International product and promotion strategy;

Band name selection procedure and regional

brands

BY
BHARATESH
KIRAN
NAVEEN
RAJESH
SURAJ
VIVEK
 International product Strategies

 In International managers need to decide the level of standardization and

adaptation they have to achieve in terms of their products and related
communication.
 Standardization means offering a uniform product on regional or worldwide
base may be with minor changes.
 Customization leverages cross border differences in needs & wants of firm’s
target customers.
 Standardization of Product Strategies

Forces that favor a globalized product strategy are:

 Common customer needs & buying behavior
 Economies of scale in production, R&D, marketing and cost savings
 Lesser time required in introducing into new markets
 Global consumers & consumer mobility
 Home country image
 Contd.…

 Similar technical specs for industrial & consumer products

 Operating via exports of uniform products
 Better marketing performance
 Consistency in product design & selling techniques
 Establishes a common image
 Success in one market can be duplicated in other markets

 Standardization may lead to substantial opportunity lost

 Adaptation of product strategies

 Obligatory adaptation due to laws and regulations of foreign countries

 Discretionary adaptation (on the choice of the marketer)
 To better suit varying customer needs
 Differing use conditions
 Due to different market factors
 Company’s resources/ product objectives
 Product life-cycle stage
 International product and
communication strategies

 International product and communication strategies:

 Product & communication Extension: Dual Extension.
 Product Extension- communication Adaptation.
 Product Adaptation- Communication Extension.
 Product & communication Adaptation – Dual Adaptation.
 Product Invention.
 Product & communication Extension:
Dual Extension
 Early entrants often opt for this strategy.
 Small companies with few resources typically prefer this option.
 Also works for the company which targets a “global” customer with similar needs.
 Offers substantial savings coming from economics for scale.
 The downside is that it might alienate foreign customers who may switch to another competing
brand that is more tuned with their needs.
 Product Extension- Communication
Adaption

 It takes care of difference across countries in the cultural or

competitive environment.
 Retains scale economics on manufacturing side, the firm sacrifices
potential savings on the advertising front.
 Product Adaptation- Communication
Extension

 Local market circumstances often favor or require case of product adaptation(may be due to
govt. regulations)
 Many companies add to their product portfolio Via acquisition of local companies adding new
brands as an expansion strategies.
 While product may offer, cultural similarities that stretch to consumers using the product present
an opportunity for a harmonized communication.
 Within such control, clever marketing ideas can be transferred from one country to another,
despite the product-related differences.
 Product & Communication
Adaptation- Dual Adaptation

 Differences in both cultural & physical environment across countries call fro a dual
adaptation strategy.
 Many be due to different Govt. regulations regarding products as well as
communication.
 Product Invention

 Develop new products from scratch from common need & opportunities around the world –
instead for simply adapting existing products or services to the local market conditions.
 Produce products of global scope.
Managers focus on degree of globalization rather than striving for standardized or localized
products.
 What elements of product should be tailored to local market needs &which ones to leave
unchanged?
 Two approaches that are being commonly used in international product design are:
• Modular Approach.
• Core-product Approach.
 International promotion strategies

 PUSH Strategy: In Push strategy the promotional programme is primarily directed at the market
intermediaries in the distribution system. It aims to motivate the market intermediaries to stock,
promote, and sell the products to the ultimate customers.

 PULL Strategy: The process of motivating the customers to buy the product from the retailers
through promotional programme is referred to as Pull strategy. Customer ask for product to the
retailer. A retailer asks for a product from a wholesaler and the wholesaler ask for the product
from the distributor who gets the product from the firm.
Contd…

 Standard Promotion Strategy: It is the strategy where the same promotion-

mix is used in all the global markets and with the same promotional theme.
International markets are becoming more similar and increasingly more
global and it is believed that the key for survival is companies ability to
standardize.

