Appendices to CBI Export Planner - crecer

CBI Export PlannerPossible reasons for product adaptation• to make your product just as good as the competitors’.This is called “imitation”, a “loco”, or a “me-too”. It leaves only your price as aninstrument to beat the competition (and the lawyers to fight over patent rights)• to make your product better or more special than your competitors’.This way you create a unique selling proposition (USP). It makes comparing yourproduct more difficult for the buyer. He may think that your product is so muchbetter that he accepts to pay a higher price for it. He will also stay loyal to it for alonger period of time.• to conform to local rules and regulations.There are many of such regulations: on consumer health and safety, onstandardization of size and weight. In Europe you know them by their acronyms:CE marking, CEN/CENELEC, ETSI norms etc.• to make the product better and easier transportable.Packing your product efficiently may save money on the shipping bill. Or keep yourproduct from being damaged. Or make it easier to handle for the shop salespeople.• to “fit” into lower import rates• last, but not least, because your customer explicitly wants you to change the productin order to suit his particular needs.This occurs in industrial markets, where buyers may have their own technicalspecifications. Increasingly those suppliers may involve you in the designingprocess, using your know-how to improve product and production. Suppliers followsuch specifications to the smallest detail.InnovationMost products have a limited life-time. They become old-fashioned or outdated. Theunderlying reason is that the consumers’ preferences are constantly evolving andchanging, even to the point of unpredictability. New production techniques areintroduced, enabling cheaper production. Or new raw materials are found, improving thequality of your products.Figure 3.1.3Products’ life cycle demandinnovationPerformanceAfter reaching thetop profit, products’sales tend to dropIntroducing newproducts neutralizesthe decline of old ones.Eventually, all productsbecome out-dated andfade away.Particularly in Western countries, markets’ needs shift quickly.Products should continuously be updated or renewed.Time32 III - The export marketing mix