Page 162 - International Marketing

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164 International Marketing BRILLIANT'S

The basic important issues that need thorough analysis and evaluation
in product-mix planning are the number of product lines to market; width,
depth and consistency of each product line with the other and also the
product portfolio analysis. The international product-mix needs periodic
and systematic review both for detecting any incompatibility between the
products marketed and the customer needs as well as for locating the
non performing products and picking up the weak products for elimination.
The four decision areas which play a crucial part in international product
planning are branding, labeling, packaging and product warranties and
services. Each factor is discussed as follows:
1. Branding: Branding undifferentiated generic products provide firms
an opportunity to differentiate their offerings from their competitor's by way
of value addition that may be rational or emotional. Human beings are
hardly rational in their decision making. The concept of brand building
centres around the fact that both rational and emotional factors affect a
customer's decision making. Branding creates differentiation between the
firm's and competitor's products, it provides a marketing edge to the brands
so that their prices are at relatively higher levels than the competitors and
secure better margins.
The issues that need consideration in branding and trademark decision
are:
(i) Whether to have one brand name world-wide (e.g. Coke) or modify
the brand name in each market (e.g. Nescafe Instant in India,
Nescafe Gold in Germany and Nescafe Gold Blend in Great
Britain) or to have different brand names in different markets.
(ii) Whether to use separate product names as brand names or
make use of company name or a combination of the two (e.g.
Levis/Denizen Philips, Bata, Scotch); and
(iii) Whether to seek legal protection (trademark) for the brand names
and marks of the company.
The selection of a brand name that does neither lose its meaning nor
image translated into diverse languages, possess a serious challenge.
Though the establishment of international brand names facilitates the
marketing of products globally, it also raises issues of brand piracy, imitation
and fake brands. It may also be worth noting here that the world bodies
are currently pushing hard for greater protection for intellectual property
rights on a global basis.
The brand and trademark decisions are also affected by the company's
product policy on standardization Vs adaptation and the legal requirement
of the host country. It is tough to build a brand internationally and requires