Assessing the needs of international markets against an emerging market company's capabilities: A tool for internationalization

Senior managers in emerging markets often strive to ensure that their companies develop sufficient capabilities to confront the needs they encounter in international markets. However, extant research and practice remain unclear as to how senior managers in emerging market companies can approach assessing the needs of their international markets against their own company's capabilities, to aim for a balance between both. This article offers an innovative approach for assessing the needs of international markets against an emerging market company's capabilities. Based on the assessments of 100 senior managers leading emerging market companies, we explain how this approach can provide two key insights. First, evidence of a balance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is focused; or evidence of an imbalance between the needs of international markets and an emerging market company's capabilities, that indicates the company's competitive position is either vulnerable or overqualified. Second, an understanding of where the gaps between the needs of international markets and an emerging market company's capabilities are, that enables improving the company's competitive position by closing these gaps. Drawing on this approach, we offer an open access tool that allows senior managers in emerging markets to identify and improve their own company's competitive position for internationalization. Using this tool, senior managers can lead their emerging market companies toward a focused competitive position in international markets, providing better chances of successfully capturing potential benefits.     

Subsidiary Capacity Building in Emerging Markets: How Japanese MNEs Sequence Market Entry and Development Strategies in India

This paper asks the pragmatic question of how and to what extent firms build subsidiary competitiveness over time. By merging international business and international marketing theory, we integrate the unconnected discourses on market entry, development, product sequencing, and diffusion. The context of our research questions is marketing and entry strategies of four Japanese firms in India. All have had to learn the sequencing of both entry and product diversification. While strategies vary between the firms, the cases exhibit that entry and product diversification decisions are interlinked. Market entry configurations are central for developing market‐led solutions in large emerging markets. This study offers insights into how Japanese MNEs build subsidiary competitiveness when faced with the early stages of the Indian consumer market take‐off. Second, through the integration of international business and international marketing theory, we find that new product performance and international diversification interact in specific ways, and this contributes to future theoretical developments. © 2015 Wiley Periodicals, Inc.     

Choice of Market Entry Mode in Emerging Markets

Summary

This study explores the antecedents of market entry strategy in emerging markets and examines the market environmental, transaction-specific, competitive strategic factors and organizational capability that influence the choice of market entry mode. Empirical results based on a survey of Japanese companies support the combined relevance of their factors on choice of market entry mode in an emerging market. Although most of the mode of entry research assumes that the firm has the option to choose any entry mode in a given market, this study examines the impact of the factors in the internationalization process of firms. The results suggest that experiential knowledge has an immense impact on the choice of entry mode in China, an emerging market with high environmental uncertainty, but also high market potential. The empirical findings also show the important influences of risk-absorption capability and risk-dispersion mechanism on the choice of entry mode into the Chinese market.     

Collaborating for success: managerial perspectives on co-branding strategies in the fashion industry

Abstract

This article investigates the nature of co-branded relationships within the fashion industry. Existing co-branding literature focuses heavily on consumer evaluations, and many studies explore FMCG and electronics markets, within which ingredient co-branding is common. When two brands from the fashion industry collaborate, both brands exist independently and do not rely on ‘ingredients’ for developing a new product and, therefore, presenting an opportunity for exploring the drivers and types of relationships that could exist. This study adopts an interpretive method of investigation using in-depth interviews with brand managers. Findings provide empirical support for value creation through different relationship levels (such as brand/awareness co-branding, values endorsement and complementary competence co-branding) while highlighting some challenges and risks for co-branding in practice. This article discusses implications for theory development and practice and highlights avenues for future research.     

全球广告标准化与全球品牌一致性的关系模型

全球化背景下,通过全球广告策略来建立和维护能被不同国家市场普遍接受的具有独特形象的全球品牌是跨国公司亟需解决的问题,本文据此提出了全球广告标准化与全球品牌一致性的关系模型。全球广告在综合考虑企业内外部因素的前提下,通过战略、执行和语言的不同程度的标准化,可以塑造全球品牌的识别和全球品牌形象,进而实现全球品牌个性、文化、定位和价值的一致性,并最终促使全球品牌正面性、认知度和忠诚度的提升。     

品牌建设视野下本土护肤品牌的发展策略研究

品牌建设是品牌培育和发展的重要途径。本文探讨了本土品牌建设的发展策略:差异化定位,打造民族特色的中草药品牌;注入传统文化,精心设计品牌识别系统;加大研发力度,创新产品类别和功能;树立质量安全观念,树立民族品牌高品质形象;借助网络广告和微博营销,多角度全方位进行品牌推广;维护品牌权益,创新品牌表现形式。     

