Signal: A good name adaptation strategy?

I chose to talk about the toothpaste brand Signal in this post. Indeed, this Unilever brand is a very good example of adaptation to foreign markets, with a presence in 48 countries in the world.

Product:

By continuously innovating, Signal became the leader and best-selling brand in the oral hygiene markets in most of the countries it is implanted in. Its expertise enabled the brand to become a reference in these markets, and is now perceived as a expert in dental care.

Different ranges of products care available in the markets of implantation of the brand:

- toothpastes adapted to different needs (white system, sensitive...)

- range of toothpastes for kids

- mouthwash

- tooth brushes

Not all these ranges are available in each country, however in France and other European countries for example, you can find them all.

Name adaptation:

An important adaptation in the product characteristics from a country to another is related to the name of the brand. Indeed, at first called “Shield toothpaste”, the brand quickly changed its name to “Signal”. Although this is a word understandable in most of the languages, the brand decided to adapt its name in some countries:

- Signal: France, UK, other main European countries

- Pepsodent: Finland, Asia, Latin America

- Mentadent: Italy, Austria

- Zhong Hua: China

- Aim: Greece

- P/S: Vietnam

However, in my opinion this adaptation strategy could be dangerous for the brand.

Indeed, going abroad, the consumers are looking for brand they already know in the supermarkets. As the Signal’s main competitor is Colgate, the customers of Signal could switch to Colgate, which name remains the same abroad. As “Signal” is a quite global word, if the brand had decided to transfer it to its different countries of implantation it would have been easier for the foreign consumers to identify it and buy it.

This is what I experienced when moving to Finland as the only toothpaste brand I identified from my country was Colgate. I realized “Pepsodent” was the Finnish name of Signal only after a couple of weeks, but I would have bought it if I had identified the brand in a first place.

Therefore, in my opinion, this strategy could be profitable for the brand's main competitors.

Communication strategies for the implantation in a new market:

When entering a new market, a good option for the brand would be to give away some samples of its toothpaste in order to convince the consumers. Experiential Marketing would be a very good option in this case to make the consumers adopt the product.

Introducing freebies, by-products such as shopping bags, or plastic glasses to put in the bathroom would also be an efficient way to introduce the brand in the mind of the consumers, and build brand awareness.

Sources
- Signal Unilever France: http://www.unilever.fr/nos-marques/detail/Signal/333566/
- Signal Unilever website: http://www.unileverme.com/brands/personalcarebrands/signal.aspx

HEINZ: conquering the Chinese market

HEINZ is the leader on the sauces and condiments market all over the world. The Company (created in 1869) is based in Pittsburgh in Pennsylvania (USA) and employs more than 32 000 people all over the world with a turnover of 11 billion $. HEINZ sells its products in more than 200 countries.

I chose to analyse the situation of the company in the United Kingdom (UK), France and China compared to the USA. I will focus on the components of the two most relevant "Ps" from the Marketing Mix concerning Heinz: Product and Promotion. Which of these did the company transfer, adapt and create on the British, French and Chinese markets?

Product

Heinz first reminds people of ketchup all around the world. Through the years the company developped new ranges of products: the ranges of canned prepared meals and snacks, baby food products and other sauces and condiments are available on the American market.

Transfer: The name of the brand his a transferred to all the countries Heinz is operating in. This is a short word, easy to remember and to pronounce in every language.

The range of baby food as been transferred to the British market as well.

Adaptation: In France the tomato-based sauces ranges are adapted to the local tastes and image of fine cuisine (ie. balsamic vinegar ketchup, culinary ketchup range, blue cheese sauce, tomato purée suitable for cooking...)

Creation: on the UK market Heinz created other ranges of prepared meals with pasta, soups and baked beans ranges responding to the needs of the British market.

In china, a range of western-sauces is available appealing to local people identiying more and more to the western way of life.

Promotion

(Click on the pictures to enlarge them)

The ways Heinz communicates about its products varies from a country to another.

On www.heinz.com the visitors can find webites for each region of the world where Heinz is operating. 

Concerning its websites, Heinz adapts them to each country by highlighting specific sections or range of products appealing to the target market.

This is an example with the French website highlighting the range of culinary products available for cooking. This is the first image the customer sees when visiting the website. The brand decided to emphazise this range because it reflects a good quality cooking France is known for.

The language is also adpated to each country, but the design can change as well. The main contents remain the same (ranges of products, history of the company) but are customised for the targeted segments in each region of the world.

 Heinz also uses different media in the different countries such as Facebook pages, for example in France or the UK. The French website of the brand is therefore directly linked to this page on the social network.

 In another way, on its American website, Heinz chose to highlight its commitment to some causes related to nutrition in the world. A way to show a good corporate image worldwide.

Furthermore, Heinz uses also other communication tools such as setting up contests or cooking events. This is a very important way to build the awareness around its products. People are also more reactive to new and innovative communication tools and being involved in an action for the brand is creating customer loyalty as well.

Implantation in China: 

In February 2013, Heinz signed a contract with a frozen food company in China. With this agreement Heinz wants to focus on infant food and sauces in the Chinese market among other emerging markets in this region of the world. In my opinion, Heinz would conquer the Chinese market by implanting ranges of condiments and seasoning for the rice. This would be a challenge for the brand as several companies have already settled in the market. However, with its already famous reputation in the sauces market, Heinz could become a leader in the rice seasoning. 

Concerning the communication means, Heinz could gain new customers by setting up tastings in the shops where Chinese people buy rice. This kind of communication would be a very efficient way to bring the new product to the consumers and persuade them to adopt it.

Sources
- Heinz USA: www.heinz.com
- Heinz UK: www.heinz.co.uk
- Heinz France: www.heinz.fr
- Heinz Global websites: http://www.heinz.com/heinz-global-websites.aspx