A decision to standardize or adapt a product policy in the European markets depends on the advantages that are associated with each approach in terms of enhancing the development of an effective market strategy to ensure high sales volumes for the A&F products. Vrontis and Thrassou inform that strategies encompass decisions that facilitate the attainment of organizational objectives and goals when adopted by the manager. For A&F, its main goal is to build a competitive advantage by expanding into the international markets. Therefore, the organization can consider either standardization or adaptation if any of the strategies help in increasing its sales levels. Hussain and Khan assert, ‘the process of extending and effectively applying domestic target market-dictated product standards, tangible or intangible, is attributed to the marketing of a foreign environment.’ This claim means that through standardization, A&F will focus on pushing products in the developed and marketed European markets while having the US local consumer in mind and without considering the European nations’ product policy.
Issues such as the globalization of cultures that lead to homogenization of consumer preferences and the advancing communication and technologies underline the need for standardization. Hussain and Khan claim that a successful marketing strategy for global consumers entails developing a common brand name, its packaging, and its communication procedures. This process calls A&F to utilize a common marketing mix and the designing of one strategy for use in the global European markets and other international markets without considering the European product policy regulations.
Vrontis and Thrassou appreciate the necessity of standardization to fit marketplace product policy regulations. However, for success in terms of making high sales, internationalizing organizations need not only to think globally but also to act locally. This plan underlines the necessity for A&F to strike a compromise between standardization and adaptation to the European product policy. According to Hussain and Khan, since adaptation is a mandatory initiative for trading in a foreign nation, A&F may not have a choice but to comply with the European nations’ product policy requirements.
Whether mandatory or not, adaptation is necessary where there are incredible differences in terms of consumer needs and/or where competition is intense such that brand differentiation becomes necessary. A&F also needs to adapt to its products to ensure that its products agree with policy requirements, including packaging, technical information, and legal issues that are applicable to the European nations. Apart from complying with political requirements to mitigate any legal, political hindrances to successful placement of A&F products in the European markets, customer lifestyles and behaviors underline the necessity for adaptation.
As indicated in the case, European consumers have certain preferences in terms of A&F’s product positioning. While factors such as the experimental marketing targeting strategy and the positioning of commodities as prestigious products that are meant for higher-end consumers work in the US market, some European shoppers prefer the presence of salespersons to guide them in product selection, location, and accessibility within the store.
This plan suggests that they are more interested in a specific product rather than experiencing a collection of products before making their final selection. Consequently, standardization of the marketing strategy fails to work for A&F to some extent in the European market. However, standardizing the brand name is important for a clear differentiation and reservation of loyalty by European shoppers, whether in European-based stores or elsewhere.