Are you looking for new means to upgrade marketability and spur profits? In the intensely competitive environment of retail, it is imperative to reach first and second place in the market. Let us begin by discussing a strategy for product standardization to keep the momentum going.
Setting standards on a product range is an efficient way to reduce costs and raise quality levels. When you reduce the dissimilarities in your products, for example by making them exchangeable, you can quickly scale up production, optimize distribution, lower the cost of raw material and strengthen product branding. With ideal product standardization, you can offset the requirement for a targeted adaptation in addition to the saving on normalization.
Despite the fact that product adaptation is unavoidable when it comes to specific products, it is important to understand that there is a valid economic rationale supporting product consistency in every market. Let us take a look at three economic benefits of global product standardization.
In addition to these, there are also multinational elements that might influence your decision to standardize your products:
A consistent, multinational product strategy is less costly with respect to manufacturing costs as well as marketing expenditures. The mass production of a limited spectrum of standardized products can lower the spending on development and marketing, allowing you to increase your market share globally.
Nevertheless, the business goal is to maximize profits and without playing down costs, and a consistent product strategy might not be an important tool to maximize profits. However, the development of a uniform product strategy is feasible. PepsiCo and Coca-Cola are two exceptional instances that provide the same product and practice similar strategies of promotion in every market.
Before implementing product standardization, you must determine the extent to which uniformity would be practical and simultaneously, develop a strategy that will be lucrative. Due to a range of technical and legal aspects, it is less likely that an export company will not have the choice of product adaptation.
Let us suppose you export electrical goods to Japan. These products must have an electric potential of 110 volts and not 220 volts. In the same way, if you export edible products, you must follow the health and food safety standards enforced by the importing countries.
You must weigh the costs of product standardization with the different approaches of consistency versus adjustment. The approach of adjustment is more expensive but assures a higher degree of flexibility and marketing success. The uniformity approach is very economic but lacks flexibility and as a result, may not be much of a success in spreading across the market.
SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.Visit their Website ➝