International Marketing
CASE
While the European market has always been large, the peculiarities of each European country kept the ‘white goods’ [appliances such as refrigerators, dishwashers, ovens, clothes washers and dryers] market fragmented in to many different, often relatively small markets. Different countries use different power connections for electrical appliances and also there are differences in the voltages supplied to homes. Consumer tastes vary as well. French consumers tend to prefer top-loading washing machines whereas many others in Europe prefer front-loading machines. German cooks prefer different types of hot plates and burner arrangements, and heat sources on ovens. French cooks do not. Further, many Europeans still like to hang their washing out to dry--unlike Americans.
About the only constant across Europe is product size. Australian and US consumers are used to large appliances where homes usually have a separate room for washers and dryers. However, homes in Europe are much smaller, with limited space for appliances. Moreover, many Europeans buy fresh foods daily, thereby decreasing the need for refrigerated storage. As a result, appliances in Europe are smaller than their counterparts elsewhere. In addition, in some product lines, the European market is considered underdeveloped by standards in other western countries. Fewer than twenty percent of European homes a dishwasher or clothes dryer. Even as consumer tastes change, size still remains an issue. In United Kingdom, one popular appliance is a combined clothes washer and dryer.
While goods manufacturers believe that the emergence of a single market in Europe has changed the way they will, and must, do business. Previously, they had to customize their products to meet the often conflicting standards of the EU’s national governments. Harmonised product standards allow them to standardize their products, thereby permitting them to cut product development and production costs.
While the European market has always been large, the peculiarities of each European country kept the ‘white goods’ [appliances such as refrigerators, dishwashers, ovens, clothes washers and dryers] market fragmented in to many different, often relatively small markets. Different countries use different power connections for electrical appliances and also there are differences in the voltages supplied to homes. Consumer tastes vary as well. French consumers tend to prefer top-loading washing machines whereas many others in Europe prefer front-loading machines. German cooks prefer different types of hot plates and burner arrangements, and heat sources on ovens. French cooks do not. Further, many Europeans still like to hang their washing out to dry--unlike Americans.
About the only constant across Europe is product size. Australian and US consumers are used to large appliances where homes usually have a separate room for washers and dryers. However, homes in Europe are much smaller, with limited space for appliances. Moreover, many Europeans buy fresh foods daily, thereby decreasing the need for refrigerated storage. As a result, appliances in Europe are smaller than their counterparts elsewhere. In addition, in some product lines, the European market is considered underdeveloped by standards in other western countries. Fewer than twenty percent of European homes a dishwasher or clothes dryer. Even as consumer tastes change, size still remains an issue. In United Kingdom, one popular appliance is a combined clothes washer and dryer.
While goods manufacturers believe that the emergence of a single market in Europe has changed the way they will, and must, do business. Previously, they had to customize their products to meet the often conflicting standards of the EU’s national governments. Harmonised product standards allow them to standardize their products, thereby permitting them to cut product development and production costs.