Creating Products and
Brands for Consumers in
Global Markets
Product Components
Core Component
Packaging Component
Support Services Component
Product Component Model
SUPPORT SERVICES
COMPONENT
PACKAGING
COMPONENT
Repair and
maintenance Trademark CORE Deliveries
COMPONENT Price
Installation Product platform Quality Warranty
Brand Design features
name Functional features
Instructions Package
Spare parts
Legal
Legal
Styling
Other related
Legal
services
4 Ps - Product
Product decisions are all decision which relate to the
physical product and/or service offering, including its name,
packaging, warranty, and availability. Product dimensions
include:
– Size of the product
– Color(s) of product
– Scent of the product
– Materials/ composition of the product
– Design of the product
– Packaging materials
– Package colors and package design
– Brand name
– Warranty
– Availability of options
– Customizing services
– After-sale service offerings
– Inventory levels
The International Marketing Dilemma
Product Product
VS.
Standardization Adaptation
Benefits of Product Standardization
+ Lower manufacturing costs
+ Lower input costs
+ Cost savings due to elimination of
product adaptation efforts
+ Fast global roll-outs are possible
Benefits of Product Standardization
+ Product available for global
customers
+ Enhance consumer perceptions of
global brand
PRESSURES FOR PRODUCT ADAPTATION
Competitive offerings
Climate, geography, & infrastructure
Government regulations & international standards
Customer expectations, preferences, & buyer behavior
Factors Influencing Product
Adaptation vs. Standardization
Stage in Product Life Cycle
Legal/Standards Constraints
Product Innovativeness
Cultural Differences
Types of Product Adaptation
Mandatory
– Necessary for product to be sold in a local
market
Discretionary
– Not necessary but may be beneficial
Benefits of Product Adaptation
+ Penetrate otherwise closed markets
+ Able to use products in different
climates & infrastructures
+ Better product performance in different use
conditions
+ Decreased costs due to varying local inputs
Benefits of Product Adaptation
+ Decreased costs due to feature
elimination
+ Increased sales due to better meeting
industry norms or cultural preferences
Strategic Adaptation to Foreign
Markets
High
Need for
Adaptation
Degree of
Cultural
Grounding
Low
Industrial/ Technology Consumer
Intensive
Nature of Product
Adopter Categories in Diffusion Process
Exploiting Product Lifecycles
International Product Trade Cycle Model
High Income Countries production
consumption
Q
u 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a Medium Income Countries
n
t
i
t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
y Low Income Countries
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Time
New Product Maturing Product Standardized Product
Stages of Production Development
Characteristics of Innovations
Relative Advantage
Compatibility
Complexity
Trialability
Observability
What is a brand?
A name, term, sign, symbol, or design, or
combination of them which is intended to
identify the goods and services of one
seller or group of sellers and to
differentiate them from those of
competitors (Kotler, 1991)
Brand Strategies
Global Brands
National Brands
Global/National Brand Mix
Private Brands
Global v. Local branding
In1989, Mars changed the name of Kal
Kan cat food to Whiskas.
Why?
– Sharing of ideas in global corporation
– Pet owners travel and might switch if their
familiar brand was not available somewhere.
– Two years earlier, Mars had created to other
global brands
KalKan dog food Pedigree in U.S.
Mealtime dry dog food Pedigree Mealtime
– High market share in U.S.
– Brand associations
Global v. Local Brands
Global brands provide: Local brands provide:
– Scale economies in the – Names, symbols, and
Development of associations that can be:
advertising, packaging, Developed locally
promotion, etc. Tailored to local market
– Exploitation of: Selected without the constraints
of a global brand
Media overlap
Exposure to customers who
travel – Reduced risk from “Buy
– Associations Local” sentiments
of a global presence
of the “home” country
Brand Name Decisions
Arbitrary or invented word (Lexus)
Recognizable English (or foreign language) word but
unrelated to product (Cheer)
Recognizable English (or foreign language) but suggestive
of product (Mr. Clean)
English (or foreign language) word descriptive of product
but may not be understandable to outsiders (Pampers)
Geographic place or common surname (Kentucky
Fried Chicken)
Device, design, number or some other element (3M)
What is brand equity?
A set of brand assets linked to a brand, its
name and symbol, that add to or subtract
from the value provided by a product or
service to a firm and/or to that firm’s
customers.
Developing A Framework For Generic Brands
Based on Brand Knowledge
Components of Brand Knowledge (Keller, 1992)
Brand Awareness
– Recognition
– Recall
Brand Image
– Type
– Strength of Brand Associations
– Favorability
– Uniqueness
Packaging & Labeling Adaptations
Size, shape, materials Color & text
– Product packaging norms – Promotional strategy
– Existing standards – Cultural meaning &
– Economic development implications
– Environmental concerns – Government regulations
– Language issues