1. Global Product Management and Branding
Pesewa Presentations

2. Defining a Product
A product is anything that can be offered to a market for attention, acquisition, use or consumption; it includes physical objects, services, personalities, places, organisations and ideas.
Philip Kotler

4. Global Product Development
The heart of the global marketing process that focuses on building adaptability into products to achieve worldwide appeal.
The product development process
The main goal is to build adaptability into products and product lines for worldwide appeal.
Step 1: Idea generation
Step 2: Screening
Step 3: Product/process development
Step 4: Scale up
Step 5: Commercialization

5. FACTORS ENCOURAGING STANDARDIZATION
Standardisation
FACTORS ENCOURAGING STANDARDIZATION
Economies of scale in production
Economies in product R&D
Economies in marketing
“Shrinking” of the world marketplace/economic integration
Global competitions

6. Global Program Management
Initiator
Managing Unit
Affected Units(s)
Viable Concept
Yes No
Initiator Becomes Managing Unit
Does Initiator Have Resources?
New Management Unit Assigned
Unique Requirements to be Incorporated in Product Goals and Specifications
Technical Development and Design
Review of Design
Activities to Plan, Develop, Manufacture, Introduce, and Support Product
Activities to Plan, Develop, Manufacture, Introduce, and Support Product
Integration and Coordination of All Multinational Program Activities
Nonoccurrence with Managing Unit
Guidelines for Program Execution

7. The Location of R&D Activities
Past tendency was to keep activities centrally located with parent corporation headquarters.
Using foreign-based resources improves ability to compete successfully internationally.
Outsourcing shortens product development cycle time.
Determined by the existence of specific skills.

8. Reasons for R&D Investments Abroad
To aid technology transfer from parent to subsidiary.
To develop new and improved products specifically for foreign markets.
To develop new products and processes for application in world markets of the firm.
To generate new technology.

9. Global Product Development Organization
Product development team that is functionally and internationally representative.
Focus on customer input to identify universal and market-unique product features.
R&D consortia allows companies to cooperate in developing new products and technologies.

10. The Testing of New Product Concepts
Testing for performance and customer acceptance is the final stage of product development.
Testing ranges from reliability tests to mini-launches.
Reasons that new international products fail:
Relying on instinct or hunch rather than testing and research.
Lack of product distinctiveness.
Unexpected technical problems.
Mismatch between functions.

11. International Product Testing Techniques
Limited product launch in one country market.
Laboratory test markets to capture consumer reactions in a controlled environment.
Microtest marketing uses a permanent panel of consumers and assesses their willingness to buy after exposure to media and purchase incentives.
Forced distribution tests rely on the continuous report of consumer reactions to new products already in the market.

12. The Global Product Launch
Introducing the product into countries in three or more regions within a narrow timeframe.
Successful launches require:
Involvement of country managers
Pre-launch attention to localization and translation requirements
Increased education and support of the sales channel
Benefits of a global launch
Showcases the product
Removes old models at once
Captures new product’s higher margins

13. Product and Brand Portfolio Management
The marketer must have a balance of new, growing, and mature products capable of creating sustainable competitive advantage in the firm’s efforts to expand geographically or add to existing market operations.
Analyzing the product portfolio
Market growth rates
Market share positions

14. Example of a Product-Market Portfolio40 40 B B B S J S F F GB GB D D 10 10
Market Growth C US US C 10 1 10 1
Relative Market Share
Relative Market Share
Company A
Company B
(B=Brazil, C=Canada, D=Germany, F=France, GB=Great Britain, J=Japan, S=Spain, US=United States)
SOURCE: Adapted from Jean-Claude Larreche, “The International Product-Market Portfolio,” in 1978 AMA Educators’ Proceedings (Chicago:American Marketing Association, 1978), 276

15. Market-Product-Business Portfolio Example
Canned Tea-US
Canned Tea-Asia
High
Ice Cream-US
Canned Tea-Europe
Market Attractiveness
Frozen Main Dishes-Europe
Ice Cream-Asia
Ice Cream-Europe
Frozen Vegetables-Europe
Low
Frozen Vegetables-US
Low
Competitive Strength
High
——— Market and Distribution Interconnectedness ………. Technology and Production Interconnectedness
SOURCE: Adapted from Susan P. Douglas and Samuel Craig, “Global Portfolio Planning and Market Interconnectedness,” Journal of International Marketing 4 (no.I, 1996):

16. Product Portfolio Approach
DISADVANTAGES
Foreign competition does not follow the same rules as domestic competition.
Relationships between market share and profitability may vary.
Government regulations.
Local content laws.
Different production sites impact perceptions of risk and quality.
ADVANTAGES
A global view of competitive structures.
Global strategy based on allocation of scarce resources.
Marketing objectives based on product lines in markets served .
A convenient visual communication goal.

17. The Role of Brands
A brand is a distinguishing name and/or symbol (such as a logo, trademark or package design) intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of competitors. A brand thus signals to the customer the source of the product, and protects both the customer and the producer from competitors who would attempt to provide products that appear to be identical.

18. The International Brand: Four Approaches
Translation.
Transliteration testing existing brand name for connotative meaning, e.g., “flic” pen.
Transparency, i.e., meaningless brand name to minimize complexities.
Transculture. Foreign language name forms a brand, e.g., vodka or perfume.

19. Managing the Brand Portfolio
A strong brand is a global marketing asset.
Co-branding
A strategic alliance where two or more brands are combined in an offer.
Brand strategy decisions
Use of the corporate name.
Family brands for a wide product line.
Individual brands for each item in the product line.
Private (store) branding
Umbrella branding with the intermediary’s name.
Separate brand names.

20. Nestle’s Branding Tree
Examples
7,500 Local Brands
Responsibility of local markets
Wonka
Chambinho
Bona
Fruitips
140 Regional Strategic Brands
Responsibility of strategic business unit and regional management
Macintosh
Vittel
Stouffer’s
Herta
Alpo
45 Worldwide Strategic Brands
Responsibility of general management at strategic business unit level
Mighty Dog
Smarties
After Eight
Coffee-Mate
Kit Kat
Cerelac
Baci
10 Worldwide Corporate Brands
Nestle
Carnation
Buitoni
Maggi
Perrier
SOURCE: Adapted from Andrew J. Parsons,”Nestle: The Visions of Local Managers,”The McKinsey Quarterly, no 2, 1996, 5-29;see also

21. Private Brand Strategy
SOURCES:Adapted from Sabine Bonnot, Emma Carr and Michael J. Reyner, “Fighting Brawn with Brain,” The McKinsy Quarterly 40 (no ): 85-92; and Francois Glemet and Rafael Mira, “The Brand Leader’s Dilemma,” The Mckinsey Quarterly 33 (no ):4.