Branding strategies of MNCs in international markets
Abstract: In today’s global marketplace, MNCs need to set up effective branding
strategies in order to be competitive. Depending on the structure of the
company and the products offered, MNCs can use different strategies. There
are certain characteristics that will affect the type of strategy chosen. In
order to reach economies of scale and scope, many MNCs standardize their
branding- and marketing activities. However, MNCs are often required to adapt
to local preferences and cultures. The purpose of this thesis is to
investigate the branding strategies of MNCs in international markets. Two
research questions were addressed: how can the branding strategies of MNCs in
international markets be described and how can the factors determining MNCs’
choice of branding strategies in international markets be described. Two
qualitative case studies of well-known MNCs, Procter& Gamble and Sony
Ericsson were conducted: the first an example of a company with a product
brand strategy and the latter one with a corporate brand strategy. Our
findings show that MNCs use either a product brand strategy, or a corporate
brand strategy. However, there may be mixtures of the two types, but emphasis
is typically on one of them. A product brand strategy is characteristically
used when a company offers multiple products within different business
segments, and when there are several different target groups. With a
corporate brand strategy, the corporate name and the brand are the same.
There is typically a master brand which has the same name as the corporation,
and which may have additional sub-brands. It was found that the factors
determining the branding strategy in international markets are stakeholder
interests, corporate image and reputation, market complexity, as well as
marketing costs.
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