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10/27/21, 12:14 PM Managing a Brand Across Multiple Markets - Document - Gale eBooks
Managing a Brand Across Multiple Markets

Editor:
Miranda Herbert Ferrara
Date:
2013
From:
Gale Business Insights Handbook of Global Marketing
Publisher:
Gale, a Cengage Company
Series:
Gale Business Insights
Document Type:
Topic overview; Essay
Pages:
11
Content Level:
(Level 5)
Full Text:
Managing a Brand Across Multiple Markets

In This Essay
■ Designing and Controlling Expanded Management Organization

■ Managing Brand Presence and Reputation in the Face of Market Expansion
■ Maintaining Product Consistency Across Multiple Markets
■ Avoiding Global Pitfalls and Brand Dilution During Periods of Growth
■ Useful Social Marketing Methods for Multiple Market Companies
Full Text:
Overview
Diversification: A firm increasing the range of products it produces.
Economies of scale: Unit cost reductions which result from increasing total output.
At some point, a successful company will be faced with the decision of staying small or expanding. A
company may choose to grow its operations, moving into new markets, for a variety of reasons.
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Reasons for growth include a desire to make the most of what a company has to offer, the dilution of
risk through diversification, fortifying a brand name, and achieving economies of scale.
Some types of company organization are more suited to expansion than others. Chain organization,
for instance, is the most common form of business operating in several different markets at once. A
chain of supermarkets may be capable of serving several different markets at once using an identical
business model with only a few small changes while a hotel chain may find it less expensive to
operate on a larger scale.
Operating in several markets at once can be profitable. However, accounting for and controlling
operational issues in multiple markets can be a challenge. Serving diverse communities means that
data generated from one community may not be comparable to that of another since the parameters of
the data are different. This can make it difficult for the company's headquarters to interpret and
address issues for many communities at once.
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Moreover, with each additional market, a certain distance enters the relationship between local
management personnel and headquarters. Headquarters may not know as much about an individual
market as local personnel and may find it difficult to offer useful guidance. Local issues may therefore
be better served by local personnel.
Effective Strategy
In general, a local manager will have limited authority to make decisions about how much inventory to
stock. Meantime, the most important decisions regarding company strategy, promotions, and products
tend to remain with the upper echelons of management. However, it can be difficult for top
management officials to monitor business units well enough to plan effective strategy and direction.
Another challenge in running operations in several markets is satisfying the demands of many different
types of customers. A company may be selling a single product line that must appeal to diverse
customers from varied cultures and subcultures. It may be necessary to develop a different
promotional strategy for every location in which the company operates. Labeling and advertising may
have to be translated into a different language. A logo or tag line may not have the same meaning
when translated and may generate public laughter or offense (Campbell, Datar, & Sandino, 2008).
Extending business operations may yield more sales, but it comes with many considerations and
potential pitfalls. Prodigious research can help identify problem areas and appropriate strategies either
to deal with these problems or avoid them altogether. Following the examples of companies with a
history of successfully navigating market expansion may also be instructive.
Multiple Market Challenges

Maintaining Brand Consistency
With the advent of personal computers and the Internet, moving into new markets would seem to be
the natural outcome of the world's more global nature. Networks such as Facebook and Skype make
faraway lands accessible in ways that were not previously possible. The strongest brands have an
edge in global markets, but maintaining brand consistency

