International Product Planning Major Product Decisions.pptx

Major Product Decisions-Product Features and Quality, Product Design, Branding, Packaging, Labeling, and Product Support Services; Product Standardization vs. Adaptation; New Product Development;IPR Issues; International Product Life Cycle; Managing Product Mix and Product Line. b) Pricing for International Markets: Factors affecting International Price Determination; Pricing Strategies for International Markets; Price Quotations and Terms of Sale, Delivery and Payment;
Dumping; Gray Market; Transfer Pricing.

1. International Product Planning International Product Planning Dr.Sujata Umesh 1

2. Major Product Decisions Product Features & Quality: Tailor products to international market expectations. Example: iPhones in India offer dual SIM support due to local demand. Product Design: Adjust to cultural preferences or regulations. Example: McDonald's menu adapts for vegetarian options in India. Branding: Maintain consistency but localize for meaning. Example: Coca-Cola uses different slogans in different countries. Packaging & Labeling: Meet legal requirements and appeal to consumers. Example: Recycling symbols in Europe. Product Support Services: Offer tailored after-sales support. Example: Sony offering multi-language customer service globally. International Product Planning Dr.Sujata Umesh 2

3. Product Standardization vs. Adaptation & New Product Development Standardization vs. Adaptation: Standardization: Uniform products worldwide; cost-efficient. Example: Apple standardizing iPhones globally. Adaptation: Customize products for local markets. Example: Unilever's skin care products adapt to regional climates. New Product Development: Address cultural, economic, and legal factors. Example: Tesla developing electric cars for international markets with local regulations in mind. International Product Planning Dr.Sujata Umesh 3

4. International Product Life Cycle & IPR Issues International Product Life Cycle: Introduction Stage: New products launched in home market first. Example: Smart speakers like Amazon Echo first launched in the U.S. Growth Stage: Expansion into international markets. Maturity Stage: Product well-established in global markets. Decline Stage: Reduced demand worldwide. IPR (Intellectual Property Rights) Issues: Protecting patents and trademarks across countries. Example: Apple securing trademarks for iPhone before launching in each market. International Product Planning Dr.Sujata Umesh 4

5. Pricing for International Markets: Key Factors & Strategies Factors Affecting Price Determination: Production Costs: Varies by country (labor, materials). Example: Producing in China can be cheaper. Exchange Rates: Currency fluctuations. Example: Impact of the euro vs. U.S. dollar. Market Demand & Competition: What customers are willing to pay. Pricing Strategies: Market Penetration Pricing: Low price to enter a new market. Example: Xiaomi's affordable smartphones in India. Price Skimming: High initial price for innovation. Example: iPhone launches with high prices. International Product Planning Dr.Sujata Umesh 5

6. Price Quotations, Dumping & Gray Market Price Quotations & Terms of Sale: FOB (Free on Board): Exporter responsible until goods are on the ship. CIF (Cost, Insurance, and Freight): Exporter pays for shipping and insurance. Dumping: Selling below cost to dominate foreign markets. Example: Chinese steel in international markets. Gray Market: Unauthorized sale of goods in another country at lower prices. Example: Electronics sold in the U.S. through unauthorized channels. International Product Planning Dr.Sujata Umesh 6

7. QUIZ Which of the following is an example of product adaptation in international markets? a) Launching a product with uniform features worldwide b) Using the same packaging design globally c) Customizing the product to meet local tastes and preferences d) Offering the same product support services in all countries International Product Planning Dr.Sujata Umesh 7

8. Answer: c) Customizing the product to meet local tastes and preferences International Product Planning Dr.Sujata Umesh 8

9. 2. What is a key advantage of product standardization in international markets? a) Better adaptability to local cultures b) Lower production and marketing costs c) Increased product variety for consumers d) Reduced competition from local brands International Product Planning Dr.Sujata Umesh 9

10. b) Lower production and marketing costs International Product Planning Dr.Sujata Umesh 10

11. 3. Which of the following pricing strategies is used to gain rapid market share by setting a low price? a) Price Skimming b) Market Penetration Pricing c) Premium Pricing d) Competitive Pricing International Product Planning Dr.Sujata Umesh 11

12. b) Market Penetration Pricing International Product Planning Dr.Sujata Umesh 12

13. 4. Which of the following best defines dumping in international trade? a) Selling a product at a lower price in the domestic market b) Selling products in foreign markets below the cost of production c) Exporting goods without proper licensing d) Selling products through unauthorized distributors International Product Planning Dr.Sujata Umesh 13

14. b) Selling products in foreign markets below the cost of production International Product Planning Dr.Sujata Umesh 14

15. 5. What is a gray market? a) A market where counterfeit goods are sold b) An illegal market where goods are sold without customs clearance c) A market where goods are sold through unauthorized but legal channels d) A market where products are sold below their production cost International Product Planning Dr.Sujata Umesh 15

16. c) A market where goods are sold through unauthorized but legal channels International Product Planning Dr.Sujata Umesh 16