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Standardization vs. Adaption
Pranab Kishor
Standardization Adaptation
• A marketer should not go for
extremes
• But aim for a degree that is
suitable for the business.
• Decision of Standardization or
adaption can be termed as
marketing tactical behavior
• Reason influencing tactical
behavior can have varying
magnitude on decision.
Global Product Strategy
Only one version of product for every market
No difference between domestic and
international market
Individualized Product
Every market has its own version of product
totally unique from domestic market
Peripheral reasons pulling towards adaptation:
Economic differences, culture, differences in customer perception, competition,
technological, sociological, level of customer similarity, marketing infrastructure
Significant reasons pulling towards adaptation:
market development, differences in physical
conditions, legal reasons, political reasons
Tactical behavior:
Product, price, place, promotion, people,
physical evidence process management
Significant reasons pulling towards standardization:
Easier planning and control, stock costs reduction
Peripheral reasons pulling towards standardization:
Economies of scale in production, research and development and promotion,
global uniformity and image, consistency with the mobile consumer, synergetic
and transferable experience
Source: Vrontis et al., 2009, p. 492.
Reasons for
Standardization
or Adaptation
Product Type and Global Product Strategy
• Generally Certain type of product require standardization where as certain
product or services require adaptation
• Even when a brand happens to globalize its product, it needs to make some
adaptation
Standardization Adaptation
Agriculture Products
Raw Materials
Medicine
Dress Fabrics
Buildings, Plants
Industrial Software
Food
Tailoring
Product Adaptation
Sony TV
Uniqlo
Google
Voltage, Broadcast standard
Size Mix, Fabrics, Cut
Language
Artwork
Mandatory vs Voluntary Adaptation
• Mandatory adaptation
• Language Differences
• Different Electrical System
• Different Measurement System
• Government Requirements
• Voluntary Adaptation
• Marketer’s own decision
• Nescafe has 200 variant of instant coffee
• Pepsi co. sells its Lay’s Chips by different names like Walkers, Crisps, Chipsy,
Smith’s
Indonesia India Ireland
Cost Saving and Adaptation
• Providing same basic product in diff. market but with minor variation
• Nestle KitKat - Variation in raw material and Packaging Size
• Kellogg – Multilingual package in European countries
• Electrical products require only change in wiring or some change in
design to meet the specifications.
• Automobiles can be sold on different market with some change in
design.
• Products can be divided into segments rather than geography.
• Music, Scotch Whisky
Product that don’t need adaptation
• Niche Products
• High Quality Camera, Supima T-shirts
• High Elasticity Demand market
• Economies of scale does not serve any purpose
Legal Aspect
• Orange Fanta
• Amount of real orange juice
• Required to change either it’s name or formula
• In Canada contains orange juice in US doesn't.
• Lower horsepower in cars to save on taxes
• Test of purity or efficiency for medicines.
Thinking Global, Acting Local
• Altering the Image of product
• Schweppes Tonic (Mixer for Alcohol in US, Soft drink in France)
• Altering the product but keeping Image Intact
• Procter & Gamble – Whisper (lighter in Japan than US)
• COKE
Canadian Ingredients
carbonated water, sucrose, caramel color, phosphoric acid, natural flavors, caffeine
US Ingredients
carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural
flavors, caffeine
UK Ingredients
carbonated water, sugar, colour (caramel E150d), phosphoric acid, natural
flavorings (including caffeine).
Thinking Global, Acting Local
• Altering the Image of product
• Schweppes Tonic (Mixer for Alcohol in US, Soft drink in France)
• Altering the product but keeping Image Intact
• Procter & Gamble – Whisper (lighter in Japan than US)
• COKE
Canadian Ingredients
carbonated water, sucrose, caramel color, phosphoric acid, natural flavors, caffeine
US Ingredients
carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural
flavors, caffeine
UK Ingredients
carbonated water, sugar, colour (caramel E150d), phosphoric acid, natural
flavorings (including caffeine).
