Resultados

The principal factor impacting the firm's brand architecture is the degree of product market integration. This can be viewed not only in terms of whether the same customers are present in different country markets or regions and have similar purchasing needs and interests worldwide, but also whether the same competitors are present in these markets¹⁸.As retailers move across international borders they provide an effective channel for international brands but at the same time, their power increases. Awareness of the availability of an international brand and its high visibility in multiple countries enhances its value to consumers, and provides reassurance of its strength and reliability. A firm may choose to develop brand as reference at the first stage of brand architecture process as competitive

18 Douglas, Susan P. and Craig Samuel C. (1996), Global Portfolio Planning and Market Interconnectedness, Journal of International Marketing, 4, 93-110

pressures kindle differentiation of their goods from the other producers. The brands should be architected in the consumer space, working with the consumer and achieve differentiation primarily through changes in physical product attributes and augmented consumer perceptions on its use value. Consumers' extended memory networks help consumers to use brand names based on their image of the brand though many consumers primarily value brands for their utilitarian value. Utilitarian values may be described as instrumental in making buying decisions because they enable consumers to reach higher levels of satisfaction derived from owning or using the object.

In the following stage, marketers may labor to shape their brand’s personalities. The personality idea responds to the tendency in contemporary society to value personal relationships. It also refers to the idea that relationships are important in social life. In terms of Maslow’s hierarchy of needs, it tries to lift products to higher levels of need satisfaction, like belongingness, love and esteem. Brand personalities are created in different ways and with different tools. However, the creation always involves active communications on the side of the firm: the personality has to be disseminated to be alive. An example may be cited of the Escudo anti-bacterial soap, a Latin American brand of Procter & Gamble, which has been established by creating the personality of the caring mother; the firm has injected emotion into the consumer's learning and valuing process. The brand through such personality appeal, pulls it closer to the consumer through an emotional bond. In the previous two stages, there was a distinction between the consumer and the brand. Incorporation of personal characteristics into the brand makes it more appealing to consumers who are more likely to affiliate with brands possessing desirable personalities. While carving the brand personality a firm may try to keep the balance between the personalities of the consumer and the brand when they begin to merge and the value of the brand becomes self-expression. The cultural and ethnic values also influence the products and brands and establish their categorical preferences among the consumer segments. The companies may attempt to classify the users on the basis of brands viz. the affluent drive Rolls Royce and the less affluent drive Fords.

However, in a cross-cultural market environment confusion may result in buying behavior of consumers, as goods may not be valued for the same reasons in other cultures. Therefore, the values communicated by products and brands must be consistent within the group and the culture.

Canon delivers innovative digital business solutions to ensure that its customers achieve and maintain the information edge. The increasingly competitive global marketplace, and the fact that the organizations must store, process and share immense volumes of information with both speed and accuracy have been the key areas of the company to penetrate in the territorial gateways like Mexico for Latin American market. The company functions with four key areas in Mexican market that include marketing, logistics, sales and services operations. The company feels that the loyal, ongoing customers are the backbone of every business and in the prevailing highly competitive environment, these shoppers cannot be ignored or else they may be won over by competitors. Repeat customers are more apt to buy a full range of merchandise, not merely items that are under promotional programs. The services of equipments, periodic maintenance of the canon products with the accounts, administering the warranties, and call centre control functions constitute the major part of the services network activities of the company. The call centre has the responsibility to attend on the customer complaints and suggestions, and design the conflict resolution strategies. Each different product market consists of buyers, and buyers are all different in one way or another. They

may differ in their wants, resources, locations, buying attitudes and buying practices. Because buyers have unique needs and wants, each buyer is potentially a separate market. There is no single way to segment a market. However, Canon Mexico feels that the most important factors influencing a consumer’s involvement level are their perceived risks¹⁹.

