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Lesson#40
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Packaging Labeling and Warranties
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INTERNATIONAL MARKETING MIX – PRODUCT POLICY
Packaging, Labeling and Warranties
Product packaging:
Product packaging is the art and science of creating boxes,
covers, tubes, bags and other containers that
are sturdy enough to protect the product inside, and that are
effective promotional pieces in themselves.
To a very large degree, the quality of design work on the
package affects how well your products sell.
When shopping, you reach for products whose packaging is
attractive and looks professional, and you
instinctively shy away from unattractively packaged products.
The design of the container along with
the images, logos, marketing text, ingredients and fine print,
all go into creating something people will
feel confident to buy. Therefore it is essential that packaging
be of the highest quality so that it acts as
your in-store salesperson.
Issues in packaging in international markets:
International marketers need to take into account the following
factors for deciding appropriate
packaging in various international markets;
• changes in
climates across countries
• lengthy &
difficult transportation
• lengthy periods
on shelves
• varying sizes of
packaging
• different
consumer preferences in packaging
• some
standardization needed to make the product recognizable
• growing
environmental consciousness
• different types
of channels of distribution
• different cost
pressures
• environmental
concerns
Issues in labeling:
International marketers also need to design appropriate labeling
for various markets, to cater for the
market differences as well as to adhere to regulations. In the
following are the list of issues marketers
face in labeling in international markets;
- different languages of foreign markets
- information details to be provided
- instructions for use
- different price or currencies
- different promotions
- consumer preferences in various markets (color, wording style
etc..)
- rules and regulations of foreign countries
Issues in warranty and service policies:
International marketers also face issues, whether to standardize
or to localize warranty and service
policies in international markets. Factors favoring
standardization or localization of warranty and
service policies in international markets are listed below;
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Factors
favoring standardization
– presence of
multinational customer
– goods purchased
in one market but consumed elsewhere
– products
affecting human health and safety
– standardized
products
•
Factors
favoring localization
– different
competitive situation
– different quality
levels in different markets
– different use
conditions
– lack of
international service network
– stronger
guarantees when the company is entering in new market (marketing tactic)
– barriers to
import of replacement parts and traveling of foreign staff
– availability of
human resources & ability of local distributors
Strategies to cope with negative country of origin (COO)
stereotypes:
Marketers of products from developing world often face negative
attitudes from the customers in
developed countries. There are ways in which international
marketers attempt to address this issue
though product policy, pricing, distribution and communication;
Product Policy:
- Select a brand
name that disguises the country of origin or even involves a favorable COO
(Giordano
Bossini)
- Sheer innovation
& drive for superior quality also help firms to overcome COO biases in the long
run.
Pricing:
- Selling the
product at a relatively low price will attract value-conscious customers who are
less
concerned about the brand’s country of origin.
- For product
categories where price plays a signal of quality - high price may help.
Distribution:
- Companies could
influence consumer attitudes by using highly respected retailers.
Communication:
- Firm can use
communication strategy to
1. Improve the country image.
2. Bolster the brand image.
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