1. John Wiley & Sons, Inc c 19981 GLOBAL PRODUCT POLICY 1: DEVELOPING NEW PRODUCTS FOR GLOBAL MARKETS Chapter Eleven

2. John Wiley & Sons, Inc c 19982 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 4. Developing New Products for Global markets 5. Global NPD and Culture

3. John Wiley & Sons, Inc c 19983 Overview Ikea in the United States Procter & Gamble in Australia and Japan Wal-Mart in Hong Kong U.S. carmakers in Japan Ford in Brazil

4. John Wiley & Sons, Inc c 19984 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 - Communications Extension

5. John Wiley & Sons, Inc c 19985 1. Global Product Strategies (cont) Strategic Option 4: Product and Communications Adaptation - Dual Adaptation Strategic Option 5: Product Invention

6. John Wiley & Sons, Inc c 19986 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 for Various European Countries

7. John Wiley & Sons, Inc c 19987 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 Core-Product Approach

8. John Wiley & Sons, Inc c 19988 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 Individualism

9. John Wiley & Sons, Inc c 19989 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 –Exhibit 11-10 Example of a Product Profile

10. John Wiley & Sons, Inc c 199810 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 Alternatives Derived via Conjoint Study

11. John Wiley & Sons, Inc c 199811 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 –Exhibit 11-14 “Waterfall” vs “Sprinkler” Model

12. John Wiley & Sons, Inc c 199812 5. Global NPD and Culture