Product Adaptation

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International Marketing Product Adaptation .(Subway,Sony,Panasonic,Colgate, KFC, Subway ,BOOF ,Mac Donald ,Proton ,Naza ,Mitsubishi ,Peugeot ,Honda ,Lux ,CoCa Cola ,FDA ,Mascara ,Apple ,Tang ,Tag Heuer )

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Product Adaptation

  1. 1. Product Adaptation Reza Mousavi SCSJ-0003500 International Marketing UIU ID #: 300286754 Global Marketing
  2. 2. International Marketing International Marketing The process of identifying goods and services that customers outside the home country want and then providing them at right price and place
  3. 3. International Marketing Strategy As a marketing strategy, businesses will make changes to their products to make them better than their initial offerings or to compete with emerging products in the industry. Most often this strategy is used to make their products more marketable in cultures with different views and values
  4. 4. Product Adaptation In order to meet the needs of international customers, firm may need to adapt it’s product to suit individual or regional markets. The company will also need to establish a brand that can be applied globally or tailored to fit into local markets. A corporation has to commission studies to understand how its products are being used in different regions of the world. From those findings, they can begin to adapt their products to new markets.
  5. 5. Factors Affecting Product Adaptation Product Target Market Packaging and design Ingredients Instructions for use / Language Warranty and service Culture Religions Geographic/Climate Technological Changes in Economic Climate Regulation Marketing channel Price Promotion Advertising channel Brand name
  6. 6. ProductsThe impacts of the products in product adaptationits over look in terms of;  Variation  Differentiation  Size  Portion  Innovation  Elimination Example; The size and portion of people some particular country is altered from other countries. The Asian size are smaller than other continents The Portion of Asian are smaller than other continents
  7. 7. Boof Burger Burger In MalaysiaBurger in Iran
  8. 8. Target Market Target Market involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. Example ;Toothpaste companies mostly focus in different type of market segmentation in order to stay ahead from competitors
  9. 9. Colgate Colgate Oxygen Pure FreshnessColgate Total Anti-cavity Fluoride and Toothpaste releases fine bubbles ofAnti-gingivitis Toothpaste, Advanced pure oxygen that gently lifts awayClean plaque and impuritiesColgate Triple Action -– Cavity Protection– Contains Fluoride to help protect against cavities– Whitens Teeth – Helps remove surface stains for whiterteeth– Freshens breath - Great mint taste for fresh breath. Colgate anti tartar plus whitening toothpaste - ideal for those wanting to whiten their teeth!
  10. 10. Colgate Muslims user target Colgate Herbal user target Containing fluoride, halal certified. Colgate herbal combines the oral care Colgate toothpaste does not science of Colgate with natures best contain animal ingredients or herbs for healthier teeth and gums alcohol.
  11. 11. Packaging and Design Packaging should depend on the cost, added value and protection the package provides for the actual product inside as well as how attractive it is to customers. Changing the packaging of the product could confuse some long time, dedicated users then again a simple change packaging base on the market taste, may help boost sales of the item in other cases. Certain colours, symbols, words and imagery can be offensive or inappropriate in different countries. Example ;Most of the Perfumes ,Cosmetic , Shampoo and Soap companies use the different design and packaging in different countries.
  12. 12. Lux Packing and DesignLux Soap in Iran Lux Soap in Europe
  13. 13. Ingredients Companies they produce ingredients which fall within a specific group/Local market of ingredients due to climate, taste and senility issues. Example; Most of the Food, Cosmetic , Shampoo and Soap companies use the different ingredients in different countries.
  14. 14. KFC IngredientsKFC Thailand KFC USA KFC Malaysia
  15. 15. Instructions for use/LanguageThis is only necessary if it is not obvious how to use orprepare the product, in which case the consumers owninitiative must be used. Importantly companies to meet thelocal market demand ,they come up with so many type oflanguage base on that particular country.
  16. 16. Cinemas in Thailand In central Bangkok and cities with many tourists and foreign residents, such as Chiang Mai, Pattaya and Phuket, foreign films (including Hollywood releases) will have the original soundtrack (called "soundtrack") with Thai subtitles. Outside of tourism centres and in some suburban Bangkok cinemas, all the foreign films, including Hollywood films, Will generally be dubbed into Thai language.
