International Brand
Executive Insights:
Integrating Branding Strategy Across Markets: Building International Brand Architecture
Brands play a critical role in establishing afirm 'svisibility andABSTRACT position in international markets. Building a coherent international brand architecture is a key component of thefirm 'soverall 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 thefirm 'sinternational brand architecture. With the globalization of markets and the growth of competition on a global scale, companies are increasingly expanding the geographic scope of their operations, acquiring companies in other countries, and entering into alliances across national boundaries. At the same time, with the spread of global and regional media, the development of international retailing, and the movement of people, goods, and organizations across national borders, markets are becoming more integrated. As a result, firms need to pay greater attention to coordinating and integrating marketing strategy across markets. An important element of a firm 's overall marketing strategy is its branding policy. Strong brands help the firm establish an identity in the marketplace and develop a solid customer franchise (Aaker 1996; Kapferer 1997; Keller 1998), as well as provide a weapon to counter growing retailer power (Barwise and Robertson 1992). They can also provide the basis for brand extensions, which further strengthen the firm 's position and enhance value (Aaker and Keller 1990). In international markets, the firm 's branding strategy plays an important role in integrating the firm 's activities worldwide. A firm can, for example, develop global brands (using the same brand
Integrating Branding Strategy Across Markets: Building International Brand Architecture
Brands play a critical role in establishing afirm 'svisibility andABSTRACT position in international markets. Building a coherent international brand architecture is a key component of thefirm 'soverall 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 thefirm 'sinternational brand architecture. With the globalization of markets and the growth of competition on a global scale, companies are increasingly expanding the geographic scope of their operations, acquiring companies in other countries, and entering into alliances across national boundaries. At the same time, with the spread of global and regional media, the development of international retailing, and the movement of people, goods, and organizations across national borders, markets are becoming more integrated. As a result, firms need to pay greater attention to coordinating and integrating marketing strategy across markets. An important element of a firm 's overall marketing strategy is its branding policy. Strong brands help the firm establish an identity in the marketplace and develop a solid customer franchise (Aaker 1996; Kapferer 1997; Keller 1998), as well as provide a weapon to counter growing retailer power (Barwise and Robertson 1992). They can also provide the basis for brand extensions, which further strengthen the firm 's position and enhance value (Aaker and Keller 1990). In international markets, the firm 's branding strategy plays an important role in integrating the firm 's activities worldwide. A firm can, for example, develop global brands (using the same brand
References: and Erich Joachimsthaler (1999), "The Lure of Global Branding," Harvard Business Review, 77 (November/December), 137-44. and Kevin Keller (1990), "Consumer Evaluations of Brand Extensions," fournal of Marketing, 54 (1), 27-33. Alden, Dana L., Jan-Benedict E.M. Steenkamp, and Rajeev Batra (1999), "Brand Positioning Through Advertising in Asia, North America, and Europe: The Role of Clobal Consumer Culture," Journal of Marketing, 63 (January), 75-87. Bartlett, Christopher A. and Sumantra Ghoshal (1989), Managing Across Borders. Boston: Harvard Business School Press. Barwise, Patrick and Thomas Robertson (1992), "Brand Portfolios," European Management Journal, 10 (September), 277-85. Beck, Ernest (1999), "Unilever to Cut More Than 1,000 Brands," The Wall Street Journal, (September 22), A17. Caller, Linda, ed. (1996), Researching Brands. Amsterdam: ESOMAR. Court, David C, Anthony Freeling, Mark C. Lerter, and Andrew J. Parsons (1997), "If Nike Can 'Just Do It ' Why Can 't We?" McKinsey Quarterly, (3), 25-34. Craig, C. Samuel and Susan P. Douglas (1996), "Responding to the Challenges of Global Markets: Change, Complexity, Competition and Conscience," Columbia Journal of World Business, 31 (Winter), 6-18. de Mooij, Marieke (1997), Global Marketing and Advertising, Understanding Cultural Paradoxes. Thousand Oaks, GA: Sage Publications. Executive Insights: Integrating Branding Strategy Across Markets 113 THE AUTHORS Susan P. Douglas is Professor of Marketing and International Business, and C. Samuel Craig is Professor of Marketing, Stern School of Business, New York University. Edwin J. Nijssen is Professor of Marketing, Nijmegen Business School. ACKNOWLEDGMENT The authors acknowledge the support provided by the Unilever Foundation to the senior author while she was the Unilever Visiting Professor at Erasmus University in Rotterdam. Douglas, Susan P. and C. Samuel Craig (1996), "Global Portfolio Planning and Market Interconnectedness," Journal of International Marketing, 4 (1), 93-110. Echikson, William and Dean Foust (2000) "For Coke, Local Is It," BusinessWeek, (July 3), 122. Featherstone, Mike (1990), "Global Gulture: An Introduction," in Global Culture: Nationalism, Globalization and Modernism, Mike Featherstone, ed. London: Sage Publications, 1-13. Hassan, Salah S. and Lea Katsanis (1994), "Identification of Global Gonsumer Segments," Journal of International Consumer Marketing, 3 (2), 24. Kapferer, Jean-Noel (1997), Strategic Brand Management, 2d ed. London: Kogan Page. Keller, Kevin (1998), Strategic Brand Management. Engelwood Gliffs, NJ: Prentice Hall. Laforet, Sylvie and John Saunders (1994), "Managing Brand Portfolios: How the Leaders Do It," Journal of Advertising Research, 34 (September/October), 64-76. Olins, W. (1989), Corporate Identity. London: Thames and Hudson. Parsons, Andrew (1996), "Nestle: The Visions of Local Managers," McKinsey Quarterly, (2), 5-29. Schmitt, Bernd H. and Alex Simenson (1997), Marketing Aesthetics: The Strategic Management of Brands, Identity and Image. New York: The Free Press. 114 Susan P. Douglas, C. Samuel Craig, and Edwin J. Nijssen