Oreos in China (Example of Product Adaptation Strategy in Global Marketing)
Product adaptation vs. product standardization
How businesses sell and make products for consumers is represented by both product adaptation and product standardization. However, there are some differences, such as:
What is product adaptation?
Product adaptation is the process of altering a product to appeal to new or distant consumers and markets. A business may alter the features of an existing product or use it as the basis for one that is sold in new markets. When a business must adhere to the cultural or regulatory requirements of a foreign market, this process frequently takes place. Additionally, a business might change a product’s packaging to improve its marketability to customers abroad.
To analyze and comprehend the requirements of its target markets, a business can carry out market research. In order to analyze trends, market gaps, and customer insights, it may conduct studies or surveys of its customers directly or draw on prior research. A few of the elements that go into the demand for product adaptation are as follows:
Types of product adaptation
When attempting to enter new markets, businesses can adapt their products in a variety of ways:
The term “tangible adaptation” refers to modifying a product’s exterior. This alteration might cater to the preferences of foreign clients or adhere to cultural norms. For instance, many American fast-food chains offer various menu items at their international locations based on the local cuisine. Additionally, businesses might have to alter a product’s ingredients or materials as a result of particular laws and regulations.
A company can alter the packaging in addition to changing the product itself. For example, colors have different connotations in different countries. A business may change the packaging’s colors to appeal to particular customers or convey a symbolic message. Additionally, some nations have labeling regulations that businesses must adhere to for specific products, like alcohol.
Changing a product’s non-physical features, such as its name or positioning, is referred to as an “intangible adaptation.” For instance, a business might alter the name of a product if the translation into the language of a particular market is inappropriate. Positioning describes where a brand is perceived by consumers or how it stands out from rivals. A business’ positioning can be seen in the way it presents itself. A business may learn from research that customers think a rival’s product isn’t suitable for families. The company might then begin attempting to market itself as a family-friendly brand through its messaging.
Promoting a product differently in foreign markets is known as “promotional adaptation.” The business may conduct market research to identify the most successful types of advertising. For instance, they may decide to concentrate their efforts there after realizing that billboards outperform radio advertising. In order to better cater to customer preferences, they might also change the visual appearance of their marketing materials. As an illustration, a cosmetics company advertising in India might use Indian models to make the product seem more relatable.
When selling a product in foreign markets, the price of the product is said to be “price adapted.” In order to accommodate the change, this adaptation frequently necessitates a company changing the product’s size or quantity. For instance, businesses can look into the market’s per capita income or standard of living to determine a product price that consumers can afford. If not, they could speak with customers directly to find out how much they would be willing to pay.
Important components of a product adaptation strategy
Companies need a strong adaptation strategy when marketing their goods in foreign markets to make sure they adhere to regulatory requirements while appealing to consumer preferences. A product adaptation strategy includes the following components.
What is product adaptation example?
When a product is changed or altered to appeal to various customers, that is one type of adaptation. As consumer tastes evolve, a restaurant might, for instance, alter its menus and serve a wider variety of foods. The decision by some restaurants to offer a wider variety of vegan dishes is one instance of this.
What are the types of product adaptation?
Among the various kinds of product and marketing modification are: Tangible adaptation, which involves changing the product’s actual components. Modifying a product’s intangible components for a foreign market is known as intangible adaptation. Promotional adaptation is the process of changing the media used and the types and methods of advertising.
What are the benefits of product adaptation?
The business can make its flagship product available in a variety of markets thanks to a strong product adaptation strategy. This facilitates the company’s international growth by enabling it to focus on various nations and consumer markets.
What is meant by adaptation in marketing?
When a marketing strategy component is changed to gain a competitive edge when entering a foreign market, adaptation has taken place.