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Comparison Between Mnc Cases in B2b and B2c Market Tia Suotunen Global brand management practices in business performance development: MNC cases in B2B and B2C market COMPARISON BETWEEN MNC CASES IN B2B AND B2C MARKET The School of Marketing and Communication Master’s Thesis Master of International Business Vaasa 2021 2 UNIVERSITY OF VAASA School of Marketing and Communication Author: Tia Suotunen Title of the Thesis: Global brand management practices in business performance development: MNC cases in B2B and B2C market- Comparison between MNC cases in B2B and B2C market Degree: Master of Science in Economics and Business Administration Programme: Master’s Degree Programme in International Business (MIB) Supervisor: Peter Gabrielsson Year: 2021 Pages: 188 ABSTRACT: Globalization has increased importance for MNCs to understand marketing imperatives in the global business environment. Moreover, as markets have become global and interconnected, there are more and more global brands competing against each other, which emphasizes the need to differentiate from other market players in order to survive in the market. Thus, global brand management and global brand strategies have grown in significance. This master’s thesis aims to examine global brand management and global strategies of B2B and B2C companies and how these MNCs are utilizing them in order to create better brand performance in global markets. Therefore, the purpose is to attain knowledge through utilizing Van Gelder’s global brand proposition model as a starting point when examining underlying reasons for brand architecture and standardization/adaptation orientation decisions. Moreover, strategical decisions are also examined in relation to global brand equity and how MNCs are measuring it. Therefore, this master’s thesis tries to fill the research gap considering B2B and B2C brand management, their strategical decisions considering brand management and building brand equity in global context. Empirical data was collected basing on five interviewees all representing Nordic MNCs from different industries. All the interviewees are responsible for brand management of MNCs in the global context. Moreover, there were also utilized various different sources of secondary data such as annual reports of the case companies, public releases, websites of the case companies, brand value agencies and marketing agencies. Empirical findings address that case companies do align their brand management according to elements of Van Gelder’s global brand proposition model, which consider both internal and external analysis on the brand. Moreover, empirical findings also indicate mostly two brand architecture systems utilized by case companies and utilization of one global brand strategy. In addition, case companies also have different types of brands, which bring value to the company according to value creation model of Steenkamp. Findings address that MNCs measure global brand equity both in B2B and B2C markets and they also perceive that global brand strategy and building brand equity are linked together. Moreover, findings show that most case companies found that customer-based brand equity targets were met. Only one case company had numerical data on customer-based brand equity increase. Moreover, profit-based brand equity is also measured by some of the case companies through sales, campaign returns, revenues but the increase in profit-based brand equity was still questionable as various other factors affect financial outcomes along with brand management practices. KEYWORDS: MNC, Global branding, global brand management, competitive advantage, brand performance, global brand strategy, global brand equity 3 VAASAN YLIOPISTO Makkinoinnin ja viestinnän yksikkö Tekijä: Tia Suotunen Tutkielman nimi: Globaalit brändin hallinta käytänteet liiketoiminnan suorituksen kehittämisessä: Monikansalliset kohdeyritykset teollisuus-ja kuluttajamarkkinoilla-Vertailu B2B ja B2C kohdeyritysten välillä Tutkinto: Kauppatieteiden maisteri Oppiaine: Kansainvälisen liiketoiminnan maisteriohjelma Työn ohjaaja: Peter Gabrielsson Valmistumisvuosi: 2021 Sivumäärä: 188 TIIVISTELMÄ: Globalisaatio on lisännyt monikansallisten yritysten tarvetta ymmärtää markkinoinnin lainalaisuuksia globaalissa liiketoimintaympäristössä. Lisäksi kun markkinat ovat tulleet globaaliksi ja ne ovat yhteydessä toisiinsa, yhä useammat globaalit brändit kilpailevat keskenään, mikä lisää tarvetta erottautua muiden markkinatoimijoiden joukosta selviytyäkseen markkinoilla. Niinpä globaali brändinhallinta ja johtaminen sekä globaalit brändinhallinta strategiat ovat nostaneet merkitystään. Tämä tutkimus pyrkii tutkimaan globaalia brändinhallintaa ja johtamista B2B- ja B2C markkinoilla ja kuinka monikansalliset yritykset hyödyntävät niitä luodakseen parempaa