Heineken Essay

606 words - 2 pages

Global distribution channels vary in general because everyone is trying to discover a way to make money without getting the flow of current distribution channels. Each channel is a very important chapter in the process of the global channel in order for the world to obtain some type of harmony within the distributing between the channels.
The article discusses brand management on a global scale. Marketing across cultures can be done with Theodore Levitt's idea for exploiting the "economics of simplicity" with standardized products, packaging, and communication. Global brands become symbols of cultural ideals; therefore, transnational companies have to offer a high-value product that deliver the cultural myths consumers are looking for. The Global Brands Study found consumers associate global brands with three characteristics (quality signal, global myth, and social responsibility), which are used to evaluate them when making purchase decisions. Global consumers are segmented into four categories: global citizens, global dreamers, anti-globals, and global agnostics.
     More than two decades ago, Harvard Business School professor Theodore Levitt provocatively declared in a 1983 HBR article, "The Globalization of Markets," that a global market for uniform products and services had emerged. He argued that corporations should exploit the "economics of simplicity" and grow by selling standardized products all over the world. Although Levitt did not explicitly discuss branding, managers interpreted his ideas to mean that transnational companies should standardize products, packaging, and communication to achieve a least-common-denominator positioning that would be effective across cultures. From that commonsense standpoint, global branding was only about saving costs and ensuring consistent customer communication. The idea proved popular in the 1980s, when several countries opened up to foreign competition and American and Japanese corporations tried to penetrate those l branding has lost more luster recently...

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