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Brand portfolios
Abstract
Firms are rushing to create brand portfolios, especially for the Single European Market. Patrick Barwise and Thomas Robertson look at means of developing portfolios -- from geographic brand extension and brand acquisitions and brand alliances -- and the advantages and limitations of each approach. They also show why brand portfolios will dominate much of the marketing landscape of the 1990s.
... Building strong brand portfolios are considered to be an important source of competitive advantage and superior business performance in the consumer packaged goods (CPG) industry (Barwise and Robertson 1992;Chailan 2008;Morgan and Rego 2009). Conventional brand portfolio growth strategies have encompassed new brand creation, line extensions, brand acquisition (Tauber 1981;Aaker 2004;Laforet and Saunders 2005), and co-branding (Washburn et al. 2000). ...
... These personalities regularly conveyed an authentic appreciation and knowledge of Snapple in their broadcasts. Shortly after acquisition, Quaker terminated relationships with both radio hosts eliciting unabated derision from Barwise and Robertson (1992) and Phillips (1998) underscore this important notion of brand culture and soul asserting that many acquisitions prove hard to integrate and can lose momentum post acquisition. Brand acquisition is nevertheless a much quicker (Barwise and Robertson 1992) pathway to building a brand portfolio as the transaction occurs within weeks or months, and early development risks can be circumnavigated when buying a scaled and proven brand. ...
... Shortly after acquisition, Quaker terminated relationships with both radio hosts eliciting unabated derision from Barwise and Robertson (1992) and Phillips (1998) underscore this important notion of brand culture and soul asserting that many acquisitions prove hard to integrate and can lose momentum post acquisition. Brand acquisition is nevertheless a much quicker (Barwise and Robertson 1992) pathway to building a brand portfolio as the transaction occurs within weeks or months, and early development risks can be circumnavigated when buying a scaled and proven brand. Acquisition also allows the corporation to select the category and brand positioning that best augments the existing brand portfolio and enables a more measured pace of brand expansion (Kahn and Isen 1993). ...
This paper highlights the infrequently discussed role of the entrepreneur as founder of disruptive brands creating new categories often in stealth-like manner. A corporate entrepreneurial response being pursued by Fortune 100 corporations’ renown for their branding prowess is posited in the paper called strategic brand venturing. Strategic brand venturing is a boundary-spanning activity whereby large firms access disruptive brands and entrepreneurial marketing know-how through equity investments in entrepreneurial brands. Comparisons are made between technology venturing and brand venturing and a conceptual model is proposed to assist in further research and practice of this inter-organizational strategy. The model borrows from prior venture capital and corporate venture capital models but caters for the exigencies of brands and entrepreneur founders. The version proposed also acknowledges the role of antecedents and the role of influential exogenous communities such as consumers and retailers. The paper concludes with suggestions for future research.
... An important element of a firm's international marketing strategy is its branding policy. Strong brands help to establish the firm's identity in the market place, and develop a solid customer franchise (Aaker 1996, Keller 1998, Kapferer 1997 as well as providing a weapon to counter growing retailer power (Barwise and Robertson 1992). ...
... Such issues are particularly salient in markets outside the US, where the concept of "power" branding is relatively unknown (Court et al 1997). Markets are often fragmented, characterized by small-scale distribution, and lack the potential or size to warrant the use of heavy mass-media advertising needed to develop strong brands (Barwise and Robertson 1992). As these markets become more interlinked and integrated, companies operating in international markets need to identify opportunities for strengthening brand architecture by improved co-ordination and harmonization of brands across countries. ...
... According to Barwise and Thomas (1992) corporate dominant offers maximum coverage of economies of scale and scope, specifically via communications at a corporate level. This would also provide an advantage in the demand side that would increase the returns despite having limited benefits. ...
Sustainability Sustainability exists from the day it was originated by the Brundtland commission in the year of 1987. The term sustainability has been vaguely defined and it creates different interpretations. In line with today's economic situation, organizations increasingly perceive sustainability as an opportunity for them to gain competitive advantage. Sustainability aims at merging the benefits of the economic activity with the principle of sustainable development. In the current era, most of the powerful brands aspire to achieve the same economic goal, hence business leaders and marketers are now facing a problem in maintaining its economic sustainability. Most studies investigate economic goal from the perspective of business operation. Apart from measuring the business by looking at the tangible assets, it is important to measure it from the perspective of customers. Based on the multiple regression analysis, the result of the study of this study shows that only brand dominant strategy and Halal strategy were proven to have significant relationship with economic sustainability. The implications of this research are, the organization needs to consider brand dominant strategy and Halal strategy to ensure long-term business operation and this research also provides additional insight on economic sustainability model by investigating the branding strategies namely corporate dominant, brand dominant, mixed branding and Halal branding. Contribution/ Originality: This study contributes in the existing literature on branding strategy by including Halal branding strategy. Most studies investigate Halal as part of separate phenomenon such as marketing strategy, and Halal certification system. It is hoped that this article may contribute to the existing literature on branding strategy
... According to Barwise and Thomas (1992) corporate dominant offers maximum coverage of economies of scale and scope, specifically via communications at a corporate level. This would also provide an advantage in the demand side that would increase the returns despite having limited benefits. ...
... Branding is one of the significant functions of the company in the strategy of international marketing and strong brands plays a major role in helping the companies to develop its identity in the market along with the ability to oppose the increasing power of retailer [25][4][26] [27]. It also helps in providing a ground or basis for extension of a brand that helps in promoting the value and makes the position of the firm stronger [9]. ...