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throughout several business units can be a challenge, according to a 2006 survey by the Economist
Intelligence Unit (EIU).
Participants in the EIU survey consisted of 145 top executives from various parts of the world. Half of
the participants stated that controlling brand consistency is a major impediment in managing expanded
operations. Participants cited two main obstacles in achieving effective brand regulation. The primary
issues to maintaining branding consistency included cultural disparities (63%) and language or
translation considerations (44%). An encouraging result of the survey was that two out of three survey
subjects found that adapting branding messages to local culture and language did positively impact
sales volumes.
The survey further discovered that firms deal with issues of brand control by concentrating marketing
efforts on a short list of their more robust brands. Resources are expended toward finding and
implementing the latest technology to improve and facilitate branding messages. The EIU survey
subjects said that a corporate brand, as a whole, held greater significance than individual product
brands marketed on their own, either locally or abroad.
Corporate brands were rated crucial by 81% of the survey participants while only 64% felt this way
about individual product brands marketed singly. The upshot of the survey is that technology and trade
agreements may facilitate global commerce, but managing branding information across cultures and in
varied languages is a complicated and difficult process (“Companies Struggling to Manage Brands
Across Multiple Markets,” 2006).
Local Challenges
Another major challenge in operating across multiple markets is dealing with localized competition in
each operative locale. Brand loyalty may be deeply rooted. Local or regional brands are what the
people know. When a new brand comes to market, the existing competition reacts as to a threat and
may attack the new operation as a rival.
Where several brands exist, assaults may come from numerous sources at once. Crafting strategies to
beat all contestants in each market can be a significant and painstaking challenge. Management at
both the local and executive levels must weigh the amount of resources (money, manpower,
community goodwill) to invest in combating entrenched domestic competition at multiple points of
commerce.
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Market penetration: A pricing policy used to enter a new market, usually by setting a very low price.
An example of a local challenge that impeded market penetration is illustrated by Google's attempts
to make inroads in China during the first decade of the 21st century. Chinese government censors first
blocked access to the local Google website in 2002. Users circumvented the censors by accessing the
website's universal address, google.com
.
Weighing Risks
Attempts by the Chinese government to block access to Google continued as the popular search
engine moved into new Chinese territory. These government challenges to Google kept the Internet
giant from effectively competing against competitors such as Yahoo!, Bing, and Baidu and hampered
Google operations wherever the company began to operate. In March 2010, Google offered its final
compromise, moving all Chinese operations to Hong Kong. Today, typing “Google.cn
” into an Internet
browser brings up Google.hk
(“Google in China: A Timeline,” 2010).
Knowing when and when not to adapt to local conditions can make or break a brand's success.
McDonald's is famous for hamburgers, but the product necessarily went off the menu in India where
cows are sacred and Indian sensibilities proscribe offering beef products. The chain's Indian menu
instead offers vegetable, chicken, and fish burgers. McDonald's weighed the wisdom of diluting its
brand to win over a market, gambled, and won. Starbucks, however, came to a different conclusion
when deciding whether or not to set up shop in India.
The Indian government does not allow foreign entities to have direct ownership of retail operations.
Starbucks would have been forced to create a minority partnership in order to enter India's retail
sector. The company felt that such an agreement would compromise Starbuck's branding and
consumer perceptions of company culture, key features of the company message. In the end,
Starbucks declined to enter the Indian market. Identifying and weighing the risks must preclude the
possible formation and implementation of localized strategies (Roll, 2011).
Consumer Learning Curve

According to Nielsen, the United States-based global consumer information ratings company, 85% of
the worldwide population has purchased an item online. The primary Internet shopping force is South
Korea, where 99% of those with an Internet connection have bought products

