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7/29/2019 Term Paper Ppt
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MULTINATIONAL PRODUCT
PLANNING ADAPTATIONSTRATEGY
Presented By
Anuradha Agarwal
Archana Singh
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PRODUCT DECISIONS
Product decisions are crucial to a firms success in
international markets.
In order to gain significant percentage of market
share, a firm should address and satisfy customers
needs and expectations of overseas market.
A firm operating in international markets should
not only identify the products for various markets
but should also evolve suitable marketing
strategies for developing such products.
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PRODUCT DECISIONS
Whether a single standardized product can be
offered world wide or a customized product needs
to be developed for each market is the mostsignificant product decision that a firm, has to
make while operating in international markets.
1-3
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TYPESOF PRODUCT DECISIONS
Market segment decision
Product mix decision
Product specification
Positioning and communications decisions
1-4
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STRATEGIC ALTERNATIVES AVAILABLE
One product, One message worldwide
Product Extension-Communications Adaptation
Product Adaptation-Communications Extension
Dual Adaptation
Product Invention
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1.ONE PRODUCT, ONE MESSAGE WORLDWIDE
Product communications extension
Firms extending their operations to foreign markets
sell the
-same product
-same advertising
-same promotional themes & appealsE.g. Pepsi Co
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2.PRODUCT EXTENSION-COMMUNICATIONSADAPTATION
Due to the gaps between the foreign and home market,
drive companies to market the same product using
customized advertising campaigns.
It retains the scale economies on the manufacturing side.
Use conditions are similar or identical but the product
fulfills a different need or serves a different function.
E.g Motorcycles & Bicycles
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3.PRODUCT ADAPTATION-COMMUNICATIONS EXTENSION
Different product strategy
Same communication message
Assumes that the product will serve the samefunction in foreign markets under different use
conditions.
E.g Soaps and Detergents companies (e.g.NIRMA)
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4. DUAL ADAPTATION
Combination of marketing conditions of strategies 2 and
3.( i.e. product &communication adaptation)
When there is difference in the both the cultural and
environments in different countries in the function which a
product serves call for a dual adaptation strategy.
E.g Garments Manufactures (shtcts)
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5. PRODUCT INVENTION
When customer cannot afford a product.
E.g Colgate-Palmolive developing all plastic-hand
powered in-expensive washer.
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INTERNATIONAL STRATEGICALTERNATIVES
Product
strategy
Communications
strategy
Product/functions
Met
Conditions of
product use
Examples
1 Extension Extension Same Same Pepsi,coca-cola
2 Extension Adaptation Different Same Bicycle3 Adaptation Extension Same Different Detergent
manufactures4 Adaptation Adaptation Different Different garments
manufactures5 Invention New Same -
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HOW TO CHOOSE A STRATEGY
For 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
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Type Public
Industry Food And Beverage
Founded 1986
Headquaters NewYork, USA
Key people IndraNooyi (Chairman & CEO)
Revenue US$ 57.838 billion (2010)
Employees 294,000 (2010)
Divisions PepsiCo Americas Foods, PepsiCo
Americas Beverages, PepsiCo
Europe, PepsiCo Asia, Middle East &
Africa
http://en.wikipedia.org/wiki/File:Pepsico_logo.svg7/29/2019 Term Paper Ppt
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PEPSICO MISSION
Capture the rural markets
Hiring & training people
Providing courteous, prompt & efficient service to our
customer.
Building long-term prosperity of brands in the market
place.
Exploring & developing opportunities
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PEPSI PRODUCTS PORTFOLIO
Frito--Lay (North America )
Pepsi (North America )
Quaker foods (North America )
International Products
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FRITO-LAY BRANDS (NORTH AMERICA)
Lays Potato Chips
Ruffles
Doritos
Cheetos
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PEPSI-COLA BRANDS (NORTH AMERICA)
Pepsi
Mountain Dew
Gatorade
Tropicana
Aquafina
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QUAKER BRANDS (NORTH AMERICA)
Life Cereal
Quaker Oats
Aunt Jemima
Rice A Roni
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INTERNATIONAL PRODUCTS
Lays
Seaweed
Ketchup
7UP
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Type Public
Founded 1892
Industry Beverage
Headquarters Atlanta,Georgia, U.S.Key people Muhtar Kent
(Chairman & CEO)
Revenue- US$ 35.119 billion (2010)
Employees 139,600 (2010)Area served Worldwide
http://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Georgia_(U.S._state)7/29/2019 Term Paper Ppt
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COKESMISSIONSTATEMENT To maximize shareowner value over time.
Consumer demand drives
Best marketers in the world.
Think and act locally.