Since a brand launch costs heavily, so it‟s better to opt for brand extensions that are considered strategically more useful. The consumers have a certain perception regarding the brand name and its image; hence knowledge of consumer‟s attitude towards the brand is important. Therefore the present study deals with two questions; whether the parent brand helps having a positive perception towards the brand extension, and what are the initial perceptions about adaption of the brand extension. Along with this, this study has also observed the effects of the consumer‟s attitude towards brand extension of a renowned parent brand in three different industrial sectors, within Peshawar. Studies have shown that the indicators which affect the core brand will also have an effect on the extensions and similarly the indicators that are affecting the category of extensions will also have an influence upon the parent brand. However, the consumer‟s assessments of extensions in brand may sometimes change their core thinking about the parent brand that may direct to either a strong or weak positioning of brand.
... The value of strong brands can be enhanced through brand extensions. Furthermore, strong brands are important weapons to counterbalance retailer power enabling the firm to pull its goods and services effectively through the channel (Barwise and Robertson 1992) Firms expanding in international markets need to consider what type of international brand portfolio to build. Management has to decide on appropriate brand architecture, i.e. whether to place emphasis on corporate, house or product level brands, or some combination of these (Laforet and Saunders 1994 ). ...
With the globalization of markets, attention to international branding strategies becomes an increasingly important issue. Firms must decide on the appropriate balance of global, regional and local brands, as well as who should have custody of these brands and their positioning in international markets.
... bal perspective. For example, at one stage Palmolive soap had 22 fragrances, 17 packages, 9 shapes, and numerous positions across its different markets (Keller 2003, p. 710). Developing the promise or value proposition consists of deciding how to gain awareness in the target market, and gaining brand associations consistent with the brand identity.Barwise and Robertson (1992)suggest that the different migration paths of (a) starting off with exports, (b) acquisition of overseas brands, and (c) brand alliances all have advantages, depending on the situation. After initial entry, Douglas (2001) proposes local market expansion and global rationalization as logical steps. That is, the degree of globalization is ...
... Source: Kapferer, J.-N. (1997). Strategic Brand Management, 2nd edn, Kogan Page: Dover, NH, p. 37 In accordance with the aforementioned statement, Davis (2002: 12) proposes brand asset management as "a balanced investment approach for building the meaning of the brand, communicating it internally and externally, and leveraging it to increase brand profitability, brand asset value, and brand returns over time"� Based on the concept of brand asset management, a LOGMAN 19 model was developed (Logman, 2004) combining some key insights from Kaplan and Norton's balanced scorecard method, BCG's brand value creation method, the path analysis method, and the house of quality method� This notion has been further developed at a global scale by Steenkamp (2014) who stated that "global brands only survive if they are effective in delivering value to the market" and "… while global brands make strategic sense, it is less clear how they create firm value" (Steenkamp, 2014: 5)� In order to explore the process underlying value creation, he developed the 4V model (valued brands, value sources, value delivery, and valued outcomes) where the starting point is the type of global brand in question: prestige, premium, fun, or value brand ( Figure 2�5)� Following the logic of the 4V model, we can summarise that virtually all marketing activities -ranging from new product development, to advertising, to retail placement -focus on building strong brands (Aaker and Joachimsthaler, 2000) which, in a situation of rapid globalisation, turns out to be critical success fac-tors for the companies� In line with the branding concept for domestic markets, the development of brands on a global basis offers opportunities for capitalising on economies of scale, developing global markets and pursuing multiple market segments (Barwise and Robertson, 1992;de Chernatony et al�, 1995)� Hence, the firm has to systematically analyse and leverage the source(s) of value that the global brand in question provides to the company� If we have a look at the global brand value creation process as summarised by the 4V model (see Figure 2�5), the aim of the final stage is to build brand value, and ultimately firm value� Theoretically, the value of a brand is the net present value of its expected cash flows (Steenkamp, 2014: 19): ...
We live in a world where disruptive technologies, rapid structural changes and economic turbulence are impacting the global economy by accelerating the rise of complexity. Complexity turns out to be a major force business must consider when developing and executing marketing strategies. It affects businesses both by delivering challenges and opening new opportunities which means that complexity radically changes the way business is managed.
Globalisation is signified the quintessence of the last decade of the 20th century. Its effect on brands and branding strategies is outstanding. New brands are developed and launched as global brands, many traditionally local brands are sold or acquired, numerous rebranding strategies are realised, just to name a few of the subsequent outcomes of the globalisation process.
This book presents an investigation of the dynamics of global brands values by applying the Zipf-Pareto law and the index of Sheppard. The research is focused on the top 100 global brands explored as a system of brands. It is assumed that there are variations in the factors which affect the distribution of global brands values as well as that these variations can be modelled by stochastic processes. The selection of a proper stochastic process instead of a model equation of factors affecting brand value serves as a starting point for the research methodology. The basic assumption states that the explanation of the distribution of global brands values needs only an implementation of a mathematical model based on the stochastic process with proper characteristics.
The main research goal of the study is twofold. To understand: (1) if the state of equilibrium of the ranked global brands (based on their values) fits the power law, and (2) if the deviations are characterised by the index of Sheppard.
Three research hypotheses are defined, based on the main research goal:
RH1: The distribution of global brand values satisfies the Zipf-Pareto law.
RH2: The identified three classes of global brands satisfy the Zipf-Pareto law.
RH3: The system of global brands satisfies the primacy index of Sheppard.
... Brand portfolios allow for either extension of a single brand or diversification of different brands under the umbrella of the portfolio (Barwise and Robertson 1992). Scandza illustrates a common trend in global food industries: the acquisition of well-functioning brands. ...
