Product decisions Standardisation v Adaptation
• Three levels of product
• Global products
• Advantages/disadvantages of
standardisation
• Problems with standardisation
• Brand globalisation potential
Delivery
and
credit
Brand
name
Installation
Augmented
product
Packaging
Actual
product
Features
Core
benefit
or service
Quality
Styling
Aftersales
service
Core
product
Warranty
Three levels of product
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
Problems with global
standardisation
•
•
•
•
•
Insufficient market research
Overstandardisation
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 worldwide
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)