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Showing posts with label International marketing. Show all posts
Showing posts with label International marketing. Show all posts

March 14, 2011

Product Adaptations - factors to be considered - Part II


9. Differences in cultural standards and difficulty of using the product:  An American company was marketing automatic shavers in Japan. The American company quickly realized that the Japanese hand is much smaller than the American hand and retooled the automatic shaver to fit the hand of the Japanese (17).

Six yard saree had always remained the final frontier as a dress for the women from the western world. It was the exotic Indian dress that the western women always liked and admired but were wary of - the saree is difficult to drape. They were always apprehensive about the saree; they would never know when it would slip off their body. They need not worry any longer. Zipped sarees (18) are now available. They can be worn as easily as jeans and they snugly fit the body. Is it said that Madonna wears the zipped sarees and likes them a lot.

Same is the case with the dhoti for the men and children. It is now possible to buy zipped dhotis (19) and appear to be like an Indian. Body piercing and tattooing is like the coming of age ceremony akin to an initiation process into the world of adulthood. Customers bear the pain. It is painful but the tattoo has to be worn to show that the person is an adult.

One fashion that is never going out of business is to have the name of the loved one pieced at various places. But a problem arises - what happens when one changes a partner? In steps the Indian art of Mehendi (20). Mehendi can be branded in America as temporary tattoo. Intricate designs can be made and the wearer could wear the names of the loved one with pride. The temporary tattoo would fade off and it could be replaced with a new one. If the tattoo is not liked it reversal process is very painful and expensive. But Mehendi being temporary the wearer need not worry about the permanency of the design or the name.

10. Availability of other products, Greater or lesser product integration:  Products need accessories to make them work better. For example American made printers and copiers will have to be adaptable to use locally available paper and toners.

11. Availability of materials, Change in product structure and fuel: In most countries cars mostly run on petrol. But in India because of governmental policies diesel is cheaper than petrol. Cars imported to India should have the option of using diesel as a fuel (21) or should develop diesel models to be competitive. Same is the case with generator sets that are imported to India. In india kerosene is a cheap fuel and a generator that can run on kerosene (22) will be a big hit.

12. Power availability and resizing of product: Radios exported into Africa need to be resized. Power supply is erratic in Africa and batteries are not easily available. Thus it is imperative that radios sold in Africa be provided with a self winding mechanism (23) so that the users can enjoy their service for longer time.

13. Product redesign or invention: MacDonald the fast food giant is a master of product adaptation. They had to make the adaptation of completely dropping the hamburgers (24) in the Middle Eastern countries where the word Pork is hated.

Mac Donald serves beef, mutton or Chicken that too only halal meat (25) respecting the local sentiments. Similarly in India Mac Donald faced huge problems. Pork and beef are disliked. Muslims do not like pork and Hindus do not like beef. Thus in India Mac Donald serves mutton or chicken only (26), no beef and no pork. It also serves vegetarian burgers. It has named its vegetarian burger as Mac Aloo Tikki (27) a very popular version of its Mac Donald burger.

Product Adaptations - factors to be considered - Part I


The following factors have to be considered which may necessitate design changes when dapting products for foreign markets. The factors are: 

1. Environment factors: FMCG products in India have to be rugged and face the vagaries of nature and rough transport and not so good storage capacities. This has led to the introduction of liquid chocolate (8) in India. Similarly in India people drive on the left side of the road and the steering wheel is on the right hand side. Indian cars exported USA will have to be left hand drive (9) as driving in USA is on the right side of the road.

2. Product specifications: 110 volts and 220 volts (10). Exporters should be careful in exporting or importing products from other countries as these products may not work or might be severely damaged if suitable technical adaptations are not made.

3. Level of literacy: Remotes have to graphic and pictorial (11) in low level literacy countries. Level of literacy also can mean remaking and simplification of the product. The Television remote needs to have to be the commands in the local language (12).

4. Level of Income: A low priced functional color TV (13) or a functional mobile high in feature but low in price (14) is the need in poor countries. Customers demand acceptable quality and cheap products, In India 80 percent of mobile phones are priced below US $ 40.

5. Level of interest rates: Investment in high quality products and services might not be financially desirable. Banks entering into countries that have high interest rates will have to re work their portfolio and products to meet the local conditions and tastes.

6. Level of maintenance: Most countries might not have the expertise that is needed to provide the level of maintenance that is needed for the product to work optimally. The company has to produce a product that is so rugged that hardly needs any maintenance.

7. Climatic differences: Products used in plain lands and high lands have to be adapted to face the climatic conditions of coastal places and also the travel by the sea. In one case the Indian electric poles (15) had rusted by the time they reached the port of destination.

