Open Access

Ways to neutralize the country-of-origin effect in the emerging market firms international branding1


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Characteristics of the studied companies

Firm Brands Interviewee position COCO/COBO COM/COA Share of sales under own brands* No. of foreign markets
F1 F1A; F1B;F1C; F1D Director of Marketing Poland/Poland Heating equipment: Poland, others: Turkey, China 100% 55
F2 F2A Product& Marketing Manager (R1), Category Manager (R2) South Korea/South Korea Large items: in countries with low geographical distance to sales markets, small ones: China 100% About100
F3 F3A; F3B;F3C; F3D;F3E; F3F Regional MarketingDirector (East Europe) Turkey/Turkey Large items: Turkey, Romania and Russia, small ones: China 100% Over100
F4 F4A; F4B;F4C; F4D; F4E Product Manager SmallDomestic Appliances (SDA) China/Slovenia Large items: Slovenia, Serbia, Czech Republic, small ones: China 100% 40
F5 F5A; F5B;F5C; F5D; F5E Managing Director Turkey/Turkey Turkey 18%-20% 149

A summary of the results

Neutralization of the genuine COO
General and more permanent branding strategy: brand concept Brand/sub-brand names referring to the genuine COBO

Usage on the foreign markets of a well-known local/regional/international brand acquired by a company or licensed with the trade mark owner, and associated with a given COO.

Brand/sub-brand names not referring to the genuine COBO

Usage of a brand whose name suggests origin from another, more developed country, associated with the high quality of products made there, e.g. with design (German, Italian, UK).

Usage of a brand whose name does not suggest an origin from a specific developed country, but is “neutral” and does not evoke associations with the genuine COBO or its gestor and the COM.

Usage of product line names typical for a given region of developed countries.

Brand positioning and brand slogan

Usage of the brand slogan in English or other language of the suggested COBO

Situational and more temporal brand marketing communication tools References to the genuine or suggested COO in brand promotion

Creating strong global brand image by increasing prices and product quality.

Brand alliances

Brand alliance in the form of sponsorship with a global sports brand to create a global brand image.

Marketing alliance in the form of co-branding with a partner from a developed country.

Collection of products labeled with a brand from emerging market and a brand originating from the developed country associated with high quality.

Collection of products labeled with a brand from the emerging market and a brand of a well-known international designer, often originating from the developed country.

Application of “made in” labels

Usage of “made in EU” labels on the rating plates for products manufactured in an EU Member State even if the company’s COO is not an EU Member State but has a factory or outsource production there.

Brand marketing strategies in terms of COE neutralization by the studied companies

Firm Neutralization of the COO
F1

Usage in the CEE a corporate brand name “F1A” – name suggesting Italian origin;·

Usage in the eastern and southern European countries a brand “F1B” with a name suggesting a German origin;

Usage in the Scandinavian countries of the acquired brand “F1C” of Danish origin;

Usage in the UK of the acquired brand “F1D” of English origin;

“F1A” brand slogan in English;

“F1B” brand slogan/claim in German;

Usage in the Scandinavian countries product line names characteristic for the region of developed countries;

F2

Slogan of the corporate brand “F2A” in English;

Creating image of the “F2A” as a global brand, increasing prices/product quality;

Launch of a sub-brand with an individualizing name in English;

Communicating “made in” the EU through the usage of “made in the EU” label in connection with the location of factories in, inter alia, Poland;

F3

Usage of the “F3B” brand, whose name is not associated with the COO;

Usage on foreign markets of two German-origin brands: “F3C” and “F3D”, brand names indicate German origin;

Usage of local long-established brands in the UK market: “F3E” and “F3F”;

Marketing alliance with one of the best European football clubs to create a global brand image of “F3B”;

F4

Marketing alliance with the global jewelery brand and the launch of “F4A” refrigerator-freezers with elements of the jewelery brand (2006);

“F4A” alliance with leading consumer electronics brands, presenting a unique combination of the iconic electronics’ brand touch (2008);

“F4A” alliance with a German car brand – limited edition of refrigerators stylized on one of the cult car models of a German brand and with the cars’ brand logo;

“F4A” co-branding with well-known French designer, launching a collection under their names (2007, 2008) and with a Canadian designer (2009);

Usage of long-established local brands acquired by the company on local markets: “F4B” brand – Dutch brand; “F4C” – Benelux countries; “F4D” – Benelux countries; “F4E” – Nordic countries;

F5

Usage of acquired international brands on foreign markets: e.g. Danish-origin “F5A” brand, “F5B” and–Finnish brand;

Usage of global brands obtained under a license agreement, brands with a Japanese (“F5C”, “F5D” “F5E”) or German (“F5F”) origin.