5 half-baked characteristics of global brands
Why is Ford not as successful as Toyota these days? Harvard’s Professor John Quelch reckons it’s because Ford has been too timid to be a genuine global brand:
Over 20 years ago, Harvard professor Theodore Levitt praised Japanese manufacturers for their focus on “what every consumer in the world is seeking: world-class modernity at affordable prices.” Either because they didn’t understand regional differences in consumer preferences or out of self-confidence, Toyota, Nissan, and Honda sold standard products under a single brand umbrella.
For decades, Ford adapted its manufacturing platforms, features, and model names from one country to another. The results: added manufacturing and supply chain costs that strained consumers’ willingness to pay; a balkanized bureaucracy in which regional managers exaggerate the need for local adaptations to defend their turf; and a deteriorating market share, financial performance, and stock price.
So far so good. I thought he was onto a promising theme, but no. Unfortunately, Quelch then lists his 5 characteristics of top global brands:
- The same positioning worldwide. This provides a combination of functional product quality and innovation with emotional appeal. Think Coca-Cola and Disney.
- A focus on a single product category. Think Nokia and Intel.
- The company name is the brand name. All marketing dollars are concentrated on that one brand. Think GE and IBM.
- Access to the global village. Consuming the brand equals membership in a global club. Think IBM’s “solutions for a small planet.”
- Social responsibility. Consumers expect global brands to lead on corporate social responsibility, leveraging their technology to solve the world’s problems. Think NestlĂ© and clean water.
Hmmm.
- Same positioning worldwide: Agreed. Also could have mentioned BMW, the BBC, et al.
- Single product category: Disney? Films, theme parks, hotels, toys, clothing? All spin-offs of cartoon characters? GE? Power station equipment, trains, jet engines, appliances, financial services?
- The company is the brand name: Agreed, but lots of sub-brands too (CocaCola has dozens).
- Access to the global village: People buy Nokia or Toyota because they’re global? How about because they’re good products, well marketed at attractive prices?
- Social responsibility: Good companies want to be good citizens, but this is a leap too far. Coke solving world problems? Puhleez!
1.5 out of 5. Not the standard of thinking I expect of a Harvard professor. See me after class.
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June 5th, 2008 at 4:21 pm
> A focus on a single product category. Think Nokia and Intel
Seriouly, Intel?
They had Celeron, Pentium, Core, Quad, 4, D, E, M, HT, EM64T, Xeon, Itanium …
Arnt those brands within Intel which are marketed respecitively from economy user to corporate infrastucture?
I dont get this idea either…!
June 5th, 2008 at 6:52 pm
To be fair, those are product sub-brands which Intel always advertises with the Intel name. Like Toyota models (Corona, Corolla) everyone who’s interested knows that it’s Intel Inside. And they are very focused on computing chips. You don’t see them owning logistics firms or LCD plants.
June 6th, 2008 at 12:08 pm
Right, but intel makes webcams & lithographics equipment too.
With computing & electronics growing so rapidly in so many categories, do you believe that we can generalise all Intel sub-brands products as one thing?
Motherborads, chipsets, graphics accelerators & CPUs are no longer just chips made by Intel.
They have grown to become their own industry that even lay users are getting more interested in the depths of…
June 6th, 2008 at 5:40 pm
Which just shows again that this so-called characteristic of global brands is not valid. So I assume we’re in agreement on that.
June 25th, 2008 at 6:03 am
[…] all that, I also buy the idea that a true global brand has a single global persona. However, if you are marketing a global brand, or even a regional one, […]