8. Isolation:  Some products have been in isolation for so long that they have developed peculiar standards. First these market have to be standardized before new products can be introduced. It is said that Indian Air force pilots getting trained in Russia would be asked to switch on and off switches of their fighter planes for many days before they were allowed to fly. Why? Russian off position of the switch would be the on position in India and vice versa (16). If this training is not given the Indian pilots would leave the plane on the tarmac with the engine in the on condition!

March 13, 2011

Product Adaptations - examples


There are many places in the world where water is not available but there are few places in the world where coca-cola is not available. So it comes across as  a surprise that Coca-cola company was caught napping when it found out that its name ‘Coca-Cola (1)' was translated in Mandarin as ‘bite the wax tadpole’. Its illustrious competitor Pepsi did not fare any better. Pepsi’s slogan ‘Come alive with the Pepsi generation (2)’ was translated as ‘brings your ancestors back from their graves’

Pepsi also found that its sales people had innocently put up a poster of Pepsi on a wall. The poster said ‘wish you were here (3)’.  The idea was that the poster had to be put up all the franchisee locations. But the location where the poster was put up was the local cemetery. These are cases where communication adoption has to be attempted.

An exporter had sent its baby food packets to Africa. The product did not do well at all. The reason – like all baby food products the package had a picture of a baby. This triggered the Africans. They have never seen a baby food package. They thought that package had meat of the babies and not food for the babies (4). A case of mistaken communications or mis-communication. Similarly the  Chevrolet Nova automobile was introduced in Latin America as 'no va'. Nova in spanish means 'won't go (5)'.

A lady had gone to Japan and found a local sign that was very cute and artistic. She had the sign printed on her Tee shirt and wore it. The Japanese that she met gave her suggestive giggles.Many guffawed and gave her a huge smile and a knowing leer. The lady was non plussed.  She brushed it aside as locals being overtly friendly. Her friend exclaimed in horror when she saw the T-shirt ‘Do you know what your tee shirt is saying. In Japanese it is saying Fresh milk sold me (6)!”

A product that is perfectly good for one market may have to be adapted for another. There can be many reasons for this. Physical conditions may be different. Functional requirements may vary from market to market.

In some cases cultural factors are very important. For example, Mattel Toys of USA wanted to sell their Barbie Doll in Japan. But the Japanese did not buy the American favorite doll. Later the firm introduced a modified Barbie – slightly oriental eyes and a more girlish figure (7).

There are certain items, generally ethnic products, which sell in the foreign markets, precisely because these are foreign. Indian handicrafts or handloom fabrics are examples of such products. There are also specialty items which have become so famous that they are automatically demanded by the foreign consumers, for instance, Darjeeling tea, Scotch whisky, French perfumes or Danish cheese. For such items, no change in the product itself is required for marketing in overseas, though changes in packaging may often be called for.

Many items however may require some adaptation for making the suitable to the foreign markets. Some obvious examples of product adaptation are differences in voltages (110 or 220) and right hand or left hand drive. Adaptation may pertain to size, functions, materials, design style, color, tastes and standards. Sometimes this could be done easily and at low cost but at times it may cost the company heavily.

February 26, 2011

Product Adaptations – the Case of the Indian Tooth Powder in the USA



One Indian tooth powder manufacturer had gone to the USA.  He had an appointment to visit one of the super market giants. The product manager at the super market major gave him a patient hearing. He was very appreciative of the tooth powder concept but dismissed it saying “Not practical for US citizens. No one here uses their fingers to clean their teeth. This product will not fare well”.

The Indian tooth powder manufacturer was very depressed. It was a shattering blow. His entire effort was wasted. He suffered losses on product, psychological and on financial fronts. He glumly went to the restroom in his hotel for a wash. As he was washing his hands he was struck with a brain wave.

The super market major had a surprise visitor the next day. It was the same persistent tooth powder manufacturer from India. There was a spring in the Indian's gait. He greeted the product manager “Hello sir, I have a report for the laboratory about the germs that are present in the dirtiest place in the restroom. Would you take a look?”

The product manager gingerly picked the report and read it. The report was a shocker. It detailed the millions of germs, viruses and bacteria that were present in the sample that was sent for analysis. He handed the report back” shocking” he said “I always knew that the toilets seat area had the most germs”.

The Indian responded “Sir, the sample that was sent was not from the toilet seat. The sample that was sent was from the toothbrush that was left in my wash room by the guest who stayed before me. The place that the germs would like to concentrate upon is the wettest area. The wettest place in the restroom is the toilet and the tooth brush, In spite of cleaning daily with water there are millions of germs left. The cleanest part of our body is the hand as we clean it very often and wipe it clean with a cloth or with a tissue. So there is no better way to clean the teeth than using a hand”.

