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Product Strategies in International Markets - Coggle Diagram
Product Strategies in International Markets
Product-Communication Extension (Dual Extension)
very straightforward
can be most profitable
selling same product with no adaptation.
same advertisement and promotion as in home country
only possible if advertising message can be understood across different cultures
usually used in B2B
Example: Apple launched the iphone in different countries at the same time since it is a product whose marketing strategy can be understood across different cultures
Product Extension-Communication Adaptation
low cost implementation
product doesn't change, some modifications to communication strategy
biggest costs: market research, revising advertising, sales promotion efforts, point-of-sale material and other communication elements
Example: Ben & Jerry's changed their packaging since colors are perceived different in the U.S. and U.K., however their product stayed the same.
Product Adaptation-Communication Extension
adapt product to local use or preference conditions
minimal change to communication strategy or brand name
Example: Oreo had to change the recipe and ingredients when entering the Chinese market because they found out that their original recipe used in western markets don't fit the local taste preferences
Product-Communication Adaptation
both product and 1+ promotional elements are adapted to country/region
Example: Unilever sells different products with different marketing strategies depending on the country for example: when it comes to cleaning products inItaly they focus on formulas that clean more profoundly while in the U.S. the focus on a formula that is convenient and market accordingly
Innovation
need to develop entirely new product to address market opportunity
demanding due to high costs but potentially rewarding
especially in emerging markets/ developing countries
Example: Thermax sold small but difficult to install boilers in India since paying for installation is cheap there. However, when expanding to other markets they had to innovate a new design that was easier to install since in other countries labor costs for installation are not as cheap as in India.
Strategy for Casaleña: Product Extension-Communication Adaptation
In the case of exporting to Russia, the product fits regional taste preferences since Russian's also eat similar dishes (dried meat). However, because Russian and Mexican values are different there would probably need to be an adaptation in the communication strategy. The advertisement might also need to be adapted since the snack might be more attractive for other occasions as compared to it being marketed for friends gatherings here in Mexico.