Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Product adaptation


Published on

Published in: Business
  • Follow the link, new dating source: ♥♥♥ ♥♥♥
    Are you sure you want to  Yes  No
    Your message goes here
  • Dating for everyone is here: ❤❤❤ ❤❤❤
    Are you sure you want to  Yes  No
    Your message goes here

Product adaptation

  1. 1. 3 elements of the product or service Benefits Attributes The core product benefit or service Image Perceived value Brand name Quality Features Packaging Size and colour variants Design After-sales service Guarantees Delivery Installation Performance Marketing support services Standardisation Adaptation Adaptation
  2. 2. Fundamental Questions  To what extent are our products suitable for international markets?  If we must change the product, what should these changes be?
  3. 3. International product life cycle Market D Domestic market Sales Time Market AMarket B Market C
  4. 4. International product strategies (Van Mesdag)  Sell What You have Got (SWYG)  Sell What people Actually Buy (SWAB)  Sell the same thing globally, disregarding national frontiers (GLOB)
  5. 5. Global Product Strategies  Extension—offering product virtually unchanged in markets outside of home country  Adaptation—changing elements of design, function, and packaging according to needs of different country markets • Invention—developing new products for the world market
  6. 6. Product/communication strategies Promotion Product Standard Adapt NewAdaptStandard Straight Extension One product, one message Promotion Adaptation only Product Adaptation only Dual adaptation Product invention Source: Source: adapted from Keegan, 1995.
  7. 7. STRATEGIC ALTERNATIVES AVAILABLE  One product, One message worldwide  Product Extension-Communications Adaptation  Product Adaptation-Communications Extension  Dual Adaptation  Product Invention
  8. 8.  Standardized product with same communications strategy across the globe. i.e Product Extension  This strategy is Cost effective  Allows for greater economies of scale  Rarely used for consumer type products except soft drink and some luxury type goods  Used mainly for industrial type products
  9. 9. 2.Product Extension-Communications Adaptation  Use conditions are similar or identical but the product fulfills a different need or serves a different function.  Cost effective because communications adaptation is less expensive than the tailoring product to a local market.  Can be used for consumer type products E.g Motorcycles & Bicycles  Serve the purpose of recreation in U.S but provide basic transportation in many foreign countries.
  10. 10.  3.Product Adaptation-Communications Extension  Changes made to the product, same communications strategy across the globe  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.  Product formulations are changed without consumers knowing it  Electrical Appliances, Detergents
  11. 11.  4. Dual Adaptation - Changes made to the product, changes made to communications strategy  When there is difference in environmental conditions of use and in the function which a product serves  Combination of marketing conditions of strategies 2and 3.
  12. 12. *Kellogg’s ‘dual adaptation’ for Indian market
  13. 13.  5. Invention - Usually redesigning of an original product at a lower level of complexity. Recognizes the socio-cultural and economic differences from country to country  Leads to more purchases as a result of the reinvention of the product
  14. 14. Standardization versus Adaptation  Global Standardization: standardization of products across markets and standardization of the marketing mix worldwide  Addresses needs of global consumers (homogeneous consumer groups sharing similar interests and product/ brand preferences)  Allows for global branding – using the same brand name, logo, image, and positioning everywhere in the world
  15. 15. Standardization versus Adaptation,  Mandatory Adaptation:  Adapting products to local requirements so that they can legally and physically operate in the respective countries – for example: Left-hand driving in the United Kingdom  Local Non-Mandatory Adaptation:  Adapting a product to better meet the needs of the local market, or developing new brands for individual local markets, even though such adaptation is not required
  16. 16. Factors encouraging standardisation  Economies of scale  production  R&D  Marketing  Reduced inventory costs  Reduced component costs  Cost of investment  Reducing trade barriers  Where ‘made in’/‘designed by’ is important
  17. 17. Reasons for adaptation  Cultural factors  Usage factors  Differing consumer purchasing power  Level of local technical skills  Local taxation policies  Effect of different market entry methods  Legal standards  Tariffs  Technical Specifications  Climate
  18. 18. How to Choose a Strategy  Two errors that management makes in choosing a strategy  NIH (not invented here) syndrome means managers ignore the advancements of subsidiaries overseas  Managers impose policies upon subsidiaries because they assume what is right for customers in one market is right in every market 10-18
  19. 19. Failure of New Product Development • Tariff and non-tariff barriers • Subsidies given to local competitors • Cultural insensitivity • Poor planning • Lack of unique selling proposition • Product deficiencies • Top management approach