The Coo Effect in the International Brand Positioning Strategy

Abstract

AbstractPurpose: This study aims to develop a model in order to understand how Chinese companies strategically position their brands, considering the causes of the country of origin (COO) effect, when going through the process of internationalization.Design/methodology/approach: The study approach a qualitative case study that incorporates two different Chinese companies with subsidiaries settled in Brazil. It was conducted depth interviews with different components of the studied firms.Findings: In this way, it was developed a model that try to explain the positive and/or negative effect of general attributes from China (labor market, institution framework and education) on the brand positioning divers (value preposition, points of leverage, primary target and image reinforcement), which influences on the cost-benefit strategy approach of the brands when positioning internationally.Research limitations/implications: Considering that this research is a qualitative study of two Chinese companies, further qualitative and quantitative studies would be fruitful to the validity of the presented model.Originality/value: In order to contribute to the academic field, it was found that this research present a unique model considering different causes of the COO effect that might affect the international branding positioning.