all its foreign markets (global brand).
The decision between these two
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It can pass the costs of R & D and production costs over a larger volume of production and thereby reduce the unit cost total. The global scale permits huge economies as the benefits of scale taken from the experience in one market are developed in others.
They also provide opportunities for economies of scale in advertising, distribution, and product design. Geoffrey Randall argues that “what the marketing people must do is ensure that cost savings (in whatever area), do not damage the brand.”
This reduction of costs is conversely related to the fact that the firm will no longer have to spend much of their time in launching their products or services. The reason behind this is the fact that the global name of the company had already established its name in the market.

For example, the agency of communication, Mc Erickson has saved $ 90 million in production costs to Coca Cola in the past 20 years thanks to the realization of world movie.

* It gives a global image of products and this image appears as a coherent image.
The brand is the main vector of the company, its products and its services markets. In short, it acts as a summary of information, quality