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




Installation
Instructions
 Brand
name



Other related
services
Legal

Product platform
Deliveries
Price


Quality
Warranty
Design features
Functional features



CORE
COMPONENT

Package

Legal

Spare parts
Styling

Legal
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
Standardization
VS.
Product
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
Degree of
Cultural
Grounding
Need for
Adaptation
Low
Industrial/ Technology
Intensive
Nature of Product
Consumer
Adopter Categories in Diffusion Process
Exploiting Product Lifecycles
International Product Trade Cycle Model
production
High Income Countries
consumption
Q
u
a
n
t
i
t
y
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
10
11
12
13
14
15
10
11
12
13
14
15
Medium Income Countries
1
2
3
4
5
6
7
8
9
Low Income Countries
1
2
3
4
New Product
5
6
7
8
9
Maturing Product
Standardized Product
Stages of Production Development
Time
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
 In
1989, 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
Kan dog food  Pedigree in U.S.
 Mealtime dry dog food  Pedigree Mealtime
 Kal
– High market share in U.S.
– Brand associations
Global v. Local Brands

Global brands provide:
– Scale economies in the
Development of
advertising, packaging,
promotion, etc.
– Exploitation of:
Media overlap
 Exposure to customers who
travel

– Associations
of a global presence
 of the “home” country


Local brands provide:
– Names, symbols, and
associations that can be:
Developed locally
 Tailored to local market
 Selected without the constraints
of a global brand

– Reduced risk from “Buy
Local” sentiments
Brand Name Decisions

Arbitrary or invented word

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)

(Lexus)

Geographic place or common surname
Fried Chicken)
(Kentucky

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
Favorability
Uniqueness
of Brand Associations
Packaging & Labeling Adaptations

Size, shape, materials
–
–
–
–
Product packaging norms
Existing standards
Economic development
Environmental concerns

Color & text
– Promotional strategy
– Cultural meaning &
implications
– Government regulations
– Language issues