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Are Global Brands Effective? [Submitted by CA. Divya Balasubramanian, March 21, 2011 Case Study: Toyota and Ford Global Automakers Sir Henry Ford said “I will make my cars in any colour that the customer wants, as long as that colour is Black.” That was the arrogance of a Brand when the going is good. Japanese automakers create single products and brands for worldwide consumption, while Ford customizes products for local markets. You know who won. Why do global brands work? What makes them work?
Kudos to Japanese manufacturers for tapping the right niche and for their focus on "what every consumer in the world is seeking: world-class modernity at affordable prices." Either because they didn't understand regional differences in consumer preferences or out of self-confidence, Toyota, Nissan, and Honda sold standard products under a single brand umbrella. For decades, Ford adapted its manufacturing platforms, features, and model names from one country to another. The results: added manufacturing and supply chain costs that strained consumers' willingness to pay; a balkanized bureaucracy in which regional managers exaggerate the need for local adaptations to defend their turf; and a deteriorating market share, financial performance, and stock price. Branding strategy should always keep in mind the theme One World - One Brand. The brand must have a common look, feel and essence. Ford was once one of the 10 most valuable brands in the world. They're no longer on that list, but Toyota now is. How did Toyota—and the other nine companies—do it? There are 4 characteristics that all top global brands have in common:
What do you think? Can Ford rehabilitate its global brand status?
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