International Marketing in Germany – From a cultural perspective

5.3.1
 
Price 
The type of 
pricing strategy
is confidential; however, The Absolut Company applies a global 
strategy with local adaptations. The company is now owned by the Pernot Ricard, which has 
subsidiaries in each country and the 
list price 
is therefore adapted, being negotiated with 
every distributor in each target market. The German market is seen as a price-intensive, 
brand-intensive and activity-intensive market.
The headquarter in Stockholm creates 
discount
strategies and guidelines for the subsidiaries to 
follow, but local adaptation is possible, that makes competition in the German low-price 
market more possible. The 
period of payment
is adapted to the customer since each 
department store, chain or restaurant has its own negotiation process. This way The Absolut 
Company can award good customers and also protect itself against bad customers, giving 
them different credit terms.
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5.3.2
 
Product 
The Absolut Company has standardized the 
core product. 
The 
package 
in the matter of the 
bottle
 
is standardized as well as the 
labels.
However, the company has different skins or 
limited editions, but they are not specific adapted to the German market. A skin can for 
example be Absolut Brazil, or the limited edition Absolut Disco. The Absolut Company 
points out that under each skin or limited edition there is a standardized Absolut Vodka bottle. 
The 
features 
are standardized, but as already pointed out skins or limited editions are used on 
the label. The 
quality
and 
brand name
are standardized to give a univocal impression of the 
product everywhere. 
The 
after-sales services
are adapted handling reclamations locally through the distributors. 
The Absolut Company doesn’t apply any 
warranty services
, 
installation service
or 
delivery 
service, 
since it is not a business where it is necessary to offer the end customers this kind of 
services as a part of the product.
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