A well-defined brand strategy is significant for firms with expansion goals.

Also, a strong brand

could be a powerful tool for a competitive edge to large or small companies.

With this in mind, list four benefits of a strong brand to business organizations.

The building and maintenance of a strong brand have endless advantages. These are four of the
main advantages I can expect to see with a strong brand:

1. Branding builds financial value.

Companies who publicly trade on a stock exchange are valued, much of this value is due to the
branding of the company. A strong brand often guarantees future business. Whether a company is in
the position to borrow funds for expansion or rolling out to an IPO, being perceived as more valuable
will make the process advantageous for the owner. The greater a company’s devotion to building its
brand value, the better the financial return from its efforts. (Deluxe Small Business Resource Center,
2019)

2. Brand equity maximizes new product launches.

One big advantage of strong branding is that it promotes new products and services. People will be
interested automatically as they already know a brand. So, a strong brand will help launch new
flavors, products, or services. (Cass, J.,2018)

3. Branding builds customer recognition.

With a powerful product, client awareness is developed. This implies that when a client purchases a
certain item or considers that a business provides a service, he or she recognizes the business in the
process. It is more likely that consumers will select the brand they recognize. (Fanaras, L.,2019)

4. Branding enhances credibility and ease of purchase.

A strong, well-known brand improves your trustworthiness with your customers, industry, and the
whole market. If the brand is reliable, it will most probably get the sale. The clients want to purchase
from businesses they like, understand and rely on. (. (Fanaras, L.,2019)

We live in an ever-increasing globalized society. Reflect on the challenge of global branding.

The big task for global branding is for marketers to decide whether to standardize or customize their
products. Standardization can be known as globalization, which means that standardization delivers
a standardized item regionally or globally. Minor alterations are usually made to meet local
regulations and market conditions. Customization is known as Localization whereby its appropriate
changes are made to match with the local changes. Marketers must address several issues when
attempting to introduce their brand to the foreign market. The major problem faced by the
marketer is to catch up with the customer needs and learn about the market characteristics of each
country. If the marketers want to be successful in different countries crucial decisions should be
made in choosing either to standardize their product and service’s brand or customize it to meet the
local market demand and maximize profit at the same time. (Essays, UK. , 2018).

What are the benefits of globalizing a brand?

Global advantages can be split into the producers ' advantages and the consumer's advantages:

Producers

1. A global brand delivers economies of scale for the company ( Levitt, 1993).
 2. Chances of establishing a global identity (Hsieh, 2002).
3. A cost-efficient platform for global line and brand extensions; a consistent positioning
strategy; promotion synergies; global organizational learning opportunities, and human
capital benefits that are gained through recruitment and retention of talented individuals
committed to global branding activities (Quelch, 1999)

Consumers

1. A global brand provides better-perceived quality, prestige, and status, and reflects greater
appreciation compared with domestic brands (Johansson & Ronkainen, 2005)
2. Consumers associate global brands with glamour, prestige and high status (Steenkamp et al.
2003; Kapferer 1992). Global brands convey status, power, and success because they are
associated with a powerful global elite of people (Holt et al. 2004).
3. Global brands offer consumers a sense of connecting with other consumers in distant places.
They help create transnational connections between consumers who feel like they belong to
a larger, global community (Holt et al. 2004).

What are the unique challenges to this type of branding and in your opinion, which areas of the
world pose the bigger challenges and why?

The significance of being “Glocal “(thinking global, but still considering the local). In Philippine
markets, it is possible to buy cooking oil in a cup. In “sari-sari”(literally, variety) stores, it is possible
to buy cigarettes by the stick, shampoo, and coffee in a sachet. We call it “tingi” culture — the
practice of selling and buying goods in amounts less than the smallest retail packaging. What’s
behind the practice? The average income is low and the majority of the people have to budget
carefully. (Veneracion, 2017)

So, when a global brand like Tide of Procter & Gamble came to the Philippines; P&G’s marketer must
catch up with the customers’ needs and learn about the market’s characteristics. Thus, offering
small sizes (80g) of Tide detergent is a good move for it is suitable to the Filipino market but without
sacrificing the brand’s standard.

References:

Cass, J. (2018, October 03). 8 Benefits of Branding: Why you need a Strong Brand: JUST™ Creative.
Retrieved from https://justcreative.com/2018/09/27/benefits-of-branding/

Deluxe Small Business Resource Center. (2019, August 21). 6 reasons why a strong brand is
important for your small business. Retrieved from https://www.deluxe.com/sbrc/branding/six-
reasons-why-strong-brand-important-small-business

Dimofte, C., Johansson, J. and Ronkainen, I. 2008. Cognitive and affective reactions to global brands.
Journal of International Marketing, 16(4): 113–135.

Essays, UK. (November 2018). Issue that have an Influence Global Branding. Retrieved from
https://www.ukessays.com/essays/marketing/issue-that-have-an-influence-global-branding-
marketing-essay.php?vref=1

Fanaras, L.( 2019, April 10). 5 Major Benefits of a Strong Brand. Retrieved from
https://mill.agency/creative/5-major-benefits-strong-brand/
Hsieh, M. 2002. Identifying brand image dimensionality and measuring the degree of brand
globalization: A cross-national study. Journal of International Marketing, 10(2): 46–67.

Holt, D., Quelch, J. and Taylor, E. 2004. How global brands compete. Harvard Business Review, 82(9):
68–75.

Levitt, T. 1993. “The globalization of markets”. In The Marketing Imagination, 20–49. New York: The
Free Press.

Quelch, J. 1999. Global brands: Taking stock. Business Strategy Review, 10(1): 1–14.

Steenkamp, J.-B. E. M., Batra, R. and Alden, D. 2003. How perceived brand globalness creates brand
value. Journal of International Business Studies, 34(1): 53–65.

Rosenbloom ,A. & Haefner, J.( 2009, September 03). Country-of-Origin Effects and Global Brand
Trust: A First Look. Retrieved from
https://www.tandfonline.com/doi/full/10.1080/08911760903022432

Veneracion, C. (2017, May 13). Filipino shopping habits and the "tingi" culture. Retrieved from
https://casaveneracion.com/filipino-shopping-habits-and-the-tingi-culture/

The Portfolio Assignment entry should be a minimum of 500 words and not more than 750 words.
Use APA citations and references if you use ideas from the readings or other sources. This
assignment will be graded by your instructor.

Submission status

Attempt number This is attempt 1.

Submission status No attempt

Grading status Not graded

Due date Friday, 27 September 2019, 12:55 PM

Time remaining 6 days 18 hours

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