DEVELOPING GLOBAL

PRODUCTS & BRANDS

GLOBAL PRODUCT DEVELOPMENT

PROCESSThe challenges observed within global product

development are based on two fundamental reasons; (1) a

lack of preparation and (2) a lack of connection between

the globalization process and the rest of the organization.

The Global Decision Making (GDM) framework-

(Hansen, 2011) is presented and expanded upon as a way

to avoid the challenges within global product development

through detailed preparation and a holistic approach to

globalization.

The Global Decision Making framework

Step 1: Strategic Goal Setting

In this step it needs to become clear where the

company wishes to be in the future and how to

measure the progress towards this at a strategic level.

To create a good strategic plan a company needs

to:

• Involve stakeholders in goal setting

• Seek international, national, internal and external

knowledge

• Think outside the box

Stage 2: Strategic planning

In this step the strategic plan for how to move the

organization from where it is to where it wishes to be

in the future is created.

To create a good strategic plan a company needs

to:

• Involve all stakeholders in mapping the current

organizational position in the market as well as

physical locations for organizational units, suppliers,

customers, etc.

• Make a communication and a responsibility plan,

including evaluation phases to ensure a common

vision is created.

• Make a conscious strategic plan which considers

the role and goal with global product development .

Stage 3: operational planning

In this stage a clear operational plan for moving outand maintaining daily operations are devised.

To ensure a good operational plan a companycan:

1. Involve all stakeholders in creating the operationalplan

2. Develop scenarios of what would happen if agiven task is moved; what is affected and howwould these need to be changed to support andencourage globalization.

3. Write down how a task is solved today, who isinvolved and what knowledge each actor (humanor technical) brings in order to define and clarify allinterfaces.

Stage 4: Implementation

In this stage the operational plan is implemented. Tasks aremoved abroad and daily operations begin. As feedback is givenon the progress of the move and more knowledge of the newglobal operation is gained, changes and adjustments to theoperational plan can be made.

To ensure a good implementation process and dailymanagement of the global task a company can:

1. Ensure continuous learning and reflection through activelyusing KPIs and fostering a knowledge sharing culture

2. Change organizational aspects (for example HR practices)as new information becomes available and indicates abetter approach Based on new knowledge gained, set upKPIs which are easier to which better supports theoperational plan

3. measure or better reflect the new situation to determine howthe implementation of the global operation is going as wellas to measure daily management

Stage 5: Evaluation

In this stage the global operation is re-evaluated as a part of continuous learning for the organization.

To implement an iterative globalization process withevaluation a company can:

1. Use change management practices in the globalizationprocess.

2. Implement best practices for product development ofglobal projects to ensure evaluation of the process,documentation and quality. These best practicesmaybe industry specific.

3. Implement well established project managementpractices in global projects to ensure roles,responsibilities and documentation.

4. Implement a learning culture in the organization tofoster evaluation of actions, acceptance of changesand a focus on continuous improvement.

Kevin Rey U. Tsuchida

•New Product Development

Causes of New Product Failures

• Overestimation of Market Size

• Product Design Problems

• Product Incorrectly Positioned, Priced or Advertised

• Costs of Product Development

• Competitive Actions

• To create successful new products, the company must:

– understand it’s customers, markets and competitors

– develop products that deliver superior value to customers.

New Product Development ProcessStep 1. Idea Generation

Systematic Search for New Product Ideas

Internal sources

Customers

Competitors

Distributors

Suppliers

• Process to spot good ideas and drop poor ones

• Criteria– Market Size

– Product Price

– Development Time & Costs

– Manufacturing Costs

– Rate of Return

New Product Development ProcessStep 2. Idea Screening

New Product Development ProcessStep 3. Concept Development & Testing

1. Develop Product Ideas into Alternative

Product Concepts

2. Concept Testing - Test theProduct Concepts with Groups

of Target Customers

3. Choose the Best One

New Product Development ProcessStep 4. Marketing Strategy Development

Part Two - Short-Term:

Product’s Planned PriceDistribution

Marketing Budget

Part Three - Long-Term:

Sales & Profit GoalsMarketing Mix Strategy

Marketing Strategy Statement Formulation

Part One - Overall:

Target MarketPlanned Product Positioning

Sales & Profit GoalsMarket Share

New Product Development ProcessStep 5. Business Analysis

Step 6. Product Development

Business Analysis

Review of Product Sales, Costs,

and Profits Projections to See if

They Meet Company Objectives

If Yes, Move to

Product Development

If No, Eliminate

Product Concept

New Product Development ProcessStep 7. Test Marketing

StandardTest Market

Full marketing campaignin a small number of representative cities.

