Article Review: Real differences between Local and International Brands
Real Differences between Local and International Brands: Strategic Implications for International Marketers
The article “Real differences between local and International Brands: Strategic Implications for international marketers” by Isabelle Schuiling and Jean- Noël Kapferer focuses on the differences between local and international brands in a globalization context. Specifically, the article explains the trend of companies that are concentrating their efforts on developing international brands and are eliminating local brands and whether this is beneficial strategy for companies or not.
The article begins with an overview of the advantages and disadvantages of international and local brands. International companies are defined as such due to globalized elements in their marketing mix. Their main benefit is the opportunity to benefit from economies of scale that enables to offer the product at lower price and thus to gain competitive advantages worldwide. In that way, the brand can build unique image and popularity internationally. Research shows that quality and prestige are the main characteristics consumers associate with international brands. Additionally, international companies can launch a product and foster its advertising faster than local ones.
Local companies, on the other hand, have the ability to build strong relations with their customers and to better meet local needs. They are also flexible in their pricing strategy and marketing mix, whereas international brands have to stick to their regional strategies. Furthermore, they can balance their portfolio better. Even though international brand is stronger, once its image is damaged locally, it can easily hurt the image of the product on the worldwide market. In addition, while internationals are trying to serve similar segments on every market, local brands can find the unique, still underserved, segment in their local reality, that will bring them most profit.
The article continues with a
The article “Real differences between local and International Brands: Strategic Implications for international marketers” by Isabelle Schuiling and Jean- Noël Kapferer focuses on the differences between local and international brands in a globalization context. Specifically, the article explains the trend of companies that are concentrating their efforts on developing international brands and are eliminating local brands and whether this is beneficial strategy for companies or not.
The article begins with an overview of the advantages and disadvantages of international and local brands. International companies are defined as such due to globalized elements in their marketing mix. Their main benefit is the opportunity to benefit from economies of scale that enables to offer the product at lower price and thus to gain competitive advantages worldwide. In that way, the brand can build unique image and popularity internationally. Research shows that quality and prestige are the main characteristics consumers associate with international brands. Additionally, international companies can launch a product and foster its advertising faster than local ones.
Local companies, on the other hand, have the ability to build strong relations with their customers and to better meet local needs. They are also flexible in their pricing strategy and marketing mix, whereas international brands have to stick to their regional strategies. Furthermore, they can balance their portfolio better. Even though international brand is stronger, once its image is damaged locally, it can easily hurt the image of the product on the worldwide market. In addition, while internationals are trying to serve similar segments on every market, local brands can find the unique, still underserved, segment in their local reality, that will bring them most profit.
The article continues with a