Problem background and Discussion
Companies today are willing to
offer their product across borders to get marketing opportunities, Moreover,
many factors such as economic factor might force companies to go abroad
(Busnaina, 2014). Nowadays The emerging world is witnessing a remarkable growth
level (ibid). The Middle East stands to be one of the fastest-growing markets
as it embodies a destination for retailers (Jones, 2003). In the Middle East
markets, the key challenge that global marketers face is not only the
uniqueness of the emerging markets’ characteristics (Grail Research, 2009), but
also the difficulties of understanding their culture context (Busnaina, 2014).
The middle east region consists of 22 countries, with approximately 358 million people, most of
them using the arabic language (Busnaina, 2014). Thus, it embodies a promising
market for global companies and need a continuious reasearch (ibid). based on that we decided in this paper to focuse on the most important and
exciting region to the retailing emerging markets the middle east region, It is
a promising and growing market. it can be said that the Middle East has become
an attractive market for global companies, As a result this research paper
would address this literature gab.
However, with gradual growth within
the evolved markets of the world and growing globalization, corporations are turning to newly
emerging markets for corporation expansion. Thereby, entry method or strategy
in emerging markets is likely to become more and more significant issue for
academic researchers and marketing professionals (Nakata .C and Sivakumar,
1995).On top of that big companies are known for owning a rich intangible
assets including brand as an entry strategy.
In particular, multinational
corporations (MNCs) pay very close attention to branding in a global context to
remain competitive (Khojastehpour.M and John, 2015:512).However, besides
branding issue, corporation also needs to be taken in their consideration are;
legal, cultural, political, economic and technological issues before they
Additionally, because of the
different cultural climate in a multinational context, can cause a serious
practical problem for management is the lack of a widely agreed framework that
can help to define a corporate brand for multinational corporations
(Khojastehpour.M and John, 2015:512). In this way corporations `need deep
research to get the strong brand in an emerging market. Furthermore, to inspect
the role of brand name in consumers’ decision-making during a customization
process, and creating a conceptual understanding of the factors influencing the
role of brand with the help of customer references and taste should be
undermined (Jiang.P, 2004). Likely, Brands became one of the most strong and
valuable assets, that lead to firm’s success (Kotler , 2007.
Khojastehpour, M & Johns 2015). Nowadays there is a numerous brands,
strongly competing in the world markets, corporate brands as well as product
brands (Yu Xie & Boggs, 2006).
“Corporate branding refers to the strategy in which brand and
corporate name are the same, Product branding builds separate brand identities
for different products”. (ibid).
The main function of the brand is
to simplify the communication with the government, financial Sector, labor
market, and the society in general (Urde, 2003. Yu Xie & Boggs, 2006).
Brand consist of the organizational value that include core values and added
values which are the base of corporate brand (ibid). Corporate identity which
represents the firm’s ethics, values and goals is a crucial corporate assets, and
lead to differentiate the firm’s from their competitors (Yu Xie & Boggs,
According to Yu Xie & Boggs,
2006. Hatch & Schultz, 2003, branding allows the firms to be unique by
expressing the organization vision and culture. That give the organization more
recognition, visibility and reputation (Hatch & Schultz, 2003.Yu Xie &
In order to adapt and build a
successful brand strategy in emerging market, The MNCs should have an
understanding of economical, technological, socio-cultural, and competitive
conditions (Yu Xie , 2006). Based on Yu Xie & Boggs, 2006 there
are factors that can affect and influence the choice of branding strategy for
an emerging market, like stakeholder interest, corporate image and reputation,
market complexity, marketing cost, and product characteristics (ibid). MNCs
should take the challenge and decide which strategy to use, which strategy is
the best for them and for the market (ibid).Thereafter, this thesis would be
trying to figure out the gab, by studding the main correspondent of brand to be
inspected and investigate the challenges’ or barriers of entry.
The purpose of this study is to
investigate and get a better understanding of branding strategies of MNCs in
emerging market. Moreover, our aim is to investigate how multinational
corporation Determine the choice of branding strategies when entering an
emerging market for example to the following countries, Qatar, Oman and UAE as
part of Middle East, and how will they face the different challenges which are
laid ahead of them. In connection to this our research questions would be as
1. Why multinational corporations
consider brand as the most powerful strategy in the emerging markets?
2. How do they face the barriers in
order to success the brand strategy?