Jim Beam: Global Brand Expansion Benefits Brand & Customers - Essay Sample

Introduction

The development of a brand to be global has advantages to both the brand and its customers. Through developing a brand to be global, the business creates more customers for itself. In the case of Jim Beam, the business expanded to different countries all over the world. This helped it increase the number of sales that the business has. The numerous markets also provide the business cushion in case one of the markets fails. For example, if the sales and profits in the united states' market reduce, the sales in the other market can make the business overcome the challenges that it is facing in one of the markets. Another importance of having a global brand is the consistency that the business will have. Consistency is important in any business as it places the brand in a better position than other brands that keep changing from country to country. For example, a customer would have more trust in a brand if he travels abroad and finds the same brand of whisky that was in his country. Having a global brand gives the brand a better position than other brands that are based in one country or several countries in the same region.

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Challenges of Developing A Global Brand

There are several major challenges that any business must overcome to develop a global brand. The first is the cultural and societal differences between the different countries that the business wants to expand to. Different people in the world have different needs and expectations of brands (Aaker & Joachimsthaler, 1999). For example, in the united states, the drinking of whisky is normal. However, in Arab countries, it is considered offensive to drink alcohol. His creates a challenge for Jim Beam when trying to penetrate new markets as they have to conduct research properly on the market before venturing into the market. Another challenge that businesses face in their quest of making a global brand is the different government policies in different countries. One of the main challenges that businesses face is the high taxation from the government. In some countries, there are strict regulations and tax laws that govern the entry of new liquor businesses like Jim Beam into the country's market. This will make it a challenge for the business to grow to different parts of the world. Another challenge is the high competition that the brand will face in the new countries. In the new counties that the brand is expanding to, already have popular brands, and the business will have to spend a lot of money to break into the market.

Effect of Country of Origin

The country of origin of a brand has a significant impact on whether or not the brand will be a global brand. Different countries in the world are associated with either good quality goods or bad. For example, Chinese goods are often considered of poor quality while German cars are considered of good quality. Even though this might not be true, they are stereotypes that play a role in how a brand from different countries is perceived. Since the country of origin of a product can negatively affect how the product is received, there are several steps that a business can take to ensure that it is not negatively affected. One is to focus on providing value to the customer. When customers see that the brand is providing value, it will break the stereotypes.

References

Aaker, D. A., & Joachimsthaler, E. (1999). The lure of global branding. Harvard business review, 77, 137-146.