Standardization and Adaptation in International Marketing

FACTORS AFFECTING INTERNATIONAL PRODUCT AND SERVICE MANAGEMENT

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Individual notes 1

Introduction

Standardisation plays a crucial role as it helps in spreading knowledge and brings innovation. It adds value to innovation as it gives reliable data and structured methods that secure times in the process of innovation, and it makes it simpler to distribute revolutionary knowledge and ideas about leading-edge methods. An approach of standardization permits a cohesive image of the brand across various markets (Gal, and Rubinfeld, 2019). With a significant level of global brand steadiness, recognition is boosted and the company establishes customer trust, hence making it simpler for the organisation to enter new markets. The 4 Ps of marketing is a framework for boosting the components of the marketing mix – the method in which an individual takes a service or product to market.

Standardisation and adaptation

To fulfil the demands of the marketplace, organisations must frame competitive approaches based on external and internal conditions. These approaches must balance the abilities of the company's business activities, like human resource management, finance, customer service, operations, sales, and marketing, with various environmental factors in place. Among these are culture, technology, globalization, competition, and changes in customer behaviour and demography. Organisations must select between two types of approaches, adaptation or standardization, depending on these external and internal variables.

Standardization is known as the process of meaningfully applying consistent or identical guidelines to attain uniformity (Gernant, et. al., 2020). It is not restricted to services and goods. Operating practices, metrics, manufacturing processes, data, experience, and ideas within the organisation can also be standardized. A strategy of standardisation is expressed through the sameness of advertising, messaging, pricing, packaging, and featuring offerings to customers in the market. Organisation attains this approach for different reasons. These involve enhancing competitiveness, improving efficiencies, diminishing prices, enhancing sales, and achieving a better consumer base. Adaptation is termed as the process of altering services, goods, or working efforts of an organisation in response to expectations, tastes, or certain needs from various customer groups. An adaption approach mainly includes two steps. The foremost is evaluating the changes needed to enhance the appeal of offerings among a targeted customer. The second is imposing the modification depending on the resources and abilities of the business. These tasks are important to evaluate the viability of the strategy. In marketing, the approach of adaptation translates into modifying the marketing mix – promotion, place, price, and product – to suit the preferences of target customers. Adaptation approaches are mainly linked with entering a foreign market.

Theoretical framework

Marketing mix elements

A product itself is at the marketing approach beginning efforts towards the performance of the organisation and is a core factor of the organisation as it is the foremost impact on what customers experience with a brand or product, what they analyse about the product from the general public, and what the organisation can win consumer about their item in their communication. To establish brand loyalty, customer experience with the item must, at least, fulfil, if not exceed, their expectations. Another P of the marketing mix is price. Of all the features of the marketing mix, price is the one, which forms revenue for the organisation – all remaining elements are costs (Khalayleh, and Al-Hawary, 2022). The cost of a product is a crucial determinant of the worth of sales made. Price is resolute by the discovery of the value perception of the product on sale by the consumer. Marketing managers must evolve a habit of regularly examining the costs of services and products they provide to make sure the price of the organisation is still accurate to the realities of the situation of market demand. The other P is the place in the marketing mix which is also known as distribution. It is linked to the accessibility of services or products to consumers. To impose an effective strategy for marketing, it is crucial to create the habit of reflecting and evaluating the perfect location where the salesman meets the consumer in which services and products are translated into cash. Sometimes a dynamic in the channel of distribution can lead to a boost in sales, figures can vary from item to item, as it can be costly to provide the item to consumers. A review of the literature proves that there is evolving interest in the procedure by which approaches to marketing are developed. It investigates the performance implications of utilizing various strategies for the growth of the marketing approach while aiming at the marketing mix 4ps elements.

The economic model of consumer behaviour

This model states that customers try to fulfil their requirements while utilizing as few resources as possible (Legeza, et. al., 2019). That means that manufacturers and businesses can assume sales depend on the income of consumers and the price of the product. Consumer behaviour theory is known as the study of how individuals make choices when they purchase, assisting marketers and businesses in capitalizing on such behaviours by assuming when and how customers will make purchases.

Product strategy

Product adaptation needs a brand to find out the crucial its item must comply with to fulfill cultural differences and regional regulation of market. Through different research processes, providers examine what`s required to fit in a new foreign market (Katsikeas, et. al., 2020). That means seeing safety standards and quality, climate, restrictions, cost, purchasing power, practices and preferences, customer behaviours, and cultural factors. Adaption delivers a modified version of the item that considers local needs, legally, and culturally. It allows producers to form various versions of their items for every market. By incorporating features, packaging styles, sizes, and local trends, their item will match the expectations and requirements, and appeal to tastes of buyers. Standardization provides a single unified item that sits relaxed in all markets. Standardization permits producers to keep prices down with a single set of producing tools and the same packaging, forming a global item in the procedure. For instance: Cola is standardized, but the organisation has established contained flavors to provide to the taste preferences of consumers in different regions.

