Dowbrands Ziploc: The Case for Going International

Abstract

The new vice president for international at DowBrands is considering a major introduction in Europe of the company's highly successful food-storage bag (Ziploc). Substantial marketing-research data are inconclusive about the product's potential, and foreign managers are not enthusiastic about the need/prospects for this product in countries where consumers have different food-shopping/preparation habits. The vice president, however, points out that this was the case for Ziploc during its introduction in the United States, and believes that the U.S. experience is transferable to the current European situation.

Excerpt

UVA-M-0381

DOWBRANDS ZIPLOC: THE CASE FOR GOING INTERNATIONAL

In October 1990, Stewart James, vice president of international for DowBrands, Inc., was reviewing the success of Ziploc brand zippered bags outside the United States:

The jury is still out. In Canada, we're at about break even. In Latin America, we've built a plant—we've put a stake in the ground for Ziploc—but have yet to show operating profits. We're in the process of buying back a joint venture in Japan, after which we should make some money. We sell some product in Europe through our own organization, but none of our European subsidiaries is convinced that there is much of a future for Ziploc; and some recent market research seems to support the conclusion that it will never be more than a niche product in those countries. Sometimes in these cases, the only way to find out for sure is to make a commitment and go for it.

In my view, DowBrands should grow Ziploc at all costs, and this means taking it to the rest of the world. It is our number one product in sales and profitability, and my experience has shown that estimating volume potential where behavioral changes are required is a very difficult question to research anyway. We are the low-cost producer in this category, and for a product which is as much a production art as it is a science, we are still far ahead on the learning curve. We are facing increased competition and margin erosion in the U.S. market, and now is the time to go forth in the international arena. The only problem is; how do we get the rest of the organization fired up about this opportunity?

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Keywords: international marketing, marketing research, marketing strategy, new-product introduction, international case, diversity case, international