CAMBODIA EXPORT DIVERSIFICATION AND EXPANSION PROGRAM (CEDEP I) PRODUCT STRATEGY AND PRODUCT...
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Transcript of CAMBODIA EXPORT DIVERSIFICATION AND EXPANSION PROGRAM (CEDEP I) PRODUCT STRATEGY AND PRODUCT...
CAMBODIA EXPORT DIVERSIFICATION AND EXPANSION PROGRAM (CEDEP I)
PRODUCT STRATEGY AND PRODUCT DEVELOPMENT PLAN
By: Gabriela BYRDE, Consultant in product design and development, International Trade Centre Date: 22 October 2013
INTRODUCTION TO THE PROJECT STRATEGY:
THE WIZE MAN AND THE « FOOL »
INTRODUCTION
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The product strategy in the project context
In the past then years, the consumption picture has drastically changed, forcing enterprises to revise their approach to innovation:
TOO MUCH!! Consumers are overloaded with product offering… more end people are getting fed up with too much consumering that creates so much pain and waists => Less but better
EVERYTHING IS ABOUT CONCEPT… true concepts are rare, many companies just surf on trends movements: eg. green washing => End buyers are getting more sceptical => Long term vision
GAP WORLD… everywhere, companies tent to propose same products to everyone everywhere in the world => In opposition, many consumers look for unique goods, vintage, small scale collections
AWARNESS: more and more scandals in production supplying, also more and more designers and brands are concerned about producing fair trade goods and many suppliers adapted their production methods to this new rising demand. Consequently, competition in “fair trade” market niche is getting stronger => Product as the main mean to sale – the brand core aspect
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Project objectives in terms of product development
PROJECT IS ABOUT HIGH VALUE SILK, ALSO, THE PROJECT AIMS AT ASSISTING COMPANIES TO REACH A HIGHER LEVEL OF QUALITY: QUALITY DESIGN, QUALITY PRODUCTS, QUALITY PRODUCTION METHODS, ETC.
COMPANIES TO DEVELOP THEIR « TRUE CONCEPT » AND GET MORE COMPETITIVE IN THE NEW CONSUMPTION CONTEXT
EACH COMPANY DEVELOPS ITS OWN PRODUCT AND EXPORT STRATEGY BASED ON ITS NEEDS, OBJECTIVES AND POTENTIAL
EACH COMPANY DEVELOPS A UNIQUE AND CLEARER BRAND IDENTITY
EACH COMPANY DEVELOPS THE RIGHT PRODUCT FOR THE RIGHT TARGET MARKET
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The right and left brains
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The brain 2 hemispheric parts work differently:
LEFT BRAIN RIGHT BRAIN
Each of us is inclined to use more the right or left part of the brain, depending on our education, experience, personality
The “wise” manLogicRationalizingStrategy
=> Reflexion
The “fool”ImaginationCreativityCommunication
=> Intuition
THE RIGHT AND LEFT BRAINS
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Product Strategy is about conciliating both hemispheric parts in order to create market oriented designs
WHEN LEFT AND RIGHT BRAIN PARTS MEET:
Imagine new product line based on realistic market needs and demand
Create new product line in an organized and comprehensible manner
=> Intuition: I imagine the idea… => Reflexion: How will I implement it?
PRODUCT STRATEGY METHODOLOGY:
THE GLASS-CLOCK STRATEGY
PART A
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Product strategy methodology
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A. The Brief:
1. Methods
2. Objectives
B. Context Analysis:
1. Internal context
2. External context
C. Concept Definition:
A. Ideas and objectives
B. Main steps to achieve these objectives
DONE WITH PROJECT BENEFICIARIES SINCE PREVIOUS MISSION:
EXPORT PLAN
DONE WITH PROJECT BENEFICIARIES SINCE PREVIOUS MISSION:
EXPORT PLAN
DONE FOR EACH COMPANY SINCE LAST MISSION: BRAND LOOK
BOOK
DONE FOR EACH COMPANY SINCE LAST MISSION: BRAND LOOK
BOOK
Product strategy methodology
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2. CONCEPT
1. ANALYSE
3. DEVELOP
A. The Brief:
1. METHODOLOGYThe glass-clock strategy:1. Self analysis/environment2. Concept3. Brand/product development
Product strategy methodology
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A. The Brief:
1. OBJECTIVES
To create new product line, new brand or improving its identity:
The questions to ask are:For whom?: for what type of buyersFor what? When?Where?How?
