Internationalization and the dynamics of product adaptation: the Case of Parfois.

In e na ionaliza ion and he dynamics o p oduc adap a ion: The Case o Pa ois. Ye heniya Vladimi o a [email p o ec ed] Disse a ion Mas e in In e na ional Economics and Managemen Supe iso : Ma ia do Rosá io Mo ei a Co-Supe iso : Paulo Sousa 30 h Sep embe , 2013 ii Sho Biog aphic no e Ye heniya Vladimi o a was bo n in Neus eli z (Ge many), in 1983. She has he bachelo g ade in In e na ional Rela ions, in he Facul y o A s o he Uni e si y o Po o (Po ugal). She joined he Mas e in Economics and Managemen p og am in 2011 and since 2012 She is wo king in Pa ois as In e na ional Ma ke Manage , doing he managemen and coo dina ion o some Eas Eu opean coun ies such as Romania, Uk aine and Kazaks an. iii Abs ac The globaliza ion c ea es huge challenge o he con empo a y companies, which in en o de elop hei ac i i ies in o eign ma ke s. As he coun ies di e , he companies need o decide whe he o adap he p oduc o he local needs o o de elop exac ly he same p oduc all o e he wo ld. The igh balance is di icul o be achie ed. The pu pose o his s udy is o iden i y and unde s and he amoun and ypes o changes equi ed on a p oduc due o he socio-cul u al di e ences and unde s and i s impo ance in he in e na ionaliza ion o companies. We ocus on he p oduc le el, ying o unde s and which socio-cul u al ac o s and dimensions may demand adap a ions on he p oduc and wha physical cha ac e is ics o he p oduc su e such adap a ions, o iden i y he mo i a ion o i ms o adap (o no adap ) hei p oduc s o expo ma ke s and o pe cei e he pe o mance implica ions o adap ing p oduc s. We s udied he case o he p oduc s o Pa ois, a Po uguese company p oducing women´s ashion accesso ies. We ound ha o he Middle Eas egion, he socio-cul u al ac o mos in luencing changes on p oduc was eligion, ollowed by as es/p e e ences. The less in luen ial ac o s a e clima e and physiology. The esul s o Eas e n Eu ope di e om he A ab egion, among socio-cul u al ac o s, he less in luencing on p oduc adap a ion is eligion and he mo e in luen ial a e as es and p e e ences ollowed by socio-economical ac o and clima e. The mos modi ied p oduc cha ac e is ic is composi ion/ma e ials, ollowed by unc ionali y/shape and colou . The less modi ied cha ac e is ics we e size and design. In bo h egions he main adap a ions we e made in o m o line ex ensions, whe e colou s, ma e ials, shapes and ea u es we e added o emo ed. The success a e o he adap ed p oduc in bo h s udied egions has inc eased. This s udy con ibu es o o e ake he exis ing inconsis encies conce ning he mo i a ion o and agains adap a ion and p o ide companies’ decision make s wi h impo an in o ma ion on how hey should p omo e hei p oduc s. Key-wo ds: in e na ionaliza ion, p oduc adap a ion, cul u e, expo s, ma ke ing mix JEL-codes: F23, M31 1 Table o Con en s Sho Biog aphic no e ................................................................................................................. ii Abs ac ..................................................................................................................................... iii Index o Tables ........................................................................................................................... 3 Index o Figu es ......................................................................................................................... 4 1. In oduc ion ............................................................................................................................ 5 2. In e na ionaliza ion and p oduc adap a ion: a Li e a u e Re iew ......................................... 7 2.1. S anda diza ion and adap a ion concep s 7 2.1.1. In e nal i m´s cha ac e is ics ............................................................................... 9 2.1.2. Ex e nal en i onmen ......................................................................................... 11 2.2. S a egic i 14 2.3. In e na ional ma ke ing s a egy and p o i abili y 14 2.4. Cul u al amewo ks 15 2.4.1. Icebe g analogy .................................................................................................. 15 2.4.2. Cul u al dimensions ............................................................................................ 16 2.4.3. Socio-cul u al ac o s .......................................................................................... 17 2.5. Ma ke ing mix 18 2.5.1. P oduc ................................................................................................................ 19 2.5.2. Boz epe´s amewo k (use - ela ed adap a ion) ................................................. 20 3. Me hodological conside a ions ............................................................................................ 23 3.1. S udy amewo k 23 3.2. Me hod speci ica ions 24 3.2.1. Company selec ion and b ie desc ip ion ........................................................... 25 3.2.2. Da a Collec ion ................................................................................................... 26 4. P oduc adap a ion a Pa ois: da a analysis and esul s ....................................................... 31 4.1. Fac o s a ec ing Pa ois’ in e na ional ma ke ing s a egy 31 2 4.2. The planning and p oduc ion p ocess o Pa ois 33 4.3. Middle Eas and Eas e n Eu ope ma ke adap a ion s a egies 34 4.3.1. Middle Eas ma ke analysis ............................................................................... 34 4.3.2. Eas e n Eu ope ma ke analysis.......................................................................... 36 4.4. Middle Eas and Eas e n Eu ope s a egy in ligh o Boz epe’s amewo k 37 4.4.1. Middle Eas ......................................................................................................... 38 4.4.2. Eas e n Eu ope.................................................................................................... 40 4.5. Impac o adap a ions on pe o mance 42 5. Conclusion ............................................................................................................................ 45 Re e ences: ............................................................................................................................... 47 Appendix .................................................................................................................................. 52 3 Index o Tables Table 1. Ad an ages o s anda diza ion s. adap a ion s a egies....................................... 8 Table 2. In e nal ac o s and impac s on adap a ion s. s anda diza ion............................ 10 Table 3. Ex e nal ac o s and impac s on adap a ion s. s anda diza ion………….