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online. Tied for second place are the United Kingdom and Germany, both with 97% of their respective
populations having purchased items through the Internet.
These global markets can be a tempting proposition for domestic companies looking to grow their
operations, but it is important to understand that marketing strategies must be adapted to particular
markets. Social networking venues can be important global marketing tools, but a social networking
forum popular in the United States may not be as popular elsewhere. Honing in on the correct medium
and learning that medium's proper usage come down to conducting market research.
Facebook and Twitter are the most popular social networking venues for commerce within the United
States. Facebook sells advertising space to support operations. Qzone in China, on the other hand,
with more than 500 million users within seven years of existence, sells various marketing tools to bring
home the message that different brands require different marketing methods (Kemp, 2012). In France,
Skyrock is a favored forum with its 10 million end-users, most often men aged 18–34. On Skyrock,
users build company pages to connect with targeted markets.
Professional Social Networking
After identifying the relevant social networking venue for a particular market, the marketer is ready to
craft and style the contents of promotional messages. Gathering information about the consumer base
in a particular market will tell the marketer about local purchasing habits and the likely local response
to a brand. Where necessary, the promotional message is translated into the language of the target
market. Using a professional copywriter well-versed in the local language is critical for capturing
language-related nuances that might escape any but those who live in that region. Errors in grammar,
spelling, and language usage may cause local consumers to lose interest in the brand and turn to the
competition.
It has become par for the course for companies to hire a director of social media. Social media is fluid.
Consumer feedback shows that the target market is engaged with the brand. There must be someone
who can generate interest in the brand, interact with the public, and respond to questions and
comments. A good social media director responds to comments with unfailing courtesy. A responsive
social media director generates brand loyalty.
In addition to social media directors who monitor and respond to
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the public, online monitoring systems can track all mentions of specific industries, companies, brands,
and company-related individuals such as CEOs. Google Alerts is one such system that is free of
charge, easy to use, and can be configured a number of different ways to help companies keep
abreast of industry-related consumer buzz. It is possible to set up several alerts at once, making
judicious use of keywords in the various languages of the company target markets. Monitoring tools
are useful and hassle-free as a source of market research (Arno, 2011).
Branding Tactics
The strongest brands offer perceptive marketers guidance by example. When Apple, for instance,
announces a product launch date and time, the company's vast and loyal consumers line up the night
before in a queue extending several city blocks for an update of a gadget that is almost identical to
one they already own. Generating and maintaining this level of robust branding comes from Apple's
refusal to make or sell substandard products. Apple products are a study in excellence of design, in
both performance and looks.
There is a sense that buying a top-quality product says something about the consumer. The Apple
consumer chooses only fine products. Using an iPhone in public is a kind of status symbol for a select
group of people. In this effective example of branding, the consumer seeks an association with the
brand.
Marketing professionals say that the key to creating a branding message is to make it relevant, stick to
the message, and say it often. Before the message can be created, it is helpful to think about what the
brand is meant to convey. Writing up a brand charter that describes the target market can be an aid in
defining the brand.
Defining Brand Identity
Target market: The clients or customers sought for a business's product or service.
A common mistake is trying for universal appeal in the branding message. By attempting to appeal to
all, the brand may, in the end, fail to appeal to anyone. Some marketers, therefore, feel it is just as
significant when committing a brand statement to paper, to define the nature of the consumer who will
neither buy nor benefit from the brand. In describing the identity of the brand, the marketer learns how
to focus the brand, thus increasing its relevance to the target market.
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Tom Dougherty, CEO and senior strategist for StealingShare, a branding consultancy firm, points to
two companies, Ikea and Target, to illustrate the importance of brand focusing. According to
Dougherty, Ikea has done a good job of focusing its brand while Target has diluted its branding
message by opening too many branch stores. “They understand fundamentally, if they're not five
minutes to my house, I'm going to go somewhere else,” says Dougherty about the proliferation of
Target shops. “If they had relevance, I'd be willing to travel to it” (Donnelly, 2010b).
Dougherty believes that Target erred in making generic products easy to obtain, thus rendering the
company brand insignificant. According to this theory, the issue of brand dilution might be addressed
by closing some Target stores or by having the store offer products that are somehow unique.
Levels of Comfort
A good example of a brand that is available at many locations yet retains its relevancy is the Marriot
Hotel chain.
In some cases, two Marriot hotels may be within sight of each other, yet each has something unique to
offer that sets it apart, while still offering a sense of brand unity. Marriot offers various levels of comfort
for its clientele. The hotels under the heading of “Courtyard,” for example, offer basic, low-budget
hospitality, while a Marriot “Residence Inn” will be a resort hotel that provides many extras to guests.
The no-frills approach is suitable for traveling businessmen while the luxury Residence Inn hotels are
suited to vacationing travelers at leisure.
The key to Marriot's success is in identifying its target market and focusing its brand to suit. Marriot
customers have certain expectations, and the hotel aims to satisfy them. At the same time, the hotel
chain knows what its consumer base does not want and might find distasteful. For example, Marriot
operated a chain of fast food restaurants under the name Roy Rogers from 1968 to 2002 but divested
them to concentrate on their lodging line.
Market research found that hotel guests did not like the idea that Marriot might be involved in a fast-
food operation. An established hotel sideline is serving as a venue for weddings. Weddings are
associated with elegance and class while fast food has a connotation of low-budget provisions.
Customers did not like the idea that a wedding might be catered with greasy fast food chicken
although the association between weddings
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and fast food might be all in their mind. The company worked hard to escape public knowledge that it
operated these two distinct brands at once (Donnelly, 2010a).
Avoiding Self-Competition
Marriot hotels manage to avoid brand dilution even where the hotels proliferate by offering different
levels of comfort. This allows two Marriot hotels on the same street to retain their relevance while the
brand remains strong. This highly effective branding strategy rests on efficient, centralized
organization. Keeping track of the distance between Marriot hotels offering the same level of comfort is
crucial, or the chain would risk competing against itself. It is one thing to have a Courtyard hotel and a
Residence Inn hotel on the same block, but having two Courtyard hotels on the same block, for
instance, would detract from sales volumes for both.
It has become common practice for companies to designate a chief marketing officer (CMO). The
CMO keeps watch over all company brands, retaining a broad perspective on operations to offer
synchronicity and brand compatibility. To avoid a state of constant competition between management
at the different company units, senior executives should encourage an atmosphere of sharing, in
which employees offer effective tips and tricks.
Periodic consumer surveys can help management ensure there are no conflicts among brands.
Brands are not static, so it is important to review and perhaps adapt marketing strategies to suit.
Companies that fail to schedule and carry out brand reassessments run the risk of having competition
define the brand (Donnelly, 2010b).
Organizing an Expansion
The benefits of expansion, especially on a global basis, include added income and a more robust
margin. Expanding a brand across multiple markets, however, is complex and requires intensive
oversight to succeed. Most modern companies are finding technology to be of invaluable assistance in
running brands in multiple markets.
Cloud-based software is one popular option for organizing expanded operations. One such enterprise
collaboration platform (ECP) is known as Software-as-a-Service (SaaS). SaaS provides a virtual office
on an independent,