Pricing strategy

Multinationals need to identify various pricing considerations while competing worldwide. Organisations need to set various and accurate prices for their items for each of the markets they perform. The costs of an item are a crucial criterion while formulating an approach for the worldwide market as it determines to a large limit whether an item will get sold or not. organisations contend with various issues in costing for the global market such as costing for emerging markets, dumping charges, reference pricing, price escalation, geographical pricing, and costing for people at the lowest of the pyramid (Mandal, 2021). Multinational organisations that have a presence in the worldwide market must be friendly and must have accurate approaches for costing for emerging markets, dumping charges, reference pricing, price escalation, geographical pricing, and costing for people at the lowest of the pyramid. Two problems in costing that are crucial involve costing issues of counterfeits and gray markets. For instance: Unilever provides tiered item costing across its different brands to provide to various segments of the market.

Distribution strategy

A distribution strategy is known as the channels and methods an organisation utilizes to provide its services or products from the production point to the end customer. The predominant objective is to move inventory as productively as possible while providing the best consumer experience. Product distribution approaches methodically plan how organisations can utilize channels of distribution to get items to customers. A channel of distribution is the way that a finished item takes from the stage of development to reaching customers. The distribution channel begins with the producers and can involve retailers, distributors, and wholesalers. Channels of distribution can be virtual or physical. Finally, they compromise the players and strategies that get an item from its origin point to the consumer. Direct distribution starts when the producer of the product and the consumer meet directly. In a channel of direct distribution, there are no intermediaries. Next, indirect distribution starts when an organisation utilizes partners, sometimes known as value-added resellers, to sell the product of the organisation (Kanniainen, 2021). Next, exclusive distribution starts when the item producers permit a distribution partner to restrict the product sale. These partnerships of exclusive indirect distribution may restrict the item to certain stores, customer segments, or geographic locations. Intensive distribution starts when the item producers utilize numerous distribution partners to reach consumer segments through various channels. Next, selective distribution starts when the organisation meaningfully selects its channels of distribution to enhance efficiency and profit. This can be termed an extension of the exclusive distribution approach. For instance: the supply chain strategy of McDonald's is positioned around its three-legged stool which aims to employees, suppliers, and franchisees. By forming better relationships with partners, an organisation can effectively maintain its supply chain and manage product quality.

Communication strategy

In the present globalized trade landscape, multinational corporations perform actions in different nations and provide to different markets. Handling consumer relationships across borders is difficult work, but it is also important for the growth and success of these organisations (Degbey, and Pelto, 2021). Management of consumer relationships is a set of technologies and practices that support businesses in maintaining and building better relationships with their consumers. For MNCs, approaches of customer relation management play a crucial role in making sure that they can productively involve consumers in various cultural contexts and nations. Multinational corporations face various issues when it comes to managing their relationships with consumers. They mainly act in various markets with different consumer behaviours, cultures, and languages. Customization is the keystone of productive management of customer relations for multinational corporations. It includes embracing practices of customer relations management to fulfill the certain expectations and needs of consumers in every market while managing a unified worldwide approach to customer relations management. Effective management of data is crucial for multinational corporations to execute their strategies of customer relation management successfully. Handling the data of consumers across borders can be difficult work because of differences in data quality, data sources, and data protection regulations.

Conclusion

The organisation gets various benefits from standardization. The reduction in cost given by economics of scale permits the organisation to establish competitive pricing. Production, marketing, distribution, and management prices can be diminished as their procedure are standardized. In the marketing mix component, the price is the only factor that produces profit, and the remaining three parts are of high cost for the organisation. This makes it a more crucial feature in the marketing mix. Management of distribution directs to diminished charges of shipping and rapid delivery to the consumers, and it also makes things simpler for the customers as it allows one-stop shopping and other rewards and conveniences, like programs for customer loyalty rewards.

Individual notes 2

Introduction

Pip & Nut concentrates on manufacturing almond and peanut butter. The organisation gives varieties of almonds and buttermilk that are free from palm oil and additives. The organisation was established in the year 2013 and is a London, UK-based organisation (Pip & Nut, 2017b). Staying up on the ladders can be a daunting task for the organisation, mainly when the competitor is continuously rising in the industry but Pip & Nut did smoothly. The company`s butter only contains natural ingredients without the addition of sugar, they also provide numerous flavours. On a company level, international marketing is term as an opportunity for increased sales, product awareness, and wider exposure. Abroad opportunities are numerous and tap into a huge customer base than the organisation has the availability to if it leads business locally and nowhere else.

