INTERNATIONAL

BRANDING
STRATEGY
 CONCEPT OF BRANDING
• A brand may be defined as a name, term, symbol, or design, or
a combination of these, intended to identify the goods or
services of one seller or a group of sellers and to differentiate them
from those of competitors.
• It is the intangible aspect of brand that wraps around a product
and makes the brand special or unique.
• Brands facilitate in forging of an emotional relationship between
consumers and products and helps a buyer to arrive at a decision
with the support of the credibility of a particular brand.
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
N O B R A N D - A DVA N TAG E S N O B R A N D - D I S A DVA N TAG E S

• Low production cost • Severe price competition

• Low marketing cost • Lack of market identity
• Flexible quality and quantity control
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
B R A N D I N G - A DVA N TAG E S B R A N D I N G - D I S A DVA N TAG E S

• Better identification & awareness • High production cost

• Better chance for product differentiation • High marketing cost
• Brand loyalty • High legal cost
• Premium pricing
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
P R I VAT E B R A N D -
P R I VAT E B R A N D - A DVA N TAG E S D I S A DVA N TAG E S

• Better margin for dealers • Severe price competition

• Improved market share • Lack of market identity
• Easy promotion
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
M A N U FAC T U R E R ’ S B R A N D -
A DVA N TAG E S M A N U FAC T U R E R ’ S B R A N D -
D I S A DVA N TAG E S
• Better price due to more price elasticity • Difficult for small manufacturer’s wit
• Retention of brand loyalty unknown brand offering

• Better bargaining power • Require brand promotion

• Better control of distribution

BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
M U LT I P L E B R A N D S -
A DVA N TAG E S
• Better market segment for varying needs
• More retail shelf gained
• Protecting existing brand’s image
M U LT I P L E B R A N D S -
D I S A DVA N TAG E S
• Higher marketing cost
• Higher inventory cost
• Loss of economies of scale
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
S I N G L E B R A N D - A DVA N TAG E S
• More focused marketing
• Elimination of brand confusion
SINGLE BRAND-
D I S A DVA N TAG E S
• Market homogeneity assumed
• Limited shelf space
BRANDING ALTERNATIVES FOR INTERNATIONAL
MARKETS
L O C A L B R A N D - A DVA N TAG E S LOCAL BRAND-
D I S A DVA N TAG E S
• Local identification • Higher marketing cost
• Meaningful names • Higher inventory cost
• Quick market penetration
STRATEGIES FOR
BUILDING
BRANDS
BRANDS BASED ON TANGIBLE PRODUCT COMPONENTS

• Under this approach the brand is built around the core benefits of
a product that emphasize its functional characteristics.
• The differentiation in building the brand is created on the basis of
functional superiority of the product or service.
• The marketing mix decisions under this approach are emphasized
on product, price, and/or place.
• Sustaining functional superiority in the market vis-à-vis competitors
is a key marketing challenge.
BRANDS BASED ON TANGIBLE PRODUCT COMPONENTS

Intangible
product
Country components Perceived quality
of origin

Trademark Tangible product

components
Functional features Style
Performance
Technology
Promotion Design
Packaging , Quality

Delivery Communication
Warranty
BRANDS BASED ON INTANGIBLE PRODUCT COMPONENTS

• Under this approach the brand is built around the emotional need
of the consumers and fulfill the social and esteem needs of the
buyers.
• The secret of branding is in adding psychological value- by building a
strong identity or personality for the brand and strategically
positioning it in the consumer’s minds.
• The differentiation in building the brand is created on the basis of
their image, which is perceived by the buyers as offering a unique
set of associations
BRANDS BASED ON INTANGIBLE PRODUCT COMPONENTS

Tangible
product
Functional components Packaging
features
Intangible product
components
Country of origin
Trademark, Style
Performance Promotion, Delivery Design
Service, Quality
Warranty, Style

Technology
 BRANDING OF SERVICES
• Service brands are experiential brands.
• In an experiential brand, the products, environment, and services are
combined to create temporary, multi-sensory encounters with a brand.
• Place and people are key components of service delivery used for
building a strong experiential brand.
• The basis of creating differentiation among experiential brand centres
around the unique engaging experience at the time of brand
consumption.
• Marketer has to pay special attention to maintaining consistency of
delivery and consistent innovation to overcome the risk of consumer
satiation.
LIFE CYCLE CONCEPT AND BRAND
 INTERNATIONAL BRANDING STRATEGY
• Category development index (CDI) and brand development index (BDI) are the most widely
applied tools for determining international branding strategy.
𝑃𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎 𝑠𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦 𝑖𝑛 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑦
• CDI for a country =
𝑃𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎 𝑠𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑐𝑎𝑡𝑒𝑔𝑜𝑟𝑦 𝑖𝑛 𝑡𝑒 𝑤𝑜𝑟𝑙𝑑
𝑃𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎 𝑠𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑐𝑜𝑢𝑛𝑡𝑟𝑦
• BDI for a country =
𝑃𝑒𝑟 𝑐𝑎𝑝𝑖𝑡𝑎 𝑠𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑟𝑎𝑛𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑤𝑜𝑟𝑙𝑑

• These indices facilitate assessment of markets in terms of development of the brand and the
category.
• Markets are divided into four categories based on these analysis requiring different marketing
strategies.
 High

Build Maintain
Brand
Development category leadership
Index

Build
Low
Secure
Market
trial
share

Low High
Category
Development
Index