brändin suorituskykyä globaaleilla markkinoilla. Tarkoitus on saavuttaa tietoa käyttäen lähtökohtana Van Gelderin globaalia brändilupaus- mallia ja tutkia taustatekijöitä brändiarkkitehtuurin sekä standardisointi ja adaptointi valintojen taustalla. Lisäksi strategisia ratkaisuja tutkitaan suhteessa globaaliin brändipääomaan ja kuinka monikansalliset yritykset mittaavat globaalia brändipääomaa. Näin ollen tämä Pro gradu- tutkielma yrittää täyttää tutkimusaukkoa liittyen yritys- ja kuluttajabrändien brändin hallinta- ja johtamiskäytäntöihin, strategisten valintojen tekemiseen liittyen brändinhallintaan ja brändin johtamiseen sekä brändipääoman rakentamiseen globaalissa kontekstissa. Tutkimustieto kerättiin viidessä haastattelussa haastateltavilta, jotka edustavat pohjoismaisia monikansallisia yrityksiä eri aloilta. Haastateltavat ovat kaikki vastuussa monikansallisten yritysten brändinhallinnasta ja johtamisesta globaalisti. Lisäksi tutkimustiedon keräämisessä käytettiin useita sekundäärisiä lähteitä kuten kohdeyritysten vuosiraportteja, julkisia julkaisuja, kohdeyritysten nettisivuja, brändin arvoa arvioivia toimistoja ja markkinointitoimistoja. Tutkimustulokset osoittavat, että kohdeyritykset linjaavat brändinhallintaa ja johtamistaan Van Gelderin globaalin brändilupaus- mallin mukaisesti, joka sisältää sekä brändin sisäisen että ulkoisen analysoinnin elementtejä. Lisäksi empiiriset tulokset osoittavat, että kohdeyritykset käyttävät lähinnä kahta brändiarkkitehtuurijärjestelmää ja pääosin yhtä globaalia brändistrategiaa. Lisäksi kohdeyritysten brändit eroavat brändityypin mukaisesti. Brändityyppi tuo arvoa yrityksille Steenkampin arvonmuodostus mallin mukaisesti. Tulokset osoittavat, että monikansalliset yritykset mittaavat globaalia brändipääomaa niin B2B kuin B2C markkinoilla ja he myös havaitsevat yhteyden brändistrategian ja brändipääoman välillä. Lisäksi tulokset osoittavat, että useimmat kohdeyritykset kokivat asiakaspohjaisen brändipääoman tavoitteiden saavuttamista. Kuitenkin vain yksi kohdeyritys osoitti asiakaspohjaisen brändipääoman kasvua numeraalisesti. Lisäksi tulokseen perustuvaa brändipääomaa mitattiin osassa kohdeyrityksistä mm. myyntilukujen, kampanjatulosten, liiketoiminnan tulojen lisäyksen osalta mutta tulokseen perustuva pääoman lisäys oli silti kyseenalainen tutkimuksen valossa johtuen lukuisten ulkoisten tekijöiden vaikutuksesta rahalliseen tulokseen brändin hallinta- ja johtamiskäytäntöiden ohella. AVAINSANAT: Monikansallinen yritys, Globaali brändi, globaali brändinhallinta ja johtaminen, kilpailuetu, brändin suorituskyky, globaali brändistrategia, globaali brändipääoma 4 Contents 1 Introduction 8 1.1 Background 8 1.2 Research gap 10 1.3 Research problem and objectives 16 1.4 Definitions of the main concepts 19 1.5 Delimitations and the scope of the study 21 1.6 Structure of the study 22 2 Literature review 24 2.1 Brand literature 24 2.1.1 What is a brand? 24 2.1.2 Global Brands 26 2.1.3 Global marketplace and its impact on brands 28 2.1.4 Value creation of global brands 29 2.1.5 Global brand strategies 32 2.2 Brand management in B2B and B2C market 39 2.2.1 B2B market 40 2.2.2 B2C market 44 2.3 Brand performance 47 2.3.1 Brand management and competitive advantage 47 2.3.2 Brand Equity 49 2.3.3 Brand equity measurement systems 50 2.3.4 Brand value vs. Brand Equity 54 2.3.5 Brand strength score (Interbrand method) 57 2.3.6 Brand metrics 58 5 2.4 Theoretical framework 61 3 Research Methodologies 64 3.1 Research design 64 3.3. Data collection and analysis 67 3.4. Validity and Reliability 71 4 Findings 74 4.1 Case company A 74 4.1.1 Analysis of the global brand proposition 75 4.1.2 Global brand strategy 79 4.1.3 Brand targets and performance 81 4.2 Case company B 83 4.2.1 Analysis of the global brand proposition 83 4.2.2 Global brand strategy 86 4.2.3 Brand targets and performance 88 4.3 Case company C 90 4.3.1 Analysis of the global brand proposition 91 4.3.2 Global brand strategy 94 4.3.3 Brand targets and performance 98 4.4 Case company D 100 4.4.1 Analysis of the global brand proposition 100 4.4.2 Global brand strategy 104 4.4.3 Brand targets and performance 107 4.5 Case company E 110 4.5.1 Analysis of the global brand proposition 110 4.5.2 Global brand strategy 114 6 4.5.3 Brand targets and performance 118 4.6 Cross-case synthesis 120 4.6.1 The global brand proposition 120 4.6.2 Strategical decisions considering brand management 126 4.6.3 The brand targets and brand performance 133 4.7 Summary of the findings 139 5 Discussion and conclusions 144 5.1 Conclusions 144 5.2 Theoretical implications 148 5.2 Managerial implications 152 5.3 Limitations and suggestion for future research 153 REFERENCES 155 Appendices 189 Appendix 1. Interview questions 189 7 Figures Figure 1 The 4V Model (Steenkamp, 2014) 28 Figure 2
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