…….. 13 Table 4. Ho s ede, Hall and Fons T ompenaa s’ cul u al dimensions models................... 17 Table 5. Type o adap a ion s a egies in se e al s udies.................................................... 22 Table 6. Ques ions o he su ey, in e nal and ex e nal ac o s, dimensions and au ho s... 28 Table 7. Numbe o changes made in each dimension s. socio-cul u al ac o ………..... 34 Table 8. Dimension and ac o s o de ing (Middle Eas )……………………………........ 34 Table 10. Dimension and ac o s o de ing (Eas e n Eu ope)............................................. 36 Table 11. Numbe o adap a ion classi ied acco ding o Boz epe’s amewo k (Middle Eas )..................................................................................................................................... 39 Table 12. Numbe o adap a ion acco ding o Boz epe’s amewo k (Eas e n Eu ope)..... 41 Table 13. P oduc pe o mance in Middle Eas and Eas e n Eu ope.................................. 43 4 Index o Figu es Figu e 1. Icebe g analogy – Visible and less isible indica o s o cul u e..............................16 Figu e 2. The in e ela ionship be ween use alue ca ego ies, cul u al ac o s and p oduc p ope ies.................................................................................................................................20 Figu e 3. Boz epe’s amewo k de ailed....................................................................... .....24 Figu e 4. Me hodology’s s eps.......................................................................................... .....27 5 1. In oduc ion Acco ding o Tan ong e al. (2010), he globaliza ion c ea es bo h oppo uni ies and di icul ies o in e na ional companies. Today companies ope a e in condi ions o in ensi ying compe i ion, de elopmen o echnology and global c isis – hey y o ind he igh balance be ween global e iciency achie ing economies o scale on one hand, and a e p essu ed o mee he goal o local esponsi eness, in o de o be e i he cus ome ’s needs on ano he hand (Gup a and Go inda ajan, 2001; Ghemawa and Cassiman, 2007; Nasi and Al inbasak, 2009; Powe s and Loyka, 2010). Fo achie ing economies o scale, he be e op ion is he p oduc s anda diza ion policy, bu wi h he weakness o , possibly, no sa is ying he cus ome s in a cul u al di e en coun y. On he o he side i ms may choose o modi y, o o adap , he physical cha ac e is ics o a ibu es o a p oduc and i s packaging o i he needs and desi es o consume s in di e en coun ies, bu his inc eases de elopmen , manu ac u ing, ma ke ing, packaging, and dis ibu ion cos s (Calan one e al., 2004). The balance be ween hose wo kinds o cos s should d i e o a s a egy whe e he adap ed p oduc adds enough inc emen al e enue ( h ough inc eased sales due o be e sa is ying cus ome needs and wan s) whe e he addi ional manu ac u ing and ma ke ing cos s esul ing om adap ing he p oduc a e compensa ed (Calan one e al., 2004). Though p oduc adap a ion is a co e aspec o in e na ional ma ke ing s a egy, li le esea ch has in es iga ed modi ying he physical p oduc and packaging o adap o di e en cul u es (Calan one e al., 2004). The majo i y o he s udies on p oduc adap a ion highligh he changes equi ed on a p oduc due o he cul u al di e ences bu do no ocus on he mo i a ion o do his adap a ion and o measu e he pe o mance implica ions o adap ing p oduc s (Calan one e al., 2004, Ho ská e al., 2007). Fu he mo e, gi en ha some s udies (Calan one e al., 2004; Tan ong e al., 2010; Lishchenko e al., 2011) indica e he exis ence o se e al socio-cul u al ac o s ha a ec p oduc adap a ion, i is c ucial o unde s and he ela i e weigh o each oge he wi h ela i e weigh o each p oduc ´s physical cha ac e is ic modi ied and iden i y he impac on he company expo pe o mance. The main goal o his s udy is o unde s and wha kind o adap a ions can be equi ed on p oduc , wha socio-cul u al a iables can a ec he decision o adap a ion, wha is he weigh o each a iable in he decision o adap a ion and how does he adap a ion impac on p oduc and i m pe o mance. This s udy con ibu es o o e ake he exis ing inconsis encies 6 conce ning he mo i a ion o and agains adap a ion and p o ide companies’ decision make s wi h impo an in o ma ion on how hey should p omo e hei p oduc s. In o de o ul il his objec i e, an exhaus i e li e a u e e iew is done wi h he pu pose o lea ning mo e abou simila cases and abou he in e na ionaliza ion p ocess and s a egies and he elemen s making pa o he ma ke ing mix and he p oduc adap a ion s a egies. Then, using he case o Pa ois Company, we do an empi ical analysis in o de o unde s and his si ua ion, using an expe ience o his Po uguese company in some de eloping economies. This epo is o ganized as ollow: besides his in oduc ion, in Chap e 2 we explain he heo e ical amewo k, e iew he ele an li e a u e on simila s udies, on he ac o s a ec ing s anda diza ion s. adap a ion decision, i s de e minan s and adap a ion/s anda diza ion heo ies, on ma ke ing mix elemen s and on in e na ionaliza ion s a egies aiming o desc ibe concep s ele an o ou s udy and unco e he main gap o li e a u e. In Chap e 3, we desc ibe he unde aken me hodology, he company selec ion and da a ga he ing p ocedu es. Chap e 4 p esen s he esul s and i is discussed he in e na ional ma ke ing s a egy o Pa ois, as well as he possible impac o adap a ion in he company’s pe o mance. Finally he conclusions, main limi a ions o he s udy and u u e s udy conside a ions a e summa ized in Chap e 5. 13 Acco dingly, o Ho s ede (1988) cul u e is defined as ‘‘collec i e men al p og ammes”, sha ed by a g oup o people; hese p og ammes di e om one g oup o ano he . These di e ences inc ease he liabili y o o eignness o he di ficul ies ha he in es ing fi ms should o e come when i seeks o de elop i s ac i i ies in a new coun y (López-Dua e and Vidal-Suá ez, 2010). Consume s´ di e gence in as es and habi s, p e e ences ha a y among he di e en local cul u es, is among he main obs acles o s anda diza ion (Nasi and Al inbasak, 2009). The cul u al con e gence, as he pa o globaliza ion p ocess, is ano he equen ly discussed heme. I ’s a gued by some au ho s ha i leads o s anda diza ion, due o he homogeniza ion o as es and p e e ences. Acco ding o Schilke e al. (2009), among he mos p ominen p oponen s o s anda diza ion is Le i (1983), who a gues ha echnological ad ancemen s ha e diminished cul u al di e ences ac oss coun ies and hus make a globally s anda dized ma ke ing s a egy he pe ec op ion o achie e wo ldwide economies o scale. Co ec ma ke segmen a ion is a di icul issue as a as segmen a ion canno be done on he coun y le el. V on is and V on i (2004) di ide mic o and mac o le els o segmen a ion, e e ing as belonging o mac o le el