Module6: Supply Chain Discussion
Truly global firms find that they must adapt the products they sell to meet local market conditions, which may include legal, cultural or physical requirements. This often requires developing new products or components to meet local needs. Product adaptation is changing the physical product, creating a new product or changing other parts of the marketing mix to meet local needs and requirements.
Changing the name of the product is often not enough, in many cases the product itself needs to be modified. Some examples:
- McDonald’s has burgers in India –but no beef. It’s consumption is taboo. Instead, you’ll find tofu or chicken.
- Wal–Mart sells live fish, turtles and frogs in their China stores –not as pets but for dinner tables.
American appliance manufacturers had to adjust the size of their home machines –many urban European kitchens were too small for our large appliances. Assignment requirements:You will follow a format similar to the “do first” assignment at the beginning of Module 5. Make sure that you have completed that exercise before attempting this component of the marketing plan. There are TWO parts to this component.
Part One:In about 2–3 paragraphs provide a high level view of your supply chain. Consider what you will need to successfully take your product to market and where you might encounter breaks or obstacles in the chain. You should also address the issue of what type of suppliers you might need and where they are located. What issues do you anticipate? Do not forget to consider political, trade and social issues.
If you need a steady supply of coffee or chocolate, will you buy only Fair Trade? Arethere child labor issues? Import restrictions? Part Two:You will create Word chart with three columns:Up stream Mid–streamDown streamIf you are not familiar with these terms, visit the activity in Module 5.For each of the columns, identify 4–5 items that you will need for a complete supply chain. Bullets are fine, but make sure that you are clear.In the last row, list your typical end user. Are you direct to consumer or are you selling to a retailer or wholesaler? In some cases, you may have an entirely different end user. Yo