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dedicated network. Virtual office suites on the order of SaaS offer the office application plus technical
support and maintenance. Most large companies see these virtual office applications as time- and
money-savers since the SaaS provider takes responsibility for support and maintenance. The provider
also installs updates, although a fee may be charged for this purpose.
A virtual office system allows employees to communicate with each other at any time, from any place,
as long as an Internet connection is available. Critical information can be relayed in real time and with
immediacy, whenever the need arises. The company ECP ensures brand consistency by making the
same branding tools and materials available to all branch operations.
Central Hub
In addition to ensuring brand consistency, the ECP eases project management by providing a central
hub for projects spread among various markets. With the ECP, all business units have access to the
same data and data updates. Employees in different business units around the world can
communicate by way of Skype and similar tools, even holding webinars and conferences, with the
tools provided by the virtual office space. The various communication tools help employees to feel like
a team although they may be spread out in various locations. The end result is improved brand
delivery.
Securing documents and office-related digital items is another important facet of the ECP. The ECP
offers a central secure storage and retrieval system to ensure that confidential intellectual properties,
for instance, will not be lost or stolen. Cloud storage means that if anything untoward happens to a
local office system, the company will still have backup copies on the ECP cloud storage system.
Virtual office software also allows training of employees through online management courses. Office
software suites offer a rich variety of media tools for creating such training courses. New managers or
employees, no matter where in the world they are located, can learn about the brand in an efficient
and consistent manner (Rogers, 2012).
Meeting the Challenge

