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In the daily grind of global brand management, many marketing executives get hung up on customer preference for global over local brands. Yet customers may not even know or may not care that a brand is globally available. And many global brands, such as Aldi, Pampers, Gillette, Dove, and Heinz do not tout their globalness, perhaps because some customers reject global brands as signs of cultural homogenization or foreign hegemony. A singular focus on customer preference for global brands is far too narrow. In my research, I have observed five different ways that global brands create value for their firms, namely Customer, Organizational, Marketing, Economic, and Transnational innovation (Fig. 1). The COMET framework helps executives to map out ways for their companies to create global brand value. This chapter describes all five ways and then provides a scorecard for management teams to step back and see their global brands anew.
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Steenkamp, Jan-Benedict E.M. and Martijn G. de Jong (2010), “A Global Investigation into the Constellation of Consumer Attitudes toward Global and Local Products,” Journal of Marketing, 74 (November), pp. 18–40.
Steenkamp and de Jong (2010); Steenkamp, Jan-Benedict E.M., Rajeev Batra, and Dana Alden (2003), “How Perceived Brand Globalness Creates Brand Value,” Journal of International Business Studies, 34 (1), 53–65; Holt, Douglas B., John A. Quelch, and Earl L. Taylor (2004), “How Global Brands Compete,” Harvard Business Review, 82 (September), pp. 68–75; Verlegh, Peeter, W.J. and Jan-Benedict E.M. Steenkamp (1999), “A Review and Meta-Analysis of Country-of-Origin Research,” Journal of Economic Psychology, 20 (5), pp. 521–546.
Holt et al. (2004).
See for an example of an ad for Nivea Men: https://www.youtube.com/watch?v=bzjNdwI5cp4; and for an ad for sunscreen: https://www.youtube.com/watch?v=zsYlCA6ClIo. Notice also the stark difference in the ‘tone’ of the ads; accessed September 26, 2016.
The Coca-Cola ad can be found on https://www.youtube.com/watch?v=2msbfN81Gm0; accessed January 6, 2016; see for the FT ad http://adsoftheworld.com/media/print/financial_times_cityscape; accessed January 6, 2016.
Holt et al. (2004).
Beattie, Anita Chang (2012), “Can Starbucks Make China Love Joe?” Advertising Age, November 5, pp. 20–21.
Albarq, Abbas N. (2014), “Industrial Purchase among Saudi Managers: Does Country of Origin Matter?” International Journal of Marketing Studies, 6 (1), pp. 116–126; Tamijani, Seyedeh et al. (2012), “The Importance of Country of Origin in Purchasing Industrial Products: The Case of the Valves Industry in Iran,” Proceedings, University of Bamberg, pp. 1–25 and the literature referenced in these publications.
https://en.wikipedia.org/wiki/1985_diethylene_glycol_wine_scandal; accessed October 21, 2015; Wagstyl, Stefan and James Shotter (2015), “Blow to ‘Made in Germany’ Label Leaves Nation’s Pride Bruised,” Financial Times, September 25, p. 19.
Klein, Jill G., Richard Ettenson, and Marlene D. Morris (1998), “The Animosity Model of Foreign Product Purchase: An Empirical Test in the People’s Republic of China,” Journal of Marketing, (January), pp. 89–100.
Ettenson, Richard and Jill G. Klein (2005), “The Fallout from French Nuclear Testing in the South Pacific,” International Marketing Review, 22 (2), pp. 199–224.
http://fizzyzist.com/entries/mecca-cola/; accessed February 16, 2016.
Foley, Stephen (2015), “Investment Group Takes ‘America’ Out of Its Name,” Financial Times, November 11, p. 16.
Burkitt, Laurie, (2012) “Dispute Tests Japanese Brands,” Wall Street Journal, September 27, p. A11.; http://www.japantimes.co.jp/news/2015/07/24/national/history/mitsubishi-materials-apologize-settle-3765-chinese-wwii-forced-labor-redress-claims/#.Vikn0X6rRhE; accessed October 22, 2015.