These should be drawn based on your historical performance, market demand and your future strategic plans
Product strategy methodology
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B. Contextual analysis:
1. INTERNAL CONTEXT ANALYSIS MAIN STEPS:
a. Historical analysis
a. The current product offering
a. SWOT analysis
a. Strategic plan for future market positioning
Product strategy methodology
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B. Contextual analysis:
1. INTERNAL CONTEXT
a. Historical analysisthe brand story
the person behind it
the brand creation
the brand vision
the brand philosophy
… all aspects that makes the brand DNA
Objective => coherent brand image/identity, what makes it unique from others
Product strategy methodology
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B. Contextual analysis:
1. INTERNAL CONTEXT
b. The current product offeringtype of products’ lines
products that most represent the brand
products that have better potential -> Best sellers
Good ideas to be improved
Better presented
Objective => select products to focus on, rationalise existing product ranges
Product strategy methodology
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B. Contextual analysis:
1. INTERNAL CONTEXT
c. Brand SWOT analysis
se. se.
STRENGTHS WEAKNESSES
OPPORTUNITIES TREATS
oMain strengths to focus on oMain weaknesses to elude
oOpportunities to catch upoThreats to be aware of
Objective => better define the company strategy, by assessing its potential and limits
Define realistic target market segmentation and positioning
positivepositive
internalinternal
externalexternal
negativenegative
Product strategy methodology
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A. Contextual analysis:
1. INTERNAL CONTEXT
d. Strategic plan for future market positioning where
market segment
potential future buyers
BRAND BOOK FOR EACN COMPANY
Current export positioning: Buyers’ profiles: Trade fair buyers
Target export positioningBuyers’ profiles: High End
Objective => Set strategy goals / mid-long term visionFocus!!
Product strategy methodology
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B. Contextual analysis:
1. EXTERNAL CONTEXT ANALYSIS MAIN STEPS:
a. Market Trends: to anticipate buying behaviour
a. Potential market niche: the right product for the right market
a. End client profile: its needs and way of consumption
BRAND BOOK FOR EACN COMPANY
Product strategy methodology
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B. Contextual analysis:
1. EXTERNAL CONTEXT:
a. Market Trends:
It can be compare to “weather forecas”t for fashion industry and lifestyle; like weather forecast, it not exact science, always in move, there are cycles, it goes and come back…
The wise man will analyse people behaviour in domains as different as art, food, beauty, decoration, fashion, free time.
The “fool” will absorb everything that surrounds him in magazines, movies, in trade shows, in the street,
BRAND BOOK FOR EACN COMPANY
Objective => to anticipate consumers’ buying behaviour and create products in line with target market expectations
Product strategy methodology
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B. Contextual analysis:
1. EXTERNAL CONTEXT:
a. Market trends
Their are 2 major kinds of trends:
Long terms movements, as consequences of historical facts, politics, economy, medias, environment preocupations. They that deeply influences people way of buying in most all market segments: Going green, fair trade, slow fashion, nolstagia…
Short terms/seasonal trends, inspired by fashion/couture high end brands, street fashionistas, with 2 trends forecasts;
summer withgenerally bright and light colours, fresh fabrics, fancy motives and shapes
winter: with warmer materials, darker colours, winter related motives…
BRAND BOOK FOR EACN COMPANY
The question to ask then: To what movement I belong, and what related latest trends in that movement?
Product strategy methodology
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B. Contextual analysis:
1. EXTERNAL CONTEXT ANALYSIS MAIN STEPS:
a. Market Trends
BRAND BOOK FOR EACN COMPANY
Following trends are not an obligation and are not 100% trustful, but it is definitely a “safer” way to insure your collection success when exporting and most companies do follow them. BUT, all companies around the world are getting inspired by the same trends, so:
- BE IN, follow trends and be different. Evolve. - BE YOU, break free of trends, differentiate frontally. Innovate. - ME TOO or not ME TOO ? Respond to competition.
