A cornerstone of a global marketing mix program is the set of product policy decisions that multinational companies (MNCs) constantly need to formulate. The range of product policy questions that need to be tackled is bedazzling: What new products should be developed for what markets? What adaptations, if any, should be made when we roll out an existing product in a new market? What products should be added to, removed from, or modified for the product line in each of the countries in which the company operates? What brand names should be used? How should the product be packaged? serviced? and so forth. Clearly, product managers in charge of the product policy decisions of a multinational company have their work cut out for them.
Improper product policy decisions are easily made, as the following cases illustrate: