PRODUCT POLICY

Product Strategies

Standardized product(existing or new)

Customized product(adapted)

Classic ProblemEx: Snuggle Fabric Softener

Sold in 10 Euro Countries under 7 Names

Different Bottle, Formula, Strategies

Known within Lever as Snuggle or Teddy Bear

Only thing common is that all brands have teddy bear on the label

and names invoke snuggling

Conditions favoring Standardization

–benefits sought may be similar

–specially, given the convergence in consumer preferences

Benefits of Standardization• Create Scale Economies

– Reduce cost/Improve Quality in manufacturing, R&D, marketing, distribution, etc.

• Shorten Time to Market• Create Global Image/Brands• Create Barriers to Entry

Balance between Standardization and

CustomizationGlobal Model

Lead Country Model

Modular Approach

Core-product Approach

Introduction Strategy

Waterfall(Phased rollout)

Sprinkler(Simultaneous rollout)

Problems with Standardization

Language

Culture

Positioning

Coca Cola in JapanKe-Kou-Ke-La

“Bite the wax tadpole”

or

“female horse stuffed with wax”

Ko-Kou-Ko-Le“happiness in mouth”

or

“may the mouth rejoice”

Patent & Trademark Protection

Counterfeit

Knock-Off

Gray Market

Gray Markets

Importing and selling a trademark product made in another country and

brought to the U.S. without the consent of the U.S. trademark holder.