International Brand-Name

Standardization/Adaptation

What’s in a name?

Name 5 brands that summarize you or your personality.

Movies, music, people, sport, product, service, country

5 Brands

Branding

Brand name valuable asset to firm

__% of products success or failure based on brand name

Philip Morris invested over $18 billion to acquire Kraft and General Foods

4 times the value of actual assets

http://www.youtube.com/watch?v=du51uVOP86s&feature=related

Study

1. Propose framework w/ events and consequences of international brand-name standardization/adaptation

2. Develop hypothesis of this relationship

3. Test hypothesis using survey method

4. Discuss

Structure-Conduct-Performance (SCP)

ModelUsed to explain how market structure influences firms’ marketing strategies.

Market performance depends on market conduct which depends on market structure

Environmental Factors

Brand-NameStrategy

Market Structure

Cost Savings

Sales Volume

PerformanceConductStructure

H1

H2

H3

H4

Events and Consequences of Brand Name Strategy

Environmental FactorsReligion

Language

Education

Technology

Economy

H1: The greater the differences between home and host country environmental factors, the less standardized is the brand name.

Market Structure

Intensity of consumers

Intensity of buyers

Intensity of distribution

H2: The greater the intensity of market structure factors, the less standardized is the brand name.

Cost Savings

Standard product for several international markets = cost savings for economies of scale

Product specialization and modifications increase costs.

Standardization done for cost savings. Reduces Ads, inventory costs, promotions

H3: The less standardized the brand name, the less are the costs savings of the brand.

Sales Volume

1. Standardization viewed more negative than adapted brands because of competition and buyers attitudes

2. Total revenue increase with standardization because locals have more positive attitude towards global brands and foreigner travelers recognize product.

H4:The less standardized the brand name, the greater is the sales volume for the brand.

Study Procedures

Survey method

680 U.S. corporate marketing executives with variety of products

Results

___% used same name

___% used different name

Supported or not?

H1: Environmental factors

H2: Market structure

H3: Cost savings

H4: Sales volume

H1: NO

H2: YES

H3: YES

H4: NO