ALTERNATIVE STRATEGIES IN MULTINATIONAL PRODUCT PLANNING

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PRODUCT PLANNING

Is a process used to identify and develop new products.

Purpose is to make choices about which product ideas a company should invest.

These ideas come from customers, distributors, research conducted by the company etc.

STRATEGIC ALTERNATIVES AVAILABLE One product, One message worldwide Product Extension-Communications

Adaptation Product Adaptation-Communications

Extension Dual Adaptation Product Invention

1.One Product, One Message Worldwide

i.e Product Extension Easiest & in most cases most profitable

marketing strategy E.g Pepsi Co

Doesn’t work for all the products E.g Corn Products Compant-Knorr Soup

2.Product Extension-Communications Adaptation Use conditions are similar or identical

but the product fulfills a different need or serves a different function. E.g Motorcycles & Bicycles Serve the purpose of recreation in U.S but

provide basic transportation in many foreign countries.

E.g U.S farm machinery company

3.Product Adaptation-Communications Extension

To extend without changing the basic communication strategy developed for home market.

Assumes that the product will serve the same function in foreign markets under different use conditions. E.g Soaps and Detergents companies Gasoline (Esso) Electrical Appliances

4. Dual Adaptation

When there is difference in environmental conditions of use and in the function which a product serves

Combination of marketing conditions of strategies 2 and 3. E.g U.S Greeting Card Company

5. Product Invention

When customer cannot afford a product. E.g Colgate-Palmolive developing all

plastic-hand powered in-expensive washer.

HOW TO CHOOSE A STRATEGYFor a company to expand itself

internationally it has to take into account the below factors while deciding their product mixes- Customer Interest & Characteristics Competitive Market Offerings Company Objectives & Resources. Environmental factors Mode of Entry

Understanding the diversity of these factors among the countries help in selecting the most effective strategies to be followed for any particular company-product mix.

REFERENCES

The Journal of Marketing, Vol. 33, No. 1 (Jan., 1969), pp. 58-62 Published by American Marketing Association by Warren Keegan.

Research Paper on “Research for Multinational Product Policy” by Yoram Wind, Professor of Marketing, The Wharton School, University of Pennsylvania.

Wikipedia

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