Due to the (relatively) small scale of the Norwegian food industry, Private Equity capital is deeply involved in the structural development of the sector through acquisitions and takeovers. The Norwegian social-democratic model of agriculture, with its attempts to maintain farming all over the country, struggles with comparative disadvantages in productivity and Private Equity capital is investing in direct competition with farmer cooperatives. An outline of the socio-economic characteristics of the Norwegian model as well as those of Private Equity illuminates why they both fit well together. Thus, we argue in this paper that it is the Norwegian model of agriculture, with its non-market based elements, that today attracts finance capital and discuss whether this involvement of finance capital can be considered a process of financialisation. Findings based on analysis of case studies of Private Equity buyouts into the agri-food industry suggest that the economic motives of Private Equity takeovers are based on a combination of typical industry capitalism with investments in productivity and efficiency, rather than merely financialisation. Findings are interpreted in a variety of capitalism framework combining social theory on financialisation with business school theories on Private Equity transactions.
... More importantly, a brand is likely to have a much higher value to one purchaser than another. If a company already owns factories, manufacturing skills, means of distribution, or indeed other brands (Barwise & Robertson 1992), there may be synergies that make it worth paying a great deal for a particular brand. To a company without the same assets, the same name could be worth relatively little. ...
This paper examines what is meant by the term 'brand equity'. It identifies three distinct uses of the expression: brand value, the total value of a brand as a separable asset; brand strength, a measure of the strength of consumers' attachment to a brand; and brand description, a description of the associations and beliefs the consumer has about the brand. Each of these concepts is discussed with reference to the literature on the subject.
... For many firms, branding is critical, helping establish the firm's identity in the marketplace or build a solid customer franchise (Kapferer 1997, Keller 1998. Brand strength also provides a tool to counter growing retailer power (Barwise & Robertson 1992) even as retailers use private-label brands to build store loyalty (Corstjens & Lal 2000). The ongoing academic and industry discussion surrounding branding often focuses on the benefits of brand loyalty and has evolved from how to measure and assess loyalty (e.g., Cunningham 1956, Fader & Schmittlein 1993, Bhattacharya 1997 to building and managing loyalty (e.g. ...
This paper describes repeat brand-buying behavior across a variety of frequently purchased consumer goods categories. The main finding is that overall repeat buying tends to be higher in categories where the market shares of brands are either very stable or the category is very much dominated by a large brand. In contrast, low repeat-buying associates with unstable market shares and competition amongst many smaller brands. In addition, brands that are much bigger than their nearest rivals tend to have higher repeat buying—or loyalty premiums. These repeat buying rates are predictable using the Duplication of Purchase law (DoP).
... La relation entre les marques au sein d'une même entreprise s'affranchit et dépasse les modèles classiques pour s'orienter au sein des grandes compagnies vers la coexistence, au sein de portefeuilles, de marques puissantes dont les relations doivent ou devront être régulées. En l'absence de définition partagée, nous suggérons à partir des rares travaux existants sur ce concept (Barwise & Robertson, 1992 ;Riezebos, 2003) (Trinquecoste, 1999). ...
... Many researches, performed in the area of international branding (Buzzell, 1968;Levitt, 1983;Onkvisit, Shaw, 1989;Kapferer, 2008;Barwise, Robertson, 1992;Shocker, Srivastava, Ruekert, 1994;Kim et al., 1997;Czinkota, Ronkainen, 2007;Aaker, Joachimsthaler, 1999;Alashban et al., 2002, De Burca, Fletcher, Brown, 2004Hollensen, 2004), are oriented towards the main decisions of brands in foreign markets. But there are just a few researches Quelch, 1999; that are intended for deeper and more singleminded studies of introducing a national brand in foreign markets. ...
This research seeks to answer the question how to successfully adapt a national brand in foreign markets. The increasing scope of foreign economic activity of enterprises encourages enterprises to give more attention to the decisions of transformation of national brands into international ones. In order to present a brand as a strong brand that can compete on an international level, it is necessary to acknowledge and understand the similarities and differences of branding in local and foreign markets. Studies of transformation of a national brand into an international one have been fragmentary to date. There are only several researches that are deeper and more single-mindedly dedicated to the study of introduction of a national brand into foreign markets. The main objective of this research is to prepare a conceptual model of transformation of a national brand into an international one. Based on the analysis of research performed in the area of international branding, the main decisions of brands in foreign markets and factors that determine them were identified. The creation of international brands is more complex than the creation of national ones because at least four levels of brand creation must be considered: (1) branded product vs. no brand (generic product), (2) manufacturer brand vs. private brand, (3) single brand vs. multiple brands, (4) global brand vs. local brand. When introducing a brand in a new market at first attention should be given to the increase of brand awareness, and only later brand image may be considered. The image is determined by the decisions of brand core essence or positioning that offers unique added value to consumers. Means, used for consolidating the brand in the national market, will not always be suitable for foreign markets. Inner as well as outer environmental factors of the enterprise should be considered when making international brand decisions. Inner factors of the enterprise are also factors that form supply. The following factors are emphasized in this factor group: the degree of centralisation of the enterprise activity, the budget of brand creation, and the possibilities of decreasing cost. When creating an international brand, differences between the national and foreign markets must be taken into account. The following aspects of the markets may differ: consumer behaviour, marketing infrastructure, scope of competition, level of economic development, cultural values, and state regulation. These differences may have a decisive influence on the creation of the brand and its management beyond the limits of the national market. The result of theoretical studies is an original conceptual model of transformation of a national brand into an international one, connecting decisions of situation analysis, brand decisions in foreign markets, adaptation of brand identity roots and integrated brand communications, and control of brand success in a market. The presented model will enable to ensure that when a national brand is introduced in a foreign market successful brand adaptation in foreign markets will be purposefully sought.
