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Y Walkman ? Apple ipod ? Touchstone Pictures ? PlayStation ? Proctor amp。 all the rest are costs.” Peter Drucker 13 The Allure of Global Brands ? Economies of scale across multiple markets ? Uniformity of image ? Responsiveness to global customers ? Enhanced marketing leverage ? Efficiencies in scope in extending product/service lines under established brand across channels. 14 “There is a tradeoff between efficiency and effectiveness in global brands. Operational efficiency es from our strategic umbrella brands. But we believe there is no such thing as a global consumer, especially in a sector as psychologically and culturally loaded as food.” Peter Brabeck Chairman amp。Managing Global Brands for Economic Prosperity 1 Why Global Brands Matter ? Transfer of culture and ideas across borders ? Economic engines of growth ? Create jobs ? Improve the lives of people ? Instill trust and confidence 2 Globalization Challenges ? Globalization of merce and media creates a marketplace divided not by national borders but ―cultural neighborhoods.‖ ? Balancing global brand integrity with local cultural authenticity. ? Brands without a ―local touch‖ are perceived as ―foreigners‖. ? Culturally relevant brands perform better everywhere — both in the . and around the world. ? How you manage your brand will determine its success or failure in the global marketplace. 3 Source: RoperASW, July 2022 The Shifting Landscape of Global Branding ? Presents serious implications for American panies abroad: – Rising nationalism: increasing numbers of global consumers have grown ―wary‖ of American culture – Economic uncertainty: of nearly 40 leading global brands, 11 of the top 12 American multinationals saw their brand power decline。 9 nonAmerican brands experienced improved ratings – Corporate scandals: In ranking the trustlevel of leading panies worldwide, the study found American anizations dominating the bottom of the list. 4 The World’s 10 Most Valuable Brands Rank Brand 2022 Brand Value (Billions) 1 CocaCola $ 2 Microsoft 3 IBM 4 GE 5 Intel 6 Nokia 7 Toyota 8 Disney 9 McDonald’s 10 MercedesBenz Data: Interbrand Corp., JP Man Chase, Citigroup, Man Stanley Source: Business Week, August 7, 2022 5 The Biggest Gainers Reflect New Breed of Companies Rank Brand 2022 Brand Value (Billions) 2022 Brand Value (Billions) Percent Change 24 Google $ $ +46% 91 Starbucks +20% 47 EBay +18% 69 Motorola +18% 75 Hyundai +17% Data: Interbrand Corp., JP Man Chase, Citigroup, Man Stanley Source: Business Week, August 7, 2022 What Is A Brand? 7 “A brand is a name, term, sign, symbol, or design, or a bination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of petition.” American Marketing Association 8 What Is A Brand? ? Asset that drives premium pricing and future cash flows ? Signal of quality and a trust mark ? Shorthand way of simplifying plexity when making choices ? Relationship ? A set of rational and emotional associations that identif