As I write this paper GM is struggling and confirmed the end of the Pontiac brand, while in Australia their Holden brand is not only prospering but holds the second largest market share behind Toyota. The Holden Commodore, with 51,093 deliveries, was the top-selling model in 2008, marking last year as the 13th year in a row it has led the market. The Toyota Corolla sold 47,901 units by comparison. While GM is doing well in Australia, Starbucks is exiting the country due to the strength of local café brands, which have retained their market dominance.
With the recent economic downturn, companies such as GM and Starbucks have been forced to reconsider their global branding strategies to better enable sustainable growth across the globe. It is no secret that the business landscape today is very different than it used to be. Multinational opportunities are more accessible and abundant than ever before. So when we look at the global viability of any brand, from its positioning standpoint, can companies just roll out one consistent identity that tries to motivate a variety of diverse market segments, and still succeed? In reality, the global market has become more complex with communities seeking recognition of their unique cultural needs and wanting to see them reflected in a brand’s projected image.
The challenge and opportunity for global brand marketers is in striking the right balance between the need for brand awareness and consistency on a global basis and the ability for that brand to speak with relevance against the aspirational and characteristic needs of local markets, to maximize overall performance.
Understanding key factors for how culture impacts global branding efforts is the underlining premise of this white paper. Through discussion across some key areas we will attempt to identify some important considerations for successful global branding.
