EXPORTING LOCAL BRANDS
EXPORTING LOCAL BRANDS
Monday, 13 July 2009 06:19
When making the all important decision to export a highly successful local brand, manufactures at times fail to do their homework, leading to failure and disappointment. The fact that the brand is a marketing success in the local market is not a guarantee that it will perform well in the export market using the same marketing strategy.
For decades international manufacturers around the world have debated whether they should adapt their products and communication approach to each new market they enter, or whether they should simply standardize their marketing effort globally. Some cite the significant cost savings that may be reaped with a standard “one size fits all” approach, backed by the fact that there is a growing trend towards homogeneity in consumer groups across borders due to globalization. The adaptation camp on the other hand bases their judgment on the extreme differences between various countries in terms of culture, market dynamics, level of economic development, politics and consumer values.
There is actually no cut and dry answer to this. Research carried out by The Gordon Institute of Business Science in South Africa indicates that there is a combination of several factors that determine the most effective strategic approach. These include management’s international business experience, legal regulations and the actual competitiveness of the export market.
International business experience helps shape the management’s ability to decide on the most effective marketing and communication strategy for entry into an export market. Internationally exposed managers will not make any assumptions about a foreign market, they will instead purge their local marketing and communication strategy and determine whether it fits as is or requires adjustments.
A legal environment that differs greatly from your home country will also tend to require greater changes to your marketing, advertising or product formulation. Furthermore your overall approach to doing business will be affected by the level of transparency in the export market.
The intensity of the competitive environment will determine the amount of adjustments or customization your marketing will require so as to gain a comfortable level of competitiveness. In fact if you do not have leadership position in the new market you are entering you will most likely have to adapt your marketing strategy and advertising so as to acquire a significant market share.
Finally it is important to remember that great advertising ideas arise from consumer insights. Adverts created for one market may be understood by another market; however they may not resonate as effectively with consumers because the insight used is not as relevant to them. This is why sometimes when you watch foreign adverts you are left with a feeling of incomplete comprehension.
The writer is the Chief Executive Officer of Interbrand Sampson East Africa, a strategic brand consultancy firm.
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