economic, echnological, geog aphic and poli ical issues, and o mic o le el – li es yles, a i udes, as es and p e e ences. Because simila ma ke s wi h simila needs and consump ion beha iou s can be ound ac oss di e en coun ies, i may exis some oppo uni ies o s anda diza ion. A he same ime some esea che s sugges ha consume s wi hin indi idual coun ies become mo e cul u ally he e ogeneous (Ca pen e e al., 2012). The ex e nal ac o s discussed abo e a e summa ized in he able below (Table 3): 14 Ex e nal ac o s Expec ed esul on: Adap a ion S anda diza ion Ma ke simila i ies Di e en Simila P oduc na u e (indus ial p oduc ) Consume p oduc Indus ial p oduc P oduc na u e (du able p oduc ) Non-du able Du able P oduc li e-cycle Di e en Homogenous In ensi y o indus y compe i ion Low In ensi e Economic de elopmen Di e en le el Same s age Poli ical and legal es ic ions Speci ic local equi emen x Cul u al con e gence Speci ic local as es, p e e ences x Compe i ion Local compe i ion / s ong Global compe i ion/ weak Ma ke size La ge ma ke s Smalle ma ke s Table 3. Ex e nal ac o s and impac s on adap a ion s. s anda diza ion Sou ce: Own elabo a ion based on s udies discussed. 2.2. S a egic i The e is s ill no igh s a egy ha could i anyone, because each i m has o conside bo h in e nal and ex e nal o ces, which a ec i s ac i i y. Recen s udies emphasize he impo ance o a “s a egic i ” be ween ma ke ing s a egy and en i onmen al on one side, and in e nal ac o s, on he o he , which can esul in supe io pe o mance (Vi ilai e e al., 2011; Gab ielsson e al., 2012). As many au ho s e e , s anda diza ion and adap a ion should be seen as wo ex emes o he same con inuum, wi hin which al e na i es could be ound (Ca usgil and Ki palani, 1993; V on is e al,. 2009). This wo pola ized posi ions can pe ec ly coexis in he same company e en wi hin he same p oduc line (V on is e al., 2009) and nei he comple e s anda diza ion, no comple e adap a ion is possible (Jain, 1989; Akaah 1991; Ca usgil and Ki palani, 1993). The challenge o he in e na ional i m is o de e mine which speci ic s a egy elemen s a e easible o desi able o adap , unde wha condi ions and o wha deg ee (Dow and La imo, 2009). 2.3. In e na ional ma ke ing s a egy and p o i abili y Many s udies show ha he p ima y goals o s anda diza ion o adap a ion a e o gain compe i i e ad an age and o imp o e he pe o mance, which can be measu ed in e ms o 15 sales, ma ke sha e, p o i , asse s u no e , e c. (e.g. Calan one e al., 2004; Powe s and Loyka, 2010). The posi i e associa ion be ween he le el o adap a ion and p o i abili y was ound by some au ho s, who a gue ha he be e p oduc i s o he cus ome s’ needs, he mo e alue i c ea es o hem and, he e o e, he highe e enues i m gene a es (Zou and Ca usgil, 2002; Calan one e al., 2004; Ho ská e al., 2007; Boz epe, 2007; Powe s and Loyka, 2010; Lishchenko e al., 2011). Thus, adap a ion can gi e sus ained compe i i e ad an age o he i m. Bu some o he esea che s ha e concluded ha he e is a nega i e ela ionship be ween he le el o adap a ion and he p o i abili y (Calan one e al., 2004). Howe e , he e is s ill no consensus whe he s anda diza ion o adap a ion o ma ke ing mix will inc ease he pe o mance (Nasi and Al inbasak, 2009). Gene ally, companies´ pe o mance is a complex heo e ical cons uc , which is in luenced by innume able ac o s and he e is a lack o uni o mi y and consis ence in de ini ion and measu emen o pe o mance (Sadiq-Sohail and Alashban, 2009). The e a e di e en app oaches o assessmen o he pe o mance o a i m in li e a u e: inancial, sales olume, p o i abili y, ma ke sha e, s a egic, sa is ac ion wi h he pe o mance and e en numbe o loyal consume s (Vi ilai e e al., 2011). Sa is ac ion wi h he company´s pe o mance is also complica ed o be measu ed and depends on a company´s goal and objec i es se . Di e en companies may see he same esul as success o ailu e a he same ime, he e o e gene aliza ions canno be done by scien is s based on his a iable (Vi ilai e e al., 2011). A he same ime, Moo e e al. (2010) s a e ha he mos e icien mean o accessing he e iciency o al e na i e ma ke ing s a egy and measu ing pe o mance esul s in inancial e ms is he analysis o he alue c ea ed by he company du ing a ce ain de ined pe iod o ime. 2.4. Cul u al amewo ks As i was discussed be o e, he concep o cul u e is e y wide and complex and is s udied wi hin di e en sciences, he e o e he e a e many di e en poin s o iew om which his concep is seen and analysed. We will see some o he ele an models and amewo ks. 2.4.1. Icebe g analogy In he icebe g analogy, Hollensen (2008) ies o explain ha no all o he componen s o cul u e a e isible and can be seen, hea d o ouched. A chi ec u e, beha iou s, language, eligion, educa ion, aes he ics, music and ood a e examples o he isible ace o cul u e. 16 The e a e also elemen s ha a e in isible bu equally impo an o unde s anding he cus ome s´ undamen al needs, like alues, no ms, belie s, social mo als, e c. (Ghemawa , 2007). Ghemawa (2007) sees he isible indica o s as objec i e ones. Figu e 1 p esen s he isible and less isible indica o s o cul u e. The icebe g analogy shows ha in o de o sa is y undamen al needs o cus ome s, in e na ional ma ke e s need o s udy ca e ully bo h isible and in isible elemen s o hei local cul u e (Hollensen, 2008). A he same ime i shows how di icul and complex he cul u e concep is and how di icul i is o ma ke e s o make conclusions abou i s mani es a ions. Figu e 1. Icebe g analogy – Visible and less isible indica o s o cul u e Sou ce: Hollensen (2008) 2.4.2. Cul u al dimensions Among o he s udies on cul u al di e ences, some amous amewo ks we e de eloped o help cha ac e izing and desc ibing cul u es h ough di e en dimensions ha a e basic concep s helping us unde s and he deg ee o which cul u es di e om each o he . (Hollensen,2008). Gee Ho s ede, Edwa d T. Hall, Fons T ompenaa s among o he s dedica ed hemsel es o esea ch o cul u al di e ences (Ho s ede and Regou , 1996). The models p oposed by hese esea che s and he dimensions included in each one a e desc ibed in Table 4. 