Issues of Global Brand Management - Essay Example

John Lewis: Global Brand Management Background The term ‘branding’ is being conceptualized as intangible matrix of different audio-visual elements that are being aligned by marketers or advertisers to influence cognitive decision making process of marketers (Kim et al., 2008). According to Berry (2000), multinational corporation (MNC) or multinational enterprises (MNE) try to increase the magnitude and geographic dimensions of branding strategy in systematic manner. In context to branding strategies over geographic boundaries, MNCs adjust branding elements in accordance with macro as well as micro environmental characteristics of international market (Keller, 2007). In context to this study, John Lewis (renowned UK based upscale department stores) has approached the author of this paper to work with them as an external branding consultant. As an external branding consultant, aim of the author will be assess options and providing recommendations for the expansion of the John Lewis brand in overseas market. There will be two prime objectives for this study will be, 1- conducting review of existing literature regarding branding strategies over geographic boundaries to identify branding elements that can be used by John Lewis to decide its branding strategy in international markets and 2- identifying one new market where John Lewis can execute its global branding strategy. China has been selected as one new market where John Lewis can expand its business portfolio. Global Brand Management Zeithaml (2010, p.12) defined a brand as a “ name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competitors.” In simple words, sole objective of any branding strategy is to develop distinguishable identity for the products and services being offered by businesses. By executing branding strategy, marketers can explore variety of benefits such as, 1- acting as mean differentiator among parent company products and other available competitive products, 2- highlighting unique value proposition of the products/services being offered under the brand, 3- generating awareness regarding product/service offering of the parent company and 4- increasing customer trust (Brakus, Schmitt and Zarantonello, 2009). Carroll and Ahuvia (2006) pointed out that branding strategy is executed by marketers to create two key critical success factors such as brand experience and brand equity. Brand experience- Iglesias, Singh and Batista-Foguet (2011) defined brand experience as compositions of four elements such as sensory (experience the brand through sound, taste, sight, smell and touch), intellectual (generating creative ideas while encountering with the brand), behavioural (bodily experience being generated while encountering with the brand) and affective experiences (emotional attachment is being developed with the brand). Brakus, Schmitt and Zarantonello (2009) and Kumar, Dash and Purwar (2013) rightly pointed out that brand experiences is the causal vector of branding strategy that results in development of brand equity. Brand equity- Pride and Ferrell (2003, p 299) defined brand equity as “the marketing and financial value associated with a brand’s strength in the market, including actual proprietary brand assets, brand name awareness, brand loyalty, perceived brand quality, and brand associations”. Outcome of successful branding strategy is development of strong brand equity which can provide marketing as well as financial value to the parent company. Now, the question is how global companies like John Lewis can create brand experience that can trigger brand equity in international markets. While answering this question regarding global brand management, Keller (2007) used the term ‘Brand Elements’ that are being used as basal plane to build image of the brand among customers in international markets. Keller (2007) identified different ‘Brand Elements’ that are being used to identify and differentiate the brand among customers in particular international market such as names, logos, URLs, symbols, characters, spokespeople, slogans, jingles, packaging and signage. Considering the ‘Customer based Brand Equity Model’, it can be said that brand elements are being used by global marketers to increase brand awareness (having knowledge about the product offering under the brand), develop strong as well as unique brand association (attaching to the brand emotionally and bodily) and elicit positive brand judgement (rationally analyzing the benefits being obtained from the brand) (Keller, 2007; Brakus, Schmitt and Zarantonello, 2009; Kumar, Dash and Purwar, 2013). Generally, marketers and advertisers select branding elements on the basis of 6 criteria such as, memorability (can be easily remembered), meaningfulness ( having descriptive as well as persuasive meaning to audience), likability (verbal imagery and rich visuals can help customers to like the brand), transferability (can be transferred across product categories and geographic boundaries), adaptability (very flexible changed as par change in macro environmental conditions) and protectability (can be legally as well as competitively protected) (Keller, 2007). While developing international branding strategy, companies need to go through three decision points. Decision point 1- whether the company deciding branding strategy for new or existing market? Decision point 2- whether the company is offering new product to new market or products offering are being modified as par macro and micro environmental needs of new market? Decision point 3- whether the products offered under the brand are accessible in international market through alternate distribution channels like exporting, licensing and franchising? If the products are widely available in the new market, then it will be difficult for the parent company to establish distinguishable brand image in international market. In such context, controlling distribution channel or umbrella branding technique can be used to decrease accessibility to the brand. In case of branding strategies over geographic boundaries, international marketers take four phase systematic approaches. Phase 1: the company needs to identify the opportunity or threats in the country by doing macro and micro environmental analysis of the country. On the basis of results of such analyses, market entry strategy (foreign direct investment or joint venture) is being derived. Phase 2- branding needs are being identified on the basis of above mentioned three decision points. Brand architecture is being decides on the on the basis of branding requirements. In case of product brands, more stress is given on using product features as brand elements and in case of corporate brands, corporate name is being associated with the product offerings and core values of the company are being integrated with the branding strategy. Phase 3- customizing the brand elements as par requirements, cultural orientation and cognitive expectations of target market. For example, eating beef is against the religious rituals of Hindus in India. While McDonald moved to India, the company introduced burgers containing vegetables instead of beef. Simultaneously, green colours were used McDonald in the advertisement as brand elements instead of