  17. 17. Warranty and Service Warranty and Service are one of the key point that companies value to their customers.Companies give the different warranty and service in different countries due to product change and modification. The warranty and services only practical in a particular country which you purchase. Example ;Sony ,Samsung ,LG warranty in Asia pacific mostly on government prohibition from smuggling products into the country. Q1: What is the TLW (Tourist Limited Warranty)? The TLW is a warranty that is issued to customers at the point of purchase when they purchase selected products out of their country/area of residence. Is the TLW valid in all countries/areas? No, the TLW is only valid in the Sony companies in selected countries/areas.The TLW is often mistaken as an International Warranty that is valid in Sony companies worldwide. Please note that this is not the case. The TLW is only valid in. How to Claim VAT at the Airport 1. Pick up a VAT refund form before you enter customs 2. Fill out the VAT refund form. This includes your name, country of origin, days you spent inside the visited country, and the products you purchased. 3. Hold onto the receipts for each item you purchased. Without the receipts, the customs official has no proof of the items value Keep the goods on hand. If you mailed the goods home, you cannot claim 4. Hand the completed VAT refund form and the receipts to the customs official at the VAT refund center in the airport.
  18. 18. Pl services Video service provided by the Sony Entertainment Network the PlayStation 3 console has access to a variety of third party video services, dependent on region: June 2009 VidZone has offered a free music video streaming service in Europe,Australia and New Zealand October 2009, Sony Computer Entertainment and Netflix announced that the Netflix streaming service would also be available on the PlayStation 3 in the United States. November 2010 access to the video and social networking site MUBI was enabled for European, New Zealand, and Australian November 2010 the video rental service VUDU, NHL GameCenter Live,[194] and subscription service Hulu Plus launched on the PlayStation 3 in the United States April 2012, launched an Amazon Instant Video app, accessible to Amazon Prime subscribers in the U.S
  19. 19. Culture Sometimes a product needs only superficial adaptation in order to fit into a new market. Different cultures assign meaning to colours, words and numbers very differently. This may mean that a manufacturer will have more success changing the name or colour of a product while leaving its functional components unchanged. It is of high importance to be able to understand and to adapt to local consumer habits Example; Coca-Cola translate the name and taste base on the host countries.
  20. 20. Religions Religions are very important in part of product adaptation certainly religion is separated from culture. Basically religion is seen as the belief and practice that each person who do in the world. Belief, faith and practice are same Example; Muslims all around world have the same belief and practice. Same goes to Christian as well.
  21. 21. Vegetarians consider are ; 1-Ovo-lactovegetarianism , 2-Veganism , 3-Rawveganism4-Sattvic diet ,5-Buddhist vegetarianism ,6-Jain vegetarianism ,7-Macrobiotic diets
  22. 22. Vegetarians Halal Kosher Non-HalalIndia,Canada,U.S Muslim Countries ,3 Israel ,U.S None Muslim Canada ,2 U.S,U.K Countries Chicken & Bacon Ranch M
  23. 23. Geographic/Climate Physical Forces  Climate and terrain prevent international product standardization ○ Heat ○ High humidity  Special packaging ○ High altitudes  Baking products and motors ○ Rough roadsExample; Proton cars in Malaysia are only has air-coolerand driver seat on left side whereas in seasonal countrysuch Iran Proton cars has the both heater and air-coolerand driver seat on the right side.
  24. 24. PROTON
  25. 25. Technological Its important for the companies to understand the foreign countries technology to promote their product in.  Road system  Electricity voltage  Information and communication technologies development (ICT)  Design (vehicle in brazil/Africa) Example ;Sony and Panasonic they have to truly understand the foreign market technology before to drive their product in particular countries.
