1 Şubat 2016 Pazartesi

Brand Strategy: From Local to National

The fact that there are less borders due to globalisation and the increase in circulation, have given brands the opportunity to spread transnationally. This spreading has initiated a global wind of transformation causing brands to go into huge competition, not only with the products and services they offer, but also in terms of their brand strategies.

In today’s competitive environment, it is not possible to talk about one single formula that achieved success. Even if the world is in constant globalization, cultural differences, purchasing behavior that changes from market to market, and consumer expectations, require building custom strategies for every market. In such an environment, while multinational enterprises become successful by localizing their standard strategies, there are also investments that grow with local strategies and tackle global brands head on. Another example that is as successful is brands that strengthen their global brands by regional investments. All of these examples of success hint at the fact that the power of the local is not to be underestimated no matter how much globalization is on the rise.

Local brands are more advantageous than global brands. Since the local brands are more familiar with the challenges of their market, they can cope more easily. They can identify their market mix better prepared vis-á-vis challenges that may stem from positioning and cultural features. Local brands also have more maneuverability than global brands in the decision making phase and during times of crisis. While global brands try to steer the helm of a huge ship, local brands can be more forward and agile in the competitive environment.

The power of the local brand can also stem from investments where the region it has invested in is valuated organically as well as strategically. In today’s world, regions are perceived as products; they can have unique identities and values. For that reason, while those regions that are evaluated according to their potential to gain value and to provide competitive advantage, give brands a strategic superiority, those regions that are already recognized for reasons such as cultural, physical and life standards, impact brand performance and provide confidence and advantages for them by organic means.

STRATEGIES APPLIED BY BRANDS WHO ARE SUCCESSFUL AT THE LOCAL MARKET:

1. Operational Adaptation
Developing regions are among the places, where business models are needed the most, and that can be the easiest areas for implementation. For this reason, brands that invest in innovative models succeed in differentiating themselves from competition. Besides, in order to be successful in these regions, there is need to be able to respond to the technical and infrastructural challenges for growth with capabilities such as operational excellence and customer services. The local brands that succeed will be the ones that turn the potential disadvantages that the region may create, into advantages.

2. Dominance In The Service Network 
The biggest advantage that local brands have in differentiation, is they dominate the region they operate in. That’s why, to be successful, they reach every point within the region where they serve, through the most effective and fastest means. In order to be successful, local brands need to prove their control power and they need to offer the best service available under the given circumstances.

3. Localizing Digital Channels 
It is no more possible for a brand to survive without digital visibility. Reaching the customers requires active mobile and internet technologies for all brands be it local or global. Besides, localizing digital channels, i.e. providing content about the local features, activities, and institutions of the region on the website or on blogs; reaching customers by formulating different business models in response to the infrastructural difficulties, are the main methods for using these channels effectively in the local market.

4. Generating New Solutions Convenient For The Customer 
Local brands become successful by analyzing customer needs and demands very well and being able to offer the right solutions for these fast.  Knowing the customer profile well and being familiar with cultural habits, gives way to product strategy. Another point that is as important is pricing. In order to be successful in the local market, the right solutions must be developed for the customer and these solutions need to be carried beyond the right price and the right product and be populated.

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