... There is a wide recognition of branding strategy as a source of competitive advantage in domestic markets. In line with the branding concept for domestic markets, international branding scholars advocate that the development of brands on an international basis offers opportunities for capitalizing on economies of scale, developing global markets and pursuing multiple market segments (Barwise and Robertson 1992;de Chernatony, Halliburton et al. 1995). International branding is important and beneficial for firms to gain economies of scale. ...
This paper discusses the importance of international branding strategy in an international marketing venture. Using the literature review as a point of departure, a conceptual model of international branding strategy, and its antecedents and consequences is developed. The model is three-tiered. The heart of the model is the international branding strategy. The next tier is the consequence of international branding strategy; that is the overall international marketing performance. The final tier is the determinants of the international branding strategy. It is argued that international branding strategy should be the focal point in the international marketing venture. Conceptual model development, all relevant constructs and nine research propositions are discussed in turn.
... A large number of flagship brands within the brand portfolios of many companies are marketed in core businesses. These are important for firms in building up solid customer bases (Aaker, 1996;Keller, 1998) and, therefore, in the development of strong bargaining power in their relationships with retailers ( Barwise and Robertson, 1992). Moreover, the removal of brands with high geographical scope will not result in cost advantages, because such brands already have cost advantages (as marketing efforts are standardized across countries). ...
In this article, we investigate the effect of brand divestments on firm value. We integrate two common motives for focus-increasing brand divestitures—global branding and refocusing on core businesses—in a single common framework. In particular, we investigate the effects of divesting local/regional/global brands in core businesses and local/regional/global brands in non-core businesses on firm value. Analyzing 205 divestment announcements in the global food and beverages industry, we find that, in most cases, brand divestments destroy firm value. Only when firms divest local or regional brands in non-core businesses is the effect on firm value positive.
... Notably however, there are limits to which an individual brand may be leveraged (Kapferer, 2012). Moreover, brands may be worth more as part of a wider portfolio than standing alone (Barwise and Robertson, 1992). To that end, Aaker (1996) advocates a 'brand system' approach to meet the needs of a complex, highly ...
Co-branding has emerged as an attractive management option in the past three decades due to the growing realisation that it can exploit companies’ existing brand equities. Despite extensive research into branding, existing knowledge about co-branding remains relatively limited. This paper summarises the findings in the literature with regard to how co-branding strategies may benefit (or harm) both managers and end users, the mechanisms by which brands share their associations, and the conditions in which consumers might evaluate a co-branded product favourably (or unfavourably). To further our understanding of the factors that lead to successful co-branding arrangements, this paper explores examples of successful and unsuccessful co-branding initiatives and introduces a Value Exchange Framework to demonstrate how value is created within these co-branding arrangements. This research also defines the scope of co-branding by identifying the areas of agreement, disagreement and boundary conditions within this domain. Finally, an agenda for further research is set forth based on priorities found in the existing literature.
... There are multiple examples of other sorts of line extensions created in recent years (Barwise and Robertson, 1992;Aaker and Keller, 1990). Some mix the original beverage with a non-alcoholic juice. ...
This study analyses the lives of brands in the global alcoholic beverages industry - their development over time, the processes through which the firms have built, grown and later rationalised their portfolios of successful global brands, the tendency for brands to have independent lives by being traded almost as pieces of intellectual property, and the trends for multinational firms to standardize the practices in the marketing brands of their portfolios. Detailed, historical and comparative, analysis on successful and unsuccessful branding strategies accompany the central discussion.
... Branding strategy, as a source of competitive advantage in domestic markets, is well recognised by various researchers (Calderon et al., 1997;Chaudhuri and Holbrook, 2001;De Chernatony, 2001;Farquhar, 1994;Moore et al., 2000). In line with the branding concept for domestic markets, the development of brands on an international basis offers opportunities to capitalise on economies of scale, develop global markets and pursue multiple market segments (Barwise and Robertson, 1992;De Chernatony et al., 1995). Pioneering global brands such as Coca-Cola and McDonald's, which are also multinational companies, view branding as a more consequential strategic activity that can have an enormous impact on their bottom line (Holt, 2006). ...
Small developing economies are struggling to achieve the economic growth rates required to provide a decent standard of living to their population. For them to survive in an increasingly competitive global economy, they will have to differentiate their products by targeting issues which the consumers in the global market are quite responsive to. In this paper, we argue that Fiji bottled water exporters have successively marketed their products by exploiting the sustainable dimension of consumption, given the widespread concern for it in high‐income countries. We argue that the branding of these products has been in relation to health, environment and lifestyle issues. We further demonstrate that the sustainable consumption dimension of branding has been enhanced thanks to the remoteness and exoticised small‐island nature of Fiji.
... Much has been written about the changed nature of brand loyalty (Aaker, 1991), how the continued rise of private label products is further challenging conventional brands (Glémet and Mira, 1993) and how the "company" brand may be taking over from the individual brand (Barwise, 1992). Underlying these discussions is the view that brand "values" may not be as strong in the eyes of the consumer as they once were. ...
Many commentators have recently questioned the validity of the traditional precepts on which the marketing concept is based, and have suggested that marketing has failed to deliver its long promised prize in the form of sustainable competitive advantage. Suggests that the need for marketing today is as strong as ever. However, the practice of marketing must change its focus, to go beyond a narrow concern with brand values and instead to emphasize the creation of customer value as the over-riding objective of marketing activity.
