PRIMA: Practices and Research in Marketing

Abstract

Introduction: In order to be competitive in today's universal marketplace, Multi National Corporations (MNCs) need to set up effective branding strategies. Depending upon the structure of the company and the product offered, MNCs can use different strategies. Many a times the MNCs rush to capture the lucrative foreign markets without contemplating on the appropriateness of the branding strategies. In turn they often commit serious errors with such an intense impact that it becomes almost impossible to take a remedial action to correct them at a later stage.

Objectives: The purpose of this research paper is to analyze some of the branding problems, which are commonly faced by Multi-National Corporations in international markets, with India as a special case. It tries to explore sources and reasons for brand failures of MNCs. This paper also aims to explore suitable strategic approaches for international branding.

Methodology: The analysis has been based on extensive literature survey and data derived from real life case studies of the leading MNCs like Kellogg's India, Mercedes Benz, Dollops Ice cream etc.

Findings: The findings indicate that the success of MNCs entering into a country lies in their clear vision and well-planned strategy. It is important that they understand the preferences and lifestyles of the local consumers to be successful in the local market. MNCs also require continuous support from the parent organization, which will enable them to bring in the best practices across the world to the local management.

Managerial Implications: The policy makers at MNCs need to understand that although doing business in emerging markets like India contains risk and uncertainty, these obstacles can be avoided if a suitable strategy is adopted.

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