MARKET SEGMENTS ? Regionalization is an important recent trend that, perhaps on
the surface, seems to run counter to globalization. ? Reasons for regional
marketing ? Need for more focused targeting ? The shift from national
advertising to sales promotions ? Drawbacks ? Production headaches ? Marketing
efficiency may suffer and costs may rise
2. 3. OTHER
DEMOGRAPHIC AND CULTURAL SEGMENTS ? For example, the importance for marketers
to consider age segments and how younger consumers can be brought into the
consumer franchise ? As another example, the 2000 census revealed that Asians
and Hispanics accounted for 79 million of 281 million people in the United
States and an estimated $1 trillion in annual purchasing power.
RATIONALE FOR GOING INTERNATIONAL ? Perception of slow growth and increased
competition in domestic markets ? Belief in enhanced overseas growth and profit
opportunities ? Desire to reduce costs from economies of scale ? Need to
diversify risk ? Recognition of global mobility of customers
Advantages of Global Marketing Programs ? Economies of scale in production and
distribution ? Lower marketing costs ? Power and scope ? Consistency in brand
image ? Ability to leverage good ideas quickly and efficiently ? Uniformity of
DISADVANTAGES OF GLOBAL MARKETING PROGRAMS ? Differences in consumer needs,
wants, and usage patterns for products ? Differences in brand and product
development and the competitive environment ? Differences in the legal
environment ? Differences in marketing institutions ? Differences in
STANDARDIZATION Vs. CUSTOMIZATION Indian consumer American consumer
7. 8. As
brand consultant Robert khan said. ” global branding does not mean having the
same brand everywhere” ? Standardization: same product-same communication
across the border or globally – Followed by electronic instrument ?
customization: to change or adopt product-communication according to the market
– As coke’s marketing mantra “think global act local”
8. 9. ?
Standardization-customization process- product communication No change change
No change change Straight extension Product adaptation Communication adaptation
9. 10. ? Why
customization: Meaning is different reading habits country 1 right left right
left country 2 Detergent Ad
10. 11. ?
taste, need , demand is different from one country to other ? Culture
difference: individual Vs. collectivism , masculine Vs. famine. ? Delivery
adaptation by domino pizza in different Countries because of culture ? because
in Britain anybody knocking on the door is rude Domino pizza home delivery ? to
get positing difference or country Of origin effect ” Tokyo beer”
11. 12. ?
Global brand strategy: we need to get attention over few basic issues while
making product brand in global market – Identify differences in consumer
behaviour. How he purchase and use product. – Adjust the branding program
accordingly through the choice of these customers – Then have a leverage
secondary association programme according to the market. – After the application
of these factors over the brand we need to focus on the implication, control
and measurement of these factors
12. 13. ?
Making the brand by the use of CBBE model : Salience- awareness about the
product useful for product recall and recognition Performance-its basically
related to the product features and its performance. Tailor product according
to the globally market Increase brand awareness Favourable brand association
Positive reaction Increase brand locality
Imagery: imagery means what is your product having mental map in the mind of
costumer. Should be carefully because each word symbol and picture represent
different meaning. So it hurt sentiment of people Source of imagery- ? Core
brand association ? Identifying points of parity and point of difference ? By
origin effect Judgement and feeling: brand judgement can be negative or
positive like good quality , credible and worthy. At this point judgement
provide feeling to the consumer like excitement, happy etc. ? making product
brand by the use of LSA in global market-
14. 15. ?
LEVERAGE SECONDARY ASSOCIATION BRAND Other brand placespeople things alliance
ingredient extension company employees endorsers events Third party Channels
Country of origin
15. 16. ?
Celebrity endorser: all good character related to celebrity gets transfer to
product and influence to the decision of the consumer. trustworthy intelligenc
e Likeabilit y Familiarit y attractiveness attractivenes s trustworthy
Familiarit y Likeabilit y
16. 17. ?
Resonance: it is a final stage in making any product globally brand here
costumer is having locality towards your product ? Resonance is depend on the
success of other parameters in the CBBE model. ? And you can have your product
as a brand now.
17. 18. Ten
Commandments of Global Branding 1. Understand similarities and differences in
the global branding landscape 2. Don’t take shortcuts in brand building 3.
Establish marketing infrastructure 4. Embrace integrated marketing
communications 5. Cultivate brand partnerships 6. Balance standardization and
customization 7. Balance global and local control 8. Define operable guidelines
9. Implement a global brand equity measurement system 10. Leverage brand
LENOVO:BUILDING A GLOBAL BRAND • In the year 2004 IBM’s personal computer
acquired by Lenovo. • By the year of 2004, 90% of revenue comes from china
market. • Lenovo sponsor “Turin Winter Olympics” in order to gain strong market
share in china and Asia.
19. 20. The
Global PC Industry ? 1970s- IBM introduced its first PC after microcomputer and
home computer. ? IBM relied on three key technical contributor- 1. Intel for
8080 processor 2. Microsoft for DOS operating system 3. Software for VisiCalc
20. 21. 1990s
? Internet Boomed ? Launching the set of basic standard for PCs by Microsoft
and Intel. ? Increase in the number of outsourcing and off shoring. ? Early
21st century major consolidation had taken place between HP-Compaq and
Contd………. ? By 2004 half of the PCs sold around the world came from Dell , HP
and Lenovo including IBM’s market share. RISE OF LEGEND: 1984- china academics
of science invest $25000 to form the New Technology Developer. 1987- Introduced
its original product Legend card.
Contd…….. ? 1990- Company launched their own PC. ? 1996- Launched their first
laptop and marketed its PCs carrying Intel Pentium chip. DEAL: ? IBM was an
opportunity to shed “Unprofitable operation”. ? Lenovo gained the right to use
IBM think pad laptop and think centre
23. 24. Think
Pad Legacy ? The research showed that in customer mind IBM and Think pad are
hard to separate. OPPORTUNITY: ? The way IBM and Lenovo sold PCs was very
complementary. CHALLENGES: ? Lenovo focus on the SMEs while IBM focus on
corporate and enterprise customer.
Organizational Changes ? September 2005 – Management restructuring that
integrated the original Lenovo and former IBM ? New international composition
and scope ? Company’s working language changed to English ? Working via
conference calls posed challenges ? 12-hour time difference between Beijing and
U.S. east coast also caused some strain
Branding Opportunities ? Opportunity and Challenge to build an international
brand using IBM legacy. ? Turin Olympics Sponsorship – a platform to showcase
its capabilities to the world ? Right to use IBM logo for five years
26. Best from East and West ? From Lenovo ? Understanding of
emerging markets ? Excellent efficiency ? Focus on long-term strategy ? From
IBM ? Deep insights into worldwide markets ? Best practices from western
27. Main concerns with customers ? Innovation would slow
down ? Quality would suffer ? Service and support would be outsourced overseas
Branding Alternatives 1. Master Brand Strategy 2. House of
Brands Strategy 3. Synergy Approach 4. Lexus/Toyota Strateg
Strategy ? Two main elements: 1. Build up Lenovo as a strong master brand 2.
Continue to strengthen the ThinkPad product brand, which was a special
franchise that could be leveraged to support the Lenovo master brand. ?
Differentiation: Innovation and Efficiency
Advertising Plan ?
“Maintain ThinkPad brand and use that brand’s strength to build the Lenovo
brand” ? Three phase advertising plan: 1. Worldwide Advertising campaign –
“ThinkPad” instead of Lenovo (maintain ThinkPad sales momentum) 2. “ThinkPad
Unleashed” campaign – Lenovo making ThinkPad even better 3. Third campaign
stress innovation for Lenovo master brand