17 Cul u al dimensions models Au ho Dimensions p oposed Gee Ho s ede Powe Dis ance Indi idualism Unce ain y a oidance Masculini y Long Te m O ien a ion Edwa d T. Hall P oxemics Polych omic/monoch omic High/low con ex Fons T ompenaa s Uni e salism s. pa icula ism Indi idualism s. collec i ism Neu al s. emo ional Speci ic s. di use Achie emen s. asc ip ion Sequen ial s. synch onic In e nal s. ex e nal con ol Uni e salism s. pa icula ism Indi idualism s. collec i ism Neu al s. emo ional Table 4. Ho s ede, Hall and Fons T ompenaa s’ cul u al dimensions models Sou ce: Ho s ede and Regou (1996). The weakness o hese models is ha hey don’ conside he exis ence o he di e ences and subg oups wi hin he coun ies. Also Halls dimensions a e mo e applicable in communica ion and Ho s ede´s dimensions a e mo e adjus ed o analyse and unde s and he manage ial cul u e inside mul ina ional company applying i mos ly on human esou ces managemen (Ho s ede and Regou , 1996). A he same ime, no all he coun ies a e ye ca ego ized in acco dance wi h hese dimensions by au ho s and specialis s. Tha ’s why i was decided no o use hese dimensions in his s udy. 2.4.3. Socio-cul u al ac o s F om ano he poin o iew, he socio-cul u al cha ac e is ics o a ge consume s a e ecognized by many o he au ho s as well as highly impo an ac o s, a ec ing in e na ional ma ke ing s a egy, because hey in luence decision bo h on a pe sonal le el and he le el o socie y (Usunie e al.; 2009). The au ho s con i m ha i ’s i al o know he socio-cul u al 18 a iables o a ge consume s which g ow up unde condi ions and in he con ex o he local en i onmen al ha in luence di ec ly and indi ec ly he consump ion beha iou . The mo e di e ences be ween coun ies exis , he mo e p oduc s should di e om he basic o iginal. Di e en au ho s dis inguish di e en a iables as impo an . Some y o g oup hem in o ca ego ies. The mos ci ed a iables a e: language, eligion, educa ion, needs, alues (indi idualism, ma e ialism o example), habi s, p e e ences, mo al belie s and aes he ics, (Waheeduzzaman and Dube, 2004; Czinko a and Ronkainen, 2005; Doole e al. 2006; B ei e al. 2011; Ba bu and Meghişan, 2013). O he au ho s add a iables as ace, opog aphy, occupa ions, disposable income, axa ion and na ionalism (Paliwoda, 1999; Usunie e al., 2009; S elau e al., 2010). B ei e al. (2011) sepa a e 4 main g oups o elemen s o cul u e: language (w i en and spoken, non e bal communica ion); ins i u ions (educa ion, a i udes, social o ganiza ion); ma e ial cul u e (p oximi y, echnology, aes he ics, ma e ial possessions) and symbolic cul u e ( eligion, cus oms and adi ions). Clima e is also a ac o di ec ly a ec ing consume s’ beha iou . Fo he company, which o e s ashion p oduc s, which accep ance depends on consume as es, p e e ences, habi s, incomes, social li e s yle among o he socio-cul u al dimensions, hese ca ego ies a e o special in e es . 2.5. Ma ke ing mix In acco dance wi h Doole e al., 2006, in e na ional ma ke ing is de ined as a p ocess o managemen esponsibili y in iden i ying, an icipa ing and sa is ying cus ome equi emen s ac oss na ional bounda ies. Though, companies need o ake his esponsibili y on decisions in one o mo e a iables o ma ke ing mix. As li e a u e e iew shows, all o ma ke ing mix elemen s, p oposed by McCa hy in 1975 (p oduc , p ice, p omo ion, dis ibu ion) by di e en deg ee could be a ec ed by he s anda diza ion/adap a ion s a egy. The majo i y o s udies a e done on p oduc and p omo ion. Few s udies concen a e only in one ma ke ing mix elemen ; he majo i y uses mo e han one elemen in hei esea ch, and some o hem in es iga e all he elemen s oge he (Lages e al,. 2008; Nasi and Al inbasak, 2009; Powe s and Loyka, 2010). A he same ime p oduc , acco dingly o he con inuum o s anda diza ion and adap a ion p oposed by Doole an Lowe (2001), is he easies elemen o s anda dize o all he ma ke ing mix (Lages e al.; 2008). 19 2.5.1. P oduc P oduc is de ined as goods and se ices o e ed by company o he cus ome s (Gwin, 2001). Each p oduc is a bundle o a ibu es, including angible and in angible goods (Doole e al., 2006). P oduc includes physical objec s, se ices, pe sons, places, o ganiza ions, ideas o mix o hese en i ies. The clien can be a ac ed no only by he physical angible p oduc by i sel , bu also by some o i s in angible aspec s as: quali y, as e, smell, ex u e, op ions, physical design, physical ea u es, labelling, se ice a ibu es, wa an y o e ed, packaging o b and name (Doole e al., 2006; Pasquaolo o and Ugalde, 2010; B ei e al., 2011). Colou , size, shape, s yle, coun y o o igin (Manu and S i am, 1996), image, ma e ials, du abili y and pe o mance (V on is and V on i 2004), usage pa e n (Boz epe, 2007; S elau e al., 2010), and weigh (Pasquaolo o and Ugalde, 2010) a e o he a ibu es o p oduc s. These au ho s sugges ha he p oduc is he hea o ma ke ing mix, hough i has o be a ac i e o appealing o he cus ome s. Bu U ban and Hause (1993), a he same ime, de end ha posi ioning is c i ical o a new p oduc . No only mus a new p oduc deli e he cus ome needs, bu i mus do so be e han compe i ion (Gwin, 2001). I ’s needed o de ine which p oduc a ibu e should be s anda dized and which adap ed, because as we saw be o e, some o hem could ha e di e en symbolic meaning in di e en socie ies. “Acco ding o Boz epe (2007), he p oduc is always con ex ualized and he e is no gua an ee ha he in ension o designe will be ecognized, much less espec ed, by use s om ano he pa o he wo ld. Fo example p oduc quali y is de ined as a se o ea u es and cha ac e is ics o a good o a se ice ha de e mines i s abili y o sa is y needs (Johnson and Winchell, 1988). Bu he de ini ion is no clea and a p oduc ha in one coun y is conside ed o be o high quali y can be conside ed low quali y in ano he coun y ha can e en be simila in e ms o pu chasing powe and socio-economic cha ac e is ics (Ca eo a and G aham, 1999). In acco dance wi h obse a ions o Boz epe (2007), no mally adap a ion on p oduc design o local needs is no an icipa e in ad ance, bu occu s a e he mani es a ion o a ce ain p oblem, which a ec s sales (Boz epe, 2007). A he same ime, he p oblem Boz epe (2007) has iden i ied is ha he e a e ew me hods helping o deal wi h complex issues like designing o o eign ma ke s ha need collabo a ion o an h opologis s and social scien is s, who “could de elop an unde s anding o c edible 20 explana ion o human beha iou ” because i ’s no easy o ela e complex and “b oad in o ma ion abou cul u e o speci ic p oduc aspec ” (Boz epe, 2007, p. 2). 2.5.2. Boz epe´s amewo k (use - ela ed adap a ion) Acco ding o Boz epe (2007), li le a en ion is paid o use - ela ed adap a ion equi emen s, hus, Boz epe (2007) s udy how p oduc can c ea e a alue o use s in he new loca ion. The de ini ion o “ alue” is no an easy ask, because his concep can be aken bo h in e ms o economic gains o /and mo al s anda ds. Boz epe (2007) e e s o alue as “p ac ical o symbolic esul c ea ed h ough use -p oduc in e ac ion” (p. 515). I ou comes om he expe iences o use s wi h he p oduc and om hei subjec i e in e p e a ions o wha cons i u es “ alue”. Use s in explaining alue, e e o he adequacy o p oduc p ope ies o he needs aised in hei local social con ex . The iden i ied elemen s o local con ex ha in luence use alue a e: local beha iou s (daily ou ines, speci ic ways o doing hings, e c.); meanings (symbols, i uals, belie s, e c.) and sys ems (physical en i onmen , echnical sys ems in e acing p oduc ). Ca ego ies o “ alues” we e iden i ied as well: u ili y alue (enabling he accomplishmen o a physical o cogni i e ask); social signi icance alue (helping o build epu a ion in gi en socie y); emo ional alue (a ec i e bene i s om he in e ac ion, such as pleasu e and un) and spi i ual alue (spi i ual bene i s such as good luck, sac edness). The ade-o be ween di e en alue ca ego ies can exis (Boz epe, 2007). Acco ding o Figu e 2, he ypes o adap a ion a e classi ied as: 1. Con enience adap a ion: adap a ion o he ea u es ha help inc ease capabili y o he local con ex (su ounding objec s and sys ems) and a oid unpleasan ness. No mally “con enien ” is some hing p ac ical, sa ing ime and/o e o . In each coun y pe cep ion o wha is con enien may di e . 