The Role of International Marketing in Promoting International Brands in Local Markets - Essay Example

ROLE OF INTERNATIONAL MARKETING IN PROMOTING INTERNATIONAL BRANDS IN LOCAL MARKETS Introduction Marketing plays an important role in making organizations realize their missions. It creates awareness among consumers about the availability of goods and services that companies offer. The process of globalization and increased technological advancement has eased the global reach of goods and services that companies provide. Similarly, the increasing number of world population and identification of new markets from developing countries had made many organizations spread their brands towards capturing market share. Because of this, many organizations have adopted a policy, which makes them think globally but act locally to acquire market share. This has pushed many companies to resort to international marketing where they target the overseas markets for their products. The decentralization of products through international marketing has given some companies a competitive advantage because they are preferred in the foreign markets compared to domestic products. This is because of the critical role of international marketing. It promotes the international brands, hence overshadowing the local products. Similarly, it makes the local market overlook their products, making consumers perceive them as stronger that their home products. Because of this tendency, brands from the West have infiltrated the local market and acquired the market share hence pushing domestic products out of the market. For instance, Coca-Cola has continued to dominate the soft beverage market in developing nations because of its international marketing strategy. Similarly, Unilever products have gained market share in the developing countries, hence overshadowing the local products. Although the products from the West are similar to domestic products, international marketing portrays them to be superior making consumers identify with them. Role of International marketing in promoting international brands in local markets International marketing plays a crucial role in humanizing the global brands with the mission of inspiring the local markets (Cayla 2013). Most of the successful international brands captures the market through the mission that they sell to the consumers. They also capture and convey universal insights that inspire employees as well as attracting customers (Cayla 2013). For instance, IKEA brand had a mission that consumers in the local market felt aimed at helping them. The mission read, “Create a better everyday life for people” (Cayla 2013). This signifies that international marketing helps the global brand to position themselves as the solution to human needs. This helps them to fulfill the needs of the local hence contributing to increased market penetration and share. Moreover, the strategy uses help in traversing the cultural difference that the market might have (Cayla 2013). It is also evidenced that international brands coin mission statements that lure the local consumers to believe they are the target, and the products are tailor-made for them. The statements also pass a strong message, which inspire the consumers towards affiliating with particular international brands. Through this, the marketing strategy deployed is effective in increasing brand market penetration. Moreover, other international brands such as Johnnie Walker coined a mission after conducting a study to understand that the world population wanted to advance their lives irrespective of their social backgrounds (Eisingerich & Rubera 2010). This made it to position its brand and campaign slogan, “Keep Walking”. The brand penetrates the local market since the consumers identified themselves with it because of the association with the slogan. Through the humanization of the mission and goals, the international marketing has helped certain brands to infiltrate the market hence overshadowing the domestic brands (Eisingerich & Rubera 2010). Johnnie Walker sales in every country with legalized liquor selling in the present day. Despite the marketing mix of the brand, characterized by high retail market compared with the local brands, it has continued to acquire additional market share (Eisingerich & Rubera 2010). The humanization of its slogan as a marketing strategy gives it an upper hand compared to the local products that have not realized the same trend. Secondly, many international brands reorganize and build a relationship with the local markets to penetrate the market (Balabanis & Diamantopoulos 2011). For instance, GlaxoSmithKline (GSK) used this strategy to revitalize its marketing organization for better positioning in the local market. The company deals in consumer health and had to reorganize its marketing strategy in the late 2000s (Balabanis & Diamantopoulos 2011). One of the ways the company managed to position itself in the international market was through partnering of brand marketing teams with national managers. The aim was conducting local innovation and management of resources (Balabanis & Diamantopoulos 2011). The key organizational personnel consolidated the brands agency relationship with other brands to make it acquire the new markets. Reorganization and collaborating with other organizations, which have established traffic and goodwill, helped the GSK to position itself in the overseas markets (Balabanis & Diamantopoulos 2011). Because of the strategy, the organization realized an enormous change in its sales and improved in-country marketing innovation. From this case, it is evident that understanding the local market and building alliances is helpful in making an organization establish a strong brand. Similarly, the inclusion of the locals and establishing a positive relationship is critical towards gaining their loyalty. It is also effective in making a brand penetrate a market dominated by other players as in the case of GSK. Thirdly, brands such as Coca-cola have shortened the feedback loop between the local and the international or global market (González-Benito et al. 2015). This has increased the market penetration of the brand as well as the sale of the products to averagely 2 billion daily (González-Benito et al. 2015). Developed supply chain, which entails local manufacturing, packaging, merchandising, and distribution, is useful in making the local markets associate with the brand (González-Benito et al. 2015). The regional marketing operations and bottling investments groups division have helped Coca-Cola to establish a firm foundation and spread its operation to nearly every corner of the world. Despite the intense competition from the emerging