Localising a global brand within the financial services industry : with a focus on Franklin Templeton Investments in South Africa
Thesis (MBA)--Stellenbosch University, 2013.
Expanding business operations and exploring additional sources of revenue to ensure sustainability and longevity are some of the key business drivers of any organisation. These drivers have many organisations consider the opportunity of expanding business operations to foreign territories. Some of the major challenges when expanding business operations to new territories are those of competing against local brands in the same industry or introducing a whole new product or service to a new market. It therefore seems much of a demand versus supply consideration when organisations do decide to venture to new territories. Introducing a whole new product or service to a new market addresses the demand issue based on the premise that a need for this product or service exists. The existence of competition, not only directly with industry related brands but also other brands, addresses the supply of the particular product or service. This demand and supply dynamic forms the basis of this research paper. Given this context, considering the complexities of a new market from both an internal business and external industry point of view, is critical in establishing if an opportunity set exists in this new potential market which can be exploited. Once the opportunity set has been confirmed, organisations can shift their focus to the intended business and brand management strategy to be followed when entering this new market. Product and service organisations do, however, face many different challenges when entering new markets. One of the primary differences is that of tangibility of their respective offerings. This complexity leaves services organisations with few instruments to leverage in competing against product providers for the share of wallet of the consumer. As consumers associated with products and services do not have a tangible product per se, the emphasis is placed on the brand of services organisations as the associative connection from a consumer point of view. Given the two mentioned concepts of entering new markets and different challenges which product and service providers face when doing so, the contextual environment of this study is set in the Financial Services Industry. This study explores the key considerations that financial services organisations should be cognisant of, from a branding point of view, when entering new markets.