2. Pe o mance adap a ion: i is no mally done o imp o e he pe o mance and e iciency in he local con ex . Typical elemen s conside ed a e geog aphical ac o and in a-s uc u e. 3. Economy adap a ion: i is done wi h he pu pose o imp o ing economic alue o p oduc , bo h a he poin o pu chase and in use (changing ma e ials, o example). 4. Social signi icance and iden i y adap a ion: i is necessa y o c ea e social ou come om he in e ac ion wi h he p oduc . The s udy should be done on he subjec o wha symbols o 21 imp ession and ace-sa ing e ec i can c ea e. As Boz epe (2007) e e ed, people use goods as ma ke s o hei ela i e posi ion in social nexus and can c ea e symbols, used o ob ain social p es ige, achie e dis inc ion om o he s o o belong o a speci ic social g oup. This can lead o he modi ica ion in any o aspec s o p oduc . 5. Pleasu e adap a ion: p o iding pleasan expe ience wi h p oduc , linked wi h he local pe cep ion o aes he ics. Figu e 2. The in e ela ionship be ween use alue ca ego ies, cul u al ac o s and p oduc p ope ies Sou ce: Boz epe (2007) Th ough analysing he ype o a ge clien (whe he he p oduc c ea es alue o his clien , wha a e he local elemen s ha play a decisi e ole in each alue ca ego y) i m can unde s and he dimensions o he p oduc ha need o be adap ed in o de o sa is y speci ic needs o cus ome . C ea ing alue, he clien could ob ain alue om he in e ac ion wi h he p oduc (Boz epe, 2007). 22 Table 5 summa izes he main s udies abou adap a ion e sus s anda diza ion s a egies in se e al coun ies and indus ies. We can see ha almos mo e han a hal o he s udies make adap a ions in he 4 ma ke ing mix elemen s. When making adap a ions in only one elemen o ma ke ing mix, i is on he p oduc . Table 5. Type o adap a ion s a egies in se e al s udies. Sou ce: Own elabo a ion. Type o adap a ion Indus y Coun y Goal o S udy Me hod Au ho s Empi ical es . Mail su eys, ques ionnai e CFA – con i ma o y- ac o analysis P oduc (packaging) Fu ni u e sec o B azil P oduc adap a ion in in e nacionaliza ion p ocess Mul iple case s udy, in e iews, documen s analysis Pasqualo o and Ugalde (2010) P oduc le el (design, b and, quali y) Thailand E ec o p oduc adap a ion (design, b and, quali y) and ma ke o ien a ion on expo pe o mance Su ey on manage s, ques ionnai e Tan ong e al. (2010) Saudi A abia Analysis o p oduc -ma ke s a egy and expo pe o m Empi ical esea ch, su ey, mul iple eg ession Sadiq Sohail and Alashban (2009) Technology appliances Ne he lands Roles o p oduc appea ance in consume choice Quali a i e esea ch, in e iew C eusen and Schoo mans (2005) Ki chen appliances USA/ u key P oduc de elopmen o global ma ke s use - alue- based app oach Based on e hnog aphic s udies Boz epe (2007) Finland Deg ee o s anda diza ion/adap a ion Su ey on manage s, s a is ical me hod – T- es and ANOVA es Dow and La imo (2006) UK Coun y o o igin e ec on adap a ion/s anda diza ion Deduc i e, induc i e, ques ionnai e su ey, s a is ical SPSS es . V on is and Th assou (2007) Slo akia Amoun and ype o changes equi ed due o he geog aphical and cul u al dis ance Su eys, in e iews Ho ská e al. (2007) B azil Global ma ke ing s a egies dilemma in eme ging economies. Quali a i e esea ch – case s udy Rocha and Sil a (2011) Clo hing manu ac u e ---- Deg ee o adap a ion Empi ica obse a ion V on is and V on i (2004) ---- ----- In luence o ex e nal/in e nal en i onmen s on s and/adap a ion Li e a u e e iew Nasi and Al inbasak (2009) Consume non- du able p oduc USA Su ey on manage s Powe s and Loyka (2010) Design d i en companies ---- Li e a u e e iew Lishchenko e al. (2011) P oduc 4 ma ke ing mix elemen s Di e en ypes Di e en ypes Food sec o Adap a ion Calan one e al. /2004) Sou he n Ko ea /USA Mo i a ion o i ms o adap he p oduc due o ex e nal/in e nal condi ions P oduc (physical a ibu es and packaging) Manu ac u ing 29 b) Semi-s uc u ed ace- o- ace in e iews To s udy he adap a ion p ocess o Pa ois, wo ypes o in e iews we e made: o he gene al manage o he company and o he ma ke s manage s, a e he ques ionnai e has been analysed. The in e iew wi h he gene al manage o he company was conduc ed o unde s and he mo i a ions o he company, he ac o s ha in luenced and conduc ed o he choice o he selec ed in e na ional ma ke ing s a egy. I was held in May 2013 in Pa ois headqua e s. This in e iew was semi-s uc u ed wi h ques ions based on he ex e nal and in e nal ac o and i s impac s and expec ed esul s on adap a ion and s anda diza ion (Tables 2 and 3) and on he cul u al dimensions (Table 4). A e he analysis o he ques ionnai es, he in e iews wi h ma ke manage s we e held du ing he mon h o July. In e iews las ed abou 30-40 minu es. The ma ke s manage s wi hou any adap a ion made we e le ou o he second s ep o da a collec ion. A he same ime, some o he cul u al dimensions ha we e ag eed among ma ke manage s as di icul o unde s and and use, we e le ou as well. Some o o he ac o s we e adap ed o be mo e ele an o ou s udy. Wi h wo ma ke manage s om Middle Eas and wo ma ke manage s om Eas e n Eu ope, he in e iews we e done on he basis o he ques ions om he ques ionnai e, asking hem sepa a ely o explain in e ela ion be ween cul u al ac o s and modi ica ions made. c) Da abase collec ed in o ma ion In o ma ion om in e nal da abase o Pa ois was ex ac ed ega ding he success a e o he adap ed collec ion and he sales olumes pe s o e o each egion. Success a e means he pe cen age o p oduc sold be o e any sales p omo ion done and is calcula ed by o mula sales/(sales+shipmen s). In o de o ha e mo e objec i e in o ma ion, he pe iod o analysis was chosen lea ing apa sales pe iods, which could dis o he pic u e. The pe iods analysed we e, 1. o Middle Eas  SS13: 01.02.2013-01.07.2013(when changes we e in oduced)  SS12: 01.02.2012-01.07.2012 (be o e changes had been in oduced) 30 2. o Eas e n Eu ope:  FW12 01.08.2012-15.12.2012 (when changes we e in oduced)  FW11 01.08.2011-15.12.2011(be o e changes had been in oduced). The e we e selec ed only compa able s o es (only he s o es ha we e open on bo h pe iods and any changes on hem we e made) – om 52 open s o es in Middle Eas we analysed only 16 and om 46 s o es open in Eas e n Eu ope we analysed only 24. 