Adaptation vs. Standardization in Marketing

Exercise 1

a) Adaptation

• Product:
  • Pro: Greater local acceptance.
  • Con: Increased production costs.
• Placement:
  • Pro: Improved accessibility.
  • Con: Logistical complexity.
• Price:
  • Pro: Enhanced local competitiveness.
  • Con: Inconsistent brand perception.
• Promotion:
  • Pro: Greater cultural relevance.
  • Con: Higher marketing campaign costs.

b) Standardization

• Product:
  • Pro: Economies of scale.
  • Con: Less adaptation to local tastes.
• Placement:
  • Pro: Logistical simplification.
  • Con: Less market coverage.
• Price:
  • Pro: Brand consistency.
  • Con: Less competitive in some markets.
• Promotion:
  • Pro: More cost-effective global campaigns.
  • Con: Less cultural effectiveness.

c) Suggested Decision

I would recommend a hybrid strategy, adapting key aspects (like flavor and promotion) to local markets while standardizing others (like price and placement) to maintain consistency and economies of scale. This maximizes local acceptance without incurring excessive costs.

Exercise 2

Product Composition

• Local Market: Soy protein, Mediterranean flavors.
• New Market Criterion: Local dietary preferences, allergen regulations.

Design

• Local Market: Yellow boxes, clear typography.
• New Market Criterion: Cultural color significance, readability.

Company Name

• Local Market: Heura Foods.
• New Market Criterion: Brand recognition, pronunciation.

Packaging

• Local Market: Cardboard, 150-200g portions.
• New Market Criterion: Local regulations, environmental concerns.

Price

• Local Market: €2.49 - €4.99.
• New Market Criterion: Purchasing power, competitor pricing.

Exercise 3

a) Pricing Criteria

Cost-based Pricing:

• Sets price: Based on cost + profit.
• Focus: Covers all costs.

Competition-based Pricing:

• Sets price: Based on competitors.
• Focus: Stays competitive.

Market Value-based Pricing:

• Sets price: Based on customer value.
• Focus: What customers will pay.

b) Price Proposals for "Cow Burger Vegetal"

Cost-based Pricing:

• Price: €4.50
• Why: Covers costs + 20% profit.

Competition-based Pricing:

• Price: €3.70
• Why: Lower than competitors to attract buyers.

Market Value-based Pricing:

• Price: €4.99
• Why: Premium for high value, eco-friendly.

Exercise 5

a) Objectives Aligned with Company Goals

• Increase Brand Awareness
• Educate Consumers
• Generate Demand
• Build Brand Loyalty

b) Pros and Cons of Push Strategy

Pros

1. Targeted Messaging
2. Channel Control

Cons

1. Costly Implementation
2. Dependence on Intermediaries

c) Pros and Cons of Pull Strategy

Pros

1. Consumer Engagement
2. Creates Demand

Cons

1. Longer Conversion Time
2. Higher Marketing Costs