Build your professional network on facebook via our app Go to app
 
<< Prev  7 of 16 in Topic  Next >>
Topic : Global Brand Strategies
  Rate : 
Associated with other topics :
  Rate : 
 
Created by : Jayant Vishnu, Art Director/Sr Art Director, Creative  | 10 30 2008 11:48:30 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : India(Markets)
Activity:  7789 views;  last activity : 01 25 2011 10:25:23 +0000
Are Global brands destroying the local brands making it extinct?
 
 Refer 12
Share
 
 
  Rate : 
 
 
Global brands Vs Local brands
21
 
 
 
 
22
16
19
Support   Support
Top Argument
4
0

"Glocal" is the present concept with global brand & localised product. Assume, how would a Mcdonald or Domino's taste if it tastes same as Europe. Honda, Suzuki, KFC, Nokia etc. etc. have now accepted that Glocaisation is the best "Strategy", which can work.

Global brand - assures for Quality, service, customer satisfaction.

Localisation helps in cost optimisation, suiting local consumer tastes/liking.

So I favour Global brand with local feel


By Lavi Pal Singh, Asst. Vice President, Bata India Limited  03 11 2009 14:43:44 +0000
 
Top Argument
5
1

Hi Raghavan

My views covertly pointed to the NIRMA story, story of AMUL and the rest of the endless list of successful local brands which have assumed Global stature. See again the Thumsup! It wass almost the same time that it appeared in the market place pitted against a brand that had virtual best of several things to count on. But at the end, it has survived the rough and tumble of the cruel market place as much for its persistence as for its quality. Today it boasts of the patronage of the globally leading brand, just like 'NIRMA'.

Woukld not you consider the victory of NIRMA is a pyrrhic one?

It is perhaps not the best in quality that rules the market place. The other way it is true though. The brand that sales claims of qualty.

Standards and consistency with the winning spirit builds a brand. Every Global brand was a humble hesitant beginner in the local context to start with. That has benn amply proven in the ones we have referred to above.

 


By Bibhu Prasad Das, Associate/Senior Associate, Sophia(training division)  03 13 2009 06:09:28 +0000
0
0

According to me, Global Brands having good Quality, Appearance,service & so on...because of good R & D opportunity ......so better we have to go for localization of global brand............


By NIRMAL PATEL, New Product Development Engineer  | 01 29 2010 04:05:22 +0000
2
0

Global Brands help Local Brands Enhance themselves in Appearance/Packaging/Quality/Pricing/Service/and overall perception of the Customer.

'The Lala's' see multiplication in Adaptation.

It's Good !


By Satinder Mehta, GM Marketing & Communications, SAHA Groupe  | 04 13 2009 15:50:42 +0000
0
0

I would agree with ashwinder that first of all some of the activities that are used to promote local brands are now obsolete. I would separate local brand-building activities from global brand-building activities on the promotional side as well as the quality of the local brands are not comparable to the global brands. so if local brands want to survive they have to overcome these deficiencies.


By Jayant Vishnu, Art Director/Sr Art Director, Creative  | 03 26 2009 11:34:22 +0000
2
0

This is not advertising that generate sales all time for the products. Local brands can be successful against the global brands if they use positive approach for generating sales & market their products.

The thing is that the local brands are using fake methods for promoting their products thats why they are not successful. although if they are successful that is for a short span of time.

so supprot for global brands go more than local brands. one more thing that appeal in sales is quality of the product & service. local brands sometime try to play with quality.

Since it is essential part of a product or service, so this directly effects sales of local brands.


By ashwinder singh, Sales Executive/Officer, Vardhman Textiles Limited  | 03 22 2009 05:05:51 +0000
0
0

This is not advertising that generate sales all time for the products. Local brands can be successful against the global brands if they use positive approach for generating sales & market their products.

The thing is that the local brands are using fake methods for promoting their products thats why they are not successful. although if they are successful that is for a short span of time.

so supprot for global brands go more than local brands. one more thing that appeal in sales is quality of the product & service. local brands sometime try to play with quality.

