EXTENT OF ADAPTATION OF MARKETING PLAN

MARKETING PROGRAM

ADAPTED MARKETING PROGRAM

STANDARDIZED

MARKETING PROGRAM

PROMISES LOW COST CONSISTENCY IN BRAND

IMAGE UNFIFORMITY IN MARKETING

PRACTICES

CATERS EACH MARKET DIFFERENTLY

CONSISTENT WITH MARKETING CONCEPTS

WHAT STANDARD MARKETING DOESN’T TAKE CARE OF? SPECIFIC CUSTOMER NEEDS

CONSUMER RESPONSES

LEGAL ENVIRONMENT

ADMINISTRATIVE PROCEDURE

4 DIMENSIONS OF CULTURE

Individualism (USA) vs. Collectivism (Japan)

High power distance(less egalitarian like Russia) vs.

Low Power distance (more egalitarian like Nordic

countries)

Masculine (Japan)Vs.

Feminine (i.e. Less male dominated like Nordic

countries)

Weak uncertainty avoidance (Greece) vs.

Strong uncertainty avoidance (Jamaica)

BRANDS ARE POSITIONED DIFFERENTLY IN DIFFERENT MARKETS

HIGH-END, SUPER PREMIUM IN THE U.S.

MIDDLE-OF-THE-ROAD IN DUTCH MARKET

REPRESENTS SPEED, YOUTH AND ENERGY IN JAPAN

KNOWN FOR TRUST AND RELIABILITY IN THE U.S.

MARKET ADAPTATION

PRODUCT FEATURES

SALES PROMOTION

PACKAGING AND

LABELLING

ADVERTISING THEME

PRICE

BROAD WAYS IN WHICH MARKET ADAPTATION CAN TAKE PLACE

MARKET ADAPTATION

“Think Global, Act Local”

GLOBAL PRODUCT STRATEGY PRODUCT STANDARDIZATION

PRODUCT ADAPTATION

BRAND ELEMENT ADAPTATION

PRODUCT STANDARDIZATION

PRODUCT ADAPTATION STRATEGY

STRAIGHT EXTENSION

PRODUCT ADAPTATION

PRODUCT INVENTION

STRAIGHT EXTENSIONTHIS STRATEGY COULD BE TEMPTING BECAUSE LESS R&D EXPENSES LESS MANUFACTURING COSTS LESS PROMOTIONAL MODIFICATION

BEWARE!!

Campbell Soup Company lost an estimated $30 million introducing condensed soups in England; consumers saw expensive small-sized cans and didn’t realize water needed to be added.

PRODUCT ADAPTATION REGIONAL VERSION COUNTRY’S VERSION CITY’S VERSION RETAILER VERSION

The Euro Disney theme park, launchedoutside Paris in 1992, was harshly criticized as an example of U.S. cultural imperialism that ignored French customs and values, such as serving wine with meals.Renamed Disneyland Paris, the theme park eventually became Europe’s biggest tourist attraction—even more popular than the Eiffel Tower—by implementing a number of changes and more local touches.

PRODUCT INVENTION

BACKWARD APPROACH

FORWARD APPROACH

Reintroducing the well adapted

Totally new on demand

GLOBAL COMMUNICATION STRATEGY

One message, different languages, names and colors

Same message and theme but adapt the execution

Global pool of ads

When launching Chik shampoo in rural areas of South India, where hair is washed with soap,CavinKare showed people how to use the product through live “touch and feel” demonstrations and free sachets at fairs.

In certain developing markets in Asia, consumers loved the Coca-Cola brand but had never tasted it. They needed to be advised to drink it cold

GLOBAL PRICING STRATEGY

GLOBAL PRICING

STRATEGY

Price escalation

Transfer Prices

Gray Markets

Counterfeit Products

3 available options• Uniform Price

everywhere• Market-based price in

each country• Set a cost-based price

In each country

It refers to the price which one unit charges another unit of the same company for the goods it ships.

Selling Product made for low price countries in the high price countries. This harms distribution relations and undermines the integrity of distribution channel

Fake-products cost a lot of money to the companies. Companies should have strategies to tackle counterfeiting activities

References• www.buddingmarkets.com• Marketing Management, 14th Edition – Philip Kotler and Kevin

L. Keller

Created by Akash Yadav, IIT Kharagpur, during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com