How Global Brands Compete – Douglas B. Holt, John A. Quelch, Earl L. Taylor. In the article the authors have conducted a research in 12 countries with 1800 respondents. The authors have tried to find the perceptions of consumers regarding the global brands, the global consumer segments and have suggested the business leaders regarding new opportunities and responsibilities in global arena regarding global brands.
The authors have found out the perceptions regarding the global brands and have categorized it under following headings –
• Quality signal – global brands are signal of high quality and technology in minds of consumers. They have watched the fierce battles the companies wage over quality and are impressed by the victors.
• Global Myth – consumers look global brands as symbols of cultural ideals. They use brands to create an imagined global identity that they share with like – minded people. Social Responsibility – people recognize that global companies wield extraordinary influence, both positive and negative on society’s well being. They expect firms to address social problems. They believe that global brands have a special duty to tackle social issues. People also exert more pressure to address social issues on multinational giants rather than local companies. Global consumer segments
• Global Citizens – 55 % of total respondants, they rely on global companies for quality and innovation.
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They also want these companies to behave responsibly.
• Global Dreamers – 23 % of respondents, they are less discerning about but more ardent in their admiration of global companies. • Anti globals – 13 %, they are skeptical about global brands to diliver quality products and dislike that they preach Amercian values.
• Global Agnostics – they don’t regard global brands as global, instead they evaluate a global product by same criteria as they judge local brands. Suggestions Think Globalness – companies should manage their brands as global symbols because this is what consumers perceive them to be.
• Manage the dark side – Global companies should manage the dark side. They should understand that they have social responsibility.
• Treat Anti globals as customers – the companies should treat anti globals as their potential customes. They should try to persuade them that their products are of good quality and they are concerned about the social and cultural values of the country.