International Marketing in Germany – From a cultural perspective

5.4.1
 
Price 
Nudie uses standardized 
pricing strategy
within Europe and has standardized 
list prices
. 
There is no German cultural reason for it, but rather that Nudie tries to harmonize customers 
view of price within Europe and that there are too many possibilities of internet shopping 
making it harder for Nudie to adapt prices.
Nudie applies adapted 
discounts
in Germany giving three percent off to customers paying ten 
days before last day of payment (this discount is called Skonto in Germany). The company 
has an interest in taking away this discount, but has not been able to do so in Germany, since 
it is a part of the culture with regard to how they do business.
The
 period of payment
is standardized, but Germans often pay earlier than deadline due to the 
early paying discount. However, Nudie adapts the credit terms applying tougher conditions in 
Germany than in Sweden. Reasons for this are that Nudie hasn’t got the same knowledge 
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The Absolut Company 
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Nudie Jeans Marketing AB

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about and contacts in the German market as the Swedish market and that Germany obey under 
other laws making it more insecure doing business there.
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5.4.2
 
Product 
Nudie standardizes: the 
function of the product, packaging, features, label, quality 
and
 brand 
name
, since it wants to have a univocal brand with the same products in every market. The 
company finds it more important to be a consistent brand than to adjust to German culture 
with regard to the product. Pros of the standardization are economies of scale and a strong 
brand and cons are that Nudie may loose customers not finding their product.
 
Nudie applies adapted 
after-sales service
, having a German customer service in Germany 
handling complaints, storage from Sweden, shipment and helping out in other areas. This is 
because it is easier having a German knowing the language and being able to understand. 
Germans prefer to call a German than calling Sweden being forced to speak English.
The 
installation service
is something that Nudie doesn’t offer, since it is not necessary in the 
business. 
Warranty service 
and
 delivery service
are also not included in Nudie’s augmented 
product and is therefore not offered to the end customer.
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