markets, Coca-Cola has gained a considerable market share that is difficult to challenge. The local markets are experiencing new entrants of the brand, but they have little or no influence on the performance of the international brands. It is because of their international status and superior marketing network that conveys a strong message to the consumers. Similarly, the Coca-Cola brand believes that shortening the feedback loop between local market insights, and global messaging helps in improving global-local alignment (Guzmán & Paswan 2009). The success that Coca-Cola recorded is a proof that staying closer to the locals makes them associate with the brand and maintains their loyalty. The marked success in sales during the Ogilvy Campaign, where consumers shared a coke with friends through their first names made the organization to spread the campaign to other different countries (Guzmán & Paswan 2009). This is an indication that international brands are very keen on the feedback from their consumers, which enable them to make changes to suit the market. Coca-cola also uses the local ideas to improve their service delivery in different markets because it believes that every market has a different need from others (Guzmán & Paswan 2009). The best ideas they obtain from their market is then tried and adapted to give the best in the market. This has made Coca-cola become a household brand name for the past and coming generations. Fourthly, international brands infiltrate the markets through streamlining content access and guidelines (Paharia, Avery & Keinan 2014). The accessibility of the global brands through the availability of resources and campaigns and brand guidelines makes the local consumers know the existence of the brands. This practice promotes the brands consistency in terms of visual (Paharia, Avery & Keinan 2014). A good example of this is the Percolate, which has been viewed as the central technology for asset management, image editing as approving contents across different markets (Paharia, Avery & Keinan 2014). The increased visibility and accessibility in the local markets have made it penetrate the market making consumers prefer it to others, which emanate from the domestic market. Unilever is another company, which has used efficiencies of its marketing operations to increase the sales and penetration in the local markets. The Unilever products are nearly found in every corner of the world, and they have increased accessibility through establishing manufacturing plants. These facilities have improved the brands’ marketing strategy because they make the local consumers believe and treat them like home brands and products. Additionally, international brands such as Nike and Adidas have acquired shares in the local markets because of their accessibility (Westjohn Singh & Magnusson 2012). They are available in nearly every sport wear. Similarly, they are promoted in the local market as well as in the international media such as Super Sports. Nike and Adidas are some of the known brands of sportswear and overshadowed the local (Westjohn Singh & Magnusson 2012). They inhibit their penetration in the domestic market because of their international marketing tendency. Similarly, they are making deals with the local organizations and institutions because of their financial strengths and capability. This has made them be the preferred brands in the local markets as opposed to the local products dealing with the same or almost similar products. Their marketing strategy and the established brand name gives them a competitive advantage to the local brands who are still trying to penetrate the market. Fifthly, international brands focus on driving adoption of global systems and processes (Lennartz et al. 2015). The international brands infiltrate the market through marketers speaking the same language and tracking the agreed metrics. Moreover, these brands can penetrate the local market through the centralized core technologies and learning from internal successes and failures (Kipnis et al. 2012). The organizations also achieve marketing efficiencies by training their marketers and investing in them to enable them work towards achieving the organizational objectives. For examples, Unilever uses this strategy in penetrating the local markets through its "brand calibration" sessions organized or tailored for each market. It aims at ensuring the team, delivers content relevant to the need of the locals (Alden et al. 2013). Moreover, the training is aimed at ensuring that the productions are in line with global standards, which can build the company’s image. Because of this tendency, the international brands are perceived as superior to local brands, and this makes them acquire market share faster compared to others in the same market. Besides, the Unilever makes its internal staffs and local agencies complete training programs on the marketing process and measures the results (Jain 2015). The results are measured by surveys, tests, and quarterly checks. Today, Unilever is one of the companies to have infiltrated the emerging markets with products used in the kitchen, laundry as well as body care. The companys success has enabled it to keep its competitors at bay and dominate the market (Guo 2013). It has made it difficult for the domestic industries in the developing markets to emerge since consumers have become loyal to its products. Similarly, the continuous improvement in the marketing strategies has enabled the company to produce more products tailored to the local markets (Lee et al. 2014). The international marketing has made brands to realign their marketing for global strategy characterized by a diverse mix of local performance than any other period (Lee et al. 2014). The systemization of the global frameworks and guidelines is making marketing leaders make consumers feel at home. Brands are continuously gaining market share because of the marketing strategy they developed. Successful companies such as Coca-Cola, Unilever, and Bata have consistently enjoyed a competitive advantage because they have overshadowed the local brand that can give them competition. Instead, international brands compete among themselves in the local market. How international marketing affects the bottom of pyramid market High populations who have a small social income compose Bottom of the Pyramid (BoP). Those who are here are associated with poverty and struggle with life. Similarly, their rate of consumption is very high compared to others who are higher in the pyramid. Although those who are higher in the pyramid have access to financial resources, their purchasing power cannot be compared with those who are lower the pyramid. There is a big contrast between the