Since it is essential part of a product or service, so this directly effects sales of local brands.


By ashwinder singh, Sales Executive/Officer, Vardhman Textiles Limited  | 03 22 2009 05:05:36 +0000
1
0

Dear Jayraj

I agree with you that none of has have the patience to pursue our rights to the fullest. But why is that happening? ITs because of the laws of the land. Even the so called consumer courts are not functioning due to shortage of judges. and on top of this the bloody lawyers have the guts to agitate that worng has been done agianst them. But coming back to the point - just because we do not follow up on our rights doesnt mean local companies shouldnt offer high quality products. More so at a time now when the whole world is looking towards india. This is the time that our companies have to put their act together and offer high quality whether we ask or not.

A truly international brand is not just built on advertising. Quality has to be the most important factor. I know because i have worked in an MNC brand - Samsung in India and have seen the company taking customer complaints very seriously.

Also now i work in the GCC and i can see our TATA pick-ups or Cabbie like we call it here being sold in a market desperately trying to compete against the Toyota's, Nissan, Mitsubishi, GMC etc. but beleive me no one even looks towards a TATA vehicle even though it is the most cost effective. So also is the case with Hyundai vehicles here.

Hence it is important to pursue quality policies even if the law of land does not encourage or ask questions on what you are offering. It is akin to keeping your house neat and clean but spitting and throwing rubbish on the streets. If your house is in order, only then by force of habit will you keep surroundings clean. So quality has to get ingrained in our local manufacturers if they need to succeed globally.

 


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 18 2009 19:09:22 +0000
2
0

dear jaygopal,

thanks for your reply.Yes i do agree that local manufacturers do not have that much of courage to face debacles in right ways.But answer honestly how many of us do have patience of utilising consumer rights for any defeciencies in the products we buy? Also one has to agree that there is a lot of difference between spending trend in locals as well as other nationals.i personally experianced that defects go unseen in larger randoms.that's why quality norms are strict in exports when compared to local markets.hope u will also agree to this.


By jairaj shyam prasad, Production Manager, BOSCH Ltd  | 03 17 2009 15:30:13 +0000
3
0

Dear Jairaj

Your point is well taken but please just two things:

Lets not say local brands are good just because they get ISO or any other quality certifications. The very process of granting ISO certificates are suspicious in india. I have been associated with one such certification with a client of mine a couple of years back and know how this certification works. IF you are talking about any international certifications like the Demmings etc., then it is a different issue altogether.

Second thing is i agree with your contention that Nokia had a battery problem. Why only nokia there are a whole lot of brands who have had that problem and had to recall their products - Sony laptops, Toyota cars, Bridgestone tyres etc.are few of the names that i recall. But the moot point here is international brands are so quality conscious that they are brave enough to withdraw the product of the shelves.

Now can you tell me how many indian brands have done it in the past or will have to courage to do it, if their products are found to be far from satisfactory?

The answer is NONE. And therein lies the answer to this whole debate i feel.


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 17 2009 14:58:59 +0000
2
0

Its very true that Global brands are destroying Local Brands specailly in urban areas where the Mall culture expanding like any thing.Every body knows what you get in the Malls .There are few local Brands only..More and more international Chains/stores still waiting to invade Indian Market...like Walmart..When international brands are easily available everybody rush for these.India is facing big retail revolution..for e.g in TV industry where the local brands dissappear...Texla,Weston,Onidia,Crown ..the list is very long..What we found today.LG,Samsung,Panasonic which are become households name todya.


By MANOJ VARSHNEY, Director, TULSI TRAVELS PVT LTD  | 03 16 2009 16:31:48 +0000
1
0

Dear Das

Point well taken but let me point out to you that when we talk of global brands it is not just about sales that we talk of. If that is the case there would be many detergent powders in China which has a higher population than ours and hence would sell more than a global brand.

