International Brand Orientation
What is International Branding?
Building an international brand is the process of developing a business by establishing and growing a brand identity in the global market. This includes branding through advertising, media, website content, word-of-mouth, and product or service-related interactions.
Building a global brand isn’t just about deciding where your business will go, but also shaping how customers and partners perceive your organization. This process aims to create a clear and consistent image of the company, ultimately influencing how people view you.
Importance of International Branding
Branding isn’t easy; it requires time, effort, and a clear strategy. The basic steps in this process include:
-Company Naming: Choosing a name that suits the culture and language of each market.
-Logo Design: Creating a globally recognizable logo that is memorable and reflects the brand’s identity.
-Maintaining Consistent Messaging: Ensuring that your message is consistently conveyed through all communication channels.
Research shows that about 45% of medium-sized companies generate more than 50% of their revenue from international markets. Moreover, having a strong brand can increase revenue by up to 23%.
Adjusting Your Brand to Create Authenticity
To succeed in the global market, brand adjustments are crucial. This includes:
-Market Research: Gaining a deep understanding of the culture, needs, and expectations of customers in different markets.
-Message Customization: Adapting messaging and communication content to suit each market, ensuring authenticity and emotional connection with the target audience.
-Building Relationships: Establishing relationships with local partners to enhance brand credibility and presence.
Orienting your brand internationally from the start is a smart move for organizations looking to scale. By creating an authentic brand and adjusting it to the needs of each market, you not only enhance your competitiveness but also boost your global development opportunities. Investing in brand building will bring long-term benefits, contributing to the sustainable development of your business.
3 Key Benefits of Building an International Brand
1. Establishing New Revenue Streams
Expanding into the global market provides great opportunities to generate new revenue streams. As you explore new markets, your business can offer more diverse products and services, tailored to the needs and culture of each country. This not only helps your business grow but also opens up opportunities to reach new customers. Building a global brand will help your business leverage this potential more effectively than just operating in the domestic market.
2. Strengthening Competitive Advantage
Building an international brand helps businesses strengthen and expand their competitive advantage. When entering new markets, businesses have the opportunity to develop and assert themselves against competitors who are not yet present there. Access to advanced technology, quality human resources, and a suitable industrial ecosystem can provide a favorable starting point for businesses. Implementing a global branding strategy not only helps enhance your reputation but also helps build a solid position in the minds of consumers.
3. Enhancing Brand Awareness and Authenticity
When prioritizing international branding, businesses will build authenticity and credibility in the eyes of consumers. A well-managed global brand will help more people become aware of and understand the core values of your business. Research shows that 88% of consumers consider authenticity an important factor in brand choice. By maintaining consistency in messaging and values, your brand can assert its authenticity and attract support from customers around the world.
Building an international brand is not only an expansion strategy but also a way to build prestige and power in the market. By leveraging these benefits, businesses can achieve sustainable development and long-term success in today’s globalized context.
How to Build a Global Brand Strategy
Step 1: Solidify Your Objectives and Positioning
Define Your Business Objectives:
Set clear goals for your global branding strategy. This ensures that all actions and decisions are aligned towards a shared objective. Key performance indicators (KPIs) to consider include:
-Revenue growth: Measure the revenue growth from new markets.
-Profit margin: Track the profitability achieved from international operations.
-Customer satisfaction assessment: Conduct surveys and analyze feedback from customers in different markets.
Questions to Answer:
-Are you achieving sustainable success in your domestic market?
Assess your stability and growth in your current market before expanding outward.
-Is your brand’s image, vision, and identity clearly defined domestically?
Ensure your brand has consistency and clarity before entering new markets.
-Where are you planning to expand? Why? What data do you have to support your expansion plan?
Research and analyze potential markets to make informed decisions. Use data from market research, consumer trends, and competitive analysis to support your expansion plan.
By solidifying your objectives and positioning from the outset, you’ll create a solid foundation for effective global brand development.
Step 2: Determine Your Entry Strategy
To build an effective global brand, the first step is to define the market you want to enter and your goals. Here are four key international strategies that businesses often employ, each aligned with your specific business model and objectives.
1. International Strategy
The international strategy (or export strategy) focuses on exporting products and services to foreign markets while maintaining a single production base. Companies in this model manufacture goods at home and ship them to global customers without making significant adjustments for local needs.
Example: Major wine producers from France and Italy, when they sell their products outside their borders without much change in branding, products, or pricing.
2. Global Strategy
Global strategy emphasizes selling the same product in all markets. The primary goal is cost savings through efficient operations and product standardization. Subsidiaries primarily execute decisions from headquarters.