Psychological pricing: Myth or reality? The impact of nine-ending prices on purchasing attitudes and brand revenue

Price is the variable through which the value proposition of brands is monetize, therefore, it is the driver that guarantees the sustainability and profitability of companies. Among different psychological pricing tactics that exist, prices ending in nine are the most accepted and used by practitioners as a strategy to penetrate markets; but this strategy should be carefully revised and applied as it is context dependent and has differential effects among categories and types of brands. Drawing on the importance of psychological pricing, the extended use of nine-ending prices and the identified need of a better understanding, this study validates the impact of such prices on the purchasing attitudes of consumers and the differentiated effect on revenue, among various brands and product categories, finding that this tactic significantly affects consumers' purchasing attitudes and brands’ revenue levels, but to a different extent, depending on the product category, the brand positioning and preference.     

The development of a consumer value proposition of private label brands and the application thereof in a South African retail context

Private Label Brands are of strategic importance to retailers worldwide. However, there is a dearth of knowledge, particularly in emerging markets, as to the manner in which consumers cognitively assess these brands. At the heart of the issue is a gap in knowledge as to how consumers formulate a value proposition in their minds and the effect of loyalty to existing brands. This paper assumes a positivist, hypothetico-deductive approach by attempting to address the question: What are the key drivers of perceived value of private label branded breakfast cereals, taking price, perceived risk and perceived quality into account? Moreover, the study considers how various attributes of brand image contribute to the perception of brands and the extent to which loyalty to established national brands inhibits purchasing intent of private label merchandise. A conceptual model was developed, and tested by means of Partial Least Squares path analysis, using a sample of 482 respondents. The outcome reflects that consumers take cognisance of value through price, risk and quality cues, but that loyalty to existing brands has a minimal effect in the final stage of the model. Moreover, both in- and out-of-store influences were found to play a significant role in the determination of product quality. Retailers therefore possess a number of levers at their disposal to influence perceived value, most notably price, product quality and the perceived risk portfolio, as well as packaging, shelf placement, store environmental factors, etcetera.     

浅析我国企业国际品牌创建策略

近些年,我国企业通过贴牌代工这类生产方式实现的产品国际化,让大多数我国企业陷入“丰产”不“丰收”的尴尬境地。2005年开始的人民币升值使得我国企业产品出口进一步雪上加霜。在国际市场上极低的品牌认知度,被管理学界普遍认为是造成我国企业利润微薄的重要原因。因此,创建商品的国际品牌,提高出口商品的竞争力,是新时期我国企业迫切需要解决的问题。     

3M: Role model for emerging markets

This article focuses on the role of multinational companies in transferring advanced human resource management practices to post‐Communist countries. It reviews the lessons learned from the complex cultural and historical configuration of a transitional economy. The authors analyze 3M's experience in Russia and the results of interviews with the company managers. They summarize innovative solutions in hiring, training, motivating employees, and creating organizational culture, and discuss the company's position as a role model for emerging markets. © 2006 Wiley Periodicals, Inc.     

Prepurchase Determinants of Brand Avoidance: The Moderating Role of Country-of-Origin Familiarity

ABSTRACT

This report provides an overview of the concept of prepurchase brand avoidance, by identifying the motivating factors in a developing nation. Additionally, the authors aim to explain the negative effect of country-of-origin familiarity leading to brand avoidance. Relationships between constructs (undesired self, negative social influence, perceived animosity, and perceived risk) were hypothesized and data were collected via an online survey, where 286 respondents provided an evaluation for the brands they avoided. Hypotheses were tested using structural equation modeling via AMOS. To date, anti-consumption studies have taken place in developed countries where high agency and abundant choice enable brand avoidance to occur; the authors find that brand avoidance also exists in developing countries, and for all categories of brands, undesired self-congruence is the key determinant for prepurchase brand avoidance. The study did not use any particular product categories. Results need to be expanded and confirmed with other product categories in other emergent markets. Developing nations constitute the fastest growing markets in the world, and knowledge of the factors motivating brand avoidance in these contexts are a competitive advantage (e.g., undesired self is one important variable to focus on to make brands acceptable in such markets). This report provides new insights into consumer judgments of prepurchase brand avoidance in an emerging market.     

