Why does Coca-Cola have so many brands? Managing brands in global markets

A follow-up on my previous post: why does Coca-Cola carry so many brands, both global (Coca-Cola) and local (Qoo, for example). A summary of research conducted by Wharton professors George S. Day and David J. Reibstein provides an explanation. In brief:

Global brands are characterized by the following:

a. easy to pronounce
b. have no dominant market
c. positioning of the brand is essentially the same all over the world
d. brands address the same customer needs throughout different markets
e. brand execution is the same

Why create local brands, then? Curiously, many food brands are strictly local, mainly because of cultural differences and gastronomic preferences in different markets.


What are the forces that slow down the expansion of global brands? The author note at least three:

1. Inherent market differences from one country to another
2. Consumer loyalty to local brands
3. Growing concentration of retail buying power
4. Anti-globalization movement and criticism

The full article entitled Managing Brands in Global Markets: One Size Doesn't Fit All is available at Knowledge @ Wharton