Product Management in International Market-Samples for Students

Question: Critically examine why and how the Organisation should standardise or adapt its product in your chosen International Market. Answer: Introduction International marketing management is a kind of multinational process that includes planning, executing, commencement, pricing, promotion and distributions of the ideas, various goods and different services that help in creating the exchanges and further helps in satisfying the individual and the objectives of the organization (Kozak, 2015). The management of the international market is known as international marketing management. International marketing mainly involves the identification of needs and desires of the customers that exists in the international market. It also involves the decisions of the marketing mix that further includes the market behaviour. Main characteristics of the international market include the dominance of the multinational companies which also include the operations in large scale. A well-defined research on marketing includes long term planning and also maintains cultural relations. The main objective of international marketing includes developing the skills, helps in creating the marketing challenges and the opportunities. It also helps in gaining the experience in the field of marketing strategies. Moreover international marketing helps in being ethical to the practices and further urges to learn on the marketing management. The main reasons for the firms to go in the international market include profitability, growth in the business, more marketing opportunities and many more. Beside the positive factors there are many challenges that are involved in the international marketing. Some of them are: the differences in the political and legal system, difference in the culture, economy, currency unit, languages and in the marketing infrastructure. There are also restrictions in the trading business and the cost of distance is also high. Implementation Of Product Management In International Market Product management is basically a lifecycle function in the company that deals with the planning, forecasting, production and also includes the marketing of the products in the international market. International project management is important as it helps to increase the variety of global products and services. It also helps in advancing the technology which helps in making the international business easier. It changes the behaviour of the customer and also helps in racing with the global reach. There are also challenges that occur in the management of international products and these challenges are either external or internal. External challenges include the problems that arise outside the organization and internal challenges include the problems that arise within the organization. There are several strategies which could be implemented by the company for enhancing its business in market. Mcdonalds Global Strategy This company is a well-known famous company that thinks globally but acts locally (Vignola, 2001). This company was smart enough to realize that the market that is overseas requires a high degree of local responsiveness. They have also managed their business in different regions in the most beautiful way. This company should also create a value chain keeping the local culture, economic environment, legal and political issues in mind. McDonalds hire the local people in order to increase the acceptance toward the company. This will also help in gaining the bureaucracy that is related with the local government. With the help of franchise model this company helps in reducing the cost of setting up new business in several regions. This is evaluated that if company follow this level of strategies then it will surely increase the productivity and efficiency of business. Mcdonalds In China In china many multinationals companies have tried their luck and failed miserably but this company has managed to succeed in the international market. Like the other companies McDonalds did not strict themselves to their home culture rather they adapted the Chinese culture in order to attract the Chinese customer. The employees and the managers in the McDonalds were all Chinese and the menu was also modified according to their taste. In addition to this, company has increased its overall business performance and increased its product efficiency in effective approach. Mcdonalds In Saudi Arabia McDonalds in Saudi Arabia also adapted itself according to their local customers. For the Muslim prayers it closes 5 times in a day. This McDonalds follows all the Muslim customs as it does not provide pork items in their restaurants because it is against their custom. Half of the products in this restaurant are manufactured locally and in the gulf regions. Benefits Of International Market There are many benefits that an organization earns when they go globally as globalisation has the power to take the business at some other level. Some of the benefits in expanding the business on an international scale are: New Revenue Potential: when the companies decide to go internationally they get a very good access of the larger network of the customers. If the products and the services achieve success in an international market then revenues will also get increased with the help of new customers even if the company has a very saturated business domestically. Globalisation is the best way to take the product or the company to high level. Ability Of Helping People: the solution that companies or even the new products that are launched in the international market should have the potential to solve the queries of the customers and rather help them in improving their lives in any possible way. When globalisation takes place large number of people gets a greater help which will ultimately help and benefit the organization. Greater Access To Talent: This is the other benefit that companies get when they enter in the international market. By going global company gets as access of the employees who are potential and having unique skills with an excellent mind-set. Sometimes companies even find employees that are very difficult to hire in the home country. Because of the globalisation company gets an edge over other companies who are the competitors and have not gone internationally. New Culture: an organization can be better rounded if they get information about the new place in which the company wants to globalize and expand their business. It provides a new perspective on the relations that are building with the customers and by understanding the people who dont belong to the home country can really give new ideas to the companies and will benefit the company. This will also work better for the customers who are in the home country. Sometimes companies also have to hire the cultural consultant that guide the customers in creating marketing content that can also sometimes create cultural and linguistic nuances. Exposure Of Foreign