Global branding has been gaining popularity over the years as firms struggle to improve their competitiveness in the market. Firms have come to realize the benefits of strong brands in the market as a way of remaining competitive.
However, it is important to note that global branding has its merits and demerits. Before making the decision to go global, it is important to understand the benefits and challenges that may be encountered by implementing the strategy. The decision to go global can only be approved if it is confirmed that the benefits outweigh demerits.
Espoir has managed to develop a strong brand locally. The management of this firm must determine if there is a need to go global with this brand as a way of expanding the scope of its market. The chief executive, Mr. Ed Jonson must have a deep understanding of the benefits that this firm will gain by this move, and the challenges that it may face by doing this.
As Kahn (2013) observes, it is important to analyze some of the benefits that Espoir may face when it decides to take its new branding initiatives global. One of the main benefits of going global with the brand is the localized needs that the brand will be able to address. As Kahn (2013) notes, different cultural groups are attracted to different brand messages. A brand message that is pleasant in the United States can be considered as irritating in Saudi Arabia.
By going global, the marketing manager of this firm in Saudi Arabia will be able to determine the appropriate message to the locals. He or she will determine how the original brand message can be twisted to suit local needs. This will increase the strength of the brand in different regions around the world. Taking the brand initiative global will also help this firm design its products to suit different markets.
This is because the firm will need to conduct market research in different global markets to understand the local needs. When fine-tuning the band message, the firm will also understand what the local population need, and this will make them develop products that deliver on the needs of the locals. This will increase the brand’s popularity. Another benefit of going global with the brand initiative is that it will allow this firm to take competition from the local level to global level.
When this firm makes its brand attractive to different local regions around the world, it will be increasing the level of its acceptance in the global market. This means that the firm will be able to compete favorably in this market. The initiative will also make it easy for the marketing research team to understand the changing dynamics in the market.
For instance, many global markets are being influenced by the western culture. In an attempt to understand the best message for different global markets, the research team will be able to understand the changing global trends. This will enable the firm to understand the best products for the market. Finally, this initiative will enable this firm to gain a global image. It will be able to gain global recognition, a fact that will make it easy to penetrate the global market.
It is important to note that despite these benefits, taking the new branding initiative global comes with some challenges that this firm must be ready to tackle. The first challenge is the associated cost of this initiative. This initiative will demand for more research to be done at all the selected markets. This is a costly venture. There will also be the conflicting interest of whether to manage the brand centrally in a standardized manner or to delocalize brand management.
This initiative will also mean that at times Espoir will be forced to change the message on its brand in some markets, especially in cases where it realizes that the original brand message is completely unacceptable in a given local market. Firms are struggling to find a common way of communicating to their customers in a similar way across the globe, as a way of creating a common image in all the markets globally.
This new strategy goes against this effort. In some cases, the marketing team may find it very challenging to change the message of the brand. Gelder (2005) says that there are cases where the firm may be forced to change the message to reflect the opposite of the original message. This means that some of its core values may need to change.
Mr. Ed Johnson, and his entire management team, must find a way of mitigating the above challenges because Espoir will need to take its brand initiative to the global market. This is the only way it can survive the current market competition. The challenges of this initiative may be great at the beginning. However, if this team will be committed to this initiative, then the firm would soon start reaping the benefits.
References
Gelder, S. V. (2005). Global brand strategy: Unlocking brand potential across countries, cultures & markets. London: Kogan Page.
Kahn, B. E. (2013). Global brand power: Leveraging branding for long-term growth. New York: Wharton Digital Press.