UNIT 4 International customer communications
d Give students 2–3 minutes to make a list of companies that have used the
strategies in Exercise 2c. Then ask them to work in pairs to compare their ideas and discuss the question. Suggested answers Brand extension Examples: Lucozade / Lucozade Sport; Coke/Diet Coke; Virigin Airlines/Virgin Meagastores Advantages: core brand can reinforce the extension; if customers trust the core brand the perceived risk is lowered and consumers may be more willing to try the new product; the chance of gaining distribution and trial increases; advertising, selling, promotional costs and packaging are all reduced. Disadvantages: can dilute overall brand image e.g. failure of Coca Cola’s attempted launch of ‘New Coke’ in 1985 which alienated existing customers due to emotional attachment to core brand; over-extension of the brand can damage core brand associations Brand repositioning Examples: Lucozade (health drink/sports drink) Advantages: helps overcome a negative brand image or falling sales; increases market coverage and can appeal to new customers or segments; can be used to respond to competitor positioning Disadvantages: can dilute brand’s meaning and alienate existing customers Global branding Examples: Nike; Coca Cola Advantages: increased brand awareness across markets; cost savings (advertising; promotions, packaging, etc.); consistent brand image Disadvantages: cultural differences across markets mean that global brand may not have the same meaning and may not fit with local needs or tastes; attitude to ‘foreign’ brands versus strong local brands; may need to modify some aspect of the marketing mix to meet local needs Local/national branding Examples: Snickers (a chocolate bar which until 1990 was known as Marathon in the UK and Eire but which was later rebranded with the international brand name, Snickers); Thums Up Cola in India Advantages: attitude towards ‘foreign’ brands and consumer desire to support local manufacturers (‘buy British’ campaigns); can be closely tailored to suit individual cultures and requirements; can create closer relationship and loyalty with local consumers Disadvantages: brand awareness limited to one market or territory; loss of economies of scale as local brand may not export easily to other markets Rebranding Examples: Diet Coke/Coke light; British Steel/Corus/Tata Steel Advantages: can help overcome negative publicity; change image to suit a local culture; update an image to appeal to new customers; allows a company to move away from allying itself too closely to the cultural identity of one limited market – eg the rebranding of British Steel. Disadvantages: potential loss of established customers’ trust and loyalty
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Cambridge English for Marketing Cambridge University Press 2011 www.cambridge.org/elt/englishformarketing
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