What is model / Product model standardization?

Model standardization is a process and strategy of manufacturing and selling

products or services consistently. It involves making sure that a product
upholds certain standards for item quality, service delivery or appearance in
every market. A standardized product uses the same materials no matter where
in the world it's sold, from the raw supplies used to create it to the branding,
naming and packaging. A standardized service may be delivered through the
same medium or with similar characteristics each time. Product adaptation is
the opposite of product standardization, since it involves adapting products for
each market.

How is product model standardization used?

Product model standardization depends on the industry and what stage of
development the product is in. In some industries, product standardization just
involves making sure that each new product meets regulations. Companies
developing standardized products may follow a process like this:

1. Develop transferrable product plan

2. Design efficient manufacturing process
3. Develop marketing strategy
4. Create codified guidelines
5. Enforce product standards

Here are some common uses of product model standardization:

 Individual products: Companies may standardize their

individual products, keeping everything from the recipe or
process to the labeling consistent across national and
international markets. For instance, large international food,
clothing or beverage companies may have standardized product
lines that don't vary significantly in different places.
 Franchises: Companies that use a franchise model for their
brick-and-mortar locations frequently standardize procedures
and materials so that customers have a consistent experience
and product. For example, fast-food restaurants commonly have
standardized interiors, menus and products.
 Regulations: Organizations like certifying bodies or government
agencies may set regulations for how to make a product safe for
 consumers and operational with local utilities or other tools. For
example, plugs and outlets are generally standardized across a
country so that customers can use almost any appliance in their
home without an adapter.
 Market norms: Companies may standardize how they package
products or services with their competitors so that customers
know what amount or medium the product will come in. For
example, companies who make items like paper, hot dogs and
stocks usually package them with the same number of pages or
stocks as their competitors.
 Advantages of product model standardization
Product standardization may be the right choice for companies looking to
prioritize efficiency or brand consistency. Here are some advantages of product
standardization:

Production efficiency

When a company standardizes a product, they enable greater efficiency

throughout the production process. For instance, they can purchase materials
and packaging in bulk, which may result in cost or shipping discounts. After a
company finds a successful design for any machines or tools used in
production, they can produce that equipment consistently rather than creating
custom equipment for each product line. Even training costs are lower since the
company can use the same materials, courses or instruction for all employees
involved in producing and packaging the product.

Lower production cost

With the more efficient production processes, companies may see lower
production costs with the discounts of scale. Since the same process is being
used on a large quantity of material, engineers and designers are also more
motivated to create less waste, which can reduce material costs as well. The
company can use these savings to take a greater profit from the product, or
pass the savings onto the consumer as part of their pricing strategy.

Better scaling

Companies can scale standardized processes more easily than customized or

adaptable processes. They don't have to spend time or money on redeveloping
a product, designing packaging or even finding suppliers. It may be more
efficient to build new manufacturing facilities for the same product, even with
adjustments for different units or local utilities, than designing a new plant.

Read more: How To Scale a Business: Effective Strategies for Sustainable

Growth

Strong brand reputation

Consumers know what to expect from a standardized product, so they may

develop loyalty or look for that product when traveling. When the product is
high quality, customers form positive associations with the branding. Strong
brand recognition can help with everything from building market share to
finding funding and expanding geographically.

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Disadvantages of product model standardization

Product standardization may not be the right choice for businesses looking to
focus on very specific demographics or areas. Here are some potential
disadvantages of product standardization:

Fewer choices

When companies standardize products, they produce more of a smaller

number of variations. This means that consumers have fewer choices between
products, which may mean they end up purchasing something that doesn't
meet all their needs or desires. Therefore, this strategy may not be right for a
business that has customers who want a variety of options to choose from.

Read more: The Consumer Decision-Making Process: Definition and

Examples

Technical advancement delay

When a company has dedicated itself to refining one method of standardized

production, they may be less agile to adapt to new technological processes. This
can result in delays when adopting more efficient, advanced or eco-friendly
alternatives, since new adaptations are more labor-intensive at large scale.
Companies may also be hesitant to invest the money necessary to implement
new advancements, so it's important to consider what advancements are most
important.

Product development stagnation

The benefits of product standardization may encourage companies to avoid

improving their standardized products or create new ones. This can be harmful
for sales over time, since customers may begin purchasing other brands if
standardized products become out of date or if the customers want some
variety. Standardization can therefore be more effective for companies that
produce staple items like basic foods or cleaning supplies that don't change as
much over time, compared to industries that rely heavily on trends or
technology.

Culturally restricted

Standardized products are the same in all markets, which can limit how
customers see the product or lead to unintended results. Companies must
consider this during product development and make adjustments as needed
when scaling. For example, if a product name has a special meaning or pun in
one language, marketers must ensure the meaning translates into all
languages used in potential markets and consider the naming and images of all
international competitors as well as domestic ones.