two groups. Because of this, international brands can benefit and at the same time loose when it markets in the BoP. One of the things which is clear with about BoP market is that there is money (Akaka & Alden 2010). International brands rip big from the lower class because of their tendencies. These groups of people consume many resources and spend every little they get in buying these products. Marketing to such group of people will promote the organizational success and penetration in the market. Moreover, the high population provides a ready market, which the organization taps to aid its increased sales of products and services. Therefore, there is money in this sector and targeting them can benefit the organization of the leading international brands. Secondly, the international brands have access to the BoP. Few or no barriers, as well as the limitations, might hinder entry. Because of this, marketing at this level might have a positive change in the organization because the population welcomes the products. Similarly, the free access to such markets increases the chances of competition as well as the reduced opportunities. However, this depends on the players in the market since the high number of international brands heightens the competitions. Thirdly, BoP markets are brand conscious, and this might work in the favor of foreign brands. For instance, these groups are likely to maintain their loyalty to certain brands in case the company does a good marketing. Many international brands are penetrating the local markets because of the nature of the population, they are dealing with as they maintain their loyalty. For instance, the most African population falls under this group, and it justifies reasons making international brands flock the market. Similarly, brand consciousness among this population will promote the activities of the international companies in the market because of the long-term relationship with consumers. It will also delay the consumer’s response toward other new brands in the market. Additionally, these markets are connected, and this gives the international brands a variety of options for selling or market acquisition (Mitchell et al. 2013). The characteristics of the BoP markets are also similar, and they form the majority of the population. These populations also have fixed options of finding other alternatives and takes whatever is presented to them. This implies that the emerging economies have few options for acquiring products, making them work with the options offered to them. In many cases, the connectedness of consumers emanates through their ability to link the products in terms of the usability as well as proximity. Moreover, the international brands are likely to gain in this market because the population readily accepts advanced technological realities. Many organizations such as Unilever have benefited from such population because of the technology deployed. Consumers here are ready to adapt changes because they are looking for the cheap ways as well as low prices, which are associated with technology. Through this, international brands that approach such markets with technology are likely to record success because the people are willing to adapt. From this perspective, consumers are likely to pay loyalty to international brands as opposed to local brands in the market. The organizations that want to prosper in such markets must also consider doing other activities that attract consumers as well as other players in the market. For instance, international and local brands must create the capacity for consumers to use the products and services or consume. In any given market, the players must work and use of means to stimulate the consumers to respond to the products in the market. In this case, the international brands can respond to creating a capacity of consumption by reducing prices and increasing promotion. Most of the international brands have captured a considerable share in the local market because of their stimulation. Secondly, producing new goods and services can stimulate BoP markets to benefit the organization (Ataman et al. 2010). Associating with new things is beneficial any consumers and the more they have new things, the more they will purchase or increase purchasing power. New goods and services in the market will attract buyers since the high population below the pyramid has increased purchasing power compared with those at the middle or upper. The availability of new goods and services in the market attracts more consumers, old and new in the market. Advertisements on the same products will create awareness, hence increasing sales among these international brands. Lastly, dignity and choice as well as trust are essential to the success of any brand in this market. The trust wins the psychology of the poor people. Similarly, organizations that have developed trust with their customers enjoy a competitive advantage compared with ones with mistrust issues. Moreover, dignity and choice is fundamental to gaining market as well as maintaining loyalty with customers. Exercising responsibility anywhere is crucial in building a strong brand as well as attracting more customers in the company to use the products. Conclusion International marketing is playing a fundamental role in promoting global brands in the local markets. The process of globalization has facilitated the entry of foreign brands in the domestic markets to overshadow the local products. International brands such as McDonald, GSK and Coca-Cola among others, have infiltrated the local market and become the household name in the developing nations. However, the dominance of international branding is not because of their superiority but the marketing strategy. For instance, many global brands develop a mission for their products, which identifies with the target consumers. Johnnie Walker developed a slogan, which inspired the consumers, making it dominate and acquire a market share in some nations. Coca-Cola has been following the same strategy and today stands as the carbonated soft drink producer. The international brands make it difficult for the local products to gain market share since they position themselves and associates with the consumers. Their marketing strategy aims at continuous improvement of the brands as they also seek feedbacks from their users. References Akaka, M, & Alden, D 2010, Global brand positioning and perceptions, International Journal Of Advertising, 29(1), pp. 37-56 Alden, D, Kelley, J, Riefler, P, Lee, J, & Soutar, G 2013, The Effect of Global Company Animosity on Global Brand Attitudes in Emerging and Developed Markets: Does Perceived Value Matter? 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