Product Standardization v/s Adaptation Argument

Most product decisions fall in between the spectrum of “Standardization” to “Adaptation” extremes. Changes in design are subject to cultural pressures. The more culture-bound the product is, for example food, the more adaptation is necessary.

They both represent a way of selling products overseas. As pointed out, adaptation involves modifying a product so as to meet the local requirements and customs.

In India for example the multinationals like PizzaHut and Mcdonalds catering to Indian tastebuds have launched Masala Tikka Burgers and Paneer Pizzas. Similarly, when Indian companies cater to the foreign markets, they launch foods which are bland. However, the advantages of economies of scale in production and marketing; savings on common costs of R&D, product and package design; consumer mobility; and universal image make a strong case for product standardization across different export markets. The reality of the export markets is, however, not so easy to harness. Factors such as the following and their implications influence the exporting firm’s decision in favour of product adaptations and in extreme cases even for new product development.

Establishing Product Adaptation

In order to drive a successful product adaptation, there are steps to be followed. The first and obvious one is for companies to research the new market and determine how different it is from the current market. This involves learning the needs, attitudes, cultural believes, and desires of the consumers in the new market. It is also of great need that a company determines the marketing strategies that would work on the new crowd as strategies don’t work the same for all markets.

A company is then faced with the task of determining the required type of product modification. There are a few that are available for such companies, and they include:

• Tangible adaptation: This involves changing a product’s physical aspects such as size and packaging
• Intangible adaptation: Here, a company will modify intangible elements such as positioning and brand name
• Promotional adaptation: This involves changing methods and types of advertising as well as the media of choice.
• Price adaptation: A company adopting this type of adaptation has to change size or quantity of their product so as to account for the changed This is because a new market may not be willing or able to spend as much money on a certain product as others.

The main differences between adaptation and standardisation of the marketing strategies are summarised in table below.