A truly good brand is one which not only sells but also scores high on customer satisfaction. Here Nirma would get a big thumbs down. Yes, i agree with you on Amul and Thums up. Amul is a good product in india but if i were to compare it with a global brands like Anchor & Lupark from New Zealand or Philadelphia from US, it doesnt stand a chance. Yes,  Thums up is a tru and genuine home grown brand that is even better than a PEPSI or COKE. The thumbs up of yore is my favourite but i didnt take that as an example only because today it is a diluted version of its original especially after coke bought it. So, now i dont like thumbs up and it definitely cant be compard with a pepsi or coke now. Apart from these i couldnt think of many indian brands that could compare with global brands on quality.


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 14 2009 17:45:49 +0000
3
0

Well i dont think local products can compete with the global products because they are the products which come to us by global acceptance and various quality testings whereas the local products cant be assured qulaity.


By svags doluhjlifhy, wdwdwwdihiu, jfjygfghjy  | 03 14 2009 07:31:45 +0000
2
1

Dear Prasad, the reason we say its all about R&D is because of the quality of the local product. Taking a leaf out of your detergent example itself, have you ever used a Nirma detergent powder vis-avis an Ariel or Surf? If yes then you will know what we are talking about. Prolonged usage of  Nirma spoils your hand - because of the high soda content. Ask any housewife and she will tell you.

Brands can be built out of anything - all it needs is an unique idea and lots of money. But by building a brand alone would not gurantee sucess for any product. The product itself has to be of good quality. Why do you think a brand like Philips has failed in the international arena in front of Korean brands - answer is the superior quality of the korean products.

World over hyundai cars are not even the third preferred option unlike in india. Whereas a Honda or a Corolla scores high because of its quality. Can we proudly say a Tata car can match upto these international standards - no way Sir! Not even maruti can match these standards. I say this because i have seen the very same suzuki cars outside india and they are a notch better than the ones available in india.

Brands cannot survive if the quality is lacking. Why do you thyink Saravana Bhavan (a south indian fast food chain) has survived nationally and is making waves world over. Its because of its quality of its sambhaar and other products that retain the same taste everywhere.

There are many more examples but the list is endless


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 12 2009 13:50:23 +0000
1
0

Global brands are way much better than local brands, as there is so much research that will go into a product development and the consumer behavior and with all this they are in a much better position to cater their products worldwide, with this consumer will go for global brands rather than cheap local brands which according to me doesn't satisfy the exact needs of the consumer.


By Mitesh Gupta, Sales/BD Manager, Reliance Retail  | 03 09 2009 07:04:59 +0000
1
1

A very tough question to answer but i give my nod to global brand because a global brand is more quality oriented and here i am not referring to the chinese brands. Our home grown brands are any day better than the chinese ones - i refer to the European and Jap brands

The thing with global brands is a lot of money is spent on R&D and hence the final product which reaches the consumer is a almost good if not 100% whereas indian brands are economical but not 100% good and even if there is a fault - it is hardly admitted. Customer service for indian brands is nil or rather to put in simpler terms Global brands are customer focussed whereas indian brands are owner focussed.

IT is so sad that even indian brands like for eg Onida have started manufacturing in China for their LCD TV's rather than try and train our technicians and use them to start production in this country.

TATA Motors vehicles are good in terms of design appeal but the moment u sit in one of the cars, u can feel the difference - the engine noise the tacky upholstery etc. whereas a maruti brand is still indias best bet because the technology still used is from JApan.

I think this one example itself would give answers to this question. We have the talent, the resources and the raw materials to build a global brand but what we lack is the honesty and the willingness to provide true value for money.


