WHO ARE WE?
WILLIAM PENNY FARTHING GOOSEN
AYTUL AISA KARIKIS
KHALID AL SALEM
WHAT IS FOREIGN BRANDING?
Foreign branding is a method used by companies to label their products or services as originating from a country other than their own to appeal to a larger demographic.
The foreign branding strategy is used to make consumers believe that the product and services originate from a more favourable country with the use of foreign words/phrases and sounds.
Doritos is a prime example of foreign branding in action, the name 'Doritos' is derived from a Spanish word with many consumers assuming that the product is created in a Spanish speaking country.
Doritos is actually created by an American company at Disneyland back in the early 1960's in California, USA.
Companies do this to:
- Increase profits
- Appeal to more people
- Create value
Surprisingly, Dolmio is also using the foreign branding method to increase production, profits and consumer awareness. Everyone assumes this brand is from Italy when in reality it is in fact from the Australian company Masterfoods.
OLD EL PASO
Most people assume that this brand is created in Mexico when the reality is its actually created in U.S.A. Old El Paso advertisements as shown previously are portrayed in Spanish identifying to consumers that the food is authentic and is created on the premise of family values.
Brands do this because ultimately consumers, particularly with food, are more drawn to foods that are authentic and marketed as if they originate elsewhere.
Haagen-Dazs is actually created in New York although the name suggests otherwise. This is because Rueben and Rose Mattus, founders of the company, decided to use foreign branding to sell high-end ice cream under the name Haagen-Dazs which is derived from Denmark.
FOREIGN BRANDING IN ACTION
Companies decide on a foreign name to appear more authentic and increase brand awareness/perception that is hedonic (pleasant feeling) in nature.
LEADS TO INCREASED WILLING TO BUY
If customers feel good and have a hedonic perception of the company name they are more willing to purchase the product/service.
INCREASED WILLINGNESS TO PAY
Customers are more willing to pay higher prices if they feel they are experiencing authentic products that foreign branding portrays.
MORE PROFIT AND POSITIVE BRAND IMAGE
It is empirically proven that foreign branding has a positive impact on brand performance.
Country of origin
Country of Origin is different to foreign branding and acts as its inverse, wherein a product is labelled as being from the country it originates from.
In Australia, it is a federal requirement under the ACCC (Australian Competition and Consumer Commission) to have a country of origin on most of Australian food products. They are generally labelled in one of three ways;
- 'Grown in...'
- 'Produced in...'
- 'Made in...'
The term 'grown in' is commonly used for fresh foods, 'produced in' is where the food is processed and 'made in' is a claim to the manufacturing process.
FOREIGN BRANDING VS. COUNTRY OF ORIGIN
Country of Origin
- Is focused on the act of branding to appear 'foreign' sounding
- Does not necessarily originate from the country they imitate
- Used to appeal to consumers and increase profits
- - Identifies where a product is grown, produced and made
- - Is an identification label
- - Used to identify the origin of where products and services are derived