The global chess game … or is it go? Market‐entry strategies for emerging markets

Two contrasting metaphors of market‐entry strategy for emerging markets are developed in this article: the Global Chess Game and the Game of Go. Understanding these paradigms is critical for business success and for building robust theories of international competitor analysis in emerging markets, particularly in Asia. The Game of Go represents a long‐term strategy of Japanese companies, dominant foreign direct investment players in the region, and it represents the global strategy of many Asian emerging market companies as they grow within the region and beyond. A Competitor Analysis Framework for Emerging Markets is proposed that incorporates culture and other antecedents as precursors of competitor analysis and strategy formulation. © 2005 Wiley Periodicals, Inc.     

International acquisitions and emerging market firms' performance—a structural contingency perspective

Entry modes have impact on firms' performance in international markets. Using an organizational structural contingency perspective, we assert that firms with mechanistic structure can enhance their performance in international markets if they choose acquisitions as an entry mode. Mechanistic structure limits organizations' learning capability, which can be managed through acquisitions but not through other entry modes such as joint ventures. For managing limitations associated with the poor knowledge absorption capability of mechanistically structured organizations, firms should not follow the standard integration procedures associated with acquisitions aiming to achieve economies of scale or scope. Rather, they should provide corporate parenting advantage to the newly acquired unit by (a) granting complete autonomy and (b) contributing required resources for future growth, thus treating the acquired business as a strategic business unit. Since mechanistic structures are more common in emerging markets, we explain our perspective using illustrative caselets from these markets.     

Servbrand Framework: A Business-To-Business Services Brand Equity Framework

ABSTRACT

Purpose: The research reported on here set out to develop a tailored branding model for business to business (B-to-B) services by applying the brand resonance pyramid to a selected B-to-B services context.

The brand resonance pyramid was developed based on research that was predominantly consumer product or individual brand oriented, though one of the objectives when the model was developed was that “the model had to be versatile and applicable to all possible kinds of brands and industry settings. As more diverse applications of branding continued to emerge for products, services, organizations, people, places, and so forth, the model needed to have far-ranging relevance”. The brand resonance pyramid therefore had to be applicable to any context, including B-to-B services contexts. However, consumer goods branding strategies are not directly transferable to B-to-B or services markets and there are documented differences between the B-to-B and business-to-consumer (B2C) markets and products and services contexts. There is also doubt regarding the validity of the contention that the brand resonance pyramid should be applicable to the B-to-B sector.

Methodology: Using an interpretivist qualitative research approach and an exploratory research strategy, the Servbrand framework was developed empirically by applying the brand resonance pyramid to a selected B-to-B services context. Fourteen useful in-depth interviews were obtained from appropriate and information rich participants that represented more than 14 of the 89 organization that were included in the selection frame. Some of the participants were responsible for the relevant decisions of more than one organization.

Findings: The results from the study reported on here (summarized as Figure 5) prompted the inclusion of a people dimension and elevated the importance of relationships in an amended B-to-B services brand equity framework. The people brand-building block includes the dimensions of attitude and demeanor, personality and values, personableness, product knowledge and client knowledge. Relationships, as the ultimate aim of the framework, concern both interpersonal relationships and partnerships.

The article presents a conceptual framework to guide effective brand building strategies in a selected B-to-B services context. Researchers can use the framework to test its applicability in other contexts, which will contribute to the amendment of a significant brand equity management framework.

The Servbrand framework can assist marketing practitioners to improve the effectiveness of strategic brand management for B-to-B services.

Contribution: The empirical research contributes to three areas of brand equity research, namely: 1) the offering type – by investigating service offerings rather than product offerings; 2) the brand level – by investigating organization-level brands rather than product-level brands; and 3) context – by investigating a B-to-B context rather than a B2C context. A revised brand resonance pyramid is proposed and called the Servbrand framework.     

The role of home governments in entry bargaining of multinationals: China's investment in Central Asia's natural resource sector

Over the last two decades, China's participation in Central Asia's energy sector has increased dramatically. This article explores the case study of China's outward foreign direct investment (OFDI) in Central Asia's natural resource sector through the framework of bargaining model. Although the scholarly literature studied extensively FDI determinants and support of the home government on MNE activities abroad, there is little evidence‐based research on the effect of governmental negotiations on OFDI. The existing research on China's OFDI in natural resource sector highlighted the country's complex approach to energy deals, which was facilitated by investment in infrastructure projects and provision of loans. As this study confirmed, support with loans and investment in the development of export pipeline infrastructure was crucial in securing energy deals for Chinese multinationals (CMNEs). More specifically, this article makes an important contribution toward the understanding of China's investment in developing markets with high levels of political risk such as Central Asian region. The presented evidence suggests that there is a positive correlation between home government support and successful entry of CMNEs to natural resource sectors in emerging markets.     

