A. Product and Service Offering and Brand Name
Allsmile brand toothpaste has been successful for the past five years operating under a decentralized multi-domestic strategy. Now, the market has reached maturity and the industry life cycle has peaked. Our previous strategy, during the period of market growth, is no longer the most cost efficient. As country managers, we have been given the challenge to standardize our global strategy in order to minimize total cost. By definition, a “global product” is a product with most features being uniform in all countries. Given that our product is toothpaste, the features we have the option to standardize are product size, texture, effect, brand name, packaging, price, advertisement, promotion, and distribution. Standardization is beneficial to lowering costs; however, it is also important to consider that sales numbers are often directly related to customer satisfaction of highly adapted products that target individual preferences. The cost benefits of standardization and adaptation are inversely related- the key is to find the point where combined costs are minimized.
In Country Manager, the Pan-Optic team is currently producing an economy size medium and large paste, a whitening medium paste, and a kids’ medium paste. In one market only the economy products are offered in the medium and large size and economy, white, and kids medium paste are offered in the second market. Since Pan-Optic has already incurred the cost associated with developing these products, we will continue to produce the 3 SKUs of the medium size and discontinue production of the large economy size. In addition, we will produce a healthy gel in the medium size. While adding a new product seems to be moving in the ...
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...each country. The Pan-Optic approach will be to adapt the product to the language of each country. In Mexico and Venezuela the product will be adapted to Spanish, and for Brazil the product will be in Portuguese. Although the language will be adapted for each country, we will be sending the same message and presentation. Pan-Optic decided to implement multiple channels for distribution; aside from the hypermarket and general retail stores, Allsmile will be sold at wholesale and through e-commerce. Through Country Manager, the company found that Latin American countries respond well to wholesale prices; therefore, a large portion of sales comes from this channel. Furthermore, Pan-Optic concluded that the use of point-of-purchase information technology would give them considerable power over all of Allsmile’s retail channels, aiding in the brand’s global expansion.
Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.
The South American Community of Nations (CSN) is another important region to target for SCJ. Currently SCJ operates in Brazil, Argentina, and Venezuela. But SCJ’s market share in those and other South American countries is low and the opportunities are endless. Since SCJ has operations already in the region, incremental growth is a cost effective way to grow profits. New products and new channels of distribution need to be developed building off of current product lines and trends. This can lead to large incremental growth in the region at little cost to the company. Perusing other regions where SCJ is not currently present could be more costly than building brands already in the marketplace.
Phillips built its success on a worldwide portfolio of responsive national organizations. The company chose to utilize a localization strategy. This means that they focused on altering the properties and characteristics of their product’s to suit the foreign market’s language, political, legal, and cultural differences. In order to concentrate on local responses, they used highly self-sufficient national organizations but further on adopted a strategy of having each singular product be limited to one specialized division.
L’Oreal is the largest cosmetics company in the world. It shouldn’t be a surprise that L’Oreal doesn’t sell all of its product lines in every market in which it sells, and the market in the Netherlands is no exception. Upper management of the Netherlands’ L’Oreal subsidiary have to make decisions on which product lines will succeed in their respective market and which ones will falter. In this particular case, L’Oreal needs to decide if it would like to introduce Garneir product lines such as the Synergie skin care line and the Belle Couleur permanent hair colorants line into the Netherlands market. The basic problem is whether or not to introduce these lines into the Dutch market.
Colgate Palmolive's senior management decided to launch a new toothbrush priced in the Super Premium segment. Susan Steinberg, the product manager, has to determinate the best marketing mix to implement and which of the follow options are the best in order to position the product in the market: A) Under a mainstream B) Under a niche strategy. Each strategy has involves different prices and volumes of unit sold.
... brands. For established brands, the strategy that Schroiff described as "adaptive” (Arnold 7) should continue. The adaptive strategy would include maintaining existing local brands while creating economies of scale by standardizing technical product features when possible such that not destroying product value in the market. The benefits of satisfying markets-specific needs should outweigh any resultant increase in costs. Brand and product features differentiation as well as emphasizing the functional performance and emotional value of the product should be part of the marketing strategy.
The second problem was solved by the brand is a simplification of choice. Every day consumer is faced with many similar products, and he just physically does not have time to compare all the annotations, the percentage composition, indications and specifications (f...
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
This case examines P&G and whether or not they have the ability and means to make their SK-II product a global brand. In this case, we examine P&G's need for a new global strategy and their ability to develop SK-II into a worldwide beauty product. Ultimately we will see that P&G needs to expand their hold in the Japanese market while becoming more familiar with the needs of potential markets.
Gillette has a solid base line of products that consumers have a need for, which is a key strength. Gillette can continue investigating consumer trends and evaluating needs in order to stay innovative and keep a market edge. On the other hand, possible weakness that Gillette can show is the fact that their razor are more expensive than their competition, so some consumers may jump to competition to save money. Gillette can combat this reminding their consumers the value add that they have and showing customers add on’s that will make their base product more useful. In the past, Gillette has had failures due to not researching the countries they are trying to penetrate. Gillette has major opportunity international markets as these countries become more developed, G...
The market is not ready yet for more product lines even though the economy is growing because the purchasing power is not that strong compared with the ones in South America. Therefore there is not yet profit to gain by di...
The US and Western European markets are reaching saturation- therefore cosmetic companies see the future markets for their products in Central and Eastern Europe, Chi...
The shifting of the consumer’s taste of simple products to high quality branded products is not sudden. It grew out in the middle of the 20th century and the companies selling various products needed a new way to differentiate their products from the others giving it a unique identity.
Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass
The suppliers’ bargaining power is low. As we know that Panasonic has been established for a very long period and this brand is familiar among the people, so the suppliers cannot afford to lose such important customer. Additionally, Panasonic usually purchases high volume of goods produced by the suppliers and most of the raw materials are imported. Thus, the local Panas...