Branding Decisions in International Markets

The selection of a brand name that does neither lose its meaning nor image when translated into diverse languages poses a serious challenge. Although the establishment of international brand names facilitates the marketing of products globally, it also raises issues of brand piracy, imitation and fake brands. It may also be worth noting here that the world bodies are currently pushing hard for greater protection of intellectual property rights on a global basis.

Notwithstanding the above, brand and trademark decisions are affected by the company’s product policy on standardisation vs. adaptation, and the legal requirement of the host country.

Hons, Pecotich and Schultz observed that with regards to foreign brands in East and South East Asia markets there are five strategic options for Western companies:

1. Entering the market with the original Western brand name. This strategy may provide a strong image of an imported product, taking advantage of the Western “Halo” effect.
2. Entering the market with a phonetically translated brand name i.e. resulting in the same sound but perhaps different meaning in the local language. The pronunciation of the original brand name is retained while local connotations are attained.
3. Entering the market with a directly translated brand name i.e. resulting in different sounding but same meaning in the local languages. Direct translation is the option of choice if the original brand name has a certain specific meaning attached.
4. Entering the market with a combination of the original brand name and phonetically translated name. This enables localization while retaining the image of the original.
5. Entering the market with a combination of the original brand name and the directly translated name. A strong local identity is provided while the image of a Western or imported brand is maintained.

The merging of the following components form a company’s corporate symbol or name:

Trade Name: It promotes and advertises an enterprise or a division or a specific corporation through a corporate brand name. For example, Dell, Nike, Google, and many more.

Brand Name: It can be a single word, a combination of words, letters, or digits to highlight a product or service. For example, Pepsi, Lakme, Baggit, etc.

Brand Mark: It is a distinct symbol, colouring, lettering, or other design component. Mostly, it is recognizable and need not be pronounced on spelled. For example, Apple’s apple, or Coca-Cola’s cursive typeface, Nike correct symbol.

Trade Characters: These characters include animals, people, animated characters, cartoons, objects that are used to promote a product or service, that is related with that product or service. For example, Godrej almirah and lockers.

Trade Mark: It is a word, name, letter, digit, symbol, or merging of these components. Trade mark is legally secured and owned by the government. For example, NBC owns colourful peacock as its trade mark, or McDonald’s golden arches. No other enterprise can use these symbols.

The first decision regarding branding is whether to brand or not. The trend towards non-branding products is increasing world-wide. In fact, the scales of non-branded products are increasing particularly in retail stores. The increase in demand for non-brand products is due to the availability of these products at fewer prices. In addition, non-brand products are available – In a number of sizes and models.

• Branded Products:

Most of the global companies go for branding. The customers of different countries find it easy to identify the branded products and they are aware of the ingredients and utility of the branded products. For example” the customers throughout the world are aware of the products of Colgate-Palmolive, Pepsi or Coke etc. The global company can get better price and profits through branded products.

• Private Brand:

Most of the exporting companies go for dealer’s brand or private brand. The advantages of private branding include: easy in giving dealer’s acceptance, possibility of getting larger market share, less promotional expenses etc. Private branding is more appropriate for the small companies who export to various foreign countries.

Manufacturer’s Brand: The manufacturer sells the products in his own brand. The advantages of manufacturer’s brand include: better control of products and features, better price due to more price in electricity, retention of brand loyalty and better bargaining power.

• Single Brand:

The global company go for a single brand for all its exports to the same country (or Single Brand): The advantages of single brand in single market include: better impact on marketing, permit more focused marketing; brand receives full attention, reduction in cost of promotion etc.

• Multiple Brands:

The marketing conditions and the features of the customers vary widely from one region to the other, in the same country. Therefore, the exporter uses multiple branding decisions in such cases. Multiple branding enables the exporter to meet the needs of all segments. The other advantages of multiple branding include: creation of excitement among employees, gaining of more shelf space, avoidance of negative connotation of existing brand etc.

• Local Brands:

Global companies have started widely using the local brands in order to give the impression of cultural compatibility of the local market. The advantages of local branding include: elimination of difficulty in pronunciation, elimination of negative connotation, avoidance of taxation on international brand etc.

• Global brands or World Wide Brand:

Exporters normally go for global brand. The advantages of global brand include: reduction of advertising costs, elimination of brand confusion, better marketing impact and focus, status for prestigious brands and for well-known designs etc.

Strategies for Branding Decisions

(1) If the product has production consistency and salient attributes which can be differentiated, then it would be better for the manufacturer to go for branding otherwise better to sell the product without any brand.

(2) If the manufacturer is least dependent person, it would be feasible to go for the manufacturer’s own brand otherwise; it would be feasible to go for a private brand.

(3) If there are intermarket differences like demographic and psychological, it would be feasible for having a local brand. Otherwise, it would be better to go for global brand.

(4) If there are intermarket differences like demographic and psychological, it would be feasible for multiband. Otherwise, it would be feasible to go for single brand.