Sayed SalauddinAs

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