 Differential Promotion Strategy: It is the promotion strategy where different

promotion-mix is used depending upon market and competitive situation
and with different promotion theme. While promoting internationally a
more differential approach is necessary because of international
differences in culture, media use or media availability.
 International promotion Mix

 Advertising
 Sales promotion
 Personal selling
 Publicity
 Public Relations
 Direct marketing
 Sponsorship Promotion
 Exhibitions and Trade shows
 Global Branding

 A Brand is the symbolic embodiment of all the information connected with a

product or services.
 A brand typically includes logo, and other visual elements such as images, fonts,
color, schemes, or symbols.
 It also encompasses the set of expectations associated with a product or
services which typically arise in the minds of people.
 A brand name which is well-known and associated with high-satisfaction levels
provides an improved image and added value to the product.
 This can also lead to consumers insisting on the product by brand name and
being fewer price sensitive.
 Purpose of global branding

 Brand is massive asset

 Brand is a promotional tool
 Brand is a weapon to protect Market
 Brand is Antidote for middlemen’s survival
 Brand is a means of Identification for consumers
 Global Branding Decisions

 Generic or No brand: The first decision regarding branding is whether to brand or not.
 Branded products: Most of the global companies go for the branding. The customers of different
countries find it easy to identify the branded products and they are aware of the ingredients
and utility of the branded products.
 Private Brand: Most of the exporting companies go for dealer’s brand or private brand
 Manufacturer’s Brand: The manufacturer sells the product in his own brand.
 Single brand: The global companies go for a single brand for all its exports to the same country
( or single market).
 Multiple Brands: The marketing conditions and the features of the customers vary widely from
one region to other, in the same country. Hence, multiple branding is used.
 Local Brands: Global companies have started widely using the local brands in order to give the
impression of cultural compatibility of the local market.
 Global Brand: Exporters normally go for Global branding for better marketing impact and focus
etc.
 Global branding strategies

 Cultivate Established Local Brands: Develop a national brand into an international brand,
transporting brand value and strategy to more countries. Products or brands may have
characteristics that also appeal to consumers of other nations.
 Global concept, Local Adaptations: Develop one formula, a concept for the world that can
carry local products with local values.
 Create New Brands: Recognize a global need or want and develop a new product for it. This is
very risky strategy.
 Purchase Local Brands and Internationalize: This is a strategy used by such major packaged food
companies as Unilever, Danone, Kraft, and Nestle.
 Employ a Multi-local Strategy: Different strategies are developed for different countries for local
recognition. The company name is often used as endorsement for quality guarantee.
 Brand Name Selection Procedure

 Specify Objectives for the Brand Name: As with all managerial decisions, the initial step is to
identify the objectives to be accomplished.
 Create Candidate Brand name: Brand name candidates often are selected using creative-
thinking exercises and brainstorming sessions.
 Evaluate Candidate names: The many names generated are evaluated using criteria such as
relevance to the product category, favourability of associations conjured up by the name, and
overall appeal.
 Choose a brand name: Managers use the criteria noted in steps 1 and 3 to select a final name
from the candidate field. In many firms this choice is a matter of subjective judgement rather
than the product of rigorous marketing research.
 Register a Trademark: Most companies apply for trademark registration. Some companies
submit only a single name for registration, whereas others submit multiple names.
 Pan Regional Brands

 When a small business considers global expansion, a separate marketing strategy should be
developed to evaluate the issues posed by global competition. A global marketing strategy will
be different than a strictly domestic strategy. Pan-regional marketing relates to a territorial scope
within global marketing efforts.
 A company generally focuses on one or two specific areas of the world’s regions when
developing a regional marketing strategy.
 Tactics: Pan-regional marketing starts with goals, continues with strategies and then tactics. Pan-
regional marketing tactics relate to the actions necessary to execute a marketing strategy.
 Communications: Pan-regional marketing communications include the same types of advertising
and promotional vehicles used in domestic marketing – television, radio and print advertising,
brochures and direct-mailers, fliers and posters, and Web-based content.
 Teams: Pan-regional marketing teams will include the home-country marketing staff, but primarily
in a coordinating function because the responsibility for the creative workflow will need to be
localized to regional markets.
THANK YOU!!!