By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 03 05 2009 14:21:01 +0000
1
0
Mr.Jayant, I feel the mergers,acquisitions etc is in the benefit of the country this will really attract foreign investments which inturn increases the economy state and people will be using the high class things making their behaviour more sophisticated.like reebok, they have a good consumer base and their products are  manufactured in india also thus creating good job opportunities and a sense of labour.
By Sasi Dash, Art Director/Sr Art Director, U TV  | 10 30 2008 11:54:23 +0000
0
0
The purpose of global brand management is to conceive of and control a brand's global direction, and this is done by defining and communicating the brand's core values. The execution of this communication lies in devising and consistently applying a specific style, tone, and image. The role of local brand management is to refine the communication of the brand's core values by adjusting their execution to communicate meaningfully with each local market. If a local event like the Chinese New Year is taking place, it's the local brand-builder's task to ensure the brand leveraging on it. Local brand building depends on an acute awareness of local trends; it's all about leveraging knowledge that the international marketing department has no access to or sympathy with. The global marketing department is the strategic group. The local team is the tactical group. Both need to work hand in hand.
By Nilesh Pawar, Legal & Secretarial, Valencia Professional & Management Services LLP  | 01 25 2011 10:25:22 +0000
0
0
Local brands are also good & economical & giving same service as Global brand.
By SHRIKANT MANOHAR DANKE, Zonal Manager / Sr. Project Manager ( Civil Engineering), Kumar Properties  | 12 06 2010 14:37:50 +0000
1
0

Mr. Jayant Vishnu, global brands may be swallowing smaller local fish, but it is because they have faith in the products & services of the local companies. Nobody would like to merge, acquire or take over a company with no potential. Therefore it is clear that local has its value and global giants recognize it.


By aditya ghare, Multimedia Designer & Developer, Final Edit  | 05 08 2009 06:53:49 +0000
0
0

I completely agree Mr. Bhave! Like there is the Nano and everybody worldwide is acknowledging the feat. In fact, it is good global brands arrived, that's making the local brands better. BRAND INDIA is already making a global statement.

India Kings is preffered over John Players, anyday.


By aditya ghare, Multimedia Designer & Developer, Final Edit  | 05 08 2009 06:44:11 +0000
1
0

Definitely Local Brands, they are & they can bcom better than Global brands..

their liabilities can bcom their assets, as they r small, dont have huge money for R&D as big global brands have. the best thing they can do juss replicate the global brands product with same qualiity & serve it at least price in the market with Indiana factor.

If u r smaller dan ur competitors dan biggest advantage u have is ur high flexibilty.


By a , a  | 04 22 2009 17:25:22 +0000
2
0

I still remember my first Cambridge White range shirt that I had purchased for my first interview and had got the job!! Today there is a Zodiac for Van Heussen, Videocon for LG/Samsung, Acer for Dell/Compaq etc. Our own businesses have started thinking of their standards as competitive as international standards. Local creates a feeling of pride and a emotional euphoria which makes me feel, "I am using what my people made for me"!! Its heady.

Quite frankly I would opt for a Mahindra Xylo as opposed to a Ford SUV!! We have equally good quality conscious and solid brands that are making a statement globally! 


By Makrand Bhave, AGM - Corporate Business, E18, part of Network 18 Group  | 04 19 2009 05:16:38 +0000
0
0

Bibhu JI i definitely agree with you.If local brands are offering the best quality comparable to the global brands then there is no chance that it will become extinct because of the competition from the global brands.Moreover in addition to the examples given by Bibhu prasad of local brands who have made their mark in their domain i would also name close-up who has survived and overcome the competition from the powerful brand of Colgate. So if the quality of the brand is acceptable then it doesn't matter whether its a local or a global brand.


By Ramdas Pawar, Sales/BD Manager, Flex  | 04 13 2009 07:25:48 +0000
1
0

Buying Local definitely helps local economy and local employment. A campaign should be launched wherein Indians should be encouraged to buy more Indian Brands...'Be Indian Buy Indian' should be there on all Indian brands alongwith an attractive logo designed for this purpose...I got an interesting mail recently regarding why US is in trouble...the gist of the story was that from morning to evening an American consumes 90% of brands which are not made locally...We should take care that this does not happen in India too...