Brand experience anatomy in retailing: An interpretive structural modeling approach

In today's highly competitive retail environment, retailers have recognized and embraced the concept of offering experiences with the retail brand across various channels beyond new launches and lower prices. To manage the experiences associated with a retail brand, retailers need to understand the concept of brand experience in retailing and the factors that actually comprise it. Interestingly, very few studies have imparted an understanding of brand experience in retailing. This study seeks to understand the retail brand experience and model the interrelationships among retail brand experience variables using interpretive structural modeling (ISM). Retail brand experience variables used in this study have been identified from existing literature on ‘brand experience’ and from brainstorming sessions with academicians and retail industry experts. Our findings show that the variables, namely, packaging of own label brands, customer billings, order and application forms, point-of-sales (i.e., shelf talkers) and recommendation by a salesperson have a high degree of influence and exhibit low dependence. These variables require a great deal of consideration due to their strategic significance to retailers. The approach applied in this study will enhance the understanding of retailers for improving the performance through managed retail brand experience initiatives.     

Effects of co‐creation claim on consumer brand perceptions and behavioural intentions

Increasingly often, companies ‘co‐create’ with consumers in open innovation practices to develop new products more effectively. Little is known about how co‐creation affects consumer brand perceptions in the mass market. We hypothesize that co‐creative brands – as opposed to non–co‐creative brands – are perceived as more authentic and sincere, and are associated with relatively positive behavioural intentions. A between‐subjects experiment was conducted to test these hypotheses in an online panel of consumers who did not take part in co‐creation. The experiment had a 3 (control vs. co‐creation vs. co‐creation supported with some visual proof) × 2 (well‐known existing brand vs. fictitious brand) design. Quantitative data analyses (n = 530) confirmed that for both brands, co‐creation affects brand personality perceptions directly and behavioural intentions indirectly. This study shows that co‐creating with consumers can be a strategic method to positively influence product perceptions and behavioural intentions.     

The role of family conglomerates in emerging markets: What Western companies should know

Large, diversified, family‐owned businesses are dominant players in the economies of most emerging markets and can be excellent business partners for Western companies. This article highlights the evolutionary patterns of family conglomerates (FCs) and delineates principal drivers of their growth, expansion, and internationalization. Those aspects of FCs examined in this study include early mover advantages, foreign alliances, competitive market positioning, and diversification. Also discussed are entry‐mode considerations for Western companies contemplating doing business in the fast‐growth markets of East Asia, Latin America, and elsewhere. © 2004 Wiley Periodicals, Inc.     

Children's brand symbolism understanding: Links to theory of mind and executive functioning

Against a background of research suggesting that brand symbolism understanding does not develop until 7 to 11 years of age, two studies investigate various aspects of preschool children's brand knowledge. While children's recognition of child‐oriented brands is found to be significantly greater than their recognition of brands that are marketed primarily to teens and adults, these young children do recognize brands. In a second study, children's ability to form mental representations of brands is assessed, along with their understanding of brands as social symbols. Cognitive ability, theory of mind, and executive functioning are assessed as predictors of these brand‐related outcomes. Theory of mind and executive functioning are both significant predictors of the ability to form mental representations of brands. Children's brand symbolism understanding shows a significant link with theory of mind. It is concluded that 3‐ to 5‐year‐olds have emerging knowledge of brands that are relevant in their lives. The impact of individual differences in theory of mind and executive functioning on children's brand knowledge aligns with current theories of child development. Methodological contributions and societal implications are discussed. © 2010 Wiley Periodicals, Inc.     

Indian Consumers' Value-Based New Food Product Adoption

In response to increased attention toward Indian markets in general and food markets specifically, multinational companies need to accurately identify the attitudinal and product attribute factors that impact new food product adoption among Indian consumers. Applying integrated decision utility theories, we examined the influence of product familiarity on value-based product purchase decisions and intentions. The results indicate that expected value, perceived value, and purchase intentions are influenced by familiarity; only expected value influences purchase intentions. Marketing implications are also discussed.