red colours to attract vegetarian customers in India (Srinivasan, Vanhuele and Pauwels 2010). Phase 4- based on nature of branding architecture, marketing promotion technique is being adjusted in order to increase efficiency branding strategy. Above the line (ATL) or bellow the line (BTL) advertisement are being integrated with the global branding strategy to connect with customers in specified international markets. John Lewis: Global Brand Management John Lewis is renowned upscale department stores chain being headquartered at London, UK (John Lewis Partnership, 2014). China has been selected as the new market where John Lewis has decided to enter and expand business portfolio. In UK, John Lewis is being regarded for high quality upscale offerings. In 1925, founder of the company John Spedan Lewis introduced the tagline ‘Never knowingly undersold’ to highlight all three value proposition parameters such as price, quality of merchandises and services (Adam & Eve DDB, 2013). In China, in order to attract price sensitive customers and customers having pragmatic cultural dimensions, the company needs to align the ‘Never knowingly undersold’ tagline more with value for money proposition (price) than other value proposition parameters. Above mentioned four phases systematic approaches can be used to select market entry strategy of John Lewis in China. Phase 1: In broad macro environmental terms, John Lewis will face competitive threat from both international players and local players. However, for last 5 years, the retail market as well upscale department store market is growing at more than 5% rate (Dudovskiy, 2012). Chine government is also providing legal, financial and strategic support to foreign retail companies to expand their business in China. In order to take greater control over the distribution channel in China, John Lewis should use foreign direct investment (FDI). Establishing wholly owned subsidiaries in China will provide different benefits to John Lewis such as, independence of strategy selection, centralizing the global strategic coordination, protection of technology, using local resources in independent manner and controlling the scaling of the business (Dudovskiy, 2012). Phase 2, Phase 3 and Phase 4: in order to decrease risks of wasting resources on unproductive branding strategy, John Lewis will need to select whether they want to offer existing product portfolio or customize as par requirement of Chinese customers. Market research can be conducted by the company to understand preference of Chinese customers toward upscale departmental stores. It will be important for John Lewis to establish ‘bonding’ with Chinese customers. In global market survey, it has been found that departmental stores and upscale retailers can most appropriately establish bonding’ with customers by using emotional drivers. Figure 1: Drivers of Bonding (Source: Adam & Eve DDB, 2013) Adam & Eve DDB (2013) reported that John Lewis stresses more on rational branding appeals (‘never knowingly undersold’) to engage customers. In the promotional advertisement, John Lewis hardly uses any emotional dialogue or branding element that can evoke emotions among customers. Rather, the company uses rational brand elements like style, fine quality dresses, value for money products and aristocracy to elicit positive brand judgement among customer (rationally analyzing the benefits being obtained from the brand). On contrary, Dudovskiy (2012) reported that Chinese customers prefer those brands that can relate to them emotionally or respect their personal value system. Chinese culture is being blended with cultural dimensions like collectivism, feminism and pragmatism (Dudovskiy, 2012). Personal value system of Chinese customers is directed by emotional attachment, caring for others, protecting family bonding and others. In such context, John Lewis needs to use brand elements that can convey emotional messages to customers in order to engage Chinese customers. As part of target marketing strategy, John Lewis needs to target high earning males and females in the age bracket of 25 years to 45 years (Dudovskiy, 2012). By targeting such segment, John Lewis can drive more margins by selling premium priced merchandises. Considering the ‘Customer based Brand Equity Model’, John Lewis needs use two branding elements such as characters and slogans to develop emotional attachment with customers. Characters and slogans will be selected on the basis of 6 criteria such as memorability (emotional slog will be remembered for its rhythm), meaningfulness (message conveyed through emotional dialogue will clarify the meaning of the value proposition of the brand to customers), likability (rich visuals and Chinese culture based characters used in the brand will force customers to like the brand), transferability (the dialogue can be easily transferred across product categories), adaptability (the character and dialogue are being adapted as par Chinese culture) and protectability (the dialogue can be legally patented) (Keller, 2007). As part of branding strategy in Chinese market, John Lewis should use the dialogue ‘For those who care’ and Chinese hardworking family men as characters in TV advertisements. TV advertisement containing the dialogue ‘For those who care’ should be broadcasted (Adam & Eve DDB, 2013). In the advertisement, it will be shown that John Lewis merchandises respect need of those people who work very hard to show their care to family members. By using John Lewis merchandises, these people can actually celebrate their emotional bonding with family members. Figure 2: Poster Exhibition (For those Who Care) (Source: Adam & Eve DDB, 2013) [Note: These images are not protected by copyright and publicly available. Adam & Eve DDB, (2013) used such images and this study has acknowledged their contribution). Above clippings are parts of the TV commercials and in each clipping; it will be shown how Chinese people are doing hard work to protect the interest of their family members. As characters, Chinese proverbs can also be used in the advertisement to connect more with Chinese customers. Such branding practices will develop affective experiences among target customer base which will lead to development of brand equity for John Lewis. Reference List Adam & Eve DDB., 2013. John Lewis. [pdf] Euro Monitor. Available at [Accessed 13 July 2014]. Berry, L. L., 2000. Cultivating service brand equity. Journal of the Academy of Marketing Science, 28(1), pp. 128-37. Brakus, J. J., Schmitt, B. H. and Zarantonello, L., 2009. Brand Experience: What is It? How do We Measure It? And Does It Affect Loyalty? [pdf] Columbia Business School. Available at [Accessed 13 July 2014]. Carroll, B. A. and Ahuvia, A., 2006. Some Antecedents and Outcomes of Brand Love. Marketing Letters, 17(2), pp. 79-89. Dudovskiy, J., 2012. John Lewis Marketing Plan. [online] Available at: [Accessed 13 July 2014]. Iglesias, O., Singh, J. J. and Batista-Foguet, J. M., 2011. The role of brand experience and affective commitment in determining brand loyalty. Journal of Brand Management, 18(8), pp. 570-582. John Lewis Partnership., 2014. John Lewis Partnership. [online] Available at: [Accessed 13 July 2014]. Keller, K. L., 2007. 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