I personally believe that beer producers of global brands use ethnocentrism meaning that business is done the same way it is done at the home country for every market with the expectation of having the same amount of success. The management is not decentralized and autonomous within the foreign locations, instead the organization is for the most part exactly the same as it is domestically. They are not trying to to be innovative and come up with something new and unique, for the most part it is just the same size of the bottles as well as the same flavors. They are not taking advantage of the culture and characteristics of the foreign markets.
This is however not ideal as the study has shown that ethnocentric tendencies reduce the incentives of consumers to purchase foreign goods. This is also highlighted by the following findings from Nijssen and Douglas (2011): The impact of consumer ethnocentrism and world-mindedness is stronger than local or foreign culture. Consumers with ethnocentric attitudes have positive attitudes toward local brands and negative attitudes toward global brands.
In regards to the information given from the study, I feel confident in saying that I would create a seperate local brand for the spanish market. There are several reasons for this, firstly local brands are more highly valued. It has been proven that local brands have a superior sense for local taste and tradition and thus have the capability of challenging global brands.
Local brands have a perceived image of offering higher quality in the categories of food and beverages due to having had the opportunity of experiencing and adapting to the local culture and preferences as well as having had the sense of understanding of the domestic consumers purchasing behaviour. Hence, food and beverages are more culturally
grounded with local tastes, traditions and habits; and consumers may consider the
global brand less relevant in satisfying social and cultural needs.
There exist four dimensions of brand equity, but according to this paper, in the market for beer in spain, brand loyalty is the most potent dimension. Beer brand loyalty exerts the strongest effect on customer-based brand value, purchase intention and premium prize disposition. Beer consumers seem to be more invested in brand loyalty which might be an indicator that quality and image perceptions are not as important when compared to consumer loyalty. The study also suggests that the attraction of a certain brand could depend on the product category as mentioned earlier, where local brands could be more appealing for household products like food and beverages while global brands would be more suitable for wearable goods such as shoes and clothes.
At the beginning it was, however, widely accepted that brand globalness created a sense of brand superiority among consumers. Global brand do have some advantages because of their global image which is commonly linked with a prestige that local brands may have problems competing with, especially among consumers of developing countries. Previous research also indicate that global brands that are universally available and recognized worldwide have a competitive advantage when in comparison to local brands.
Hence there are reasons as to why having a global brand could be beneficial. A global brand is an appropriate approach when a product has a good reputation or is known for quality. Perhaps this is the best case scenario because not only are you operating in different countries and having both international and domestic success, your brand is also well received with genuine trustworthiness. Obviously achieving such status is not an easy task and would be difficult to obtain. The research suggests that plentiful consumers all over the world consciously avoid global brands if there are alternative options available. It is difficult for foreign companies to persuade customers to purchase their products when local brands have the capability of developing a close relationship with its domestic consumers. Therefore, in order to be successful in foreign local markets it is crucial for companies to start considering cultural values as well as local market conditions and needs.
In conclusion, if I was the marketing manager I would focus on developing a strong brand loyalty, since it has been shown that having a strong brand loyalty tends to translate to increased customer-based brand value which leads to increases in purchase likelihood and the ability to adopt a premium price tag. Another competitive advantage of brand loyalty is the fact that it cannot very easily be copied providing a defense from foreign competitors.