About organisation

Pip & nut provides several nut butters, including almonds and peanuts, available in both crunchy and smooth textures. Cups of chocolate filled with nut butter, accessible in milk and dark chocolate varieties (?Pip & Nut, 2017a). A service permits consumers to gain permanent deliveries of nut butter and other items at a discounted cost. Pip & Nut can be developed as the organisation has presently secured an investment boost of one million pounds to help the development of new items and further evaluation. This financial injection shows the growth of operation and funding in the organisation`s future. The investment is focused on underpinning the development of new items, which recommends that Pip & Nut is actively working on developing its items range to fulfil market trends and customer demand. It is appropriate to state that nut butter is high right now and none more so than Pip & Nut, a nut-butter-built company aiming to meet flavour without palm oil and refined sugars. Since establishing a stall on Maltby Street Market in the year 2015, they have provided a cookbook, expanded to squeeze packs and nut milk, and their peanut butter, cashew, and almond are now stocked in more than 4000 stores (Pip & Nut, 2017b). This involves ASDA, Tesco, and Selfridges across the UK and Europe and it is quite impressive for an organisation which is established by one individual. The founder of the company is Pip, a healthy brand of food with a variety of almond milk and nut butter. The view for the Pip & Nut came about through her love of running. The idea to start the company was raised in January 2013, when the founder was making their natural nut butter at her home to fuel her marathon training.

International Marketing Opportunities: Pip & Nut

Market Trends

Due to certain global trends that are unravelling internationally, the food industry is transforming. Technology is disrupting how customers are being reached with e-commerce being the most common method of reaching consumers for food products (?Beyari, 2021). Companies must shift to new forms of marketing communication, taking advantage of social media and internet communication channels where consumers are found. Also, sustainability has remained a key factor because customers are becoming conscious of the origins of products, and companies are encouraged to use sustainable means when farming and processing goods. Some trends that could be used to brand advantage by those that have aligned with them include; Brands such as Pip & Nut, which is invested in natural goodness and sustainable packaging, should take advantage of this by going out of their way to reinforce their environmentally friendly message.

Target Markets

Opportunities: Emerging markets have a significant potential for Pip & Nut. Countries are now emerging markets given that the population is becoming more aware of its health and therefore on the lookout for healthy foods that can also be eaten conveniently. As seen in foreign markets, the consumption rate of nut-based products is on the rise as the health benefits of nuts start to gain recognition (Alina, et. al., 2024). On the other hand, developed nations like the United States and Western Europe markets are now calling for preferable, organic products. Pip & Nut getting into these regions is possibly beneficial especially since the company already has a good brand and high-quality products.

Regulatory Environment

The laws and regulations that govern the foreign market pose a major challenge to the entry of new international markets to any organisation (Tien, and Ngoc, 2019). For instance, food hygienic measures may differ from one country to another, therefore implementation of health and labelling policies. However, import tariffs and trade barriers may be risks in emerging markets that will require specific local distributors who will address these challenges. Health claim laws and restrictions to target specific consumers are particularities of developed markets that must be respected. Market research and contacts with locals can be used for a better understanding of the legislation and problem-free entrance by Pip & Nut. Therefore, based on the analysis trends that can help Pip & Nut increase international penetration, and considering the country-level positioning that can contribute to minimizing gaps in the competition-risk assessment and regulatory concerns, the company would be able to find suitable opportunities for international expansion.

SWOT Analysis for Pip & Nut

Strengths:

The brand identity of Pip & Nut is well-established based on quality and, to a large extent, sustainability that targets modern consumers concerned about their health. The product line includes natural nut butter to respond to current consumers’ preferences for better ingredient sourcing – clean-label. It has been noted that the brand has a great social media presence and customer base that would foster the company’s direct–to–consumer business.

Weaknesses:

A risk might be higher product prices in comparison to cheaper brands, which, in turn, may significantly reduce market access to credit-population niches. In consequence, Pip & Nut might experience challenges associated with the increase of supply reach as it defines a new market on an international level.

Opportunities:

There are tremendous opportunities for growth in emerging markets because, with growing health consciousness the demand for healthy food is on the rise (Nguyen, et. al., 2019). Additionally, the increasing popularity of flexitarian or vegan diets creates opportunities for new creations like nut-based snacks or spreads. Marketing partners with health and wellness influencers can also add to brand recognition and cravings.

Threats:

Competition is set to heat up, with well–known international brands up against local rivals in the region. Political turmoil, and or change in trade policies are also potential looms that may affect price and place strategies. In addition, the level of awareness displayed by the consumers towards firms’ sustainability policies may further demand a state of continuous change and improvement.

