Global Market Bias Part 2: Brand Extendibility

In my previous post, I mentioned about an interesting report about some funny brand extensions such as Starbucks homes, Sony automobiles etc. Finally, I have seen the report about the extendibility of brands.

  • The most familiar brands are Coco-cola, Microsoft and McDonalds
  • Sony, LG and Wal-Mart are the Most Extendible Brands Worldwide
  • Sony is the Only Brand That Leads Both Familiarity and Extendibility
  • Brands are more extendible in their country of origin (eg. HP more extendible is US; Toyota more extendible in Japan)
  • Younger consumers (18-24) prefer global brands more than older consumers do
  • Latin Americans and Europeans, in Particular, Show a Preference for Things Global
  • People Want Global Brands in Technology, Electronics and Credit Cards. Exceptions are retail and food productswhere homegrown is still preferred.
  • Categories are Clearly Linked in Consumers Minds (eg. Airlines, hotels, credit cards)
  • The Exception: Athletic Wear can break Category Boundaries (eg. athletic wear can stretch into carbonated beverages
  • The exception: Big Retailers can stretch almost anywhere they want

You will also find some very interesting brand extensions in the report: American Express hotel, Sony credit card, Nestle fastfoods, HP kitchen appliances, Starbucks burger, BMW golf club, Walmart computers, etc.


What does it mean for global marketing? Watch out for Wal-Mart. While local/regional retailers have extendibility options, Wal-Mart’s opportunities extend across a wide variety of categories around the globe. Look for extension opportunities where consumers more readily give your brand permission to cross category boundaries. If you are not yet competing with global brands, you will be. Understand what’s important to your customers so you can deepen their relationship withyour brand before global competition arrives. If you own a global youth brand, stretch into as many categories as they willallow. They will take your brand with them. If you own a local youth brand, consider the opportunity to go global. Some categories are more global than others. In categories like food products and retail, maintaining some local identification to your brand will help.


For the full report, please click here.


HP new brand extension?? Posted by Hello

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