Global Brand And Globalization Case Study

1. GLOBAL BRANDS AND GLOBALISATION

“Globalization refers to an interdependent world economy in which people in one part of the world interact with people in another part as buyers, sellers, or intermediaries” (Keegan & Green, 2015). If we apply this definition to the Global Brands can be understood in different ways. First of all, a homogenous taste amongst the consumers all over the world is emerging. The global brands are being favoured because of that, products now have the same characteristics in all the markets, fact that is also contributing to create a ‘worldwide image’ of the brand (Schulling and Lambin 2003). A clear example is the ‘Samsonite’ luggage brand, with a clear positioning all over the world, it sells travel products

Addressing this concept to the LEGO company, as we will describe later, they were able to come up with a strategy related to this concept, they started to open new centres mainly in Europe, in order to get closer to the customers and save costs in different areas like transport and distribution (Oliver et al. 2007).

Finally, according to Schulling and Lambin (2003) there are two ways on which the companies can become global. The first case are the companies that started as ‘local brands’ and due to the success they became ‘global’. And the second one, the brands launched in a specific market environment.

We can relate the first case to Zara the fashion company that started in the North of Spain and due to the success it expanded globally and now is one of the most famous fashion brands in the world, and the same as LEGO starting as a small business in Denmark and becoming one of the most popular toy companies in the world.

The second case, the case of some brands of the Procter and Gamble

(1994) as ‘the variety of goods under a brand that can satisfy the consumer’s desires that belong to different segments’. The different types of Coca-Cola (Diet, Zero, Life, …) are an example of Line Extensions.

2.2.1 Advantages and Disadvantages

The main advantages of the extensions can be analysed from two different perspectives. First of all, according to Jaulent S. et al. (2007), the extensions evolve less cost. Moreover, it creates a clear awareness amongst the consumers as they can associate it with the main brand and hence, an increase reliability as a result of the previous knowledge of the brand.

Secondly, in terms of costs, are considerable less. Creating a new brand with their own name, logo and so on and the consequent advertising is clearly much more expensive.

And finally, it leads the opportunity to have a wider market coverage and therefore cover new