Globally standardised vs. locally adapted packaging - A case study at Sony Ericsson Mobile Communications AB

Abstract: This thesis explore how the balance of a packaging standardisation and adaptation strategy, from a distribution and sales perspective on different markets, can satisfy the markets needs and increase sales. An inductive approach has been used as well as the thesis is both explorative and explanatory. Since the authors wanted to find a broader perspective and analysing secondary data, the following data collecting methods have been used: literature research, interviews, questionnaire and observations. Furthermore, a single case study research approach has been used in the thesis. The case study approach leads to expanding and generalising theories but does not provide a statistical generalisation. The literature studies started the master thesis where previous packaging as well as standardisation vs. adaptation research was examined. Based on packaging logistical theories, a packaging questionnaire was sent to the case company’s market units. Furthermore, in-depth interviews were held with employees at selected markets. To further broaden and deepen the knowledge regarding the perception of the packaging portfolio at the case company’s markets, field studies at two of the selected markets were conducted where observations and interviews with different actors were performed. It is concluded that successful retailing is impacted by the choice of packaging strategy and what packaging portfolio to use on different markets. Different markets have different packaging related needs and in the case of Sony Ericsson, the authors have identified the need of going towards a more locally adapted packaging strategy. However, as previously discussed (e.g. see Jahre & Hatteland, 2003), trade-offs exist between logistical efficiency and marketing potential. This thesis has shown that there is a need for Sony Ericsson to adapt their packaging portfolio to market specific needs and demands in order to compete successfully. The authors recommend that Sony Ericsson divides their packaging portfolio into two different portfolios, one for pre-sales promotion markets (where the primary packaging is used as a marketing tool) and one for post-sales promotion markets (where the primary packaging should confirm the purchase). The most important variable that separates these markets is the size of the primary packaging. Pre-sales promotion markets need larger primary packaging in order to attract end-customers. This is no need on the post-sales markets. The authors have developed two models in order to identify how the sales channels are functioning (MAJO model) and how well the current packaging portfolio is perceived at the focus markets (packaging portfolio evaluation model). These models have been of major importance in the analysis and the authors strongly believe that they could be used at other global companies in the fast moving consumer electronics goods industry.