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GLOBAL PRODUCT POLICY 1:
DEVELOPING NEW
PRODUCTS FOR GLOBAL
MARKETS
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Global Product Policy Decisions 1:
Developing New Products for Global
Markets
Chapter Eleven
• Overview
• 1. Global Product Strategies
• 2. Standardization versus Customization • 3. Multinational Diffusion
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Overview
•
Ikea in the United States
•
Procter & Gamble in Australia and Japan
•
Wal-Mart in Hong Kong
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1. Global Product Strategies
– Exhibit 11-1 Global Expansion Strategies
•
Strategic Option 1: Product and
Communication Extension - Dual Extension
•
Strategic Option 2: Product Extension -
Communications Adaptation
•
Strategic Option 3: Product Adaptation -
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1. Global Product Strategies (cont)
•
Strategic Option 4: Product and
Communications Adaptation - Dual
Adaptation
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2. Standardization versus Customization
•
1. Common Customer Needs
– Exhibit 11-2 Convergence in Drinking Patterns – Exhibit 11-3 Comparison of Recognitions
Around Car Value Between Europe, USA, and Japan
– Exhibit 11-4 Differences in Car Requirements
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2. Standardization versus Customization
(cont)
•
2. Global Customers
•
3. Scale Economies
•
4. Time-to-Market
•
5. Europe 1992 and Other Regional Market
Agreements
•
Modular Approach
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3. Multinational Diffusion
– Exhibit 11-5 VCR Sales in Various Countries
•
Five Product Characteristics
– Relative advantage, Compatibility, Complexity,
Trialability, Observability
– Exhibit 11-6 National Innovativeness vs
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4. Developing New Product
for Global Markets
– Exhibit 11-7 Global NPD Process
•
Identifying New Product Ideas
•
Screening
– Exhibit 11-8 NewProd Screening Model
•
Concept Testing
– Exhibit 11-9 Salient Attributes and Attribute
Levels for Satellite Dishes
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4. Developing New Products
for Global Markets (cont)
•
Concept Testing (cont)
– Exhibit 11-11 Results of Conjoint Analysis for
Satellite Dishes
– To standardize or not to standardize – Exhibit 11-12 Utilities for Respective
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4. Developing New Products
for Global Markets (cont)
•
Test Marketing
– Exhibit 11-13 Examples of Test Market
Countries
•
Timing of Entry: Waterfall vs Sprinkler
Strategies
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