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2. 3. Both economic development and cultural differences explain cross-country variations in time-to-takeoff. High levels of collectivism, power distance, and religiosity are associated with longer time-to-takeoffs. EXHIBIT 10-1 MEAN TIME-TO-TAKEOFF ACROSS PRODUCT CATEGORIES WITHIN COUNTRY3. 4. Takeoff for “fun” products (e.g., CD player, mobile phone, digital camera) is much faster than for “work” products (e.g., kitchen appliances): 7 versus 12 years.4. 5. The probability of takeoff in a target country increases with previous takeoffs in other countriesDEVELOPING NEW PRODUCTS IN THE GLOBAL MARKETPLACEFor most companies, new products are the bread-and-butter of their growth strategy. Unfortunately, developing new products is a time-consuming and costly endeavor, with tremendous challenges. The new product development process becomes a major headache especially for multinational organizations that try to coordinate the process on a regional or sometimes even worldwide basis. The steps to be followed in the global new product development (NPD) process are by and large very similar to domestic marketing situations. In this section, we will focus on the unique aspects that take place when innovation efforts are implemented on a global scope.Identifying New Product IdeasEvery new product starts with an idea. Sources for new product ideas are manifold. Companies can tap into any of the so-called 4 Cs—company, customers, competition, and collaborators (e.g., distribution channels, suppliers)—for creative new product ideas. Obviously, many successful new products originally started at the R&D labs. Other internal sources include salespeople, employees, and market researchers. Multinational companies often capitalize on their global know-how by transplanting new product ideas that were successful in one country to other markets. A good example of this practice is McCafé, McDonald's line of coffee beverages. McCafé was the brainchild of McDonald's franchisee in Melbourne, Australia. The first one opened in 1993. Sales were so successful that McCafé quickly spread to other cities in Australia. In 2003, the company opened its 100th outlet in Australia.26 By 2003 McCafé had become the largest coffee shop brand in Australia and New Zealand. In light of the brand's success, McDonald's launched it in other countries around the world including the United States (2001) and Japan (2007).27 By 2011, McDonald's had over 1,500 McCafé locations worldwideIn August 2010, Levi Strauss launched dENiZEN, a new line of jeans aimed at Asian consumers. It was the first time in its 140 years history that Levi's had launched a new global brand outside the United States. Levi's joined a growing trend of Western firms making extra efforts to please Asian consumers.The initial wave of launch countries for dENiZEN included China, Korea, Singapore, Pakistan, and India. The brand name combines “denim” with “citizen.” The name was chosen to evoke the feeling of “living in a place, living on earth, just being. Denim is in the name, the heart of the brand. And dENiZEN has another great meaning too: the idea of someone who frequents a particular place, the idea of belonging to a community of friends and family.”The new brand was aimed at 18–29 year olds in emerging markets. It promised to provide value-conscious Asian consumers with stylish and good-fitting jeans. The new brand came in various fits, including the slim fit popular among many Asians. Poor fit was often a problem for Chinese consumers buying American jeans. The jeans line was positioned in the low-middle price bracket. In China, the brand was priced at $40–60, 10–15 percent higher than local brands but much cheaper than the core Levi's jeans line.
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