Brand Case

Brands play a crucial role in establishing organization's position and visibility in the global platform, where brands are the means customers use in differentiating products and services based on extrinsic and intrinsic features which is also a source of an organization's differential advantage. Brand has been defined as three essential assets, 'economical asset', which is the brand equity, 'cultural asset', which is the brand intelligence and 'social asset, which is the brand relationship. The higher the score of the three parameters, the higher the perceived status of brand and, therefore, its value in the market (Lee and Carter, 2009). This is important to understand as it has an effect on how consumers perceive and accept global brand. Brand image and its value are essential intangible assets for all organization today, with importance of managing economic value of their intangible assets and outperform basic economic measures, with efficient method; it will add real value to the business. Company image has considerable effect on consumers' brand perceptions, as such; great effort is spend on cultivating company's image. De Chernatony (1989) suggests nine themes that differentiate a brand as illustrated in figure 2. These themes suggest that brands convey intangible and tangible benefits and appeal to a range of feelings, like status.

Figure 2.

There are two strategies in international marketing management, namely, standardization strategy and adaptation strategy, shown in figure 3.

Figure 3.

It is clear that Ecclestone have used a 'standardized' strategy in application for Formula One, based on holding similar race (product) across the global, all decision by Ecclestone, himself and an eye in taking advantage of the growing global homogeneous market segment. Standardization in F1 case, are able to achieve economies of scale, quicker rate of interest return, easier organization and control of product management, allowing product enhancement extensions without incurring too much change. Although with standardization, with cost savings from economies of scale, adaptation to environmental factors is also crucial; where, adaptation towards consumer tastes, laws and customs. For instance, Ecclestone enhance the game with added feature of "fake rain" in the match,