1. International Product Strategy
New product introduction alternatives
Product components
Branding
Diffusion of innovation (newness, characteristics, positioning)

2. Product
the sum of the physical and psychological satisfactions provided to the user (real benefits, perceived benefits)
cultural characteristics affect product perceptions
country of origin effects may help or hinder acceptance

3. Product Component Model
Core/Physical
platform, design,
functional features
Psychological/Image
brand quality package
Support
warranty, installation, instructions, repair/maintenance

4. Branding
Global - one standardized brand worldwide; umbrella (corporate) branding (Kodak, Siemens, Virgin)
National (Local) - a brand developed for one country, or a region (Pepsi Max - Britain, Bud - Germany).
Private (store brand) - sell a product to a retailer, who resells as its own store brand (Kodak sells to Japanese Cooperative Union’s 2500 retail stores).

5. Diffusion of Innovation
Goal: shorten lag time between introduction and product acceptance .
Factors that affect the adoption rate of products in new markets:
degree of perceived newness
characteristics of innovations
product positioning (method of communication)

6. Degree of Newness
Continuous innovation - products that are familiar to a country, but with subtle changes (BBQ chips in Canada)
Dynamically continuous innovation - product is familiar to a country, but in a new form (diet soft drinks in Japan, Britain)
Discontinuous innovation - completely new to a country; may meet resistance (yogurt in U.S. 1970’s, ice cream in Korea 1990s)

7. Characteristics of New Product Introductions (Diffusion of Innovation Model)
relative advantage compared to existing products
compatibility with norms
product complexity
ease of trialability
benefit observability

8. Product Positioning
The place a product occupies in a consumer’s mind; consumer perception of the product.
Goal is to create a perception for the product:
Yoplait USA - “French,” “healthy”
Yoplait Brazil - sweet snack for kids
Yoplait Japan - “100% purity”