Real Differences Between Local And International Brands

Summary – Real differences between local and international brands
- Consistent with current trends in globalization, many international companies have moved from a multidomestic marketing approachto a global marketing approach.
- Firms’ focus on the development of international brands has had a negative impact on local brands. Many brands have been eliminated from international brandportfolios.

Local brands: Brands that exist in one country or in a limited geographical area.
International brands: Brands that have globalized elements of the marketing strategy or mix. In a more radicalsense, global brands are defined as brands that use the same marketing strategy and mix in all target markets.

Advantages of global brands:
1. The firms’ opportunity to benefit from strongeconomies of scale.
2. Higher speed to market for new products.
3. Large budgets in the communications area.

- However, we note that the push toward development of international and globalbrands has been driven more by supply-driven considerations linked to costs than by market considerations.

Advantages of local brands:
1. Better Response to local needs: A local brand can bedesigned to respond to the local market’s specific needs. Local brand products have more flexibility than international brands, so they can be developed to provide answers to local consumers’ particularneeds.
2. Flexibility of pricing strategy: Pricing strategies for local brands can be more flexible and thus can take advantage of a brand’s strength in specific local markets.
3. Possibility ofresponding to local or international competition: A local brand can be used to respond to local or international competition or even to compete against retailer brands. A local brand can berepositioned and the marketing mix adapted accordingly. In contrast, the marketing strategy for an international brand must follow a predefined regional or global marketing strategy.
4. Possibility of...