International Project Management: Leadership in Complex Environments

Introduction

Under the umbrella of new product we also include services, product variations, and the like. You would think that simple consumer products are the same the world over. After all, they are used in the same way by all human beings. This makes sense, but is politically incorrect. Take something simple like hand lotion. Here are some of the things that have to be considered

• The labeling on the container must be sensitive to the culture.

• Government regulations may specify exact labeling rules.

• Cases holding multiple containers may have specific rules as well.

• The colors used on the container and for the product will probably have to be customized to the country.

• Whether to have men, women, children, or pets on the label is another issue.

There is also the issue of the name of the product. One drug store chain changed its name and the new name was offensive to over 40% of the customers. In another case, a new car model was named something that was insulting to the parenthood of a person. Anyone who purchased this model was then viewed as an idiot.

This carries over into the form of advertising and media that will be used. Another factor is whether your firm already has a strong brand name and presence in the country. This will allow you to cross-sell the new product with existing products.

The important lesson learned is that a new product has to be customized to the specific market segment. This is almost part of product development and should be treated as such. Many good products only succeed in one or two markets. In others they have to be withdrawn from the market and then relaunched later.