After listening to such a persuasive argument the Product Manager had no choice but agree to stock the tooth powder in his chain of stores. It is not clear what the outcome of this incident. May be the product did well or may be it did not do well. But it showed the dynamism of the manufacturer who came out with an innovative argument in favor of his product.

May be the tooth powder manufacturer could have used the tack of his tooth powder being useful for pets (after making sure that its ingredients are not harmful to the pets). I am sure that such a strategy would have been successful as brushing pets with tooth brushes is quite useless. The dog or the cat would simply chew up the tooth brush. When using a finger the owner can maneuver his finger to ensure that the teeth of his pet are sparkling clean.

December 25, 2010

Marketing Communications– The case of Perrier Mineral Water in USA


 Tennis fans watching French Open distinctly remember the water cooler prominently displaying the word “Perrier” the king of mineral water in the world.

The spring in Southern France from which Perrier is drawn was called Les Bouillens. Local doctor Louis  Perrie bought the spring in 1898 and operated a commercial spa there; he also bottled the water for sale. He later sold the spring to Sir Saint-John Harmsworth, Harmsworth closed the spa, He renamed the spring Source Perrier and started bottling the water in distinctive green bottles.

Harmsworth marketed the product in Britain at a time when Frenchness was seen as 'chic' and aspirational to the middle classes.

Soon Perrier spread its wings and went across the Atlantic. It went to the USA, the mother of all market places. The timing was perfect. The company did market research.  The 4 Ps were fine-tuned to a nicety, the pricing as perfect, the trade was told how to take care of the demand  and the launch was impeccable.

The results were disconcerting. The product was not doing as well as expected. The feedback was positive. There were no complaints about the quality or the price, promotion or  distribution. So  what was going wrong?

To understand what was going wrong we will have to delve deep into the psyche of a typical American. Americans are brought up on Coke and Pepsi. They find drinking water alien. The author's personal experience was very enlightening. When asked for water, most of the bartenders had a puzzled expression. Thy would hand out plastic cups. The plastic cups would have H20 written on them. The author himself had to go to the soda fountain and get a fill of water.

Amercians do drink water. But the water has to be colored. Adding color to the distinctively crystal clear Perrier mineral water would be going against the grain of the product itself. So what to do?

Taking the help of the American psychology a solution was arrived at. Americans have a fight going on with themselves all the time. America is filled with calorie filled goodies and quite frequently  a typical American would gorge himself on fatty foods and  wash it down it with  a huge glass of Coke or Pepsi. Then the guilt would step in. He/she would make a beeline to the nearest gym or a tread mill and try to work out the calories that he/she had binged upon.

Perrier hit upon a brilliant idea. Their next campaign talked about Perrier as a “zero calorie drink”. There was an underplaying of the word water and emphasis on the catch phrase “Zero calorie”. It was clearly saying eat what you want to eat but instead of washing it down with Coke or Pepsi have Perrier and save 300 to 400 calories as water is totally calorie free.

Perrier showed us how a product need not be tinkered all the time, One can subtly change the communication and the product could be set on the certain path of success.

October 14, 2010

International marketing

International marketing is always thought either as a bed of roses or as a demon that swallows everything in its wake. But one should look at International marketing only as a possible diversification strategy. Given below are some of the goofups made by Indian exporters in the past that led to huge losses.
1.      
  1.  Indians have recently discovered the magic lure of floriculture. There is money to be made in the field of floriculture. One Indian exporter has exported a huge consignment of roses to Holland after lots of deliberation and planning. The entire lot was rejected by the importer. The reason, the Indian exporter had sent the roses in the open condition whereas in the Western markets a rose that is presented to some one else is always a bud and never an open rose.     
  2. One famous Indian manufacturer has developed a ceiling fan that had cartoon characters printed on the fan wings. He was expecting huge orders from the western markets as there is a huge demand for decorative items for children bedrooms. The entire idea has to be shelved. The reasons, when the fan starts to rotate the cartoon figures get blurred and the kids can’t see them!
  3. One Indian manufacturer had sent a consignment of some very sophisticated engineering tools to Holland. The entire consignment was rejected. The mystery was the carton was not even opened but the entire consignment was rejected. The reason was Holland is a agricultural economy and they did not want the entry of any fungus or virus that can damage their economy. The Indian exporter has made excrement tools but has the material was packed in cheap packing wood. The packing wood was infected with a deadly virus and the entire consignment was rejected. Unlike the domestic market in the international markets once the consignment is rejected it has to be brought back to India and the exporter has to incur additional costs to bring the material back. Talk of adding salt to the injury!