Product decisions -

Standardisation v Adaptation
• Three levels of product
• Global products
• Advantages/disadvantages of
standardisation
• Problems with standardisation
• Brand globalisation potential
 Augmented
Installation
product

Packaging Actual
product
Brand Features
name Core
Delivery After-
and benefit sales
credit or service service
Core
product
Quality Styling

Warranty
Three levels of product
 Global Products
• Localisation of a product or service to fit local
regulation and usage requirements e.g. local
voltages and safety laws
• Adaptation fits the product to buyer preferences
e.g. Air-conditioning in USA
• Standardised global products are not adapted to
local preferences, but must still be localised. E.g
Coca-Cola obey local hygiene laws
 Advantages of standardisation
• Cost reduction - e.g. economies of scale
• Improved quality - resources can be focussed
• Enhanced customer preference - positive
experiences lead to global brand loyalty
• Global customers - uniform quality and services
• Global segments - e.g. software, cameras.
Disadvantages of Standardisation
• Lack of uniqueness - exclusivity may be behind
purchase decision
• Off-target - miss the customer target completely
• Vulnerable to trade barriers - local production may
be necessary, so economy of scale benefits are lost
• Strong local competition - customisation by
competitors, lack of local knowledge
 Problems with global
standardisation
• Insufficient market research
• Overstandardisation
• Poor follow-up
• Narrow vision
• Rigid implementation
 Polaroid SX-70
• Insufficient market
research
• Used US
campaign/agency in
European launch
• TV testimonials from
‘unknown’ people
• hence local lack of
awareness
 Canon AE-1
• Overstandardisation
• First ‘positioned’ as the
expert’s choice in all
markets
• Then endorsed by John
Newcombe (Tennis
Champion)
• Created a much bigger
market for single-lens
reflex cameras world-wide
Henkel Pritt
• Poor follow-up
• Pritt stick launched as an
umbrella brand
• failed to capitalise on
initial momentum
• local business units were
under resourced
• weak results had to be
turned around
Unilever - Domestos
• Narrow Vision
• Vision lead from HQ
• UK took lead in
promoting Domestos
• In Germany positioned as
dirt remover, not germ
killer
• UK ignored this -
consumers confused
 Lego Buckets
• Rigid implementation
• In US, competitor Tyco
offered plastic buckets
• Danish HQ refused to act
• Denmark relented after
market slide
• Now use buckets world-
wide
 Brand globalisation potential
• Does the brand name make sense outside of the
country? Nokia from Finland is aware name
sounds Japanese (same roots)
• Does the name have a positive, country specific
image? E.g GM’s Opel and Chevrolet
• Is the name available legally in many countries?
Dutch Philips, Phillips Oil registered in USA
• Does the brand complement other global
brands in the portfolio(or not)? E.g. Sony
supports Aiwa at a lower price
• Should the growth be limited to the creation
of a regional brand? E.g. Strasbourg beer
maker, ‘Kronenbourg’ in global markets,
as ‘1866’ in S. Europe. Local brand can be
difficult to remove.

Johnny K. Johansson (1999)