Part 1 Prior To Beginning Work On This Discussion Review Cha

Part 1prior To Beginning Work On This Discussion Review Chapter 10

Part 1: Prior to beginning work on this discussion, review Chapter 10: Brand and Product Decisions in Global Marketing, the article Disneyland Paris: A Case Analysis Demonstrating How Glocalization Works, look through Forbes’ list of The World’s Most Valuable Brands, and watch The Billionaire Behind the Space Jump video. Consider factors that help a company build its product brand, including product and branding concepts. Red Bull and Disney, both listed among the world's most valuable brands, serve as examples.

Explain the concept of brand image and brand equity for Red Bull. Discuss why Red Bull invests heavily in global marketing around extreme sports and events associated with excitement and movement. Identify at least five examples of brand extensions and co-brandings that Disney has implemented beyond Disney Parks, providing brief explanations for each.

Select a country in Asia (e.g., Japan) and a country in South America (e.g., Brazil) where the mentor company from your Week 2 Global Marketing Plan Part 1 assignment currently operates. Analyze similarities and differences in the product and/or brand between these two countries using Maslow’s hierarchy of needs, cultural perceptions, and strategic alternatives in global marketing. Your initial post should be at least 300 words. Cite your textbook and any additional sources used.

Paper For Above instruction

Brand image and brand equity are central concepts in global marketing strategy, particularly for iconic brands like Red Bull. Brand image pertains to consumer perceptions and associations that a brand evokes, shaping its identity in the minds of consumers (Keller, 2013). For Red Bull, the brand image revolves around energy, excitement, adventure, and a youthful, dynamic lifestyle. These perceptions are cultivated through marketing campaigns that emphasize extreme sports, daring stunts, and energetic events. Such branding efforts foster a distinct identity that aligns with consumer aspirations for vitality and thrill, thus reinforcing brand equity—the value derived from consumer loyalty, perceived quality, and brand associations (Aaker, 1991). High brand equity translates into consumer preference, pricing power, and competitive advantage, all vital in the international marketplace.

Red Bull’s marketing expenditures in extreme sports and events are strategic, aiming to associate the brand with movement and adrenaline. Sponsoring events such as the Red Bull Air Race, cliff diving competitions, and Formula One racing, the brand positions itself as synonymous with energy and active lifestyles. These events generate high visibility and align with the brand’s youthful and adventurous image, reinforcing emotional connections with consumers worldwide. Their active involvement also fosters experiential marketing, creating memorable brand interactions that deepen loyalty and enhance brand recognition globally (Pener & Ladd, 2017).

Disney’s diversification beyond theme parks encompasses several successful brand extensions and co-branding initiatives. First, Disney’s merchandise strategy includes toys, apparel, and home goods featuring Disney characters, expanding reach into everyday consumer products. Second, Disney-branded streaming services, such as Disney+, allow direct consumer engagement and content distribution. Third, Disney Consumer Products licenses its characters for collaborations with fashion brands like Uniqlo, extending Disney’s cultural footprint. Fourth, Disney’s media properties, including ABC and ESPN, serve as content extensions across television and digital platforms. Fifth, Disney’s theme parks worldwide include themed hotels and entertainment complexes, integrating Disney characters and stories into hospitality services. Each of these extensions enhances brand visibility, broadens revenue streams, and solidifies Disney’s cultural relevance across varied markets.

Focusing on Asia (Japan) and South America (Brazil), these markets reveal both similarities and differences in brand and product perception, shaped by cultural values and fulfillment of needs (Maslow, 1943). In Japan, consumer preferences align with Maslow’s esteem and self-actualization needs, emphasizing quality, innovation, and brand prestige. Disney’s offerings here include high-tech theme park attractions and premium merchandise, appealing to consumers seeking status and self-expression. Conversely, in Brazil, consumers demonstrate a focus on social belonging and basic needs, with Disney products and services emphasizing affordability and community engagement. The cultural perception of Disney in Brazil often revolves around family and social bonding, making the brand a symbol of togetherness. Strategically, Disney adapts its marketing mix in Japan by emphasizing exclusivity and cutting-edge experiences, while in Brazil, it emphasizes affordability, local community integration, and family-oriented activities (Hofstede, 2001).

Despite these differences, Disney maintains a consistent brand image of family-friendly entertainment, though the execution varies to meet local cultural expectations. Both markets value storytelling but prefer different narratives—sophisticated and innovative in Japan versus warm and familiar in Brazil. Strategies such as localized content and targeted marketing campaigns enable Disney to resonate with diverse cultural perceptions. Overall, understanding the unique cultural and economic contexts allows Disney to optimize its global branding and product strategies effectively.

Pricing Strategies and International Trade Terms

Market skimming involves setting high prices initially for new or innovative products to maximize margins from early adopters, then gradually lowering prices to attract more price-sensitive segments. This strategy suits technologically advanced or luxury items and is common in developed markets (Nagle & Holden, 2002). Market penetration, conversely, employs low initial prices to quickly gain market share and establish a broad customer base, often used in emerging markets to compete against local competitors. Capitative pricing applies when a parent company offers products that complement each other, like printers and ink cartridges, encouraging continued purchase and brand loyalty (Kotler et al., 2015). Cost-based pricing calculates the price based on production costs plus markup, ensuring profitability but potentially ignoring market demand or competitor prices.

Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce, clearly defining responsibilities for shipping, delivery, and risk transfer between buyers and sellers in international transactions (ICC, 2020). Understanding Incoterms is crucial because they influence pricing, logistics, and legal obligations, reducing misunderstandings and disputes. Examples include FOB (Free on Board), where the seller bears costs up to loading goods onto the vessel; CIF (Cost, Insurance, and Freight), where the seller covers transportation costs and insurance to the destination port; and DDP (Delivered Duty Paid), where the seller assumes most responsibilities, including import duties and customs clearance.

Different countries may require differing pricing strategies due to economic conditions and consumer behavior. For instance, a luxury brand might employ skimming in Japan, emphasizing exclusivity, but use market penetration in Brazil to build a customer base. Similarly, Incoterms like FOB are popular for shipments in trading nations with well-developed ports, while DDP might be favored in markets where customs procedures are complex or unpredictable (Clarke & Schumann, 2015).

Analyzing two brands from Table 10-2—Coca-Cola and Pepsi—in the U.S., both compete in similar product lines but employ different pricing strategies in various segments. Coca-Cola often uses value-based pricing and promotional discounts to maintain market dominance, while Pepsi may target specific demographics with premium pricing or promotional campaigns for new products. Applying Incoterms, both companies might typically use FOB or CIF in international trade, depending on their logistical arrangements and contractual needs (Foster & Kermally, 2022).

References

• Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. The Free Press.
• Clarke, M., & Schumann, K. (2015). International Trade and Customs: An Introduction. Routledge.
• Foster, C., & Kermally, N. (2022). International Business and Trade Logistics. Springer.
• Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Sage Publications.
• International Chamber of Commerce. (2020). Incoterms® 2020. ICC Publishing.
• Keller, K. L. (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Pearson.
• Kotler, P., Keller, K. L., Ancarani, F., & Costabile, M. (2015). Marketing Management (15th ed.). Pearson.
• Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396.
• Nagle, T. T., & Holden, R. K. (2002). The Strategy and Tactics of Pricing: A Guide to Profitable Decision Making. Prentice Hall.
• Pener, T., & Ladd, D. (2017). Marketing Strategies in Action: Building Brand Identity. Journal of Brand Management, 24(3), 276-290.