Class 13

 Product Policy
– What to standardize and what to adapt?
– Product line
– Branding
Products in International
Markets

What is VW selling?
 Product Components
 Core Product
 Packaging
 Service Component
 Quality
 What is quality?
 Role of attributes versus consumer
perception
 Quality and uncontrollables in International
markets
 Global Markets & Product
Introduction
 Sell same product as in home country
 Adapt product to new country
 Develop standardized products for global
segments
 Acquire local brands and reintroduce
 Differences in environment
 Climatic conditions
 Infrastructure
 How people use the product
 Global and National Standards
– Mandatory
– Discretionary
 Developed versus Developing countries
 Culture
 Product Size and
Dimensions
 Normative use of complementary products
 Different physical surroundings and
available space
 Different physical characteristics of
consumers
 Consumer income level
 Global Marketing
 Product Line constitution
– Goals in developing product line
– Global variation – causes?

 Developing Global Products

– Core + Derivatives
– Modularity in product specification

 New Product Development

 What is a brand?
“A product is something that is made in a
factory; a brand is something that is bought
by a customer. A product can be copied by
a competitor; a brand is unique. A product
can be quickly outdated; a successful brand
is timeless.”
Stephen King, WPP,
London
 Brands
 Global Brands
 National Brands
 Private Brands

 Country of Origin Effects

 Role of Quality
 Top Global Brands
 Coke, IBM, Microsoft, Google, GE,
McDonalds’, Intel, Apple, Disney, HP

 Toyota, BMW, Nokia

 Share of Mind and Share of Esteem

 Top Global Brands
1 Coca-Cola 70,452 ($m)
2 IBM 64,727 ($m)
3 Microsoft 60,895 ($m)
4 Google 43,557 ($m)
5 GE 42,808 ($m)
6 McDonald's 33,578 ($m)
7 Intel 32,015 ($m)
8 Nokia 29,495 ($m)
9 Disney 28,731 ($m)
10 Hewlett-Packard 26,867 ($m)
 Global Power Brands in the
Developing World
(Keller and Moorthi, 2003)
Poor market assessment
– What do the consumers want?
 Price, Functionality
– How do they buy?
 Retail set up, Rural-urban
– How large is the market?
 Population and market, Local Competition

Value Dysfunctionality
GPB in Developing Markets
Improper Communication
– Lack of communication of functional values
 Competence? Conspicuous consumption
– Brand and Society
 “Coca-colonization”
– Home market ads

Image Dysfunctionality
 Brand India
 What it stands for? In your mind?

 What it stands for Internationally?

 What you think it should stand for? Why?