In Oman there is a special awareness campaign named Origin Oman where by people are made aware about the advantages of buying local. The campaign intends to:

  • Promote national pride in our manufacturing industry and the economic importance of buying Oman made.
  • Encourage Oman-based consumers to buy locally made products, use local services and to be local tourists. Indeed, we are sure that many who want to buy Oman-made products or purchase Omani services are frustrated by not knowing where to look for them.
  • Build brand loyalty for Oman made products.
  • Create awareness of the employment, economic, environmental and social benefits of buying locally made products and services.
  • Enable consumers to clearly identify Oman-made products and to make an informed choice.
  • Help increase Oman's manufacturing capability.
  • Reduce imports, especially of consumption goods.
  • Help create employment.
  • Help reduce fuel consumption.

for more ideas and information on the campaign visit www.originoman.om


By Jay Makwana, Media Development Manager, Times of Oman  | 04 11 2009 06:53:38 +0000
0
0

Mr.Lavi i agree that global brands are of best quality but i would also say that our own local brands are also not far behind and we should encourage them to improve their quality more by buying those products.Moreover the day is not too far away when our indian brands or products will be used by people all over the world.

What do you say?


By James Masih, Product/Brand Manager, FedEx  | 04 09 2009 08:00:25 +0000
0
0

Thank you Raghavan, Prasad & Jayraj & rest for your insights. It was amazing indeed !!! I feel global brands have some obvious scale and breadth advantages & local brands have the benefit of proximity and geographical (and often product) focus. I feel the local brands definitely have a place in their respective arenas because of the personalized service and perceived comfort they provide. People do business with people they like and can relate to and the local ma & pa stores definitely have the big players beat on that count. Certain brands will do well but they will have to learn to co-exist with the local players to protect their brand image. And also has Ragahvan mentioned it is a time now that our Indian companies have to put their act together and offer high quality whether we ask or not. This will make both to co exist & provide ample choice to consumer......


By Jayant Vishnu, Art Director/Sr Art Director, Creative  | 03 25 2009 10:44:16 +0000
3
1

Brand has the value. We have to accept it. All the game moves around cost vs benefits. Depends on individual perception.

Nowadays, local brands are also reliable and good quality, because they are in competition with global brands. If I am getting all the same characteristics say even 80% of global brand at 40% less price, definitely I will go for local brands. Other than that it provides us the variety and number of product in same price of global brand.

For example, I bought NICE local brand of sports wear in Rs 1100 with the same fabrics and fitment as compared to ADDIDAS/NIKE/Reebok of Rs 3000 and above.

Why should I pay for their overheads and advertisement? Manufacturing cost is almost same for all brands.


By Nitin M Aras, Head/VP/GM-Tech. Support, ODTIN Food Solutions Pvt Ltd  | 03 16 2009 12:28:03 +0000
3
1

Today, even local brands in any product criteria is equally competent enough when it is compared to global brands.all local manufacturers are very much quality concerned today that is why we are having all most companies obtaining ISO/TS/OSHAS Etc., certificates adhered themselves to systems in their manufacturing processes.If we ourselves don't encourage local brands then who esle will?? let us not be under impression that all global brands are good !! for eg. Nokia recalled all most all its batteries of particular MFD some times back.what i mean to say is product should be rated/used depended on its performance and not by its manufacturing origin.


By jairaj shyam prasad, Production Manager, BOSCH Ltd  | 03 16 2009 12:08:48 +0000
3
0

Very humbly and honestly I am with my earlier contention in the subject.

Honestly, for a moment - any brand marketed globally , has to meet with regional specifications, restrictions, compulsions, etc. You talk of Colgate, Nivea, Ariel or name something else which has a wider (global) grip - certainly are not the same ones made available in our country. We are yet to have a detergent(much discussed and referred to in this forrum) which is similar to the ones available and used in US or Europe.Consider about Bayer's PURE ASPIRIN. In our country tons of the basic ingredient are produced and consumed, but not a grain of the stuff as stated earlier;They are not made available otherwise in our country - the local complusions are the things to attribute to. 