In a world focused on science and new technology, brands help to explain why several of the world's multinational corporations have little to do with either. Rather they are old firms with little critical investment in patents or copyrights. For these firms, the critical intellectual property is trademarks. Global Brands, first published in 2007, explains how the world's largest multinationals in alcoholic beverages achieved global leadership; considers the predominant corporate governance structures for such firms; and looks at why these firms form alliances with direct competitors. Brands also determine the waves of mergers and acquisitions in the beverage industry. Global Brands contrasts with existing studies by providing a new dimension to the literature on the growth of multinationals through the focus on brands, using an institutional and evolutionary approach based on original and published sources about the industry and the firms.
In a world focused on science and new technology, brands help to explain why several of the world's multinational corporations have little to do with either. Rather they are old firms with little critical investment in patents or copyrights. For these firms, the critical intellectual property is trademarks. Global Brands, first published in 2007, explains how the world's largest multinationals in alcoholic beverages achieved global leadership; considers the predominant corporate governance structures for such firms; and looks at why these firms form alliances with direct competitors. Brands also determine the waves of mergers and acquisitions in the beverage industry. Global Brands contrasts with existing studies by providing a new dimension to the literature on the growth of multinationals through the focus on brands, using an institutional and evolutionary approach based on original and published sources about the industry and the firms.
Purpose
The motivations behind co-branding alliances, the differences in performance between the paired brands and the emergence of “spillover effects” have been pillars of the marketing research agenda for almost three decades. We observe an extensive number of studies on co-branding alliances, combined with multiple theoretical perspectives and empirical approaches informing extant literature. The purpose of this paper is to summarize of the state of the art of this research.
Design/methodology/approach
The authors offer a systematic literature review of 190 papers on co-branding alliances. The authors portray a picture of the theories informing co-branding research and build a conceptual framework that summarizes the concepts and variables used in this literature. Finally, 11 interviews with managers and consultants of European firms help to reveal potential problems in practice and needs that are not captured by previous studies.
Findings
The authors develop a map of theories used to investigate co-branding alliances and build a conceptual framework linking motivations, co-branding alliance implementation and outputs. Finally, the authors propose a structured research agenda.
Research limitations/implications
The main implication relies on the structured research agenda.
Practical implications
Practical implications include the identification of the variables and dimensions involved in a brand alliance to exploit the strengths and moderate the weaknesses of a brand.
Originality/value
This paper highlights how co-branding is embedded in different contexts and dimensions regarding both firms and consumers. The two maps presented in this study underscore the interdependence among such dimensions. The authors interview marketing experts to validate the conceptual framework and to help us extract the managerial implications that stem from it.
We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents’ fighting brand strategies are difficult to rationalize as unilateral best responses. Instead, their strategies are consistent with a breakdown of tacit semi-collusion: before entry, the incumbents could successfully coordinate on restricting product variety to avoid cannibalization; after entry, this outcome became harder to sustain because of increased business stealing incentives. Consumers gained considerably from the added variety and, to a lesser extent, from the incumbents’ price responses. (JEL L13, L21, L96, M31)
The main objective of this article is to analyze theories of institutions and culture approach, and relevant aspects that could influence entrepreneurs in entering new Latin markets. Using a qualitative research methodology, this research analyzed the application of branding strategies used by �Bimbo� one of the most influential companies in the baking industry worldwide, to enter new Latin American markets including Argentina, Brazil and Peru. Graphic forms of some banding strategies are revised and analyzed in this paper as well as the branding process. This paper concludes by deliberating the successes of Bimbo in entering new markets. It discusses all major success factors identified in the strategy in which included culture, consumption habits, customs, values and laws; fundamental aspects to be considered in entering a new Latin market.
Although brand deletion (BD) is a key strategic decision within brand portfolio management, it has received very little attention in the scientific literature. This research expands the knowledge base on the BD strategy, particularly in the execution phase. Based on the literature addressing strategic change and marketing strategy implementation, this study explores the main and interaction effects of context (decentralization and consensus) and process (formalization and communication) implementation factors on the success of BD, measured in terms of its contribution to the firm's economic performance. Using a representative sample of 155 cases of BD, we show that the four factors are related to BD performance, although these relations are complex and intertwined. Consensus, communication, and decentralization positively affect BD performance, with consensus being particularly influential. Formalization is found to be a double-edged sword as the effects of formalizing the execution of the deletion are particularly convoluted.
The research compares three different market concentration metrics (Concentration Ratio, Herfindahl–Hirschman Index, and Gini Coefficient) over the share of revenue (market share) and their application in consumer packaged goods markets. The metrics are further extended into measuring the share of the ownership of brands and stock-keeping units, to provide further insights into the nature of market competition. These metrics are reported across 16 categories between 2010 and 2014 from the United Kingdom. The Concentration Ratio results show an average market share of 88% going to the top 10 manufacturers, despite accounting for 19% of all manufacturers on average. Similarly, Gini Coefficients show large disparities in revenue shares across manufacturers (0.85), while the Herfindahl–Hirschman Index classifies most markets as being moderately concentrated. The research highlights the advantage of observing multiple metrics in measuring market concentration, as a single metric is unlikely to convey the nature of market competition. The results show Concentration Ratio for the top 4 or top 10 to be good proxies for Herfindahl–Hirschman Index, while the top 10% or top 20% market concentration can be used as proxies for Gini Coefficients due to their strong positive correlations. Rather than applying onerous Herfindahl–Hirschman Index and Gini Coefficient calculations and requiring the details for all competing entities as required, the result enables researchers and industry practitioners to diagnose the state of the competition by simply calculating the aggregate market share of the top N and the top N% manufacturers.