The savvy marketer calculates the risks inherent in making the switch

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from domestic to multiple markets and then plans for every possible pitfall along the way, regularly
assessing progress and methods. The modern marketer also makes ample use of technology for
successful brand expansion. Maintaining brand consistency, learning the ins and outs of designing and
using an enterprise collaboration platform, and adapting to local conditions and culture are part of the
process of expanding into new markets.
Expanding a brand across multiple markets may seem a daunting prospect to the businessman
contemplating growth. Challenges are to be found in successfully marketing a brand across many
markets. By identifying the nature of those challenges and through rigorous planning and preparation,
however, a way forward can be delineated and diligently traversed, to the benefit of the brand and the
company as a whole.
SOURCES OF ADDITIONAL INFORMATION
Google Alerts. http://www.google.com/alerts
BIBLIOGRAPHY
Ahmed, S. (2012, June 28). Managing your brand's presence across multiple social channels.
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presence-across.html
Arno, C. (2011). Managing your online reputation across multiple languages. Retrieved November 12,
2012, from http://www.bossstart.com/managing-your-online-reputation-across-multiple-languages
Campbell, D., Datar, S.M., & Sandino, T. (2008). Organizational design and control across multiple
markets: The case of franchising in the convenience store industry. Retrieved February 1, 2013, from
http://www.hbs.edu/faculty/Publication%20Files/08-091.pdf
Companies struggling to manage brands across multiple markets, a new report from the Economist
Intelligence Unit reveals. (2006, April 24). FinFacts. Retrieved November 12, 2012, from
http://www.finfacts.ie/irishfinancenews/article_10006500.shtml
Donnelly, T. (2010a, October 25). How to master multiple brand management. Retrieved November
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Donnelly, T. (2010b, November 18). How to maintain brand consistency across product lines.
Retrieved November 12, 2012, from http://www.inc.com/guides/2010/11/how-to-maintain-brand-
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Google in China: A timeline. (2010, March 22). The Week. Retrieved November 13, 2012, from
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Kemp, S. (2012, May 10). Social network users in Asia, May 2012. Retrieved November 13, 2012,
from http://wearesocial.net/blog/2012/05/social-network-users-asia-2012/
Rogers, T. (2012). How to: Keep control of your brand when operating in multiple markets. Retrieved
November 12, 2012, from http://www.b2bmarketing.net/knowledgebank/international-marketing/best-
practice/how-keep-control-your-brand-when-operating-multi
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Full Text:
COPYRIGHT 2013 Gale, Cengage Learning
Source Citation (MLA 9th Edition)

"Managing a Brand Across Multiple Markets." Gale Business Insights Handbook of Global Marketing,
edited by Miranda Herbert Ferrara, Gale, 2013, pp. 277-287. Gale Business Insights. Gale
eBooks, link.gale.com/apps/doc/CX2759400035/GVRL?u=umd_umuc&sid=bookmark-
GVRL&xid=6dac9663. Accessed 27 Oct. 2021.
Gale Document Number: GALE|CX2759400035

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10/27/21, 12:14 PM Managing a Brand Across Multiple Markets - Document - Gale eBooks

Managing a Brand Across Multiple Markets

Managing a Brand Across Multiple Markets

■ Designing and Controlling Expanded Management Organization

Diversification: A firm increasing the range of products it produces.

Multiple Market Challenges

Consumer Learning Curve

Professional Social Networking

In addition to social media directors who monitor and respond to

Defining Brand Identity

Meeting the Challenge

SOURCES OF ADDITIONAL INFORMATION

Google Alerts. http://www.google.com/alerts

What is Software-as-a-Service? (2012). WiseGeek. Retrieved November 18, 2012, from

Gale Document Number: GALE|CX2759400035

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