The manufacturers comply with the requirements while safeguarding the bottomline of their profitability and hence modification and adjustment are done to a product.

The important thing that evidently emrges out is the BRAND. The marketing muscles that dare taking it to global stage confirm to the rules of the game. In the end, obviously, the customer satisfaction propels sales and one can not be perceived in isolation of the other.

Local(Indian) brands making international strides too do the same thing.

Talk of quality - they are no more controlled comodities.

It is like the 'Oscar' that overnight catapaulted the stature of Indian cinema. What ever said and done, more people have since tried to understand the meaning of'Jai Ho' than would ever  be.

 


By Bibhu Prasad Das, Associate/Senior Associate, Sophia(training division)  | 03 15 2009 07:21:32 +0000
2
0

Today in a situation like this, where there is recession happening, it would be wise to buy local brands rather than go for global brands and this will be the trend as local brands are meeting the standards of global products these days. So my vote is to local products.


By Tushar Pandey, Trading Advisor, American Express  | 03 13 2009 06:53:33 +0000
3
1

I disagree.

The tussle of a local brand with its veritable competitor has been worth watching . I am referring to to the detergent story.

Perhaps, one would be inclined to give it the tag of 'birth of a new Multi National (or say Global) brand! The same phenomenon is worth noticing in case of 'taste of India'.The story may go to list a few more as it gets longer and longer with a local brand of computer data storage devices (or say a computer peripherals) carrying the torch.

Is not it all about 'Brabd building' and taking in its stride the rough with the smooth finally to win the race and out shine the competition?

 


By Bibhu Prasad Das, Associate/Senior Associate, Sophia(training division)  | 03 12 2009 12:23:12 +0000
1
1

The trend today is to buy local.


By Viktor Stephen, COO, I Entrepreneur  | 03 05 2009 14:57:05 +0000
1
1

Yes JayaNth

My support is towards the local brand only. Local brand materials were produced based on the local market /people study.Normally it is based on the respective users requirements. Again here another thing to be remembered that products success depends on the consumers use.


By Bellala Gopinatha Rao, Senior Consultant, Civil Adviser Project, Self Employ  | 12 13 2008 15:41:56 +0000
2
1
Although I personally use global brands, some local products are giving stiff competition to global ones as they are priced lower than global products and are just as good.
By neha singh, Content Editor, Avestia Corp  | 12 13 2008 14:20:54 +0000
1
0

Global brands are like big fishes swallowing the small fishes, this is done by mergers,acquisitions,stakes,partnerships and many other means and this has affected ,the middle class people who cannot afford a high quality product at a affordable price.


By Jayant Vishnu, Art Director/Sr Art Director, Creative  | 10 30 2008 11:51:30 +0000
Job Portal from Recruitment firms
Job Portal from Recruitment firms
Viewers also viewed
Product vs Brand
 
25 referals 48 arguments, 1833 views
New form of marketing involves doing conversational marketing using social media but ROI of this...
 
7 referals 14 arguments, 1968 views
Favour vs Against
 
105 referals 14 arguments, 855 views
more...  
 
More From Author
Does automobile sector need a PUBLICITY STUNT?? I just don't think so.. as Mr. Virag said it can be more of demand-supply gap..nothing more. Everyone is too much into buying new vehicles that they just don't need any other marketing .. Just perisitant...
It is a great chance for all of us , a reason to quit smoking. It is like a motivation because we are suppose to dedicate our act of quitting to our loved ones.  We all know how harmful smoking is and all the smokers know how difficult is it to quit....
With the IPL and the World Cup coming....marketers are gearing up for the battle to win their customers. The fight will get tensed and crowded with customers left will many options. So, what according to you will be the biggest event on TV??
more...