US Market Entry - How To Get Americans To Chase Your Brand

MGSE Article 17/02/05

The conversation begins, "We are a UK company considering entering the US market…" As it continues we listen as the marketing director talks about the company, its vision and about the uniqueness of its product or service. And then we are asked, "What can you do to help us brand our product in the US?"

One of the first things we say is that the US marketplace is highly competitive and thus acts as a great equalizer. The market dynamics of pricing, product, distribution, and promotion are options that may possibly give you a competitive edge, but not for the long-term. Once these dynamics have been thoroughly evaluated, product positioning begins to take form and then a branding strategy is developed.

Branding has been defined in numerous ways over the years. Its been "a word nobody else owns," "a combination of services," "imagery associated with a product," or quite simply, "a lengthy list of product attributes." All of this is well intentioned thinking of course and depending upon your point of view, partially correct. But we believe that a more disciplined and strategic definition provides the latitude and leverage for creating a branding strategy.

The concept of branding is more than a tool for manipulating a consumer's perceptions and desires. Branding is the creation of a belief system that offers a promise and stimulates desires and expectations which in the end delivers on the promises it makes. Branding is what your product is ultimately known for. Positioning is what gets you there.

For a UK company, formulating a US market entry strategy, developing a positioning, and creating an effective brand strategy is a formidable undertaking. However the first step is to establish a product franchise or "positioning" before branding can be effective. Positioning refers to how you want your product to be thought about in connection with category competitors—it is specific to your product. Branding must fit the realities of your product.

UK and European firms are understandably curious about American consumer shopping behavior. It is important to understand that Americans comparison shop. They investigate pricing, quality, ultimate value, and think about how a product fits within their self image. Americans will chase the brand—if it's not available they will go to another store or delay purchase until the next shopping trip. Consumer surveys show Americans tend to select brands with a reputation for quality and are willing to pay more. Branding can be the great equalizer and provides the competitive edge because it stimulates, among other things, the consumer to select a product that is of high quality but costs more versus one of average quality that costs less. Americans also favor innovation because it challenges them to make product comparisons with the implied benefit of getting something better for a price they are willing to pay. Branding is part of this purchase decision equation and amplifies the principle of product differentiation.

Product differentiation is an important consideration for a positioning strategy because it creates preference. Preference forces the consumer to ultimately decide what works best for me. How you differentiate your product in a positioning strategy provides the strategic support to your branding efforts. Branding is the umbrella which creates long–term credibility, consistency, product depth, and personal value by defining the experience the consumer will receive from your product.

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