Page 218 - Marketing the Basics 2nd

210 Marketing: the Basics
Global marketing guru, Warren Keegan suggests three overall adaptation strategies of product and communications for foreign markets.
1 Straight extension means introducing the product in the foreign market without changing the product mix. The potentially seductive thing about straight extensions is that the producer does not incur additional R&D, manufacturing or promotion modifications. This approach has been used with electronics and cameras on the consumer side and big industrial tools on the B2B side. At other times straight extensions have failed miserably. Campbell Soup Company lost an estimated US$30 million when it unsuccessfully introduced its condensed soups in the UK. Managers must also be wary of exporting their product where the product’s name has an entirely different meaning. Evite.com is a website that, among other things, allows users to send invitations to social events. In French, the word evite, is a conjugation of the verb eviter, which means to avoid. Needless to say, Evite.com does not have a French version.
2 Product adaptation involves altering the product to meet local preferences or conditions. Warren suggests several levels of adaptation.
• A firm can produce a regional version of its product, such
as a North American version. We are seeing an increasing number of North American and European products which are offered throughout the countries of those regions. In North America the packaging would be in the major languages of the region: English, Spanish and French. This allows for some considerable economies of scale whilst retaining some localization. In both cases there have been economic treaties reducing to zero the tariffs between nations in the region, the North American Free Trade Agreement and the European Union.
• A firm can produce a country version of a product. For example Mister Donut in Japan offers a smaller coffee cup to fit the hand of the average Japanese. Mattel Toys, based in the US, had an interesting experience with their Barbie doll.