SimulatedTest Market

Test in a simulated shopping environment

to a sample of consumers.

Controlled Test Market

A few stores that have agreed to carry newproducts for a fee.

The Organization of

Global Product

Development

Reported by: Maricel Lambojon

The Organization of Global Product

Development

The product development activity is undertaken

by specific teams, whose task is to subject new

products to tough scrutiny at specified in the

development cycle to eliminate weak products

before too much is invested in them and to

guide promising prototypes from labs to the

market.

Marketing team member

• Engineering member

• Finance member

International team member

Cable accessories

geographical responsibility

Far East

central R&D

domestic marketing planning

Multidisciplinary teams

maximize the payoff from R&D by

streamlining decision making; that is , they

reduce the need for elaborate reporting

mechanisms and layers of committee approvals.

The Testing of New Product

Concepts

The final stages of the product development process involve

testing the product in terms of both its performance and its

projected market acceptance.

Reasons for product failure

Lack of product distinctiveness

Unexpected technical problems

Mismatches between function

Three research methods to cope with the difficulty

Controlled market test allows companies to assess in items sales

potential in a real – world environment.

Simulated test markets offer simulation under realistic conditions from a 360degree marketing

vantage point.

Vitality lab provides a directional gauge of the initiative’s potential in a real world environment.

GLOBAL PRODUCT

LAUNCH

Reported by:

Olfa Mamuntuan

The Importance of Launches

“A company….must choose a launch strategy that is consistent with its intended positioning. The launch strategy should be the first step in a grand plan for life-cycle marketing.”

Philip Kotler

Marketing Management

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Does your product launch plan reflect all of the money

and time put into developing the product?

Some Factoids

• 85% of new B2B products are failures

• 95% of new consumer products are failures

• Failures = doesn’t meet company objectives, withdrawn

from market within 12-18 months

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Source: New Product News

Launch Dependencies: Strategy

Evidence

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ProductConcept

PreliminaryPositioning

Strategy

BusinessModel

Beta Product & Reference Customers

PositioningStrategy

ValidationLaunch

Planning

Go/No Go

Go/No Go

Go/No Go

Go/No Go

LaunchDate

Ongoing MarketReinforcement

Be prepared to postpone for key

pieces of strategy evidence!

StrategicPartnerships

(channel)

Post Sales Support

Plan

Launch Consideration

• Make sure to launch the global products on the same date

and one at a time.

Example: Apple products – iphone 5, iphone 5c and then

iphone 6.

Launch Pitfalls

• Launch planning starts too late in product development process

• Positioning strategy half-baked and untested, externally

• Not enough (credible) strategy evidence: bug-free product, the right –at least one Tier 1 - customer testimonials and references (negotiated into contracts), application notes and documentation, channels, customer support

• Proper market foundation has not been laid, no one has heard of the company or product

• A non-programmatic approach (‘escapes’ vs. launches): lack of launch manager, market leverage and message models, launch objectives, plan, measurable goals

• Lack of fully integrated plan (from product management to marketing communications to product development)

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MANAGING THE BRAND

PORTFOLIO

Definition

• Branding – is one of the major beneficiaries of a well-

conducted portfolio analysis.

• Brands - are important because they shape customer

decisions and ultimately, create economic value.

Why focus on branding?

• On the average, the brand is responsible for 18 percent of

total purchase decisions, and the majority of studies

reveal a brand-loyalty segment of individuals for whom

the brand is the major influencing factor.

• Strong brands are able to charge a price premium of 19

percent.

