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Product decisions -

Standardisation v Adaptation

Three levels of product

Global products Advantages/disadvantages of

standardisation

Problems with standardisation

Brand globalisation potential

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Core

benefit

or service

Installation

Warranty

After-sales

service

Deliveryand

credit

Packaging

QualityStyling

Brand

name

Features

Augmented

product

Actual

product

Core

product

Three levels of product

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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

Standardisedglobal products are not adapted to

local preferences, but must still be localised. E.gCoca-Cola obey local hygiene laws

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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.

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Disadvantages of Standardisation Lack of uniqueness - exclusivity may be behindpurchase 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

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Problems with global

standardisation

Insufficient market research

Overstandardisation Poor follow-up

Narrow vision Rigid implementation

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Polaroid SX-70 Insufficient market

research

Used UScampaign/agency in

European launch

TV testimonials from

unknown people

hence local lack of

awareness

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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-lensreflex cameras world-wide

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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

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Unilever - Domestos Narrow Vision

Vision lead from HQ

UK took lead inpromoting Domestos

In Germany positioned as

dirt remover, not germ

killer UK ignored this -

consumers confused

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Lego Buckets Rigid implementation In US, competitor Tyco

offered plastic buckets

Danish HQ refused to act Denmark relented after

market slide

Now use buckets world-

wide

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Brand globalisation potential Does the brand name make sense outside of thecountry? Nokia from Finland is aware name

sounds Japanese (same roots)

Does the name have a positive, country specificimage? E.g GMs Opel and Chevrolet

Is the name available legally in many countries?

Dutch Philips, Phillips Oil registered in USA

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Does the brand complement other global

brands in the portfolio(or not)? E.g. Sonysupports Aiwa at a lower price

Should the growth be limited to the creation

of a regional brand? E.g. Strasbourg beermaker, Kronenbourg in global markets,

as 1866 in S. Europe. Local brand can be

difficult to remove.

Johnny K. Johansson (1999)