sayed salauddinas
TRANSCRIPT
Submitted To: Mohammad Solaiman Assistant Professor Department of Marketing Comilla University
Submitted By: 1. Md.Sayed Hossain Exam ID: 11070212 2. Mohammad Salahuddin Exam ID: 111070223 Department of Marketing Comilla University
Chapter 12:Global Products Global products Global brands: Gillette,Colgate,SonyTV,
Regional Brands: Honda’s Europian car model,P& G’s Ariel and Vizir in Europe
standardisation
Global Products• Localisation of a product or service to fit local
regulation and usage requirements e.g. local voltages and safety laws
• Adaptation fits the product to buyer preferences e.g. Air-conditioning in USA
• Standardised global products are not adapted to local preferences, but must still be localised. E.g Coca-Cola obey local hygiene laws
Advantages of standardisation
• Cost reduction - e.g. economies of scale• Improved quality - resources can be focussed• Enhanced customer preference - positive
experiences lead to global brand loyalty• Global customers - uniform quality and services• Global segments - e.g. software, cameras.
Disadvantages of Standardisation• Lack of uniqueness - exclusivity may be behind
purchase decision• Off-target - miss the customer target completely• Vulnerable to trade barriers - local production may
be necessary, so economy of scale benefits are lost• Strong local competition - customisation by
competitors, lack of local knowledge
Which Feature To Standardize?
Localization Vs AdaptationBasic RequirementsCompatibility RequirementsMultisystem Compatibility
Pitfalls of global standardisation
• Insufficient market research• Over standardisation• Poor follow-up• Narrow vision• Rigid implementation
Polaroid SX-70
• Insufficient market research
• Used US campaign/agency in European launch
• TV testimonials from ‘unknown’ people
• hence local lack of awareness
Canon AE-1• Overstandardisation• First ‘positioned’ as the
expert’s choice in all markets
• Then endorsed by John Newcombe (Tennis Champion)
• Created a much bigger market for single-lens reflex cameras world-wide
Henkel Pritt
• Poor follow-up• Pritt stick launched as an
umbrella brand• failed to capitalise on
initial momentum• local business units were
under resourced• weak results had to be
turned around
Unilever - Domestos
• Narrow Vision• Vision lead from HQ• UK took lead in
promoting Domestos• In Germany positioned as
dirt remover, not germ killer
• UK ignored this - consumers confused
Lego Buckets• Rigid implementation• In US, competitor Tyco
offered plastic buckets• Danish HQ refused to act• Denmark relented after
market slide• Now use buckets world-
wide
Global Product LinesHistoryM&APreferencesCapacityChannels
Developing New Global Products Idea Generation Preliminary Screening Concept Research Focus Group And Surveys Concept Testing Target Research Sales Forecast Test Marketing
Globalizing Successful New ProductsNew Product Success Factors1.New Product Superiority2. Technological Synergy with company know how3. Innovativeness of New Products4. Company Market Orientation5. Marketing Synergy with company know how
Speed Of DiffusionRelative AdvantageCompatibilityComplexityTrialabilityObservability
Global Brand Management
Brand EquityGlobal Brands Demand Spillover Global Customers Scale EconomiesThe Brand PortfolioBrand Extensions
Brand globalisation potential• Does the brand name make sense outside of the
country? Nokia from Finland is aware name sounds Japanese (same roots)
• Does the name have a positive, country specific image? E.g GM’s Opel and Chevrolet
• Is the name available legally in many countries? Dutch Philips, Phillips Oil registered in USA
• Does the brand complement other global brands in the portfolio(or not)? E.g. Sony supports Aiwa at a lower price
• Should the growth be limited to the creation of a regional brand? E.g. Strasbourg beer maker, ‘Kronenbourg’ in global markets, as ‘1866’ in S. Europe. Local brand can be difficult to remove.
Johnny K. Johansson (1999)
ImplementationChangeover Tactics
Defending Local Products Counterfeit Products
Extent of ProblemCounterfeit DemandActions Against Counterfeits
Summary