Packaging Decisions for Global Products

Posted by Paul Christ November 10, 2010

Brands Without Borders (Brand Packaging)

Global Marketing and Packaging IssuesWhen it comes to product decisions, many consumer products marketers do not devote enough attention to elements of the package that will contain the main product.  In particular, they fail to consider the importance of the outer or second-level package that may be the first experience a customer has with the product.

The lack of attention to packaging decisions is particularly an issue with products sold on a global scale.  For some marketers, there is not much thought placed in whether a product should be packaged differently for each market.  Instead, apart from using the local language on the package, product design is pretty much the same for all global markets in which the product is sold.

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McDonalds’ Free Product Promotion Does Not Make San Francisco Happy

Posted by Paul Christ November 05, 2010

San Francisco Bans Happy Meals (Los Angeles Times)

Happy Meals Ban in San FranciscoPremium product sales promotions are a widely used promotional method in which one type of product is given away when customers purchase another product.  It is important to note, premiums are different product than the main item the customer is purchasing.  For instance, one of the oldest products to package free merchandise is Cracker Jack, which started its “Prize in Every Box” promotion in 1912, by including small toys and other items inside its famous popcorn and peanut product.

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Research Technique for Determining Pricing Discounts

Posted by Paul Christ November 01, 2010

Catering to the Costco Mindset: Finding the 'Sweet Spot' in Quantity Discounts (Knowledge @ Wharton)

Using Research to Set PriceMost for-profit marketers do not want to give products away unless they feel they will benefit by doing so.  Nor do they want to lower price unless they see it as a useful way of simulating greater demand.  But, marketers often find that at some point selling their products below their regular price is something they must do.  Of course, marketers can simply run a “sale” where the price is lowered from its listed price.  However, the problem with most sale pricing is the lower price applies to every product purchased whether a single unit or multiple units.

To encourage customers to purchase multiple units, quantity discount pricing is used where marketers do not allow a discounted price to kick in until certain requirements are met.  For instance, some marketers handle this by not lowering the price until additional products are purchased (e.g., “buy three or more and take $1 off each”).  Other marketers may not want specifically to advertise a lower price, instead they choose to give away extra product if a customer purchases a certain amount (e.g., “buy three and get the fourth free”).  As a pricing strategy, these methods of quantity discounting are widely used.

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The Rewards and Risks of Expanding Distribution

Posted by Paul Christ October 26, 2010

After 181 Years, Local Beer Stops Playing Hard to Get (Wall Street Journal)

Brewer Looks to Expand DistributionCompanies that are successful in a local or regional market often find that to grow further they must expand beyond their core area.  For many companies this is a key point in its history.  Deciding whether to move beyond its comfort zone is often a make or break decision that will impact the organization for years to come.

If expansion is managed correctly, the company can expect to see continued growth, while poorly managed expansion can drain resources that may ultimately affect the health of the company.

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Examples of Marketing Research Laboratories

Posted by Paul Christ October 21, 2010

Going Where CPGs Do Research (Shopper Marketing)

Focus Groups and Research LabsAt KnowThis.com, we are firm believers in the need for organizations to regularly undertake marketing research.  In fact, we go as far as to call marketing research the Foundation of Marketing.  As we observe in our Marketing Research tutorial, “Just as a well-built house requires a strong foundation to remain sturdy, marketing decisions need the support of research in order to be viewed favorably by customers and to stand up to competition and other external pressures.” The need to support marketing decisions with research can be seen in our recent post covering Gap’s decision to reinstate their old logo.

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Why Marketers Need to Involve Customers in Important Decisions

Posted by Paul Christ October 15, 2010

Gap Scraps New Logo After Taking Flak Online (MSNBC)

Changing a Marketing DecisionA classic marketing mistake taught in nearly all basic marketing courses is Coca-Cola's 1985 decision to change the formula of their flagship Coke product.  In a nutshell, during the mid-1980s Coke was being hammered by their main competitor, Pepsi.  At the time, Pepsi was running highly effective taste test advertisements showing their brand being favored over Coke.  As hard as Coke tried to counter this with their own ads and other promotions, Pepsi continued to gain market share.  With changes to promotion, pricing and even distribution not working, Coke felt the need to respond with the only marketing mix decision it had not changed, the product.  In particular, they altered the Coke formula, a drastic decision as the formula had not changed for almost 100 years.

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Samples of Marketing Tutorials

Criticisms of Marketing: Part 2
Marketing Discriminates in Customer SelectionWe will see later that a key to marketing success is to engage in a deliberate process that identifies customers who offer marketers the best chance for satisfying organizational objectives. This method, called target marketing, often drives most marketing decisions, including product development …

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