From the moment a company decides to extend its activities into foreign markets, it should settle on either standardizing or customizing the marketing mix. This can be done when the organization applies a single strategy in all the countries or customizes the elements to each market. The company’s decision to standardize or to customization is fundamental, since it influences the organization’s fundamental approach to business and how it will compete. Nowadays standardization studies comprise all elements of the marketing mix – product, promotion, price and distribution.
Standardization is the process of implementing and developing technical standards based on the consensus of different parties that include firms, interest groups , standards organizations and governments standardization can help to maximize compatibility.
we have to mention ISO , International Organization for Standardization. It means that consumers can have confidence that their products are safe, reliable and of good quality. It can help business of any size and sector reduce costs, increase productivity and access new markets. for small to medium sized enterprises, standards can hel to :
- Build customer confidence that your products are safe and reliable.
- Meet regulation requirements , at a lower cost
- Reduce costs across all aspects of your business.
- Gain market access across the world
In order to address the differences, changes in design, packaging, price, or distribution of goods might be necessary. Moreover, viability, communication costs, media habits, differences in the range of distribution channels, intermediaries, financial resources and know-how may also cause trouble .
The benefits of customization is:
- Increase the sales venue as the product meet fully the customers’ demanding
- More flexible carrying on the marketing target
- More unique generate more competitive in the market.
Under the standardization code , Chocolate shall be prepared from cocoa and cocoa materials with sugars and may contain sweeteners, milk products, flavoring substances and other food ingredients. These combined additions shall be limited to 40% of the total weight of the finished product. OCHO will strictly follow up this standard. even the combined additions shall be limited to 40% of the total weight of the finished product .
As we mentioned in the previous blogs , Germany is a different market from New Zealand. I have introduce the special demographic and culture in Berlin . if OCHO plan to enter the international market , it should not regard the whole world as a single market. on average , in different retail sectors, 36% of consumers would consider buying customized products or services. To carry out the marketing mix strategy , the below customization should be considered:
- The chocolate flavor. New Zealand is famous for its fresh milk and dairy products.Milk is one of the most important chocolate raw materials. Milk Chocolate shall contain, on a dry matter basis, not less than 25% cocoa solids (including a minimum of 2.5% fat-free cocoa solids) and a specified minimum of milk solids between 12% and 14% (including a minimum of milk fat between 2.5% and 3.5%) . Milk flavor chocolate can be the key product which will be sold in Berlin as its good reputation.
- The price. There are much difference in the international business and internal business . so the price should be adjusted according to the different market. OCHO will finally make a division after a sufficient investigation of the local market consumer ability and local competitors. The price will be included in the cost of material /labor/packing/logistic , profit and also the importing customs tariffs.
- The promotion. New Zealand has huge tourism resources to attract European tourists, especially people from Germany. Berlin can be a window of New Zealand culture and OCHO can be the represent of New Zealand . If OCHO can get the support of New Zealand tourism department and create a sponsorship with them . It will be a great benefit for these third parties.
Yanyan BAI 