Factors to Consider
Factors Standardize Individualize
Competitive factors Strength of competition Weak Strong
Market position Dominant Non dominant
Market factors
Homogeneity of consumer preferences Homogeneous Heterogeneous
Potential for growth of currently small segments Low High
Consumer purchasing power Uniform Varied
Willingness of consumers to pay for differentiated products Low High
Need satisfied by product in markets served Shared Individual
Conditions of use Uniform Varied
Product factors
Importance of scale economies in manufacturing High Low
Opportunities to learn from small-scale production of innovative
products
Low High
Type of product Industrial Consumer
Codes and restrictions Uniform Varied
Companies factors Scope of international involvement Many or large markets Few or small markets
Company resources (financial, personnel, production) Limited Abundant
THANK YOU

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Standardization vs. Adaption

  • 2. Standardization Adaptation • A marketer should not go for extremes • But aim for a degree that is suitable for the business. • Decision of Standardization or adaption can be termed as marketing tactical behavior • Reason influencing tactical behavior can have varying magnitude on decision. Global Product Strategy Only one version of product for every market No difference between domestic and international market Individualized Product Every market has its own version of product totally unique from domestic market
  • 3. Peripheral reasons pulling towards adaptation: Economic differences, culture, differences in customer perception, competition, technological, sociological, level of customer similarity, marketing infrastructure Significant reasons pulling towards adaptation: market development, differences in physical conditions, legal reasons, political reasons Tactical behavior: Product, price, place, promotion, people, physical evidence process management Significant reasons pulling towards standardization: Easier planning and control, stock costs reduction Peripheral reasons pulling towards standardization: Economies of scale in production, research and development and promotion, global uniformity and image, consistency with the mobile consumer, synergetic and transferable experience Source: Vrontis et al., 2009, p. 492. Reasons for Standardization or Adaptation
  • 4. Product Type and Global Product Strategy • Generally Certain type of product require standardization where as certain product or services require adaptation • Even when a brand happens to globalize its product, it needs to make some adaptation Standardization Adaptation Agriculture Products Raw Materials Medicine Dress Fabrics Buildings, Plants Industrial Software Food Tailoring Product Adaptation Sony TV Uniqlo Google Voltage, Broadcast standard Size Mix, Fabrics, Cut Language
  • 6. Mandatory vs Voluntary Adaptation • Mandatory adaptation • Language Differences • Different Electrical System • Different Measurement System • Government Requirements • Voluntary Adaptation • Marketer’s own decision • Nescafe has 200 variant of instant coffee • Pepsi co. sells its Lay’s Chips by different names like Walkers, Crisps, Chipsy, Smith’s Indonesia India Ireland
  • 7.
  • 8. Cost Saving and Adaptation • Providing same basic product in diff. market but with minor variation • Nestle KitKat - Variation in raw material and Packaging Size • Kellogg – Multilingual package in European countries • Electrical products require only change in wiring or some change in design to meet the specifications. • Automobiles can be sold on different market with some change in design. • Products can be divided into segments rather than geography. • Music, Scotch Whisky
  • 9. Product that don’t need adaptation • Niche Products • High Quality Camera, Supima T-shirts • High Elasticity Demand market • Economies of scale does not serve any purpose
  • 10. Legal Aspect • Orange Fanta • Amount of real orange juice • Required to change either it’s name or formula • In Canada contains orange juice in US doesn't. • Lower horsepower in cars to save on taxes • Test of purity or efficiency for medicines.
  • 11. Thinking Global, Acting Local • Altering the Image of product • Schweppes Tonic (Mixer for Alcohol in US, Soft drink in France) • Altering the product but keeping Image Intact • Procter & Gamble – Whisper (lighter in Japan than US) • COKE Canadian Ingredients carbonated water, sucrose, caramel color, phosphoric acid, natural flavors, caffeine US Ingredients carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural flavors, caffeine UK Ingredients carbonated water, sugar, colour (caramel E150d), phosphoric acid, natural flavorings (including caffeine).
  • 12.
  • 13. Thinking Global, Acting Local • Altering the Image of product • Schweppes Tonic (Mixer for Alcohol in US, Soft drink in France) • Altering the product but keeping Image Intact • Procter & Gamble – Whisper (lighter in Japan than US) • COKE Canadian Ingredients carbonated water, sucrose, caramel color, phosphoric acid, natural flavors, caffeine US Ingredients carbonated water, high fructose corn syrup, caramel color, phosphoric acid, natural flavors, caffeine UK Ingredients carbonated water, sugar, colour (caramel E150d), phosphoric acid, natural flavorings (including caffeine).
  • 14. Factors to Consider Factors Standardize Individualize Competitive factors Strength of competition Weak Strong Market position Dominant Non dominant Market factors Homogeneity of consumer preferences Homogeneous Heterogeneous Potential for growth of currently small segments Low High Consumer purchasing power Uniform Varied Willingness of consumers to pay for differentiated products Low High Need satisfied by product in markets served Shared Individual Conditions of use Uniform Varied Product factors Importance of scale economies in manufacturing High Low Opportunities to learn from small-scale production of innovative products Low High Type of product Industrial Consumer Codes and restrictions Uniform Varied Companies factors Scope of international involvement Many or large markets Few or small markets Company resources (financial, personnel, production) Limited Abundant