Branding strategies for internationalizing functional food companies

Abstract

Objective of the Study This study investigates the interrelations between the internationalization characteristics and branding strategies of the Finnish functional food companies. The aim is to identify and analyze what are the potential branding strategy alternatives for the Finnish functional food companies and how they are selected during the internationalization process. Furthermore, the objective is to build a framework explaining the determination of branding strategies in Finnish functional food companies and to develop and empirically examine the influence of the explanatory variables on the branding strategies.

Methodology and data collection Qualitative multiple case study was conducted to examine the subject. The study includes two case companies and three brands. The selection of the cases was based on the literature from the field, and clear pioneer companies and the internationalizing functional food brands Valio Ltd. and Raisio Group were identified easily. The primary source of data was achieved through interviews and secondary data from archive sources.

Main Findings The results of this study indicate that the internationalization characteristics have strong interconnections with the branding strategy selection of functional food companies. The branding strategy of a functional food company is linked strongly with the chosen operation mode; the Finnish functional food companies use in-house branding strategy with exporting and subsidiary operations whereas co-branding strategy is used with licensing operations. The findings contribute to the literature connecting the internationalization theories and branding strategies.