Global Product Strategies

1. Global Product Strategies RAYMOND R. KOH

2. Global Product Strategies Local and International Environment Product Firms Competitive Internal Situation Strategies Situation Customer Needs & Price Elasticity RAYMOND R. KOH

3. What Is a Product ? Product: A bundle of attributes The Total Product Tangible attributes: materials, size, weight, design, packaging, performance, comfort Intangibles: brand image, styling, other benefits (installation, delivery, credit, warranty, after-sale service, return policy) RAYMOND R. KOH

4. Product Related Global Drivers Demand Drivers Higher expectations More information Higher switching costs Full-service expectations RAYMOND R. KOH

5. Product Related Global Drivers Supply Drivers Fast-paced innovations Frequent product modifications Manufacturing rationalization Outsourcing coordination Strategic Alliances RAYMOND R. KOH

6. Global Product Decisions Existing Products Product phase-out Product modification Product introduction into new markets Product performance management New Product Product development Product introduction Product performance management RAYMOND R. KOH

7. Global Product Development Standardization- developing same product for multiple countries Premise-- consumes share some common values, beliefs, and consumption patterns Advantages: economies of scale and scope, price competitiveness, uniform image RAYMOND R. KOH

8. Global Product Development Product Adaptation- modifying product to reflect characteristics of a market Premise-- consumers are not the same Advantages: improved fit between product and consumer, expanded penetration RAYMOND R. KOH

9. Global Product Development Mandatory product adaptations Governmental regulations Technological considerations (e.g., voltage, infrastructure) Cultural imperatives - is it acceptable to consumers Measurement standards: volume, length, weight, quantity RAYMOND R. KOH

10. A Testable Framework of Product and Promotion Adaptation Product and Industry Technology Cultural Specificity Orientation of Product Uniqueness Type of Product of Product Industry EXPORT MARKET COMPANY Similarity of Legal Firms International Experience Regulations Product Adaptation - Upon Entry Export Sales Goal Competitiveness Of - After Entry for the Venture Product Adaptation Export Market - Upon Entry Promotion Adaptation - After Entry - Positioning Promotion Adaptation Entry Scope - Packaging/Labeling Product Familiarity Of Positioning - Promotional Approachh Export Customers Packaging/Labeling RAYMOND R. KOH Source: S.T. Cavusgil, Shaoming Zou, and G.M. Naidu. Product and Promotion Adaptation in Export Venturs: An Empirical Investigation, Journal of International Business Studies 24, no 3, (1993,485.

11. A Framework to Integrate Markets, Platforms and Competencies Markets Segments 1 through N ... Tiers of Price- T Performance 1 through N . Derivative Products or Services with Development Time/Cost Efficiency and Attractive Price-Performance Positioning Product or Service Platform Subsystem A Interface i.n Subsystem C Subsystem B Common design Rules and Tools Common Design Rules and Tools Competencies Organizational Product Technologies Production Processes Market Insights Capabilities and and Design Processes and Technologies RAYMOND R. KOH Infrastructure Source: Mark Meyer, personal communication

12. Globalizing Palmolive Soap Combination of competitive packages fragrances shapes 25 After 20 Before 15 10 5 0 Shapes Fragrances Packages RAYMOND R. KOH

13. The View from Toyota Our global strategy used to center on world cars, which we would modify slightly to accommodate demand in different markets. Today our focus is shifting to models that we develop and manufacture especially for selected regional markets. RAYMOND R. KOH

14. The View from Honda We are the most international of the Japanese companies. At the moment we are the most diversified, and we will be more diversified in the future. Still, I think it would be very hard to build a one-type world car. In the end, I dont think it would be very efficient. ---Nobuhiko Kawamoto President and CEO, Honda Motor Company RAYMOND R. KOH

15. Basic Product Concepts Local Products Regional Products Global Products RAYMOND R. KOH

16. Global Product Issues Country Region Global Customer Needs Competition Marketing Infrastructure Internal Resources RAYMOND R. KOH

17. Global Product Issues Country Region Global Segmenting Targeting Positioning RAYMOND R. KOH

18. Brands Global brand Tiered branding Cobranding Brand extensions RAYMOND R. KOH

19. Brand Positioning Perceived fit Positioning is between a defined relative particular product to: offering and the competitive needs of target offerings market consumer needs RAYMOND R. KOH

20. Brand Positioning Physical Positioning How a firms product compares to the competitions on some set of objective physical characteristics Perceptual Positioning How a firms product compares to the competitions on some set of subjective characteristics RAYMOND R. KOH

21. Positioning Strategy Attribute or Benefit Quality and Price Use or User RAYMOND R. KOH

22. Brand Equity BMW Best engineered Coke Fun and excitement Cartier Quality Corporate Branding RAYMOND R. KOH

23. Product/Brand Strategic Alternatives Brand Different Same Different Local Transnational Product Same Multinational Global RAYMOND R. KOH

24. Global Brands Positioning Local Market Segment Universal Unique Nike IKEA Uniform Positioning Adapted Volvo Levis RAYMOND R. KOH

25. Thank You!!! RAYMOND R. KOH

Global Product Strategies

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