Global Product Strategies Flashcards
What are McDonald’s products like around the world?
Tries to Standardize as much as possible
Basic meal combo are in most markets
Fries are the same
Key adaptations include:
Canada - pizza, Uruguay - McHuevo - burger w/ poached egg, Thailand - Samurai pork burger, Philippines - McSpagetti, NZ - Kiwi burger (egg+sliced beet on burger), Japan - Chicken Tatsuta, Germany - Frankfuters and beer
What are four key areas that McDonald’s adapted their menus for?
Asia: McHotdog, Katsu, shake fries, corn cup etc.
Middle East and India: Chicken burgers, curry pan, mustard burger, paneer salsa wrap, veg mcpuff.
Europe: Beer, Mcturco, ciabatta buns, CBO, Chorizo melt, cirque McDo, Lakse wrap, Bacon roll
North America, South America, Oceania: Grilled cheese, McPatatas, gallo pinto, McMollettes, Poutine, Kiwiburger, Pizza, Triple Mac, McPatas, McLobster roll.
What is the global marketing dilemma related to products? What is a good example of how a company approached the dilemma in chaning their product for a new market?
Product Standardization vs Product Adaptation
-> Simpsons in Arab
What are some of the benefits of product standardization?
- Lower manufacturing costs
- Lower input costs
- Cost savings from no using adaption efforts
- Fast global roll outs
- Enhance perception of global brand
What are the benefits of Product Adaptation?
- Penetrate otherwise closed markets
- can use products in different climates and infrastructures
- Product performance
- decreased costs due to varying local inputs
- decreased costs due to feature elimination
- Increased sales due to meeting industry norms and preferences
What are the two types of product adaptation?
Mandatory: necessary for the product to be sold in a local market ex. Plugs and left vs. Right hand traffic
Discretionary: not necessary but may be beneficial
What are some of the pressures for Product Adaptation?
- Competitive offerings
- Climate, geography and infrastructure
- Government regulations and international standards
- Customer expectations, preferences, and buying behaviour
What are some climate, infrastructure and usage factors that affect product standardization?
- Physical realities of markets affects product decisions ex. AC in Saudi Arabia must be able to operate in much hotter and dustier than European and American locations
- People may actually use the products different in a market ex. P&G detergent adaptation in Japan because they wash their clothes in tap water, left over bath water etc.
What are the four cultural preferences discussed? Given an example for each.
Colour red+white associated with happiness in Japan
Scent strawberry shampoo failed in china because consumers avoid non edible items that smell like food
Sounds different local music
Taste what tastes good varies from country to country
How is product size and dimension affected by location? Give some examples.
- Different available space and physical surroundings
- Different physical characteristics of consumers
- Consumer income level
Ex. Bono chocolate bar - 126g US vs 90g in Brazil, Ikea 1800 sq different between North American and Europe, Capsule hotels, Feet - North Americans have thicker ankles and narrower and flatter feet than Europeans, shape - acceptable mustard containers.
How are performance and quality standards affected by location?
Highly developed countries products often exceed those of developing countries (may prefer simpler products to save costs)
Companies in developing countries selling to developed countries may need to adapt and increase product performance.
What is a Global Standard discussed?
ISO 9000 developed in 1987 based on British standard for quality assurance
Ensures organization can consistently deliver their product or service to satisfy customer requirements because the company follows a state-of-the art management system.
What should you know about product warranties in Global Markets?
- Standardization vs Adaptation - should warranty be tailored to countries/markets? Is domestic warranty available worldwide?
- Issues to consider: actual product usage, local competition