  26. 26. 220 V-50 Hz 220 V-50 Hz 110 V-60 Hz 230 V-50 230 V-50 Hz Hz 240 V-50 Hz 220 V-50 220 V-50230 V-50 230 V-50 240 V-50 220 V-50 Hz
  27. 27. Regulations Selling products abroad may be an essential factor in product adaptation when government or industry regulations require products to meet certain standards. This is the case with many foreign automobiles, which must undergo a major product adaptation to meet strict American safety and emissions standards before being sold in the United States. Manufacturers also need to adapt electronic equipment to meet the voltage requirements of new markets. Legal Forces  Laws concerning ○ Pollution ○ Consumer protection ○ Operator safety  Laws prohibiting classes of imports ○ Food and pharmaceuticals influenced by laws concerning purity and labeling  Legal forces may prevent use of brand name worldwide ○ In some countries brand may be registered to someone else
  28. 28. Cover Girl waterproof mascara contains the ingredient (petroleumdistillates, an oil by-product) and Dr. Scholl’s Wart are banned in theEuropean Union.Due to cause cancer, birth defects, genetic mutation, andorgan damage.The top 10 ban product in USA By FDA are ;1-choloroflurorocarbon ,2-Chloroform ,3-Halogenated salicylanilides 4-Hexachlorophene ,5-Mercury,6-Ethylene chloride ,7-Bithionol ,8-Prohibited cattle material ,9-Trichloroethane ,10-ZirconiumThe EU has recently forced Apple to abide to the two-year warrantyperiod mandated there.(base on standard two-year consumer protectioncoverage under European Union laws)
  29. 29. Marketing Channel Direct or Indirect Marketing  The first decision: whether to use middlemen  Export sales may be consummated by local agents if ○ Management believes this is politically expedient ○ Country’s laws demand it Factors Influencing Channel Selection ○ Market ○ Product ○ Company ○ Middlemen Example ;Mac-Donald in Mexico, own and operated by Mac-Donald itself whereas in other countries by franchising system . The body shop International owns : U.K , U.S , France and Singapore operations. Remaining are independently owned and operated as head franchisee
  30. 30. Changes in Economic Climate Economic Forces it sees that the buying power in terms of country GDP. Great disparity in income throughout world Obstacle to product standardization Many industrialized country products too expensive for developing country consumers Must either simplify the product or produce a different, less costly one  If problems in the economy cause an overall reduction in sales, consider using less expensive materials or modifying the overall design of the product to make it more affordable for consumers. Example ; The price and quality of phones and electronics made by China and other foreign countries. Iphone in different countries . Apple products are more expensive in the EU than in US. In EU VAT being included in the price. Longer warrantees and consumer protection.
  31. 31. Price Foreign markets are likely to feature a different standard of living than that found in the region where a product was first sold. This may mean a need to lower the price, or an opportunity to raise it. Adapting a product to use different materials and meet different standards of quality is one way that product adaptation addresses the needs of new markets. Example; Now, there is one notable exception to the rule. Apple. There is no better place than the USA to buy an Apple product.Here’s a comparison of buying an iPad 2 16GB on the Apple web store(Feb 29, 2012) Country USA* Canada* UK Denmark Australia Singapore Price $499 $555.33 £399 kr 3699 A$579 S$688 Price in USD $499 $562.00 $635.84 $668.91 $627.19 $537.02 Difference $0 +$63.00 +$136.84 +$169.91 +$128.19 +$38.02
  32. 32. Promotion Any form of communication between a firm and its publics ○ To bring about a favorable buying action and achieve long-lasting confidence in the firm and the product or service it provides Distinct promotional strategies based on combination of three alternatives  Marketing the same physical product everywhere  Adapting the physical product for foreign markets  Designing a different physical product with ○ (a) the same message ○ (b) adapted message or ○ (c) different message
  33. 33. Six Common Promotional Strategies Same product-same message  Avon, Maidenform Same product-different message  Honda’s campaign in America is different than in Brazil  Brazilian flexible-fuel Honda Civic. ○ Run on any blend of hydrous ethanol (E100) and E20-E25 gasoline ○ Fast and furious Brazilian flexible-fuel Honda Civic  U.S. Honda Civic Hybrid. ○ Fuel economy(estimated to be 40 percent more fuel efficient) ○ U.S. Environmental Protection Agency ○ American Council for an Energy Efficient Economy Product adaptation-same message U.S. Honda Civic Hybrid.  In Japan, Lever Brothers puts Lux soap in fancy boxes to encourage gift sales Catherine Zeta-Jones Japans Lux campaign
  34. 34.  Product adaptation-message adaptation  In Latin America, Tang is sweetened and promoted as meal-time drink Different product-same message  Product is produced in low cost plastic squeeze bottle for developing countries, but advertised the same Different product for the same use-different message  Welding torches rather than automatic welding machines are sold in developing countries
  35. 35. Advertising Channel Paid, nonpersonal presentation of ideas, goods, or services by identified sponsor  Global, regional or national ○ Managers may convert or use a combination  Private brands ○ Serious competitors ○ Alliances with international retailers ○ Trend common in Europe  Basic cultural decision for marketer: position the product as foreign or local  Depends on the country, the product types, and the target market  Language often an issue ○ back translation ○ plenty of illustrations with short copy
  36. 36. Brand Name The companies would change the name of their brand due to legal or cost saving to alliance with other companies inside host countries. INDIA CHILE UAE Bij Mal- Tashken (dajaj)