Global Brands vs Local

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

The choice to remain strictly local or explore their potential in the global market is determined by several factors within the brand itself. This all based on the resources the brand has that will or will not allow them to expand globally given the opportunity. This also includes the brands ability to understand and respond to their target culture in their product design and advertising. There are numerous local spirits brands in emerging markets that produce spirits specific to their culture. This will hinder then if ever they decide to expand in the global

This is beneficial to the company as it gives the business a stronger reputation around the world. The more international a company is, the more recognition it accrues. For example take Nike and Hyba, which are both athletic apparel companies. Instantly, Nike stands out because of the hype it gives off and the fact that almost everyone knows that brand since it is located all around the world. On the other hand, Hyba is only located in Canada. Thus, when given an American for example the opportunity to choose from the two brands, they are more likely to choose Nike as they would probably have heard of it, been to their stores and/or never heard of Hyba before. After Bean There, Drunk That expands to Finland and continues to grow, it becomes easier for them to expand to other countries. Thus, their chances of expanding to the rest of the world is higher once success is obtained one country at a time as progress does take

The process of globalization has important effects on companies' strategies. These effects mostly refer to their marketing strategies that must be adapted to the increasing competition in most industries, and to the challenges of the business environment. In order to improve their position on the market, some of these companies prefer to expand their business on international level. This means they develop global and domestic marketing strategies.

So, keeping those in mind the company can adopt a localization strategy in international markets; in every market that they have entered they may produce products just like they did to Asian people. Furthermore, lower prices can show products less qualified in international markets, especially in Europe and America, for those markets the company can came up with an alternative product line that is more niche.

Globalization – to increase the global presence it has been in the process of acquiring foreign brands

contributed to faster transfer of ideas and a global convergence in consumer tastes and values (Quelch, 1999). Global brands, as defined by Aaker and Joachimsthaler (1999), are those brands whose positioning, advertising strategy, personality, look, and feel are in most respects the same from one country to another. Reviewing the top 10 global brands, Quelch identified

Purpose – The objective of this study is threefold. First, the authors want to use taste tests to assess how four store brands that are differently

There are various factors that compel the firm to become locally responsive in the countries where it operates. Factors such as diversity of consumer needs products such as food and clothing would need to be adapted to suit the local market i.e. McDonalds serve a McAloo Tikki and a Masala Grill Veg but in the United Kingdom McDonalds sell a Big mac Burger and a Qutrar pounder. This is because in Indian cows are sacred therefore serving a beef burger or pork burger would have been offensive to the Indian market. Difference in distribution channel can also force an organisation to adapt thereby being locally responsive for example in Japan smaller retailers understand the needs and wants of their local market therefore MNEs use them to distribute their products. Cultural difference is a big factor which forces organisations to local respond to its local market, in Thailand the colour

Industrialized countries have the highest quality image, and there is generally a bias against products from developing countries. Within groups of countries grouped by economic development there are variations of image. For example, one study of COE between Mexico and Taiwan found that a microwave oven manufactured in Mexico was perceived as significantly more risky than an oven made in Taiwan. However, for jeans there was no difference in perception between the two countries. One might generalize that the more technical the product, the less positive is the perception of one manufactured in a less-developed or newly industrializing country. There is also the tendency to favor foreign made products over domestic made in less developed countries. Not all foreign products fare equally well since consumers in developing countries have stereotypes about the quality of foreign made products even from industrialized countries. A survey of consumers in the Czech Republic found that 72 percent of Japanese products were considered to be of the highest quality, German goods followed with 51%, Swiss goods with 48%, Czech goods with 32% and, last, the United States with 29%.

When a company goes global, it has access to thousands of buyers leading to profit maximization and create a better brand image.

China is one of the best samples in this case. As China is a huge country where contains with high amount of resources (both natural and human resources), its industry growth is extremely high (Venture Republic). Still almost of its products come out with cheap, lower quality image with the label “made in China” on them. Moreover, it also fames on counterfeiting. Most purchases that are made in China have got high percentage on being pirate the products’ right. Those affect lots on negative image among the international customers since they have got the negative image on cheap material goods. Even though Chinese products that want to enter in that market might have higher quality and standard than the

The subsidiaries outside countries had their production amenities and customized the brand name, packaging and market message to local consumers.

Understanding the relation between country image and consumer brand equity is very important for many reasons, first the spread of globalization and the increase of international businesses which facilitate the transfer of the products from one country to consumers in other countries. Second, firms in developed countries start to shift the production lines to other countries to benefit from the cheap labor and low transportation cost. Finally firms sell their products in other countries for strategic reasons economy of scale. Putting into consideration the importance of brand equity as an asset for firm and also it is a source of competitive advantage a firm can rely on in marketing its products, So it is important for the marketers to understand the relationship between country image and brand equity before changing the production to other countries. (Pappu, Quester, Cooksey, 2007).

Benefits – As is obvious, the benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well.