Investment Opportunities: Most of the times foreign investment are valuable for the business or the organization as they help in expanding the business and even create profits for the business. Company use these methods to enhance its business in other countries Reputation Is Enhanced: companies and the businesses that are successful in the international market enjoy being an international company as it enhances their reputation in the domestic market. It is not at all easy for the companies to start their business in the international market and accomplish a desired position in the market. When customers get to know about the international presence of the companies then they think better about the company and respect more. Diversifying Company Markets: by taking the company or the business in the international market helps to diversify the market so that there are more stable revenue sources as sometimes if the company only has business in two to three areas then they can even experience the dramatic shift (Barrett Weinstein, 2015). Standards And Adopts For International Market In todays scenario global standards are mostly developed, adopted and are also recognized in many several ways. These international standards are driving the innovation, contribute to the market growth and even protect the health and safety of the workers and even the general public. Global standards are considered as fundamental tools of engineering and these standards are also fundamental to social wellbeing. Now a days everyone in the world requires global standards as they help in enabling the creation of the products and services that are provided by the companies to the customers so that they can use and the services globally. The globalization trend along with the technology that is booming day by day has a huge influence on the expectations of the consumer. These global standards further help the global market to expand more and earn profit more with greater revenue. As the companies are moving towards the global market so for that standards paradigm is needed which will help the company to expand in the strongest way. Product And Service Standardization Of Mcdonalds McDonalds makes sure that it helps in standardizing the operations in all its franchises so that a particular standard is maintained. This company provides the same experience throughout the world. This can be achieved by simply reducing the amount of skills that are required to prepare the product line. Every worker of the company has to follow the same standard procedure for making the meal and should have an identical output at everywhere in the whole wide world. There are several international project management concept which could be evaluated for the better understanding of international business. International Project Management Concept The product concepts that are involved in the basic marketing are also available for the international marketing too. Moreover products can be also considered as bundle of attributes that are tangible and intangible which further provides satisfaction to the customer. The products that are expanding in the international market can be seen can be seen at different levels through the degree of inclusion of both physical and nonphysical benefits. The product is further formed of three components: The core component that includes the main features of the product and further helps in fulfilling the basic need and moreover helps in offering the core benefits that includes the design and technical feature. The package component further includes the elements such as styling of the product, whether quality is meeting the standard or not, packaging is perfect or not and the brand name is available or not (Datta, Ailawadi,, van Heerde, 2017). The service components includes the services that are related with the product which further includes the installation, instructions to use the product, maintenance and repair, warranties that are provided to the customers and the spare parts that customers get as complementary (Helm Gritsch, 2014). On the other hand product concept can also be on three different levels and that are: core product, actual product and augmented product. The core product helps in fulfilling the needs at the basic level and further offers the core benefits to the customers. Customers attain these benefits when they purchase any kind of goods or services from the company. Core product also includes different aspects such as the product platform, basic function and the features of the product (Erragcha Romdhane, 2014). Further it also includes the entire legal requirements that are necessary. The actual products contains the physical benefits which further has styling, packaging, trade marking, branding and the most important part of the product that is quality. It does not matter whether the company is dealing domestically or internationally at the end customer only wants their own profit at all the three levels of product concept. During the international marketing company should take care of all t he changes that are required to make at all the three different levels so that they can easily fit into the international market (Mintz, Currim, 2013). Degree Of Adaptation And Standardization This is one of the main decisions in the international market as the company should adapt or standardize the product of several markets or not. Standardization refers to offer the same products in the different market where adaptation means to make some changes in the product according to the desires of the customers and then satisfy their needs at the end offering different products in different markets (Kraak, et al. 2017). Complete standardization is completely impossible as there are many standardized products who actually suffered adaptation in the international market and some of the examples are McDonalds, Coca- Cola and many more (Liu, Li, , Balachander, 2017). Sales force plan This plan will help in setting up an effective sales team and will provide a clear view points to sales team members to discharge their work as per the determined action plan (Armstrong, et al. 2015). McDonald is the international company and to have more attention on the customers in international market it has to prepare an effective sales force plan. In order to tap international market such as China, Saudi Arabia, England, UK and US, company has to hire 50 members sales team in each country. These members will indulge in evaluating market, collecting data from the people in particular country which could be used by company to customize its products (Duncan Natarajarathinam, 2016). However, 20 members supporting staffs will be given to these sales teams who will help them to discharge their basic works. After that, SD 1, 00,000 budget will be set for each sales team to cover up all the basic functions such as collection of data, promotion of companys products and direct meeting with clients through seminars and online monkey survey (Moncrief, Marshall Rudd, 2015).Line manager