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COKE BRAND PORTFOLIO
Core US Brands: Coca-- Coke, Fanta Cola, Diet, Sprite,
Dasani, Odwalla, Minute Maid, and Powerade.
Brand extensions: Vanilla Coke, Coke with Lime, Cherry
Coke
International Brands: Crush Sarsi, Sprite Ice, Fanta
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QuakerBrands(North
America Internationa
l Products
Pepsi-ColaBrands(NorthAmerica)
Frito-LayBrands(North
America) 32% 28%5%35%
Net Revenue-Pepsi Net Revenue Coke
Total:US$ 57.838 billion Total:US$ 35.119 billion
Products Portfolio
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SEGMENTATION,TARGETING &POSITIONING
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SEGMENTATION & TAGRETINGPepsi
Basing upon the demographic
& psychographic needs
- AGE
- GENDER
- TASTE & PREFERENCES
Targeting the market of the
urban & rural areas
Coke
Based on consumption level of
people who take drink
- DAILY
- WEEKLY
- HIGHER DEMAND
Targeting the urban area
includes:-
- Individual, family & group
- both male and female
- Package for all Income level
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POSITIONING PRODUCTSTRATEGYPepsi
All the soft drinks & the food products in the industry
Pepsi contains:
Carbonated water, High fructose Glucose syrup/or Sugar color,
Phosphoric acid, Caffeine, Citric acid and natural flavors.
Calories 100
Total Fat (gm) 0
Sodium (mg) 25
Potassium (mg) 10 Total Carbohydrates (gm) 27
Sugars (gm) 27
Protein (gm) 0
Caffeine (mg) 25
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PRODUCTSTRATEGY(CONTI.)COCA-COLA
This Coca-Cola formula appears
to be the original formula to
Coca-Cola. It is from the book
For God, Country and
Coca-Cola.
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PRICING STRATEGY
Coke PepsiIntially based on cost+profit Based on competition
But after the emergence of But very flexible
other companies like Pepsi
based on Competition
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DISTRIBUTION STRATEGY
PEPSI COKE
PEPSI BOTTLING
PLANTWAREHOUSE
FRANCHISEE
DEALERSRETAILERS
CONSUMERS
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PROMOTION STRATEGY
Pepsi Coca cola
The effective use of Print media
daily, monthly, annual Pos material
schemes, merchandising of TV commercial
materials and adds for Billboards and holdings
boosting up the sales
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MARKET SHARE
If coke, Thumsup - 12 CC - 16 Limca - 10 Maaza - 4 Sprite, Fanta - 3
If Pepsi, Dew - 11 Pepsi - 14 7up - 11 Slice - 4
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MARKET SHAREIN DIFFERENTSEGMENTSPEPSICO COCA COLA
PepsiCoAmericanBeverages
23%
PepsiCoAmericas
Foods
48%
PepsiCo
Europe
16%
PepsiCo Asia,Middle East &
Africa
13%
LatinAmerica
10%
Africa
5%
Asia
21%
Europe,
Eurasia, &Middle East
33%
NorthAmerica
30%
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SWOT : STRENGTHESPepsi
PepsiCo Brands Enjoy a High-
Profile Global Presence Pepsi Owns the Worlds 2nd
Best-Selling Soft Drinks Brand Good Relation with Franchise
Large No. of diversity businesses
Aggressive Marketing Strategies
Using Famous Celebrities
Coke
Coke Brands Enjoy a High-
Profile Global Presence Four of the top five leading
Brands
Promotional schemes -
company is providing
Umbrellas, Visicooler etc Product availability
Advertisement policy
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SWOT : WEAKNESSESPepsi
Decline in taste
Weak Distribution
Low Consumer
Knowledge
Financial Downfall
Coke
Promotional schemes are
not available to all retailers
Coca-Cola giving less
schemes then Pepsi
Pepsi giving hard time to
coca cola due to strong
relationship with retailers
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SWOT : OPPORTUNITIESPepsi
Increase Population
Diversification
Distribution of Snack
Foods
Attract the more
consumers
Coke Can come up with more
varieties in the fruit drink
along with more flavours
Opening new outlets
In rural areas where Coca-
Cola can gain asubstantial base.
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SWOT : THREATSPepsi
Health conscious people are
boycotting soft drinks.
Government Regulation
Competitors Substitutes
Corporations Shortage
Problem
Threat of Labor Strikes
Coke Health conscious people are
boycotting soft drinks.
Preference of juices and energy
drinks over cold drinks
Threat from Competitors as they
give offers at cheaper rates and
retailers are more inclined
towards Pepsi as better services
being provided.
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THANK YOU
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