MKT/562 – Advanced International Marketing
October 11, 2010
Implementation and Standardization Strategies Paper
Valspar’s is planning to launch a new paint in its product line. The paint will change color based on the temperature. Once the paint is exposed to cold or heat the color will change which has lead to the product name Chameleon. “Since 1806, Valspar has been dedicated to bringing customers the latest innovations, the finest quality, and the best customer service in the coatings industry (About Valpsar.Com, para 1)”. Therefore Valspar has a long history with developing implementations and standardization strategies. According to Heil “a company develops its international strategy by considering its overall strategy, which includes its operations at home and abroad. We can consider four aspects of strategy: (1) scope of operations, (2) resource allocation, (3) competitive advantage, and (4) synergy” (Heil, para 16). Valspar has all these areas addressed and is now looking to develop its implementation and standardization strategies for its new product Chameleon.
This paper will discuss the implementation strategies to include factors influencing local and foreign buyer behavior. Discuss the difficulties encountered when trying to research and understand local buyers. The implementation strategy will address which models of consumers’ behavior might be used to examine buyers in local markets and the importance of considering cultural elements to apply these models effectively. This paper will also discuss standardization strategies to include the difference between localization, adaptation and standardization of a global product or service. Discuss the key factors that drive a successful globalization of a new product into a foreign market. Discuss the pros and cons of standardization. Explain methods of integrating a global brand to both local and foreign markets and the role of data analysis, local subsidiary input and managerial judgment in developing a globally standardized product.
Valspar is currently conducting business in the global market. So the implementation strategy will be fairly easy for the company. Valspar will just introduce a new product line by building brand equity and reinventing the brand in the UK market it is already conducting business in. Brand equity will allow the company to create brand awareness not only to the new products but also existing products. Brand equity also allows the company to create brand loyalty and brand association and perceived quality.
Factors influencing local and foreign buyer behavior
Johansson stated that “Ultimately, customers in different places may want the same basic things, but specifically, their product and service needs and preferences vary considerably. The reasons for the variations lie in cultures and socioeconomic and geographic environments, that is, the conditions under which products and services are used and consumed”. “These locational and cultural factors affect buyer behavior directly and they demand a corresponding variety in local marketing activities” (Johansson, pg 207). A good deal of the local marketer’s hard work abroad involves adjusting his or her understanding of what customers specifically want as well as of how and why customers and competitors behave as they do( Johansson, 2009). Culture, economics, technology, and politics are all considered external factors that influence local and foreign buyer behavior. These factors such as culture are major influences in buyer behavior because consumers have cultural beliefs that will keep a consumer from making a purchase. Factors such as economics and politics play a role in buyer behavior because both factors tend to make consumers think twice about making purchases because if the economy is bad and it is politically driven then consumers will opt not to makes...