Final answer:
Introducing a global brand into new markets can be risky due to potential miscommunication, as exemplified by the Snickers brand name in the UK. Yet with considerable advertising and a consistent product, companies like Coca-Cola and Pepsi demonstrate the possibility of establishing a resilient national brand.
Step-by-step explanation:
The statement that introducing a global product into a new market can be risky is indeed valid. For instance, brand names might be misheard or associated with different words, such as Snickers being confused with knickers in the UK. However, this potential for confusion does not mean that global brand expansion is always unwise. Firms with strong national reputations have succeeded in protecting their brands against various challenges. Advertising budgets play a critical role in establishing and defending a brand, as seen with dominant players like Coca-Cola and Pepsi Cola. Moreover, through appropriate marketing strategies, like placing ads during major events such as the Super Bowl, companies can effectively target their audiences and enhance brand likability.
Indeed, the marketplace governs much of a product's success, with markets responding to brands that offer consistent quality and brand experience—outstripping even governmental interventions such as taxes and tariffs. Firms must navigate these complexities for long-term success, understanding that sometimes substantial investments today might deter competition and secure a lasting position in the market.