Figure 2.2: Brand Architecture Control Process

Brand as Reference

Figure 2.2: Brand Architecture Control Process

Brand icon drives nearly two-thirds of customer purchases and impacts nearly every function area of the business. It stands to reason, then, that extending the equity of the brand will fuel growth while allowing the business to outmaneuver and outperform competitors²⁰. Subsequent to the association of an appealing personality to the brand, the firm may develop the brand as icon to hold as a top of the mind perception. At this stage of brand architecture, the brand may be conceived by the consumer endorsed by their self reference criterion and the firm may be confident of the brand being “owned by customers”. An example may be cited of Marlboro cigarettes where the rugged cowboy representing a man standing against odds is a symbol or a brand icon enveloped with a set of values. Similarly, Nike shoes and sports apparel have primary associations with Michael Jordan's athletic prowess and secondary associations with the Chicago Bulls and winning that place the brand as icon.

Hence, more associations a brand has, greater becomes its network in the consumer's brand recall process and management of such brands strengthens the iconic stature of the brands of

19 Rajagopal (2007), Marketing Dynamics-Theory and Practice, New Age International, New Delhi, 326-337

20 Davis S. and Halligan C (2002), Extending your brand by optimizing your customer relationship, Journal of Consumer Marketing, 19 (1), 7-11

the firm. There are many stages ahead in architecting a successful brand which are exhibited in Figure 2.2 as process control.

In the fourth stage brand may be described as synonym to the firm and it is a complex stage to run thorough wherein, brand equals the company as all stakeholders may also perceive the brand (as a constituent of the firm) in the same fashion. The firm must integrate brand communications throughout the brand development process. However, communication may not be unidirectional as it flows from the customer to the firm and vice versa so that a dialogue is established between the two. The delivery of Ford cars seeking collaborative customization in the process, wherein customers involve in designing the interior of the cars may be an appropriate example wherein customer identifies the brand as a company. Such interaction strengthens the relationship of customers feel with the firm. A brand is said to have positive ( or negative) customer-based brand equity when consumers react more (or less) favorably to marketing mix activity for the brand, as compared to when the same marketing activity is attributed to a hypothetical or unnamed version of the product or service. Customer response to marketing activity for competitive brands or an alternatively named version of the product or service can also be useful benchmark (i.e., for determining the uniqueness of brand associations and the opportunity cost of brand extensions, respectively). However, judgment of a successful brand is a high level of situational intelligence which encompasses the shared knowledge and cultural milieu that encourage managers to focus on and connect with stakeholders, which in turn facilitates more intuitive and creative decision making²¹ .

In order to consolidate Heinz's leadership in the Venezuelan Ketchup market, Heinz Venezuela recently introduced a Light Ketchup. This product is specially designed for health conscious consumers who don't want to compromise flavor. The taste and appearance of Heinz Light Ketchup is comparable to the classic Heinz version, but with 33% less calories and carbohydrates. Heinz brands are building close to the preference of consumers and further strengthened as the brand value grows among the customers. Company recognizes the relationship of food processing operations with the environment, and aims to be efficient in innovation and packaging. It has been observed by the company that consumer preference in USA is leaning towards low carbohydrate, diet and organic foods. Heinz Organic Ketchup is the latest in a line of breakthrough ideas by Heinz that has transformed the ketchup, condiments and sauces category in American market.

Few firms reach the stage five of the brand architecture, which is distinguished by an alignment of firm with ethical, social and political causes. Before moving into this stage, firms have to consider the reward and risk factors associated with the brand. New brands can enter the market at any stage of development so long as other brands have laid groundwork of consumer understanding to support the understanding of the new brand. A good brand should possess legal and ethical conformity as brands have a profound impact on the society as a whole and not just on the people who buy them. There is a wider public, in addition to shareholders and consumers, who may be potentially affected by the branding decisions.

Hence, brand value needs to be assessed by both financial and ethical measures. An ethical brand enhances the firm's reputation and reinforces the brand in turn²². Brands have a physique, personality, culture, relationship, reflection and consumer's self image. It is

21 Ind, Nicholas and Watt, Cameron (2006), Brands and breakthroughs: How brands help focus creative decision making, The Journal of Brand Management, 13 (4), 330-338

necessary for the managers of a firm to know that no brand can incorporate all of these facets without having traveled through the above mentioned six stages²³.

Analogous

Figure 2.3. Dynamics of Brand Variability and Risk Management.