312 PART 4 • THE GLOBAL MARKETING MIX
tea known as Sokenbicha; and the Lactia-brand fermented milk drink.
In India, Coca-Cola markets bottled water under the Kinely brand. In contrast, the spirits industry often creates brand extensions to leverage popular brands without making large marketing expenditures. For example, Diageo PLC markets Gordon’s Edge, a gin-based ready-to-drink beverage in the United Kingdom.
Allied Domecq created TG, a brand flavored with Teacher’s Scotch and guaraná, in Brazil.
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Local products and brands also represent the lifeblood of domestic companies. Entrenched local products and brands can present significant competitive hurdles to global companies that are seeking to enter new country markets. In China, for example, a sports-apparel company started by Olympic gold medalist Li Ning competes head to head with global powerhouse Nike.
In developing countries, global brands are sometimes perceived as overpowering scrappy local ones. In some cases, growing national pride may result in asocial backlash that favors local products and brands. In China,
a local TV manufacturer, Changhong Electric Appliances, has generated a high degree of awareness among Chinese consumers by cutting prices and using patriotic advertising themes such as Let Changhong hold the great flag of revitalizing our national industries.”
White-goods maker Haier Group has also successfully fought off foreign competition and now accounts for 40 percent of China’s refrigerator sales. In addition, Haier enjoys a 30 percent share of both the washing machine and air conditioner markets. Slogans stenciled on office walls delineate the aspirations of company president Zhang Ruimin: “Haier—Tomorrow’s Global Brand Name and Never Say No to the Market.”
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In 2002, Haier Group announced a strategic alliance with Taiwan’s Sampo Group.
The deal, valued at $300 million, called for each company to manufacture and sell the other’s refrigerators and telecommunications products both globally and locally.
International Products and Brands
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