Global Product and Brand Management

As global retailers gain more power, marketers might feel more pressure to have brands for customers who are often more global themselves, sharing increasingly similar tastes, preferences and consumption habits. While some believe that global brands add value by making the consumer feel more cosmopolitan or sophisticated, the reality is that the marketer needs to get something from the relationship, too. Companies with global brands should benefit from the scale and scope that having a presence in multiple markets offers. Benefits to the company can include a more focused and profitable product portfolio, “best practice” sharing among regions, and manufacturing economies.

During market entry, the firm has to ensure that the brand is known abroad – the fact that a brand is soaring at home does not mean it will automatically enjoy global acceptance. At the same time, it is important to consider the wide footprint of all brand-related impressions. For example, a Turkish audience might be well informed about German products because they have been watching German television for years. While this type of brand knowledge transfer might make entering a new market easier, it might also make it harder to develop independent strategies for new markets.

Developing and managing a product portfolio in the global market-place is both a challenge and an opportunity. Market conditions might require changes in individual product features, but companies want to manage products and product lines for the greatest possible effect globally, regionally, and locally. It is important to understand how the product development process can take into account the globalization of markets without compromising features considered essential by local markets. At the same time marketers should know how to use world-wide resources to exploit opportunities in product markets. Many strategic product decisions, including branding, benefit from worldwide experience applied in a local context.