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:
Ariel and Vizir in Europe

Hondas Europian car model,P& Gs

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 Adaptation
Basic Requirements Compatibility Requirements Multisystem 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 experts 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 worldwide

Global Product Lines

History M&A Preferences Capacity Channels

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 Products

New Product Success Factors
1.New Product Superiority 2. Technological Synergy with company know how 3. Innovativeness of New Products 4. Company Market Orientation 5. Marketing Synergy with company know how

Speed Of Diffusion
Relative Advantage Compatibility Complexity Trialability Observability

Global Brand Management

Brand Equity Global Brands
Demand Spillover Global Customers Scale Economies

The Brand Portfolio Brand 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 GMs 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)

Implementation Changeover Tactics

Defending Local Products Counterfeit Products

Extent of Problem Counterfeit Demand Actions Against Counterfeits

Summary