of each sales team will take weakly training and development classes for all the employees in sales t eam so that they could learn sales and marketing tactics in easy and determined approach. However, sales plans developed by these sales team in each country should be based on the marketing mix set and specific objectives determined by the McDonald. Nonetheless, in order to increase the effectiveness of sales force plan, management team of McDonald could follow following set steps such as formulating sale plan, implementing sales plan, Evaluating and assessing implemented sales plans and in the end, resolve the problems identified in determined approach. Benefits of Salesforce in Mcdonald's McDonalds is the kind of company that is not totally dependent on the TV advertising. This company has moved towards the holistic digital strategy so that they can capture and attract the customers of the next generations also. To have more attention of the customers this company is trying to engage the customers at every step they take which includes advertising about their company through mobile and social Medias. McDonalds is also changing their way of marketing the product (Harrington, et al. 2017).It has also changed the way it has taken its products into market. Now this company has main focus on the below the line advertisement. In the recent trend the time which is used in print by the customers is 4 present, advertising which is spend on the print media is around 18 present. Moreover mobile technology comes around 24 percent and only 8 percent of the advertising dollars are spent on the mobile campaigns (Williams, 2015). McDonalds also harnesses the new cross channel marketi ng with the help of sales forces social management tool. This further helps the company in reaching to people with the help of multiple devices and also with the multiple platforms on a large scale. This brand also captures the data about the customers so that they can maintain a healthy relationship with the customers. This company also has a specific tool called as active audience that helps the company to further synchronise the data in the CRM system with the help of marketing cloud (Dominici, 2015). Marketing Mix Of Mcdonalds Product Mix This company mainly provides food and beverages products. Product mix includes the several outputs that customers receive from the company. The main product line of McDonalds is: (Christopher, Payne Ballantyne, 2011). Salads Snacks Beverages Desserts and shakes Breakfast Although this company is known for burgers but it also has varieties of other products too so that customers can get a wide range of products (Rehmani, et. Al. 2015). Below given product mix chart could elaborate the proper level of value chain of company. Source: (Goi, 2009). Place Mix The restaurants of the McDonalds are the places where the products are distributed the most. This particular element describes the locations where products are mostly offered. Main place of distributing its products are: exclusive restaurants of McDonalds, Kiosks, post mates websites and app, McDonalds mobile app (Schroder, 2005). The restaurants of McDonalds are mostly situated at the places where there is maximum sales revenue. Some of the restaurants of the McDonalds help in managing the kiosks where they sell the limited products for example desserts. Customers also have a choice where they can place their order with the help of post mates websites and mobile apps (Constantinides, 2006). Promotional Mix This company has a unique style of promoting the products in order to attract the customers. This particular element helps in defining the approaches that are used in the communication with the customers. Some of the tactics that are used by McDonalds in its promotional mix are: advertising through different sources, sales promotions, maintaining relations with the public, direct selling of the product. The advertisements that McDonalds provides are always notable. They advertise through TV, radio, social media sites and through print media (Parker, 2003). It also uses sales promotion so that can attract customers to their restaurants and then earn profit out of it. For example this company provides discount coupons and freebies for some of the products. Even the public relations that this company makes also help in promoting the business for the target market (Khan, 2014) Price Mix The pricing strategy of McDonalds involves the price bundling that is combined with the psychological pricing. The company provides meals and other products bundles in the form of combos in the price bundling. This company uses the strategy to use such prizes that are affordable by the people. This further motivates the customers to buy their products which ultimately benefit the company (Londhe, 2014) Conclusion For every company it is important to expand their business whether domestically or internationally. If the company is expanding their business internationally it has to face many challenges and there are also advantages that a company gets. For a company like McDonalds it is not very difficult to expand their business in the international market as this company have many strategies and tactics. From this report it can be concluded that this company has a brilliant marketing strategies that further helps in the promotions and attract the customers. It has a better understanding of the product management concept and also the three levels that are involved in the product management concept. This company understands the psychology of the customers and adapt themselves according to the region it wants its establishment into. Despite the tough competitors it has managed to survive in the market and has become the market leader in most of the countries. McDonalds has also used the strategy to be cheap and then earn profit out of it. Due to the cheap and affordable prices many customers are attracted towards this restaurant. From this report it can also be concluded that this company has a great degree of adaption and standardisation. When this company enter into the international market they adapt their culture and even hire the employees from the same country in order to increase the acceptance towards the country. This company also follows a particular standardization and provides the same experience throughout the world. The main thing that can be concluded from this report is that going internationally for any company can create a boom in their market and therefore can sometimes be more successful than the domestic market References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. Barrett, H., Weinstein, A. (2015). Corporate entrepreneurship, the marketing mix, and business performance. InProceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference(pp. 144-150). Springer, Cham. Christopher, M., Payne, A., Ballantyne, D. (). Relationship marketing: bringing quality customer service and marketing together. Constantinides, E. (206). 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