Product and Service Offering and Brand Name

Powerful Essays
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.
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