The growth of the aviation industry has seen a rapid increase in low-cost carriers (LCCs) commencing operations, threatening the sustainability of a number of legacy airlines. The response to this challenge and threat has been for legacy airlines to create an airline-within-airline (AWA). This study reviews prior literature regarding the hotel industry and multi-brand strategy, and also uses case studies to examine the evolution of the AWA strategy at the Singapore Airlines Group and the Qantas Group between 2000 and 2016 in order to identify why these airlines operate AWAs successfully. High levels of autonomy, clear strategies, complimentary route networks, appropriate resources and minimal cannibalisation are identified as the primary attributes required for a successful AWA operation. Legacy airlines whose AWA strategy failed in the past often did not operate with all these essential attributes, which resulted in their AWAs undermining and competing directly with their own operations.
Purpose
Brand architecture and brand portfolios have been regarded as absolute entities to be analysed from the company’s perspective. The purpose of this study is to question such a uniform view by adding a perceptional dimension to the two concepts.
Design/methodology/approach
Semi-structured interviews with 58 marketing professionals and customers were used to explore ten propositions and map associations in the perceived brand portfolios, based on the brand concept map methodology.
Findings
The study reveals systematic differences between the collective view of company representatives, who name fewer brands associated through more sophisticated and highly connected brand systems and customers who include more partners and competitor brands in the portfolio, who also name more brands and connections in total.
Research limitations/implications
Implications of the results are analysed and future research is suggested to determine the generalizability of the findings and the economic implications of discrepant internal and external views of a brand architecture and brand portfolio.
Practical implications
Academics should relate to this dualism by compensating for the effects of the associative predisposition of employees versus customers when interpreting results of studies related to brand portfolios and brand architecture. Marketing practitioners must actively acknowledge and manage the role of partners and competitors as part of the company’s external brand portfolio.
Originality/value
This study is the first to problematize the unilateral interpretation of brand portfolios and brand architecture by introducing a dual view of these concepts based on internal (employees) and external (consumers) perceptions.
Developing a successful brand will be a critical strategy for service industries to achieve the competition advantage and raise the business performances. In this research, we propose a model of brand development for service organisations, which consists of five constructs: business model, brand strategy, service quality, customer value, and business performance. Based on this model, we can construct a structural equation model (SEM) to explore the causal relationships among the constructs, and then conduct the empirical study for the service companies with own brands, in order to confirm the relationships among these constructs, and to determine the critical success factors (CSFs) of the brand building for service industries. Based on the analytic results, the causalities among these constructs can be confirmed, it is shown that ‘business model’ directly determines the ‘brand strategy’, ‘service quality’ affects the ‘customer value’, and through the mediation effect of ‘customer value’ on ‘business performance’. We also discover that ‘key resources and processes’, ‘business operation systems’, ‘brand development’, ‘brand marketing’, ‘value-added services’, and ‘customer relationship management’ are the CSFs for service industries to build their brands; the service organisations need to possess the core capabilities on these CSFs.
As with many other Italian companies, the Tod’s Group began as a family business and has since evolved into a global fashion player boasting a portfolio of four brands (Tod’s, Hogan, Fay, and Roger Vivier). The group operates in 37 countries and yields a total sales revenue of €965.5 million as of 2014, approximately 70 % of which has been generated from exports. The Tod’s Group adopts a double management approach: (i) a vertical strategic decision-making process in the upstream to ensure the entire group achieves cost and operation efficiency and (ii) a horizontal operating process in the downstream to guarantee a diversified identity of brands in terms of design, marketing, and retail management. The group employs a hybrid branding strategy, wherein the core brand Tod’s utilizes a corporate dominant strategy while the other brands (Fay, Hogan, and Roger Vivier) prefer brand dominant strategies. Tod’s, the group’s core brand, currently leads the group’s global markets, representing approximately 60 % of overall sales in 2014 and 70 % of its stores worldwide. This chapter explains the group’s unique approach to brand communication and commitment to corporate social responsibility, particularly in terms of local communities, the environment, and the welfare of its stakeholders and employees.
This article examines the creation of a national beer brand in Canada. It analyses the challenges faced by the marketing managers at John Labatt Limited ‒ one of Canada’s oldest and most successful brewers ‒ in solving the ‘national lager problem’ (i.e. the inability of Labatt’s ‘Pilsener’ to capture a significant share of the Canadian market). It examines how executives use marketing knowledge to recreate brand identities. It argues that the rebranding of ‘Pilsener’ as ‘Blue’ was successful because Labatt’s managers fashioned a new brand identity that downplayed the ‘ethnic’ heritage of the brand by appealing to a new ‘Canadian’ cosmopolitan modernity.
Structural changes in Norwegian and Danish food industry since the 1990s is analysed as a path dependent response to the neo-liberal turn. Norway entered the 1990s as a protected market and Denmark as case of an export oriented industry. These developmental strategies are rooted in early 20th century industrialisation and influenced by institutional transformations in the 1990s, such as EU and WTO. Mergers and acquisitions (M&A) are studied in the context of changing political environments. Explaining two different trajectories, we combine path dependency theories and a Polanyi inspired ‘varieties of capitalism’ framework with corporate strategy theories on food industry M&As. We identify two different types of path dependent development, a self-reinforcing in Denmark and a transformative ‘breaking point’ in Norway.
Markenstrategien umfassen mit der Festlegung der Markenanzahl, des Verhältnisses zwischen Marke und Leistung sowie dem Verhältnis verschiedener Marken zueinander strukturelle, längerfristige Entscheidungen. Darüber hinaus stellen auch die Markenpositionierung und die damit verbundene Zielgruppenauswahl strategische Entscheidungen im Rahmen der Markenpolitik dar. Allerdings handelt es sich dabei um eine materielle und keine strukturelle Entscheidung, weshalb dieser Aspekt im Folgenden nicht weiter vertieft wird.
