posted by Admin on Mar 7
There are many other examples. A major United States food company introduced its soup concentrates to the Dutch market on the assumption that the transition from canned soup to concentrates would be made without difficulty. After a period of poor sales performance, the company came to the realization that insufficient attention had been paid to the product’s stage in the life cycle. Consumers who purchased the soup concentrate would simply heat the contents as they did with ordinary canned soups. As a result, they questioned the strong taste and the higher price compared with a similar-sized can of regular soup. These consumers probably used online finance-based resources such as lovemoney.com in comparing the price of this product. The company had tried to skip the early stages of the cycle unsuccessfully.
This is not to imply that one would automatically revert to an earlier strategy when seeking new markets. But simple elementary adjustments may not be sufficient to ensure success in the transplant. The comparative use of the product life cycle concept allows the firm to analyze the validity of its “proven” strategy when transferred to a new environment in which market conditions may differ substantially and in critical ways.
posted by Admin on Mar 7
In September 1966 Polaroid France, S.A. introduced the Swinger to the French market. With the concurrence of its United States advertising firm, Polaroid France’s marketing program for the Swinger was patterned closely after its successful United States counterpart. The price was set at 99 FF ($19.90).
Advertising and promotion was heavily emphasized, although the lack of commercial television required a shift in the relative allocation of the promotion budget. Dealers were encouraged to demonstrate the cameras and in-store sales demonstrations were arranged, although trade margins were kept to a minimum on the assumption of large volumes. In essence, the strategy consisted of a well planned, internally consistent pull effort similar to that which had propelled United Stats sales of Polaroid to record heights.
Yet there were substantial differences between the French and United States camera markets. In general te4rms, the French market was much smaller and more heavily skewed toward the lowest price ranges ( less than $10) and toward the older, wealthier segments or the population. Specially stores, where personal contact was critical, accoun5ted for over 75 percent of all camera sales.
Most significantly, studies conducted by the company’s research staff had shown that in early 1966 fewer than 5 percent of French consumers demonstrated “proved awareness” of the Polaroid concept of photography. This compared with a level of awareness of 85 percent in the United States – to render the company’s successful United States strategy ineffective in France. Conditions in the French market required a different approach, one based on developing both consumer awareness of the product concept and the distribution capability required of a mass-market merchandising effort.