Global Brand and Local Brand

The research question that will be investigated is: “To what extent does price promotion moderate the relationship between culture and quality perception of private labels?”

Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets

A firm 's international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, distribution and promotional strategies be adapted accordingly. In order for an international firm to function properly, cultural, social, economic, and legal forces within the country must be clearly understood.

From this course, I learned plenty of international marketing principles and knew that international environments are quite different from countries to countries. Each market you enter is different, and what works in one country or region will not work in another. As technology creates leaps in communication and transportation, the world continues to feel smaller and smaller. It is not that hard for companies and consumers to conduct business in almost any country around the world thanks to advances in international trade, and no doubt, the world is tending to be more international, diverse and muti-cultural in multiple ways. In most factors that influenced international marketing, culture has a great impact on it. A marketer always has to study about the local culture in-depth before offering a product to them, and I think that well- understanding of a country’s culture is really essential for international marketing.

As Fombrun and van Riel (2004) have proved, favourable reputations of brands bring higher financial returns. Accordingly, perceptions of trust, memories,

Brand competitors and the diversity of choice that is available to consumers, puts brands under pressure to offer high quality products and service, excellent value and a wide availability (Clifton et al., 2009). Brands must differentiate themselves from the competition and create an unforgettable impression.

Each country is a different market, with its own language, buying habits, ways of living, mores, business methods, marketing traditions, and laws. So instead of trying to organize new agencies with American personnel, most U.S. agencies purchase a majority. However, U.S agencies are not locked into the differences, because through global marketing, all of people’s needs around the world will be same toward U.S products sold abroad. Global consumer culture also depends upon global media to create a sense of global identify and memory without which any cultural identity is incomplete (Smith 1991).

According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”. However, as Keller highlights, a brand is also “something that has actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace”. Therefore, a brand is an identity created to differentiate itself from the competitors and to be remembered in consumer’s mind.

Kotler and Keller (2012, pp. 271-272) maintain that there are three main sets of brand equity drivers:

National brands benefit from brand equity and image through their extensive advertising and brand image. Marketing activities can influence the brand image however through pricing and promotions, jingles, slogans and 14 much more. The lower prices of store brands can either be viewed as a competitive advantage or ultimately be associated with lower quality. Brand Loyalty and Store loyalty have an influence on brand purchase choice. Many consumers have loyalty towards certain brands or products and this can be down to their habits and therefore tend to make habitual purchases i.e. purchasing what they always have. Previous research also states that store image also has a major influence on the purchasing behavior of consumers stating that if a store has a nice image and atmosphere then consumers will purchase more of their store brands. Research has also indicated that packaging can be a major influence in purchasing decisions especially at point of purchase and that many store brands try to mimic the packaging of national

Awareness of social and cultural norms has helped major multinational companies such as Coca-Cola, IBM, Marlboro and Pepsi succeed in being recognized as truly international brands. (Paul Gibbs, 1992)

Nation Brands: Nation Brands studies six verticals to determine the overall brand power of a specific

The following report takes into account the selection of two integral companies with global operations, Wal-Mart and Sainsbury. These two companies are critically assessed in link to their individual brand positioning strategies. Some strategies overlap each other whereas some are different, so both are discussed in context. The brand positioning strategy has taken into account the individual companies’ marketing objectives, sales pitches, expansive strategies and service competition that are provided nationally and internationally. Wal-Mart has its extensive operations, hence has a more generic service oriented approach where products are sold and retailed in an intelligent global manner. In this context, its international website layout, online presence and promotional campaigns are discussed that hopes to target mass social target audience. On the other hand, Sainsbury deals in the same business of retail and online shopping, but since its operations are more suited and favorable in the United Kingdom, that is why its operations are limited compared to Wal-Mart. Sainsbury deals with niche market segment, which is limited by some geographic and demographic segmentation. Sainsbury’s promotional and marketing campaigns are also less generic, and keep intact its present social and cultural context. Both companies are suggested for service development, market penetration and market developments. Since both companies are rates exceptionally agile, they still compete on the

This confusion, change, and complexity are even greater within the international world-wide marketing environment. The debate over the amount or extent of standardisation or adaptation is of long duration. Vrontis and Vignali (1999) comment that the debate on this came under discussion as early as 1961, with Elinder (1961) considering the idea with regard to world wide advertising. The early sixties first coined the term ‘global village’ that was further discussed by Roostal (1963) and Fatt (1964). Buzzell (1968) widened the debate by stating that it would encompass not just advertising, but the whole of the marketing mix. Buzzel (1968) argues that in the past, dissimilarities among nations have led a multinational company to view and design its marketing planning in each country strictly as a local problem. However, the situation has changed, and the experiences of a growing number of multinational companies suggest that there are 7

More so when it comes to international markets, it becomes a major test and challenge in employing competitive marketing strategies, (Kleindl, 2007). In any industry whether Beverage or Retail business, local businesses have managed to flourish, coupled with unique business laws, income levels, cultural differences and political forces it’s a challenge to penetrate into global markets and get a fair share of the market. As a result, it has become important for organizations, with global brands and products, operating in international markets, or planning to do so, to understand the types of strategies that are needed to penetrate local markets.