Die Entwicklung des Welthandels war in den vergangenen drei Jahrzehnten durch einen stetigen Anstieg der internationalen Verflechtungen der Volkswirtschaften und der grenzüberschreitenden Unternehmenstätigkeit gekennzeichnet1. Kennzeichnen lässt sich dies durch einen Vergleich des Weltexportes mit der Weltwirtschaftsleistung. Abbildung 1 macht deutUch, dass die Weltwirtschaftsleistung in den letzten 40 Jahren durchschnittUch um 3,9 % pro Jahr zunahm, während der Weltexport im gleichen Zeitraum um durchschnittlich 6 % pro Jahr anstieg.
The main objective of this research is to study the relationship between brand citizenship behavior, job satisfaction and commitment. In terms of purpose, the research is applied and terms of the relationship between variables, it is correlational. Research methodology is also survey. The statistical population are the employees of Saipa Teif Company and 136 people were selected through limited sampling. The sampling method is also simple random sampling. Data gathering tool is standard questionnaire and in order to evaluate its validity, viewpoints of marketing management professors and directors of the company and also the load factor are used. Also, in order to check the reliability of the questionnaire, Cronbach's alpha coefficient is used. For data analysis, correlation test is used in order to examine the research hypotheses. SPSS statistical software is used to create database and to test hypotheses. The correlation test demonstrates that there is a positive significant relationship between internal brand management and brand citizenship behavior. Internal brand management and job satisfaction have a positive and significant relationship at 99% confidence level. Internal brand management and brand commitment also have a positive and significant relationship.
In 2005 Manchester United was taken over by US businessman Malcolm Glazer, in part because of the club's brand name prominence in the global sport of soccer. This paper examines how Manchester United rose to a pre-eminent position in world football through its on-field performances and its off-the-field management strategies. It shows how the club took its storied history into world markets to take full advantage of globalisation, the opportunities extended through the English Premier League's reputation and developments in global media technologies. Astute management of club resources is identified as the major factor in global brand management.
Today, due to globalization, enterprises are increasingly looking towards the global marketplace to market their products. The business opportunities in the foreign markets are no longer considered as only available to large multinational enterprises with long term foreign market presence. Enterprises today, regardless size, take part in a global competitive market which is supported by great advances in information technologies, communication, and transportation. This trend solves one of the main weaknesses found in comparatively smaller enterprises of traditional focus: home country market dependency. The case focuses on Mirza International Limited which originated from a small Indian Tannery business. The company is led by an ambitious, aggressive management team which has helped in achieving phenomenal growth. The company has emerged as a frontrunner in the manufacturing and marketing of footwear. Headquartered in New Delhi, the company markets its leather and leather footwear products, across the globe the UK, Europe, South Africa, the Middle East, and so forth. However, company management is now at a crossroads in regards to a more aggressive approach to international brand building for its product and strategic decisions. This case aims to address these issues regarding smaller company's internationalization and marketing. The case focuses on the dilemma often faced by medium sized firms from Asia in entering developed country markets in terms of branding or generic product development strategy. The case illustrates the differences in brand building that exist in a big multinational company and in smaller companies during internationalization.
Purpose
– The purpose of this paper is to investigate the perceived content and structure of a brand portfolio, which may differ between individuals, by mapping the brand portfolio of two multi-national companies from the perspective of the marketing team. The discrepant views between individuals are analyzed and an aggregated brand portfolio is presented.
Design/methodology/approach
– Semi-structured interviews with nine marketing professionals were used to map their individual perceived brand portfolios and structure, based on the Brand Concept Map methodology.
Findings
– The study finds that there is a consistent difference in the individual perceived brand portfolio between marketing professionals. Brands that are not supported by all stakeholders may be suffering from an unclear positioning or undesired associations, and should receive management attention.
Research limitations/implications
– Explanations for the results are offered and future research is suggested to determine the generalizability of the findings and the economic implications of discrepant views on the company’s brand portfolio.
Practical implications
– Marketing practitioners should consider the possible effects of conflicting views within their marketing teams on business performance. Identifying brands that are not supported by all stakeholders could be a way to discover under-performing brands with problematic brand positions in need of immediate attention.
Originality/value
– This study is the first to compare and fully map the differences in perception of a company’s brand portfolio among internal stakeholders and the possible implications of this discrepancy.
Over the course of the twentieth century, entrepreneurs developed a number of successful global brands in consumer-goods industries. However, few independent brands survived the merger waves of the 1980s. To address the question of why so few independent brands survived, this paper examines successful brands in industries that rely principally on advertising for competitive success. Successful consumer-goods brands in several industries and countries are compared in order to highlight innovative strategies pursued by brand managers. The analyzed brands are mainly owned by Europeans, although a few examples of American and Japanese brands are covered as well.
Highlights
► We examine the moderating effect of brand diversification on the relationship between geographic diversification on firm performance in the US lodging industry. ► The results show a positive and significant effect of geographic diversification and an insignificant effect of brand diversification on firm performance. ► The results also show a positive and significant moderating effect of brand diversification on the relationship between geographic diversification and firm performance.
As a result of the increasingly competitive global marketplace, many tourism destinations have turned to branding to improve their performance. However, although marketing scholars have begun to examine the transferability and contribution of marketing tools to destination marketing, relatively little attention has been given to the concept of brand orientation. Drawing on previous empirical work, this study uses path modelling to develop a reliable and valid multidimensional measure of brand orientation in the context of destination branding and examines its relationship to brand performance and brand leadership by senior management. The findings from a sample of CEOs and directors in 90 destination marketing organisations suggest that destination brand orientation consists of five dimensions – brand culture, departmental coordination, brand communication, stakeholder partnership, and brand reality – and has a strong, positive impact on brand performance. The findings also suggest that leadership by senior management is an important determinant of destination brand orientation.
