Term Paper Ppt

7/29/2019 Term Paper Ppt

1/37

MULTINATIONAL PRODUCT

PLANNING ADAPTATIONSTRATEGY

Presented By

Anuradha Agarwal

Archana Singh


2/37

PRODUCT DECISIONS

Product decisions are crucial to a firms success in

international markets.

In order to gain significant percentage of market

share, a firm should address and satisfy customers

needs and expectations of overseas market.

A firm operating in international markets should

not only identify the products for various markets

but should also evolve suitable marketing

strategies for developing such products.


3/37

PRODUCT DECISIONS

Whether a single standardized product can be

offered world wide or a customized product needs

to be developed for each market is the mostsignificant product decision that a firm, has to

make while operating in international markets.

1-3


4/37

TYPESOF PRODUCT DECISIONS

Market segment decision

Product mix decision

Product specification

Positioning and communications decisions

1-4


5/37

STRATEGIC ALTERNATIVES AVAILABLE

One product, One message worldwide

Product Extension-Communications Adaptation

Product Adaptation-Communications Extension

Dual Adaptation

Product Invention


6/37

1.ONE PRODUCT, ONE MESSAGE WORLDWIDE

Product communications extension

Firms extending their operations to foreign markets

sell the

-same product

-same advertising

-same promotional themes & appealsE.g. Pepsi Co


7/37

2.PRODUCT EXTENSION-COMMUNICATIONSADAPTATION

Due to the gaps between the foreign and home market,

drive companies to market the same product using

customized advertising campaigns.

It retains the scale economies on the manufacturing side.

Use conditions are similar or identical but the product

fulfills a different need or serves a different function.

E.g Motorcycles & Bicycles


8/37

3.PRODUCT ADAPTATION-COMMUNICATIONS EXTENSION

Different product strategy

Same communication message

Assumes that the product will serve the samefunction in foreign markets under different use

conditions.

E.g Soaps and Detergents companies (e.g.NIRMA)


9/37

4. DUAL ADAPTATION

Combination of marketing conditions of strategies 2 and

3.( i.e. product &communication adaptation)

When there is difference in the both the cultural and

environments in different countries in the function which a

product serves call for a dual adaptation strategy.

E.g Garments Manufactures (shtcts)


10/37

5. PRODUCT INVENTION

When customer cannot afford a product.

E.g Colgate-Palmolive developing all plastic-hand

powered in-expensive washer.


11/37

INTERNATIONAL STRATEGICALTERNATIVES

Product

strategy

Communications

strategy

Product/functions

Met

Conditions of

product use

Examples

1 Extension Extension Same Same Pepsi,coca-cola

2 Extension Adaptation Different Same Bicycle3 Adaptation Extension Same Different Detergent

manufactures4 Adaptation Adaptation Different Different garments

manufactures5 Invention New Same -


12/37

HOW TO CHOOSE A STRATEGY

For a company to expand itself internationally it has

to take into account the below factors while deciding

their product mixes-

Customer Interest & Characteristics

Competitive Market Offerings

Company Objectives & Resources. Environmental factors

Mode of Entry


13/37

Type Public

Industry Food And Beverage

Founded 1986

Headquaters NewYork, USA

Key people IndraNooyi (Chairman & CEO)

Revenue US$ 57.838 billion (2010)

Employees 294,000 (2010)

Divisions PepsiCo Americas Foods, PepsiCo

Americas Beverages, PepsiCo

Europe, PepsiCo Asia, Middle East &

Africa
http://en.wikipedia.org/wiki/File:Pepsico_logo.svg


14/37

PEPSICO MISSION

Capture the rural markets

Hiring & training people

Providing courteous, prompt & efficient service to our

customer.

Building long-term prosperity of brands in the market

place.

Exploring & developing opportunities


15/37

PEPSI PRODUCTS PORTFOLIO

Frito--Lay (North America )

Pepsi (North America )

Quaker foods (North America )

International Products


16/37

FRITO-LAY BRANDS (NORTH AMERICA)

Lays Potato Chips

Ruffles

Doritos

Cheetos


17/37

PEPSI-COLA BRANDS (NORTH AMERICA)

Pepsi

Mountain Dew

Gatorade

Tropicana

Aquafina


18/37

QUAKER BRANDS (NORTH AMERICA)

Life Cereal

Quaker Oats

Aunt Jemima

Rice A Roni


19/37

INTERNATIONAL PRODUCTS

Lays

Seaweed

Ketchup

7UP


20/37

Type Public

Founded 1892

Industry Beverage

Headquarters Atlanta,Georgia, U.S.Key people Muhtar Kent

(Chairman & CEO)

Revenue- US$ 35.119 billion (2010)

Employees 139,600 (2010)Area served Worldwide
http://en.wikipedia.org/wiki/Georgia_(U.S._state)http://en.wikipedia.org/wiki/Georgia_(U.S._state)


21/37

COKESMISSIONSTATEMENT To maximize shareowner value over time.

