Product Standardization

Product standardization refers to the process of maintaining uniformity and consistency among the
different iterations of a particular product that are available in different markets. It is a process of
marketing a good or service without making any changes to it. If a product is changed at all, it is
only changed superficially. Otherwise, the characteristics of the good or service remain uniform.
It is made using the same materials and processes, has the same packaging and is marketed under
the same name.

The strategy of product standardization requires a particular industry or organization to follow

certain guidelines in order to maintain the consistency of a product’s nature, appearance, and
quality. These guidelines are ones that are accepted on a general basis and are adhered to when
producing a good or carrying out a service. The guidelines may apply to one organization or one
industry and may be applicable on a national level or an international level.

Products may be either standardized or customized to a targeted consumer base. Standardized

goods and services promote the convenience of use for the consumer and attracts consumers on
the basis of consistent quality. Product standardization relies on using the same basic template
across markets. It is a necessity for certain kinds of technology and construction materials. The
features of a product are kept identical as far as possible, which might be difficult if the product is
marketed internationally but is easy to achieve locally.

Product standardization lowers the available variety of products that serve a similar purpose. There
are general standards that goods are required to meet. Where industry-wide standardization is
concerned, consumers are able to choose from a range of goods and services which are all distinct,
yet offer the same general benefits and are of the same general quality. Uniformity and consistency
of products are cost-effective and increases the efficiency of production.

The Uses of Product Standardization

Product standardization is useful for a number of reasons. By following certain guidelines for the
production of goods and services goals such as innovation, cost reduction, and streamlined
production system can be achieved.
Cost reduction: Product standardization reduces the cost of production. When a set of guidelines
are being adhered to in order to produce identical goods or services, the cost of raw materials goes
down. The raw materials being used for that particular product are the same. Instead of spending
money on different raw materials, different packaging and different marketing techniques,
standardization ensures that both production and maintenance costs are kept low. Since there is no
need to introduce different benefits with each iteration of the product, the expense of production
is reduced.
Production efficiency: The production process becomes more efficient when the end goal is to
maintain uniformity of products. Less effort is expended on production. It is easier to automate at
least part of the production process. The same process is utilized in different organizations or
industries to produce the same good or service. The lack of pressure to innovate the particular
product with each iteration increases efficiency. The consumer does not expect the product to
deteriorate, but they do not expect it to become radically different either. There is an established
process, which streamlines production and makes it faster.
Establishment and strengthening of the brand: When a particular product is available across
different markets, including the international sphere, in a consistent form with uniform features, it
becomes a brand that the consumer base recognizes and trusts. Regardless of geographical
location, the exact same good or service is delivered to the consumer, with no change in quality.
This reinforces the branding of the product. The organization or industry of origin profits from the
particular recognizable product being chosen by consumers who have used it in the past and wish
to use it again based on its quality. If the consistency of quality is maintained, then the product
will become an international brand.
Convenience for consumers: Product standardization is convenient for consumers when it comes
to products like technology or construction materials or automobiles. There are certain product
specifications according to which particular products are made. Adhering to the specifications
ensures that consumers will be able to find a particular product to satisfy a particular need wherever
they might be located. Standardizing technology maintains compatibility of technological devices
across the globe. It improves efficiency. Certain materials used in construction such as tools are
the same across international markets. It ensures that there is little chaos regarding these products.
Standard of quality: Standardizing of products ensures that all products are held to a certain
standard of quality. The particular product must be uniform in every way. Therefore, it is easy to
detect any failure in the process of production or marketing. Any inconsistency in the product will
stand out. Consumers and inspectors can see any obvious failure of a particular iteration of a
product to meet the previously established standard of quality. The existence of this standard
ensures that the producer will seek to maintain it. Thus the producer is kept accountable and the
quality of the product does not suffer.
Examples of Product Standardization
Many fast food chains, such as McDonald’s, have certain fixed procedures when it comes to
preparing food, so that regardless of which outlet the consumer is visiting, the product they order
always tastes the same. Certain items from these chain restaurants become brand images that
consumers across the world recognize and purchase. Any major food establishment, like Starbucks
or Burger King, comes under this category. People do not visit Starbucks to drink coffee; they visit
Starbucks to drink the coffee that is only available at Starbucks because Starbucks always prepares
and presents it in a particular manner.
Equipment and tools are usually produced to standard specifications because they are used to build
other products which require particular equipment and tools. Federal-Mougal, for example,
produces pistons for multiple automobile manufacturers like BMW and Maruti. Pistons are
produced at standard sizes depending on what their exact use will be. They are an example of
where product standardization is most efficient because producing uniform, and consistent pistons
streamline the production process for larger goods.
Goods like certain French perfumes or Swiss chocolates are quite famous even outside their
country of origin. These are available even outside the country of origin and without any change
in quality. The consumers are aware that these products meet a certain standard of quality and thus
they are eager to purchase them in their own country if they become available. By emphasizing
the country of origin and stressing the standard of quality that has been maintained the producer is
able to make a good profit off these products.
Items like screwdrivers and nuts and bolts are also made according to specifications because their
use is often very specific. A screwdriver of a particular size may be uniquely suited to a particular
task. Only a nut or bolt of a certain size may fit into a particular joint. These things are decided at
the level of design specifications. Thus these items are produced, identical in every aspect in a
particular iteration, to satisfy certain needs.
Product standardization is a very useful strategy, with many benefits. However, it is not without
pitfalls as well. The ideal business model is one which takes the disadvantages into account, uses
the advantages and ultimately employs a combination of standardization and adaptation.
The Advantages of Product Standardization Product standardization has certain advantages in
comparison to the alternative of adaptation and customization.
Product innovation: The availability of a basic template to work with increases the possibility of
innovation. Different organizations in a particular industry that offers standardized goods and
services build upon the standardized product to produce a more distinct good or service that is
consistent with the standards of the industry yet improved in nature. Instead of innovating from
scratch, having a framework to build upon lowers cost and increases efficiency. It is an effective
utilization of time and resources to build upon a standardized product.
Benefits to the consumer: Product standardization reduces the number of available products which
serve a particular purpose. The consumer is able to choose more easily which product they desire
to purchase. It lowers confusion among consumers. A particular good is identical in all its iterations
and the consumer is aware of its quality. Thus they can make an informed decision as to whether
they should obtain it or not. If the product fails to meet standards then the consumer knows it and
is able to avoid it. Product standardization ensures consumer safety.
International market: In today’s world, globalization has led to a growing similarity in the demands
of people that transcends geographical and cultural borders. Product standardization across
national and international markets ensures that the same product, consistent in all its aspects, is
available to consumers, with no need to consider their actual location. A change in the country
does not lead to a change in quality. People can go abroad and purchase the same product they use
when they are at home. Alternatively, people who have heard of a particular product which
originates in a particular country can purchase that product without having to travel to that country,
while having the assurance that there is no deterioration in the quality of the product.
Avoiding the cost of adaptation: It is undeniably more expensive to tailor a particular good or
service to a particular consumer base. Industries and organizations save money by taking a “one
size fit all approach”. In order to customize a product, the producer must gather data, carry out
extensive testing, introduce different marketing techniques according to the consumer bases that
are being targeted and so on. By producing uniform, identical goods regardless of the market the
industry or organization save money. Depending on the size of the market and the kind of good or
service concerned, the cost of adapting the product may be too high for a profit.