31 4. P oduc adap a ion a Pa ois: da a analysis and esul s In his chap e , he esul s o he da a ga he ing a e p esen ed and discussed. Sec ion 4.1. desc ibes how Pa ois conduc ed i s in e na ional ma ke ing s a egy. Then, in Sec ion 4.2., i s depic ed he planning and p oduc ion p ocess o Pa ois, ollowed by an analysis o he Middle Eas and Eas e n Eu ope ma ke adap a ion s a egies (Sec ion 4.3.). The Boz epe’s amewo k is hen used o ypi y he s udied ma ke s alue-based s a egy (Sec ion 4.4.). The Chap e ends wi h an analysis o he possible impac o adap a ion in he company’s pe o mance (Sec ion 4.5). 4.1. Fac o s a ec ing Pa ois’ in e na ional ma ke ing s a egy The in e iew wi h he gene al manage o he company allow o conclude abou he ac o s ha a ec ed (and a e a ec ing) he in e na ional ma ke ing s a egy o Pa ois. Pa ois is a design-d i en company, om he i s day o i s exis ence, designe was hi ed. Design is conside ed one o he key compe i i e ad an ages o he company. Pa ois ac ua e in as - ashion indus y, which means ha i has o eac apidly, adap ing he collec ion o he changing ashion ends. In addi ion, as ashion accesso ies a e consume goods, Pa ois is a consume -o ien ed company. I s uggle o gain loyal y o cus ome s, o e ing he igh p oduc a he igh ime and place in o de o main ain hei sa is ac ion wi h pe cei ed and ecei ed alue om in e ac ion wi h p oduc . Pa ois sees i as impo an o show espec owa ds local cul u e, adi ions and needs in o de o c ea e s ong image and achie e leade ship in ha ma ke . A he same ime, as Pa ois is expe ienced in in e na ional ac i i ies company (s a ed i s expo ing ac i i ies in 1998), i is awa e o di e ences exis ing among he consume s in di e en geog aphic zones, in luenced by hei di e en local con ex s. Bu in he beginning o i s in e na ionaliza ion p ocess hese di e ences we e igno ed. As occu o many o he companies analysed in he li e a u e e iew (Table 5), Pa ois in he beginning o in e na ionaliza ion p ocess, s a ed selling hei goods in geog aphically and psychically close ma ke s. These ( ela i ely) simila ma ke s we e chosen, due o he con e gence o as es and p e e ences and did no eques any adap a ion. Pa ois s a ed i s in e na ional ou e as e hnocen ically o egiocen ically o ien a ed company, selling he same p oduc e e ywhe e. 32 When i s a ed o c oss he bo de s o Eu opean Union (whe e legal equi emen s we e di e en om domes ic ones), he p ocess o adap a ion s a ed. I can be conside ed ha he i s adap a ions Pa ois has done used o ha e manda o y cha ac e due o he speci ic legisla i e equi emen s and we e done mos ly on labelling, packaging, dis ibu ion channels and on some communica ion (ca alogues). Any olun a y adap a ion on p oduc was conside ed. Bu , a ha ime he expe ience o he i m was educed, as well as esou ces ( inancial, human – lack o expe ienced manage s). All he decisions whe e cen alized (in e na ional anchisees didn’ exis ) and in e na ional scope was educed and all his ac o s we e no a ou ing adap a ion s a egy. F om o he poin o iew, aking in o accoun : - he na u e o he p oduc ( ashion accesso ies, which a e consume goods and ha e o sa is y he expec a ions o consume s), being consume o ien ed; - he ela i ely sho li ecycle o he p oduc , which can be unexpec edly di e en in he coun y ha a e in di e se s age o socio-economic de elopmen ; - he condi ions o as g owing compe i ion in he a ea o ashion accesso ies; - he company dependence om expo ac i i ies, and he p essu e o sa is y he equi emen s o a ge ma ke s (and being ma ke o ien ed); - he long- e m de elopmen and in e na ional g ow h p og am wi h he aim o gaining bigge ma ke sha e, eaching mo e segmen s o cus ome s and leade ship o e compe i o s he company unde s ood ha mo e ad anced le el o adap a ion should s a o be implemen ed. Bu he main conce ns o he company we e ela ed o he inc ease o he cos s o manu ac u ing, dis ibu ion and s ock managemen and he loosing o b and consis ency. I was decided, hough, ha p oduc s anda diza ion s a egy will be p ac iced gene ally, bu s a ing o make some p oduc adjus men s. I would be done no o sepa a e coun ies, bu o he g oup o coun ies wi h simila en i onmen al condi ions ha , along wi h he p esence o b and, clea ly demons a ed speci ic needs unsa is ied o insu icien ly sa is ied by he p oduc placed in ha ma ke s (do he segmen a ion by egion). Low le el o sa is ac ion was disco e ed due o he low pe o mance o some anges o p oduc and equi emen /complains 33 ega ding lack o noncon o mi y o p oduc exp essed by local pa ne s. A he same ime, doing his g adual adap a ion o he g oup o coun ies which b ing signi ican pe cen age o e enues and ep esen g ea in e es in e ms o po en ial o ma ke , he adap a ion o he p oduc o he g oup would no be as cos ly as only o one coun y due o bigge scale. As company s ongly belie es, in o de o dec ease he isk o losing sales and oppo uni ies, he pa icipa ion o immig an manage s in he adap a ion p ocess is i al. These manage s used o ha e cul u al connec ion wi h coun y o o igin o deep expe ience wi hin he coun y/ egion o in e es oge he wi h in e na ional expe ience and, he e o e, ha e a speci ic sensibili y o en i onmen al issues and needs o ha ma ke . The e is a need o say ha some mino adap a ion exis ed be o e he decision on adap a ion as a s a egy, bu hese adap a ions we e done unconscien iously. Fo he majo i y o ma ke s, hey we e no egis e ed, hus hei success e iciency couldn’ be measu ed. The majo adap a ion s a ed in conside able scale simul aneously o all he coun ies o each o he chosen egion (Middle Eas , Eas e Eu ope). Though, Pa ois ha e e ol ed om e hnocen ic o ien a ion in o geocen ic, aiming “Think global, ac local”. Company´s goal is o communica e o i s clien s a consis en co po a e and b and image ac oss coun ies. The aim is o communica e he same message, ecognizable all o e he wo ld (no only by he mean o communica ion, bu also by clea me chandising, cus ome se ice and endy p oduc ). I is ecognized he need o unde s and who is ou clien in each a ge ma ke , in wha condi ions and si ua ions he uses he p oduc and wha p oduc cha ac e is ics a e mo e impo an o sa is y ha cus ome needs in o de o choose igh p oduc posi ioning in ha (g oup o ) ma ke (s). 