The global brand is more than just being accessible on the internet. From developing, market analysis to implementation of strategies, a global brand needs core business values.
Before moving further the different brand-building strategies, let’ understand the meaning of global brand first:
What is Global Brand?
A global brand is a brand that is running successfully throughout the world. McDonald’s, Coca Cola, Nike, Apple, Google, and Adidas are examples of renowned global brands.
To make your brand popular at the global level is not an easy task. A firm should have to focus on the following key areas:
- Identify the target audience
- Understand your brand performance at the global level
- Market research including competitors
- Make a list of crucial decisions which has to be carried out at the central level and at the local level
What are the steps behind brand globalization?
Brand globalization consists of phases as per the importance and popularity:
The first step to introduce a brand at a global level is to develop a brand identity. Brands must be careful while launching at the global level is to maintain their recognization at the time of expansion.
There are several factors that may take a hit in other countries. It may take time to rebuild their confidence again.
Brands should be careful at the time of entrance into a new country through market analysis. The following factors must be studied properly before globalization:
- Existing market size
- The purchasing power of consumer
- Consumer preferences
- Distribution channel
- Market barriers
Access market size
A good brand should be the one that’s different from their competitor’s products or services. So, when it enters the new market or country, make sure it adds some value and has long term popularity.
This is the reason most of the brands are getting higher results after introducing multi-level branding. There are two different methods to gain productive results:
- Creating a new category: In this, the parent brand steps into the market with its products having no competition from their competitors. It attracts better negotiations with distributors who really need inventions in products.
This demands a significant investment in marketing and advertising activities. In 2001, when Garnier used this method while launching Fructis Style. It ultimately helped them in establishing as leaders in several countries like China, Brazil, and the USA.
- Segmentation: Another feasible solution is to implement a differentiated product in the parent category.
At the time of launching a product into a new market, a brand should be capable enough to adapt to the taste of the consumers. An adapted product brings results in rapid growth in the brand.
To create the buzz around the countries, set up local campaigns in different markets. A popular brand, Red Bull, has used this marketing strategy to create awareness with the following:
- Red Bull Air Race in the UK
- Red Bull Indianapolis Grand Prix in the USA
- Red Bull Soapbox Race in Jordan
Strategies to build a successful global brand
1. Understand consumer behavior
It is imperative to understand that customer habits vary from country to country. They have different tastes and habits as per their culture and traditions.
That’s the reason why most of the brands become fail at a global level.
Barbara E. Kahn shared an example of a failed business strategy of Walmart in her book ‘Global Brand Power’, where Walmart has set up outlets in China near industrial parks when consumers preferred to shop closer to their homes instead of closer to work.
2. Brand Position
The right brand positioning is important if you really want to set up your brand at a global level. To get excellent results, one has to understand the competition and then analyze the competitive benefits from them.
Before market your brand, you’ve to understand how shoppers of that particular area or country doing shopping and how your brand is perfectly fit into their needs.
3. Brand Translation
All set to launch the brand at a global level? The next step is to ensure the brand name. Make sure it doesn’t have a negative connotation in the language of other countries.
For instance, a French brand of cheese has changed the name to Kibi when it was expanding in Iran. The reason behind this name conversion is its meaning. In Iran, Kiri meant rotten.
4. Think Globally
Your mindset is broad enough to adopt the different changes of your brand as per the global market structure. It’s obvious that your company is going to introduce new products in the future, so the brand name should be able to grasp all such changes.
For Instance, Boston Chicken was known to change the name to an appealing name, Boston Market, while expanding to several other foods.