Wuestner, Christian (2013), “Unilever: Taking the World, One Stall at a Time,” Bloomberg Businessweek, January 7, pp. 18–20.
MacMillan, Ian C., Alexander B. van Putten, and Rita Gunther McGrath (2003), “Global Gamesmanship,” Harvard Business Review, 81 (May), pp. 62–71; brand value taken from Brand Finance.
Boston, William (2014), “Daimler Looks to India as Truck Hub,” Wall Street Journal, September 22, p. B3.
In the remainder of the book, unless otherwise indicated, brand value is taken from Millward Brown Brand Z; http://www.millwardbrown.com/brandz.
Campaign Asia (2015), “What’s Really Next for Pharma?” July/August 2015, pp. 48–49.
http://m.sportsbusinessdaily.com/Journal/Issues/2013/09/23/Olympics/IOC-TOP.aspx; accessed October 21, 2015.
Advertising Age (2016), “Creativity, Efficiency, Exploration,” January 11, p. 18.
For an example of a Red Bull ad: https://www.youtube.com/watch?v=hoSVI7ovEIw; accessed September 23, 2016</Emphasis>.
https://www.youtube.com/watch?v=71KAO_bmc2o; accessed October 16, 2015.
For example, a “Priceless” commercial in the Netherlands featured soccer legend Johan Cruyff playing for the team that made him great, Ajax Amsterdam. This ad can be found on https://www.youtube.com/watch?v=XAf37y4Wjh4; accessed October 16, 2015.
Learmonth, Michael et al. (2010), “CMOs Discuss Their Brands; Keith Weed,” Advertising Age, June 14, pp. 18–20.
https://www.youtube.com/user/Starbucks; accessed February 17, 2016.
http://www.ispot.tv/ad/7Nly/starbucks-meet-me-at-starbucks; accessed February 17, 2016.
Esterl, Mike (2014), “‘Share a Coke’ Credited with a Pop in Sales,” Wall Street Journal, September 25; http://www.wsj.com/articles/share-a-coke-credited-with-a-pop-in-sales-1411661519; accessed February 17, 2016.
Data refer to 2014 and are obtained from the companies’ annual reports.
These and other innovations were instrumental in the global success of Olay, with sales exceeding $3 billion in 2016.
Eppinger, Steven D. and Anil R. Chitkara (2006), “The New Practice of Global Product Development,” MIT Sloan Management Review, 47 (4), pp. 22–30; Lahiri, Nandini (2010), “Geographical Distribution of R&D Activity: How Does It Affect Innovation Quality?” Academy of Management Review, 53 (5), pp. 1194–1209. Innovation performance is measured as the number of granted patents weighted by the number of citations each patent received.
Dutta, Soumitra, Bruno Lavin, and Sacha Wunsch-Vicent (2015), The Global Innovation Index 2015, Cornell University.
Steenkamp, Jan-Benedict E.M. (2013), “Haier – The Quest to Become the First Chinese Global Consumer Brand,” The Case Centre Case #514-042-1.
A straightforward way to measure the extent of intraorganizational R&D linkages is the fraction of a firm’s patents that are coauthored by scientists from different locations of the firm in a given time period. Co-authorship of a patent requires frequent interaction between individuals, which results in the formation of an ongoing relationship. These relationships are more likely to enable transfer and sharing of knowledge across locations in the future.
Chu, Kathy (2015), “Cosmetics Industry Applies Asian Trends to West,” Wall Street Journal, May 5, p. A1.
http://www.autoblog.com/2013/04/20/nissan-friend-me-concept-shanghai-2013/; accessed February 8, 2016.
Steenkamp, Jan-Benedict E.M. and Nirmalya Kumar (2009), “Don’t Be Undersold!,” Harvard Business Review, 87 (December), 90–95.
Foy, Henry (2013), “Dacia Leads Charge of Emerging Market Cars in Europe,” Financial Times, August 23, p. 14; Foy, Henry (2014), “GM in European No-Frills Push,” Financial Times, July 21, p. 15.
- The COMET Framework: How Global Brands Create Value
- Palgrave Macmillan UK