4.2. The planning and p oduc ion p ocess o Pa ois As Pa ois is a ashion accesso ies b and, he seasonali y exis s – he p oduc is planned, designed and p oduced o wo seasons/collec ions (Fall-Win e e Sp ing-Summe ). All he Pa ois p oduc s a e o ganized by anges and sub- anges. All he analy ics a e held in acco dance wi h his di ision. The anges a e: ex iles (ha s, sca es, ponchos), umb ellas, bel s, wa ches, hai a icles, oo wea , handbags and jewelle y ( ings, ea ings, necklaces, b acele s, o he s).Ou analysis is made on he “ ange” le el. The in o ma ion ega ding changes needed is collec ed du ing he season and implemen ed in he nex ela i e season 34 (e.g. in o ma ion collec ed du ing he Fall-Win e o 2012 – FW12 is aken in o accoun o FW13 collec ion). 4.3. Middle Eas and Eas e n Eu ope ma ke adap a ion s a egies The Middle Eas and Eas e n Eu ope ma ke s’ adap a ion s a egies we e sc u inized based on he ques ionnai e answe s ha was cons i u ed by 14 ques ions. The in e nal and ex e nal ac o s and he cul u al dimensions we e he base o he ques ionnai e building (depic ed in Table 6). Mos o he ques ionnai es we e inished on he ou h ques ion wi h nega i e answe . The posi i e answe s abou he speci ic modi ica ions made we e collec ed only om 2 manage s o Middle Eas coun ies (Bah ain, Jo dan, Saudi A abia, Kuwai , Qa a , Oman) and 2 manage s o Eas e n Eu opean coun ies (Russia, Romania, Uk aine, Kazakhs an). The changes in oduced we e done o he g oup o coun ies (Middle Eas and Eas e n Eu ope) hough o each g oup simul aneously. I ’s also impo an o no e, ha he changes we e made in he coun ies whe e manage s had s onge cul u al links (Middle Eas manage s a e Mo occans and one o hem used o wo k in Jo dan; Eas e n Eu ope manage s a e Romanian and Russian/Uk ainian). The changes we e in oduced simul aneously o Middle Eas in SS13 (Sp ing-Summe 2013) and o Eas e n Eu ope FW12 (Fall-Win e 2012). We will compa e hough o Middle Eas he pe iods SS13 01.02.2013- 01.07.2013(when changes we e in oduced) wi h SS12 01.02.2012-01.07.2012 (be o e changes a e in oduced) and o Eas e n Eu ope FW12 01.08.2012-15.12.2012 (when changes we e in oduced) wi h FW11 01.08.2011-15.12.2011(be o e changes a e in oduced). The pe iods o s udy we e chosen wi h ca e, in o de o no include sales pe iods ha migh in luence numbe s signi ican ly. The in e iews, done o he manage s ha e ealed an adap a ion o he p oduc o he ma ke he manage, we e done on he basis o he ques ions om he ques ionnai e, egis e ing modi ica ions made o he p oduc s and easons o ha . 4.3.1. Middle Eas ma ke analysis The analysis is made by egis e ing he numbe o modi ica ions (adap a ions) made in he p oduc s, in which dimension o he p oduc is made and which social cul u al ac o is in he o igin o adap a ion. 35 Table 7 depic s he quan i ies o changes made in each p oduc cha ac e is ic in acco dance wi h each socio-cul u al ac o . Adap ed cha ac e is ic Socio-cul u al ac o s Religion T adi ions/ ideology Tas es/ p e e enc es Clima e Socio- economical Physiology To al p oduc cha ac e is ic Weigh o each p oduc cha ac e is ic Composi ion/ Ma e ial 6 - 4 3 4 1 18 19% Colou 8 6 6 2 4 - 26 28% Size 8 4 3 1 4 4 24 26% Func ionali y/sh ape 3 3 3 1 2 4 16 17% Design/ ashion - - 5 - 4 - 9 10% To al sociocul u al ac o 25 13 21 7 18 9 93 Weigh o each sociocul u al ac o 27% 14% 23% 8% 19% 10% Table 7. Numbe o changes made in each dimension s. socio-cul u al ac o O de ing he esul s by impo ance o each ac o s and p oduc cha ac e is ics, we can analyse he ela i e weigh o e e y dimension. Table 8 shows i . Numbe o adap a ions Weigh Colou 26 28% Size 24 26% Composi ion/ma e ial 18 19% Func ionali y/shape 16 17% Design/image 9 10% Religion 25 27% Tas es/p e e ences 21 23% Socio-economical 18 19% T adi ions/ideology 13 14% Physiology 9 10% Clima e 7 8% Table 8. Dimension and ac o s o de ing (Middle Eas ) 36 The da a in Table 7 and Table 8 show ha , o he Middle Eas , he mos adap ed physical p oduc cha ac e is ic is colou and size wi h he weigh o 28% and 26% on all adap a ions, he less adap ed cha ac e is ic is design/image (wi h 10%). The socio-cul u al ac o mos in luencing changes on p oduc is eligion (27%) and as es/p e e ences ha come mos ly om he adi ional/backg ound o socie y (23%) Bu he ac o adi ions/ideology by i sel was no seen as e y in luencing, being esponsible only o 14% o changes. Due o he lack o e hnog aphical backg ound, ma ke -manage s a e no able o disco e and explain he ela ionship among adi ions/his o y, ideology and as es/ p e e ences, ha domina e in he egion. The less in luen ial ac o s a e clima e and physiology wi h 8% and 10% o weigh espec i ely. The main adap a ions we e made in o m o line ex ensions, whe e colou s, ma e ials, shapes and/o elemen s we e added o emo ed. Also speci ic Ramadan collec ion (including all he anges) was c ea ed o Middle Eas espec ing all he equi emen s o he egion ( esul ing in new p oduc c ea ion). 4.3.2. Eas e n Eu ope ma ke analysis Adap ed cha ac e is ic Socio-cul u al ac o s Religion T adi ions/ ideology Tas es/ p e e enc es Clima e Socio- economical Physiology To al p oduc cha ac e is ic Weigh o each p oduc cha ac e is ic Composi ion/ Ma e ial - - 4 3 4 - 11 32% Colou - 2 5 - - - 7 21% Size - - 3 - 1 1 5 15% Func ionali y/sh ape 1 - 2 2 2 1 8 24% Design/ ashion - 1 1 - 1 - 3 9% To al sociocul u al ac o 1 3 15 5 8 2 34 Weigh o each sociocul u al ac o 3% 9% 44% 15% 24% 6% Table 9. Numbe o changes made in each dimension s. socio-cul u al ac o (Eas e n Eu ope) By he o de o impo ance o ac o s and p oduc cha ac e is ics (Eas e n Eu ope): 37 Numbe o adap a ions Weigh Composi ion/ma e ial 11 32% Func ionali y/shape 8 24% Colou 7 21% Size 5 15% Design/image 3 9% Tas es/p e e ences 15 44% Socio-economical 8 24% Clima e 5 15% T adi ions/ideology 3 9% Physiology 2 6% Religion 1 3% Table 10. Dimension and ac o s o de ing (Eas e n Eu ope) As we can see om he able abo e, he esul s o Eas e n Eu ope di e om he A ab egion, among socio-cul u al ac o s he less in luencing on p oduc adap a ion is eligion ( esponsible only o 3% o changes on p oduc ) and he mo e in luen ial a e as es and p e e ences wi h 44% o weigh , ollowed by socio-economical ac o wi h 24% o weigh and clima e wi h weigh o 15%. T adi ions/ideology and physiology oge he weigh only 15% on changes made. Mo eo e , he mos modi ied p oduc cha ac e is ic is composi ion/ma e ials wi h a weigh o 32%. O he adap ed cha ac e is ics a e unc ionali y/shape (wi h 24%), colou (21% o weigh ) and he less modi ied we e size and design (wi h 15% and 9%, espec i ely). Simila ly wi h si ua ion in Middle Eas , he main adap a ions we e made in o m o line ex ensions, whe e colou s, ma e ials, shapes and ea u es we e added o emo ed. Also Win e speci ic collec ion ( ex iles, oo wea ) was c ea ed o Eas e n Eu ope espec ing all he equi emen s o he egion (new p oduc c ea ion). 