As the company wants to enter an international market, branding is a necessity. That is quite an important step. If you fail your branding when entering international markets, failure will be a true reality you will need to deal with.
Most business managers think that the international market expansion means that a brand refresh is necessary. This is incorrect. In truth, you need to focus on how you will brand your new product or service. There are basically 3 variations that are available and that you can choose from. They are as follows.
International Brand Strategy
The company that operates in an international market will not make an adaption of the offers when looking at the foreign market. For instance, investing in McDonald’s means that you invest in a company that maintains its branding no matter what country it operates in. The brand in this situation is basically used in the exact same form as with the original one.
This is a branding strategy that should be used only when the company does not actually face a strong competition in a foreign market. Besides McDonald’s, we can also mention Microsoft and Apple as 2 companies that will always use this strategy.
Global Branding Strategy
A company that utilizes such a strategy will not adapt branding concept to the nation differences and will use a similar brand name, slogan and logo around the world. We go far beyond the previous option in the sense that when there are possibilities available for some branding modifications, they are considered. With the global branding strategy we even see global brand positioning, communication and market proposals. We are faced with standardized operations and the company does manage to save a lot of money on branding as expansion happens.
Transnational Branding Strategy
The firm that will use this strategy will develop individual branding concepts for the foreign market. This can include anything from the brand name to marketing events and even market proposals. Corporate branding is still visible but it will work as the framework of the brand. This can lead towards a level of local adaptation and the brand can be positioned differently than in the original market. Prices can be modified and various trade policies can become available.
The problem with transnational branding is that it will require a huge financial investment in order to match local requirements. At the same time, we are faced with some negative aspects like standardization benefits having to be removed from the promotional equation.
Adaption Is Key
We have to understand that there are various differences that can appear between products when entering foreign markets. What works for a company may be a disaster for someone else. You need to be patient and you want to think about the various options that are currently available. At the same time, you need to consider the budget that is available. It is really important that you remain focused on a good research. You will need to think about what option is really good for you. Entering a foreign market is difficult.