326 PART 4 • THE GLOBAL MARKETING MIX
As
these examples show, technology companies and industrial goods manufacturers should be especially alert to dual-extension possibilities. However, Henkel also markets hundreds of other glues, detergents, and personal-care products with different formulas and different brand names.
Speaking about Loctite, former Henkel CEO Ulrich Lehner explained, There aren’t many products like that. Usually, you have to adapt to local tastes. You have to balance between local insight and centralized economies of scale. It’s a constant battle.”
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Henkel’s Persil brand laundry detergent is a casein point. Although the Persil name is used in more than two dozen countries, the same detergent
is marketed as Dixan in Greece, Italy, and Cyprus. Wipp is the name used in Spain and China in other markets, variants include Nadhif and Fab.
Strategy 2: Product Extension–Communication Adaptation
In
some instances, a product or brand can be successfully extended to multiple country markets with some modification of the communication strategy. Research may have revealed that consumer perceptions about one or more aspects of the value proposition are different from country to country. It may also turnout that a product fills a different need, appeals to a different segment, or serves a different function in a particular country or region.
Whatever the reason, extending the product while adapting the marketing communications program maybe the key to market success. The appeal of the
product extension–communication adaptation strategy is its relatively low cost of implementation. Because the
product itself is unchanged, the company avoids additional expenditures for research and development (RD, manufacturing setup, and inventory. Instead, the biggest costs associated with this approach stem from researching the market and revising advertising,
sales promotion efforts, point-of-sale material, and other communication elements as appropriate.
Consider the following examples of product extension–communication adaptation:
d
In Hungary, Slovakia, and other
Central European countries, SABMiller positions Miller Genuine Draft as an international lifestyle brand (GCCP) rather than an American brand foreign consumer culture positioning [FCCP]). The communication adaptation strategy was chosen after focus group research showed that many Europeans have a low regard for American beer.
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d
Before executives at Ben & Jerry’s Homemade launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design effectively communicated the brand’s “super-premium” position. The research indicated that British consumers perceived the colors differently than US. consumers do. The package design was then changed, and Ben & Jerry’s was launched successfully in the UK market.
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