2 Dimensions to Global Brands

• Consistency of brand strength (differentiation, relevance)

and brand stature (esteem and knowledge) together.

• Consistency of branding meaning.

Remember:

• Have brands that feature the corporate name.

• Have family brands for a wide range of products or

product variations.

• Have individual brands for each item in the product line.

• Additionally, with the increase in strategic alliances,

cobranding - in which two or more well-known brands are

combined in an offer – has also become popular.

BRAND STRATEGY

DECISIONSBy: Cherrie Ann Lizette L. Yee

GLOBAL BRANDS

• Global brands are a key way of reaching this

goal.

• Global brands are those that reach the world’s

megamarkets and are perceived as the same

brand are completely standardized, some

elements of the product may be adapted to local

conditions.

3 ADJUSTMENT

• Brand names ( Tide, Whisper, and Clairol in

North America are Ariel, Allways, and Wella in

Europe )

• Positioning (Ford Fiesta as a small car in

Germany but a family vehicle in port in Portugal )

• Product versions sold under the same brand

name ( 9 to 13 different types of coffee sold under

the nescafe name in Northern Europe alone).

3 MAIN IMPLICATIONS FOR

MARKETING MANAGER

•Don’t hide globality

•Tackle home country bias

•Satisfy the basic

Branding

• Branding is an integral part of the overall identity

management of the firm.

4 LEVELS OF BRANDS

• Worldwide corporate brands

• Worldwide strategic brands

• Regional strategic brands

• Local brands

PRIVATE BRAND

POLICIES

2 GENERAL APPROACHES

• Umbrella Branding- where a number of

product are covered using the same brand.

• Separate Brand- names for individual

products or product line.

PRIVATE BRAND STRATEGIES

STRATEGY RATIONALE CIRCUMSTANCE

No participation Refusal to produce

private label

Heavily branded

markets; high

distinctiveness;

technological

advantage

Capacity filling Opportunistic

Market control Influence category

sales

High brand shares

where distinctiveness

is lower; more

switching by

consumers

Competitive leverage Stake in both markets

Chief source of

business

Major focus Little or no difference

by consumers

Dedicated procedure Leading cost position

PRODUCT

COUNTERFEITING

By: Jorlan Ala

Product counterfeiting

• COUNTERFEIT- means to imitate something.

counterfeit products are often produced with the

intent to take advantage of the superior value of

the imitated product.

• COUNTERFEIT PRODUCTS are any goods bearing

an unauthorized representation of a trademark,

patented inventions, or copyrighted work that is

legally protected in the country where it is

marketed.

Counterfeit Goods

The spread of counterfeit goods (commonly called

"knockoffs") has become global in recent years and the

range of goods subject to infringement has increased

significantly.

Apparel and accessories accounted for over 50 percent of

the counterfeit goods seized by U.S Customs and Border

Control.

Counterfeit Seizures

Scope of Global Counterfeiting

• A very high percentage of counterfeit goods originate in

China

• Counterfeit products infiltrate legitimate supply chains

• New technologies, including the internet, have given

counterfeiters access to new channels of distribution

• Counterfeit products are bought and sold in virtually all

economies

Effects on Consumers

• Consumers are cheated out of quality products and are exposed to

health and safety risks

• Safety issues are prevalent in many sectors, including:

Food and beverages

Pharmaceuticals

Automotive and machinery

Electrical components, including: • Relays and contacts

• Timers, circuit breakers and fuses and

• Wiring accessories and batteries

• Substandard items can cause property damage, illness, injury and

death

Sample laws against counterfeiting:

• REPUBLIC ACT NO. 7394the consumer act of the

Philippines

• R.A. 8293, otherwise known as the Intellectual Property

Code,

• U.S. Code § 2320 - Trafficking in counterfeit goods or

services(U.S)

• The Anti-Counterfeiting Trade Agreement (ACTA) is

a multinational treaty for the purpose of establishing

international standards for intellectual property rights

enforcement. The agreement aims to establish an

international legal framework for targeting

counterfeit goods

THANK YOU!