Consumer demand drives

Best marketers in the world.

Think and act locally.


22/37

COKE BRAND PORTFOLIO

Core US Brands: Coca-- Coke, Fanta Cola, Diet, Sprite,

Dasani, Odwalla, Minute Maid, and Powerade.

Brand extensions: Vanilla Coke, Coke with Lime, Cherry

Coke

International Brands: Crush Sarsi, Sprite Ice, Fanta


23/37

QuakerBrands(North

America Internationa

l Products

Pepsi-ColaBrands(NorthAmerica)

Frito-LayBrands(North

America) 32% 28%5%35%

Net Revenue-Pepsi Net Revenue Coke

Total:US$ 57.838 billion Total:US$ 35.119 billion

Products Portfolio


24/37

SEGMENTATION,TARGETING &POSITIONING


25/37

SEGMENTATION & TAGRETINGPepsi

Basing upon the demographic

& psychographic needs

- AGE

- GENDER

- TASTE & PREFERENCES

Targeting the market of the

urban & rural areas

Coke

Based on consumption level of

people who take drink

- DAILY

- WEEKLY

- HIGHER DEMAND

Targeting the urban area

includes:-

- Individual, family & group

- both male and female

- Package for all Income level


26/37

POSITIONING PRODUCTSTRATEGYPepsi

All the soft drinks & the food products in the industry

Pepsi contains:

Carbonated water, High fructose Glucose syrup/or Sugar color,

Phosphoric acid, Caffeine, Citric acid and natural flavors.

Calories 100

Total Fat (gm) 0

Sodium (mg) 25

Potassium (mg) 10 Total Carbohydrates (gm) 27

Sugars (gm) 27

Protein (gm) 0

Caffeine (mg) 25


27/37

PRODUCTSTRATEGY(CONTI.)COCA-COLA

This Coca-Cola formula appears

to be the original formula to

Coca-Cola. It is from the book

For God, Country and

Coca-Cola.


28/37

PRICING STRATEGY

Coke PepsiIntially based on cost+profit Based on competition

But after the emergence of But very flexible

other companies like Pepsi

based on Competition


29/37

DISTRIBUTION STRATEGY

PEPSI COKE

PEPSI BOTTLING

PLANTWAREHOUSE

FRANCHISEE

DEALERSRETAILERS

CONSUMERS


30/37

PROMOTION STRATEGY

Pepsi Coca cola

The effective use of Print media

daily, monthly, annual Pos material

schemes, merchandising of TV commercial

materials and adds for Billboards and holdings

boosting up the sales


31/37

MARKET SHARE

If coke, Thumsup - 12 CC - 16 Limca - 10 Maaza - 4 Sprite, Fanta - 3

If Pepsi, Dew - 11 Pepsi - 14 7up - 11 Slice - 4


32/37

MARKET SHAREIN DIFFERENTSEGMENTSPEPSICO COCA COLA

PepsiCoAmericanBeverages

23%

PepsiCoAmericas

Foods

48%

PepsiCo

Europe

16%

PepsiCo Asia,Middle East &

Africa

13%

LatinAmerica

10%

Africa

5%

Asia

21%

Europe,

Eurasia, &Middle East

33%

NorthAmerica

30%


33/37

SWOT : STRENGTHESPepsi

PepsiCo Brands Enjoy a High-

Profile Global Presence Pepsi Owns the Worlds 2nd

Best-Selling Soft Drinks Brand Good Relation with Franchise

Large No. of diversity businesses

Aggressive Marketing Strategies

Using Famous Celebrities

Coke

Coke Brands Enjoy a High-

Profile Global Presence Four of the top five leading

Brands

Promotional schemes -

company is providing

Umbrellas, Visicooler etc Product availability

Advertisement policy


34/37

SWOT : WEAKNESSESPepsi

Decline in taste

Weak Distribution

Low Consumer

Knowledge

Financial Downfall

Coke

Promotional schemes are

not available to all retailers

Coca-Cola giving less

schemes then Pepsi

Pepsi giving hard time to

coca cola due to strong

relationship with retailers


35/37

SWOT : OPPORTUNITIESPepsi

Increase Population

Diversification

Distribution of Snack

Foods

Attract the more

consumers

Coke Can come up with more

varieties in the fruit drink

along with more flavours

Opening new outlets

In rural areas where Coca-

Cola can gain asubstantial base.


36/37

SWOT : THREATSPepsi

Health conscious people are

boycotting soft drinks.

Government Regulation

Competitors Substitutes

Corporations Shortage

Problem

Threat of Labor Strikes

Coke Health conscious people are

boycotting soft drinks.

Preference of juices and energy

drinks over cold drinks

Threat from Competitors as they

give offers at cheaper rates and

retailers are more inclined

towards Pepsi as better services

being provided.


37/37

THANK YOU

Term Paper Ppt

Documents