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Global Branding

Part 1: Explain why some competitors (e.g. Kodak) preferred to use a global brand name of this product while other (e.g. Fuji and Canon) preferred to use several.

Kodak: a single global brand name strategy (Standardisation)

The APS system was a new system so Kodak took advantage of the growth opportunity (first mover advantage). They use a single brand name because “one brand is more efficient” (Branding Strategy Insider, 9th January 2007, http://www.brandingstrategyinsider.com/2007/01/building_a_glob.html , 4th May 2009) and “Advantix” is an extension of Kodak’s personality, creating a positive association. They also achieved:

• Economies of scale by standard packaging, labels, promotion and advertising.

• Kodak used Advantix by combining to word Advance Photography system and IX from “This layer records digital information that links all Advanced Photo System components through information exchange (IX)”(Source: Kodak, http://www.kodak.com/global/en/consumer/products/techInfo/e7003/e7003.shtml , 5th MAY 2009). It is also easy to pronounce in different languages.

• Easy product recognition for consumers to find their favourite “Kodak Advantix” worldwide. Consumers are very unlikely to spend their money on unknown brands that known brands, ”Focus on the customer” (Eastman Kodak: Meeting the Digital Challenge, Robert M. Grant, p 2)

• It is easier to protect regarding legal requirements and maintenance of global brand recognition.

• Reduce development cost due to no need for name research, design and packaging or large advertising cost. “Mass production at low cost” (Eastman Kodak: Meeting the Digital Challenge, Robert M. Grant, p 2)

• Kodak has a strong brand recognition and awareness making the sales of the APS system likely to be strong in different countries. “With more than 100,000 locations worldwide that are equipped to provide APS photofinishing services, finding a convenient place to take your ADVANTIX film...