e4e6 Consulting
Strategic & Operational Support
To Your Corporate Development

​

In our previous article, The Product as a Strategic Asset: How S&OP Can Enhance Innovation, Quality, and Market Success, we explored how Sales & Operations Planning (S&OP) ensures that product strategy is not just a marketing vision but an operational reality. We discussed how S&OP optimizes product innovation, quality, customization, and sustainability by aligning cross-functional teams.

When expanding internationally, these challenges become even more complex. Companies must adapt them to diverse markets without sacrificing efficiency or profitability. In this follow-up, we focus on how the collaboration between Marketing and S&OP can help businesses succeed in international markets by managing the Product aspect of the marketing mix.

​

Adapting the Product for Global Markets: A Strategic Challenge

 

A product’s success in one market does not guarantee its viability elsewhere. Several factors impact how a product should be designed, manufactured, and positioned in different regions:

• Regulatory Requirements: Compliance with safety standards, certifications, and industry-specific regulations (e.g., FDA in the US, CE marking in Europe).

• Consumer Preferences: Variations in design expectations, feature preferences, and cultural influences.

• Material Sourcing and Manufacturing Constraints: Availability of raw materials, cost-efficient production locations, and supply chain risks.

• Product Lifecycle & Innovation Needs: Some markets demand high-speed innovation, while others prioritize reliability and durability.

 

Without a structured approach, companies may face product-market mismatches, excessive customization costs, and supply chain inefficiencies. This is where the synergy between Marketing and S&OP becomes a competitive advantage.

 

S&OP Can Support Product Strategy in International Expansion

​

S&OP ensures that a company’s global product strategy is both market-driven and operationally feasible. It can help answer critical questions such as balance between customization and production efficiency, optimal product launch schedule across regions, demand uncertainty management for new international markets, and support investigating opportunities for postponement or glocalization.

S&OP can contribute to Global Product Management by bringing various insights:

• Foster Flexible Product Configurations: Supports modular design strategies, enabling companies to adapt final product specifications closer to the point of sale.

• Enforce scalable production & inventory planning: Ensures that manufacturing and supply chain operations are aligned with the forecasted international demand.

• Manage Risk Related to new market entry: By integrating real-time market data with operational constraints, S&OP minimizes risks related to supply bottlenecks or excess inventory.

 

The Marketing-S&OP Partnership: Turning Market Insights into Actionable Product Strategies

 

Marketing teams define product-market fit, while S&OP teams execute it efficiently. This collaboration is critical in three major areas:

• ​Product Innovation & Localization

 

Marketing gathers insights on local needs, competitors, and trends. S&OP can ensure these inputs translate into viable product modifications by:

• Evaluating design changes feasibility or new product variants.

• Coordinating with R&D to align innovation with operational constraints.

 

📌 Example: A global electronics company identifies demand for smartphones with dual SIM functionality in Southeast Asia. Marketing defines this as a key requirement; S&OP ensures its integration into the production schedule while minimizing additional complexity.

​

• Product Customization & Agility

​

Internationalization can lead to personalized products. But customization must remain cost-effective. S&OP can support Marketing’s customization efforts by:

Implementing delayed differentiation strategies (e.g., final assembly customization near distribution hubs).

• Enabling regional manufacturing flexibility to support localized packaging, branding, or software modifications.

• Managing inventory complexity by optimizing SKU proliferation.

​

📌 Example: A cosmetics brand expanding into Japan needs to reformulate certain skincare products due to different regulatory standards and consumer preferences. S&OP ensures this without creating excessive supply chain complexity.

​

• Product Quality & Consistency Across Markets

Premium brands rely on consistent product quality to reinforce their positioning. Marketing defines the brand promise, and S&OP ensures it is maintained across all international markets by:

• Aligning global quality assurance processes with local compliance needs.

• Implementing supplier qualification programs to secure raw materials of consistent quality.

• Ensuring traceability and transparency, which are particularly critical in industries like luxury goods, pharmaceuticals, and food & beverage.

📌 Example: A European luxury fashion house expanding into China must ensure that its leather products comply with both EU and Chinese environmental regulations while maintaining craftsmanship integrity.

 

Marketing & S&OP Collaboration: A Powerful Way to Elevate Product Strategy

 

Companies that integrate S&OP into their international product strategy achieve:

• Faster time-to-market for localized products

• Lower costs through optimized product standardization and flexible manufacturing.

• Stronger brand equity by maintaining product consistency across markets.

• Higher customer satisfaction through tailored offerings that meet local expectations.

 

By fostering close collaboration between Marketing and S&OP, businesses can successfully navigate the complexities of global markets—delivering the right products, in the right configurations, at the right time.

 

Contrary to common belief, these concepts are not meant only for large companies: as soon as you are in business they fly into your business growth and profitability – most commonly, you simply can’t put a finger on them or name them. Let’s discuss how you can leverage marketing and S&OP to create a real competitive advantage for your internationalisation strategy.