Example: Pfizer, with its global pharmaceutical products, often makes only minor adjustments to comply with different regulations, while maintaining a common brand.
3. Multidomestic Strategy
Multidomestic strategy enables businesses to tailor their sales, marketing, and product strategies to specific countries. Instead of a single, unified global brand, the company will have multiple smaller brands, each tailored to the tastes and needs of the local market.
Advantages: Better meet local needs, create authenticity, and be more appealing to customers.
4. Transnational Strategy
The transnational strategy combines the best of both strategies above. The business has a central office coordinating subsidiaries in international markets, allowing for centralized decision-making while maintaining the ability to localize products and branding.
Example: McDonald’s and Coca-Cola, they maintain a global brand while also creating products tailored to the local market.
Choosing the right entry strategy for your business model, goals, and financial capabilities is crucial. Each strategy has its own advantages and disadvantages, so careful consideration is needed before deciding. The alignment between your brand and the target market will enhance your authenticity and reach in the global market.
Step 3: Localization and Launch
After identifying your target audience, market, and entry strategy, the next step is to localize your brand. This process involves adapting your content, brand, and messaging to align with the culture and needs of the local market.
1. Brand Localization
Brand localization is not just about translation; it’s a comprehensive plan to adjust your brand to attract and connect with overseas markets. This includes:
-Content Adaptation: Update your marketing messages, advertisements, and communication materials to align with local language and customs.
-Shaping Brand Values and Promises: Ensure that your brand’s core values and promises are maintained, but adjusted to match the expectations and needs of local customers.
-Relevant Products/Services: Modify or develop products/services to cater to specific preferences and demands of the market.
2. Examples of Successful Global Brand Strategies
Multinational Strategy: Unilever
Unilever, with hundreds of well-known consumer brands, has adopted a multinational strategy to connect more closely with local markets. Local managers in each country adapt products to meet local needs and preferences.
Example: Marmite is popular in Australia, while Hellman’s mayonnaise is favored in the US. By doing so, Unilever can optimize revenue from different markets.
International Strategy: Harley-Davidson
Harley-Davidson takes a different approach. The company maintains an export model, selling "Made in America" motorcycles globally without significant adaptations to local markets.
Strategy: They leverage product differentiation to build their brand. In 2021, Harley-Davidson exported almost 194,260 motorcycles to numerous countries, mainly focusing on markets like India and Vietnam.
Brand localization is a crucial factor in building successful international brands. It not only helps your brand become more relevant to the local market but also fosters a deeper connection with customers. Learning from examples like Unilever and Harley-Davidson can help you develop a strong and effective international brand strategy.
Need Help Expanding Your Brand Internationally?
When expanding your brand to global markets, establishing brand reputation and recognition is crucial. To connect with international customers, one of the most effective methods is to localize your website.
Why is Website Localization Important?
-Reach International Customers:
By providing content in your customers’ preferred languages, you create opportunities for them to understand your brand better and feel closer to the products or services you offer.
-Explore New Markets:
Localization allows you to test new markets without significant investment in large campaigns. You can identify customer needs and preferences through direct feedback.
-Maintain Consistency:
A professional translation and localization company will help you maintain consistent brand messaging across all markets. This is crucial for protecting your reputation and credibility.
Benefits of Translation and Localization
-Adjust Brand Elements:
You can adapt elements such as your website, advertising content, and promotional programs to align with the culture and preferences of each market.
-Utilize Modern Technology:
Advanced translation and localization tools optimize this process, from translation to multilingual content management.
-Global Brand Building Strategy:
With an effective strategy, you can quickly expand and succeed in new markets, optimizing customer experience and revenue growth.
Expanding your brand internationally is a challenging yet rewarding journey. Website localization not only helps you reach new customers but also paves the way for your brand to thrive in global markets. Consider investing in professional translation and localization services to achieve these goals effectively!
Conclusion
Expanding your brand to the international market is a crucial strategic move, offering significant opportunities for growth and development. Brand localization not only helps you connect more deeply with local customers but also creates a powerful and memorable brand image.
By tailoring your content, messaging, and approach to each market, you can enhance your brand authenticity and global recognition. Maintaining consistency in your brand message will ensure that you safeguard your reputation and credibility globally.
Remember, international brand expansion isn’t just about providing products; it’s about building relationships and establishing trust with customers worldwide. Investing in professional translation and localization services will be key to achieving sustainable success on this journey. This way, your brand will not only survive but thrive, creating a positive and lasting impact on the global market.