Using the structure-conduct-performance paradigm along with Porters international factor conditions, the authors propose and empirically test a conceptual framework to explain the antecedents and consequences of a firm's brand-name standardization/adaptation strategy. Survey research and structural equation modeling results show that firms adapt (vary) their brand names when market structure factors measured by competitive, buyer, and distribution intensity increase. Furthermore, the authors find that the more standardized the brand name worldwide, the higher are the firm's cost savings and the higher is the product's sales volume as perceived by marketing executives.
With the increase in inter-firm activities - whether joint promotion, cobranding, joint ventures, alliances, or other types of organizational cooperation - an individual firm stands to become more dependent on consumers' associations with its cooperative partners. Since cooperation involves association and sharing of both tangible and intangible assets, the focus shifts to how to jointly manage the individual firm's assets and equity and also the assets and equity of close affiliates. We develop a conceptual model that examines how and why a cooperative partner's relational assets and equity may transfer to the firm. First we examine the theoretical foundations and then we focus on the key relational constructs of trust and reputation, which are integrated into the model.
In recent years there has been an emerging literature with regard to corporate brands and their management. This paper examines the relevance and potential contribution of this literature to the management of destination brands. It is evident that there are important features of destination brands that distinguish them from product brands and that these have led to differences in the way destination brands are created, developed and maintained. The paper concludes that corporate brands, in contrast, share similarities with destination brands and that the emerging literature on corporate branding can therefore make an important contribution to our understanding of the particular problems of destination brand management and how it might be improved. The paper presents five guiding principles and a framework for the management of destination brands based upon the literature reviewed. An agenda for future consideration and research is also presented.
There is general agreement in the literature that the marketing of places as brands requires “a special type of marketing” (Ashworth 1993, p. 648). But while the problems inherent in place marketing are well documented (see for example Karavatzis and Ashworth 2005) very little attention has been given to the development of a theory of destination branding which can be used to guide destination brand managers and form the basis of future research. The conclusions from a review of the literature are tested against the experiences of practitioners (Churchill 1979) by means of 25 depth interviews with Senior Managers in 20 Destination Marketing Organisations. Five critical antecedents of successful destination branding are identified: stakeholder partnerships, brand leadership, departmental coordination, brand communications and brand culture. Two key mediating factors are also identified: brand reality and brand architecture. The managerial implications of these findings are discussed.
Brands play a critical role in establishing a firm's visibility and position in international markets. Building a coherent international brand architecture is a key component of the firm's overall international marketing strategy because it provides a structure to leverage strong brands into other markets, assimilate acquired brands, and integrate strategy across markets. The authors examine the way firms have developed international brand architecture and the drivers that shape the architecture. The authors discuss implications for the design and management of the firm's international brand architecture.
The numbers buying, the brand penetrations, go down by a factor of 10. The average number of times each brand is bought also goes down (with some small wobbles, e.g. Bounce), though much less so − by a factor of less than 2. This pattern is ubiquitous and has long been called Double Jeopardy (DJ). The small brand is "punished twice" for being small: it has fewer buyers, and its fewer buyers also buy the brand some-what less loyally. The wide occurrence of DJ has never been queried. One reason is that DJ can easily be seen in one's own data. In many markets even the big-gest brand has a fairly low penetration (say 20% per year, instead of 48% for Downy). In such cases, the DJ variation in the buying rates is generally very small (e.g. from 2.8 down to 2.3). This is often condensed into: Large and small brands differ greatly in how many people buy them, but not in how loyal they are.
An empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share. Market share is modeled as a log linear function of order of entry, time between entries, advertising, and positioning effectiveness. The coefficients of the entry, advertising, and positioning variables are significant in a regression analysis on an initial sample of 82 brands across 24 categories. These findings are confirmed by predictions on 47 not previously analyzed brands in 12 categories. Managerial implications for pioneers and later entrants are identified.
Designing Successful Transorganisational Marketing Alliances, Report No. 90-118. Cambridge, MA: Marketing Science Institute
- Ravi S Achrol
- Lisa K Scheer
- Louis W Stern
Achrol, Ravi S., Scheer, Lisa K. and Stern, Louis W. (1990) Designing Successful Transorganisational Marketing Alliances, Report No. 90-118. Cambridge, MA: Marketing Science Institute. Barwise, Patrick, Higson, Christopher, Likierman, Andrew, and Marsh, Paul 119901, Acc~u~fi~~ for Bmnds, London: Institute of Chartered' Accounta% in England and Wales. de Jonquieres, Guy (1991), Brands Left on the Shelf, Financial Times (October 31).
Double leovardv Revisited, fuurnai of Marketing
- Andrew Wc Ehrenberg
- Gerald J Goodhardt
- Barwise
- Patrick
Ehrenberg, Andrew WC, Goodhardt, Gerald J, and Barwise, T Patrick (1990). Double leovardv Revisited, fuurnai of Marketing,' 54 (July), 82-91. ' ' I Grand Metropolitan PLC (1991) Annual Report UK.
Swatch, Fontainebleau: INSEAD, Case 589-005
- Helen Kimball
- Chase
- Pinson
- Christian
Kimball, Helen Chase and Pinson, Christian (1987)' Swatch, Fontainebleau: INSEAD, Case 589-005. Landor Associates (1990), Landor 1magePower SurveyTM San Francisco.
Brands Left on the Shelf
- de Jonquières
The Trend Is Not Their Friend
- Morgenson
The Effect of Brand Typology on the Evaluation of Brand Extension Fit
- McWilliam
United Distillers: From Whisky Galore to Whisky Grands Crus
- Rawstorne
Designing Successful Transorganisational Marketing Alliances
- Achrol