PRODUCT   STRATEGY

The product is …

Goods Services into the marketGoods, Services into the market

attract the attention buy consumptionattract the attention, buy, consumption

meet customer ‘s demands

LEVEL of PRODUCT

Af lCore Product

After ‐ sales

Actual ProductFeatures

Brand Design WarrantyDelivery

Core

Augmented ProductQuality Packing

Core Product

(Potential Product)y

CreditInstall

Actual Product

Core Product

Customers really want ?y

Augmented Product

Classification of Products

by Using time

by Form of existencey

by Consumer characteristicsby Consumer characteristics

by Using time

Long timeShort time

by Form of existence

TangibleIntangible

by Consumer characteristics

DailyChoiceEspecially

Product Life cycle

Product have a limited life

Product sales pass through distinct stage

Product require different marketingProduct require different marketingin each life cycle stage

Introduction

costs are very highslow sales volumes to startslow sales volumes to start

little or no competitiondemand has to be created

customers have to be prompted to try the product

Introduction

Established distribution channelsPromote advertising and sales promotiong pFocus groups of customers willing to buyEncourage customers to tryInformation for potential customersInformation for potential customers

Growth

Sales volume increases significantlyfi bili b i iProfitability begins to rise

Public awareness increasesCompetition begins to increase p g

Increased competition leads to price decreases

Growth

Continue to inform the publich i d biKeep the price or down a bit, to attract customersProduct innovation, improve service quality

Entering new marketsg

Maturity

Sales volume peaks and market saturation is reachedIncrease in competitors entering the market

Maintain or increase market shareProfits go downProfits go down

Maturity

Modified productsModified productsFind new markets for productsModified marketing mix

Decline

costs become counter optimalcosts become counter‐optimalsales volume decline

prices, profitability diminishprofit becomes more a challenge of production

Decline

DiscountsNarrow categoryCut off the small market share, the trade channel less effectiveMake quick decisions to remove or retain any itemsMake quick decisions to remove or retain any items

Thanks for your listeningy g