Conclusion

The company Pip & Nuts took competitive advantages from its healthy recipe and variety of flavours. They provide numerous products with the best taste which is the prior reason for the higher sales of the organisation. The market trend of the industry is completely dynamic as in the present world e-commerce plays a crucial role in reaching a huge customer base. The best quality products produced by the organisation are the foremost strength of the company as it also focuses on sustainability. However, some other brands sell their product at a much lower rate which comes out as the major weakness for the enterprise. As people are getting health conscious it works as an opportunity for the Pip & Nut. Additionally, the immense competition in the industry is the biggest threat to the growth of the company anyhow organisation is performing best in the market.

References

Alina, M.R., Mure?an, C.C., Pop, A., Mar?i?, G.S., Mure?an, A.E., Pu?ca?, A., Postolache, A.N., Stoica, F., Crivei, I.C., Vele?cu, I.D. and Ra?u, R.N., 2024. An Overview of the Characteristics, Advantages, and Uses of Nuts. https://www.intechopen.com/online-first/1189782

?Beyari, H., 2021. Recent e-commerce trends and learnings for e-commerce system development from a quality perspective. International Journal for Quality Research, 15(3).https://www.researchgate.net/profile/Hasan-Beyari/publication/353958239_RECENT_E-COMMERCE_TRENDS_AND_LEARNINGS_FOR_E-COMMERCE_SYSTEM_DEVELOPMENT_FROM_A_QUALITY_PERSPECTIVE/links/611c0939169a1a01030ae7a0/RECENT-E-COMMERCE-TRENDS-AND-LEARNINGS-FOR-E-COMMERCE-SYSTEM-DEVELOPMENT-FROM-A-QUALITY-PERSPECTIVE.pdf

Degbey, W.Y. and Pelto, E., 2021. Customer knowledge sharing in cross-border mergers and acquisitions: The role of customer motivation and promise management. Journal of International Management, 27(4), p.100858.https://www.sciencedirect.com/science/article/pii/S1075425321000387

Gal, M.S. and Rubinfeld, D.L., 2019. Data standardization. NYUL Rev., 94, p.737.https://escholarship.org/content/qt89k2w1km/qt89k2w1km.pdf

Gernant, S.A., Bacci, J.L., Upton, C., Ferreri, S.P., McGrath, S., Chui, M.A., Rickles, N.M. and Smith, M., 2020. Three opportunities for standardization: a literature review of the variation among pharmacists’ patient care services terminology. Research in Social and Administrative Pharmacy, 16(6), pp.766-775.https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7784038/

Kanniainen, J., 2021. Customer Value Communication in Indirect Distribution Channels (Master's thesis).https://trepo.tuni.fi/bitstream/handle/10024/135577/KanniainenJaakko.pdf?sequence=2

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Khalayleh, M. and Al-Hawary, S., 2022. The impact of digital content of marketing mix on marketing performance: An experimental study at five-star hotels in Jordan. International Journal of Data and Network Science, 6(4), pp.1023-1032.http://growingscience.com/ijds/Vol6/ijdns_2022_110.pdf

Legeza, D.G., Brunner, T., Kerimova, Y.K., Kulish, T.V. and Konovalenko, A.S., 2019. A model of consumer buying behavior in relation to eco-intelligent products in catering. Innovative marketing, 15(1), pp.54-65.https://arbor.bfh.ch/7855/1/IM_2019_01_Legeza.pdf

Mandal, P.C., 2021. Pricing and Ethical Issues for Global Markets: Strategies and Initiatives. International Journal of Business Strategy and Automation (IJBSA), 2(2), pp.1-15.https://www.igi-global.com/article/pricing-and-ethical-issues-for-global-markets/276453

Nguyen, H.V., Nguyen, N., Nguyen, B.K., Lobo, A. and Vu, P.A., 2019. Organic food purchases in an emerging market: The influence of consumers’ personal factors and green marketing practices of food stores. International journal of environmental research and public health, 16(6), p.1037.https://www.mdpi.com/1660-4601/16/6/1037

?Pip & Nut, 2017a. Pip & Nut: About Us. [online] Available at: https://www.pipandnut.com/pages/our-nuts [Accessed 11 Oct. 2024].

Pip & Nut., 2017b. Pip & Nut: Meet Pip | Our Story. [online] Available at: https://www.pipandnut.com/pages/our-story [Accessed 11 Oct. 2024].

Tien, N.H. and Ngoc, N.M., 2019. Comparative Analysis of Advantages and disadvantages of the Modes of Entrying the International Market. International journal of advanced research in engineering and management, 5(7), pp.29-36.https://www.researchgate.net/profile/Hoang-Tien-Nguyen-2/publication/338719711_Comparative_Analysis_of_Advantages_and_Disadvantages_of_the_Modes_of_Entrying_the_International_Market/links/652fd8d824bbe32d9a4f3757/Comparative-Analysis-of-Advantages-and-Disadvantages-of-the-Modes-of-Entrying-the-International-Market.pdf