4.4. Middle Eas and Eas e n Eu ope s a egy in ligh o Boz epe’s amewo k Looking om ano he pe spec i e, i will be in oduced he Boz epe´s amewo k (Boz epe, 2007) o analyse he esul s. 38 4.4.1. Middle Eas In acco dance wi h he ypology o alue-based adap a ions, he pu pose o changes in oduced in Middle Eas in o de o c ea e alue o cus ome s we e done as ollows. a) Pe o mance adap a ion oge he wi h con enience adap a ion I is mos ly ela ed wi h such socio-cul u al ac o s as clima e and physiology and socio- economical ac o . In o de o make he usage o p oduc mo e con enien and p ac ical in local condi ions and con ex , Pa ois adap , o example: - Due o he clima e, ex iles a e made mos ly o na u al ma e ials wi h ligh and i id colou s because ho wea he do no allow using syn he ic black and da k colou s on head due o he clima e. Na u al ma e ials in mos o he p oduc anges gene ally a e seen as “heal hy” and p ac ical. - Clien s in his egion need big sca es o co e he head due o he exigency o eligion and adi ions (small sca will no co e he head). Consequen ly, simple, neu al and unc ional hai a icles a e needed, because hai is co e ed. - Socio-economical ins i u ions equi e, as well, same pe o mance adap a ion. Fo example, he line o colou ed small sca es c ea ed especially o child en o use in schools on di e en lessons (di e en colou pe lesson); and due o he big amilies, ha a e common in he egion, handbags should be adap ed: bigge , wi h mo e di isions. Some o he common social p ac ices make some o he p oduc o pa o i useless, o example, as hey don’ ely on banks sys em and women don’ use c edi ca ds and discoun ca ds, hey don’ need ca dholde s and many di isions o ca ds in he walle s. Ano he example is, as hey always lea e small chain, hey don’ need chain-holde s. - Physiological p ope ies o majo i y o local women ( ha a e a and hea y) demands adap a ion o sizes (bigge sizes o bel s, b acele s, oo wea ). The same eason impedes hem om using c osso e handbags. The oo wea should be ligh , low- heeled. 45 5. Conclusion The globaliza ion c ea es bo h oppo uni ies and di icul ies o in e na ional companies. Fo achie ing economies o scale, he be e op ion is he p oduc s anda diza ion policy, bu wi h he weakness o , possibly, no sa is ying he cus ome s in a cul u al di e en coun y. E e y company needs o unde s and whe he socio-cul u al ac o s, which a e no so ob ious and easy o analyse, a e impo an and equi e changes on in e na ional ma ke ing s a egy, ega ding he physical p oduc i sells in dis inc o eign ma ke s. The main goal o his s udy was o unde s and wha kind o adap a ions can be equi ed on p oduc , wha socio-cul u al a iables can a ec he decision o adap a ion, wha is he weigh o each a iable in he decision o adap a ion and how does he adap a ion impac on p oduc and i m pe o mance. Using he case o Pa ois, we show which physical p oduc cha ac e is ics and a ibu es su e ed changes and which socio-cul u al ac o s a e esponsible o hese changes as well as hei weigh on he adap a ions done. We analyse, as well, he mo i a ion o he company in i s choice o in e na ional ma ke ing s a egy. Pa ois ac wi hin Adap a ion-S anda diza ion con inuum, whe e s anda diza ion s a egy is adop ed in o de o p o ide cus ome wi h consis en p oduc image and quali y, impeccable se ices and, he e o e, consis en b and image and adap a ions a e done in o de o sa is y clien , gain cus ome s loyal y, gaining bigge ma ke sha e by o e ing p oduc ha sa is ies speci ic needs o chosen segmen s o cus ome s. Ce ain dynamics, in he p ocess o adap a ion, exis . Fi s o all, he company acqui ed mo e knowledge and commi men in he ma ke s in esea ch (Middle Eas and Eas e n Eu ope) and only hen he e iewed i s in e na ional ma ke ing s a egy om comple e s anda diza ion o pa ial adap a ion As we could see, he bigge di e ence be ween he home coun y (Po ugal) and coun y o des ina ion is ha mo e adap a ions a e equi ed and done. Fo he Middle Eas egion, he socio-cul u al ac o mos in luencing changes on p oduc was eligion, ollowed by as es/p e e ences. The ac o adi ions/ideology by i sel was no seen as e y in luencing. The less in luen ial ac o s a e clima e and physiology wi h 8% and 10% o weigh espec i ely. The esul s o Eas e n Eu ope di e om he A ab egion, among socio-cul u al ac o s, he less in luencing on p oduc adap a ion is eligion and he mo e in luen ial a e as es and p e e ences wi h 44% o weigh , ollowed by socio-economical ac o and clima e. The mos 46 modi ied p oduc cha ac e is ic is composi ion/ma e ials, ollowed by unc ionali y/shape and colou . The less modi ied cha ac e is ics we e size and design. In bo h egions he main adap a ions we e made in o m o line ex ensions, whe e colou s, ma e ials, shapes and ea u es we e added o emo ed. As o he implica ions o adap a ions done on he p oduc ´s and company´s pe o mance, aking in o accoun ha hese adap a ions we e ended ecen ly and only one pe iod o ime o each g oup o coun ies could be analysed, any clea conclusions on he pe o mance could no be done wi hou u he s udy o his subjec on he consecu i e pe iods. Bu i we igno e all o he ac o s, gene ally speaking, he success a e o he adap ed p oduc in bo h s udied egions has inc eased. The u he a en ion and esea ch on his subjec would help he company o make all he necessa y s eps owa ds e ision o ac ual in e na ional ma ke ing s a egy. The main limi a ions o his s udy we e ha i ocuses only on he p oduc , as pa o ma ke ing mix; i has a limi ed sample o one company, one indus y and as i was he single case s udy, any gene aliza ion canno be done. Mo eo e , e minology and concep s used a e e y abs ac , in ol e pe sonal unde s anding and subjec i e opinion abou hem, which is di icul o be measu ed. 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Wha physical a ibu es in his p oduc we e changed o Quali y o Tas e o Smell o Tex u e o Op ions o Physical design o Physical ea u es o Labeling o Se ice a ibu es o Wa an y o e ed o Packaging o B and name o Colou o Size o Shape o S yle o Coun y o o igin o Image o Ma e ials o Du abili y o Pe o mance usage pa e n o Weigh 53 9. Wha was he cul u al and social ac o om he lis ha equi ed ha modi ica ion? o Language o Religion o Needs o Habi s o P e e ences o Mo al belie s o Race o Topog aphy o Occupa ions o Disposable income o Taxa ion o Na ionalism o Ins i u ions (educa ion, a i udes, social o ganiza ion) o Ma e ial cul u e (p oximi y, echnology, aes he ics, ma e ial possessions) o Symbolic cul u e ( eligion, cus oms and adi ions, clima e) 10. Explain how each o he dimensions speci ied in he poin 9 eques ed hose changes? 11. We e hese modi ica ions issued by you? 12. I no , by whom? 13. We e hese changes in oduced simul aneously o g adually? 14. Wha was he mo i a ion o in oduc ion o adap a ion?