Following trends are not an obligation and are not 100% trustful, but it is definitely a “safer” way to insure your collection success when exporting and most companies do follow them. BUT, all companies around the world are getting inspired by the same trends, so:
- BE IN, follow trends and be different. Evolve. - BE YOU, break free of trends, differentiate frontally. Innovate. - ME TOO or not ME TOO ? Respond to competition.
Product strategy methodology
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B. Contextual analysis:
2. EXTERNAL CONTEXT ANALYSIS MAIN STEPS:
b. Potential market niche: the right product for the right market, based on the company strengths, limits
Suitable consumption movements, behaviour to target:
Fair trade, green, slow fashion, fast fashion, vintage
=> Depending on the company potential
Type and style of products generated by the specific movement
Ex: slow fashion or high end consumers will expect quality timeless products that stand for long
In contrary, fast fashion/lower end consumers will expect products that follow the latest trends, whatever the quality is
BRAND BOOK FOR EACN COMPANY
Objective => Identify best potential niche market for the company products
Product strategy methodology
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B. Contextual analysis:
B. EXTERNAL CONTEXT :
a. End client profile . Within selected niche market: Type of person
lifestyle
age range
price range
BRAND BOOK FOR EACN COMPANY
Objective => To have a better vision of end buyers’ needs when designing goods in line with his expectations
Product strategy methodology
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C. Concept Definition:
1. IDEAS AND OBJECTIVES:By taking in account internal and external analysis made, build up a coherent company development project/concept
2. MAIN STEPS TO ACHIEVE THESE OBJECTIVESDefinition of main steps to achieve the concept objectives
Objective => To set a company realistic development plan and the main steps to implement them
PRODUCT STRATEGY METHODOLOGY:
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
PART C
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NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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A. BRAND IDENTITY IMPROVEMENT/DEVELOPMENT:
a. Company story board
b. Main aspects of the brand identity: Brand DNA
c. Graphich chart
B. COLLECTION PLAN
A. Product as the core aspect of the brand:
B. Collection structure
C. Main aspects of a collection plan
D. Collection themes
C. PRODUCT/BRAND ENVIRONMENT
A. Marketing tools
B. Packagging
C. Merchandising
OPTIONAL: ONLY IF REQUIRED BY
THE BRIEF
OPTIONAL: ONLY IF REQUIRED BY
THE BRIEF
DONE FOR EACH COMPANY SINCE LAST MISSION: BRAND LOOK
BOOK
DONE FOR EACH COMPANY SINCE LAST MISSION: BRAND LOOK
BOOK
NEXT STEP: BRAND LOOK BOOK
NEXT STEP: BRAND LOOK BOOK
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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1. BRAND IDENTITY DEVELOPMENT MAIN STEPS:
a. Company story board: Board with a mix of representative pictures and short sentences that well define the brand univers
a. Core aspects of the brand identity: Brand DNA/codesThe brand source of inspiration
The brand univers
The brand story
The brand colours
The brand style
a. Graphich logotype: The brand codes translate into:The brand name
The logo
Main brand slogan
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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B. COLLECTION PLAN
b. Product as the core aspect of the brand: In order to be different and unique from others the brand codes has to be translated into the prooduct
Product as the brand sign: Lacost or Ralph Lauren polos,
Product carries the brand codes: Hermes: orange, horse, travels
Details make the product: Red sole of Louboutin shoes
b. Collection themes /2-4 collection lines, based on:
Brand identity codes: univers, colours, style, motives
Trends: atmosphere, colours, style, motives
Coherence between the different collection themes will come from the brand codes represented in each theme
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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B. COLLECTION PLAN
a. Collection structure
Image product: Products that testify of your brand specificity, univers and production quality
Trendy products: “fashionable” products that follow the latest trends in terms of motives, style and colors
Basic: Products that are selling well: price and design efficiency. They don’t change much, just small modification following colours trends
PROFIT
IMAGE
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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B. COLLECTION PLAN
c. Main aspects of a collection plan
Products categories: different collection lines such as jewelleries, bags and scarves: Careful not to get too many products line as it may look dispersed and incoherent = bad image
Collection colours: depending on the trends, colours are added to the brand main colours
Material used: Also define a restricted ranges of material to remain clear, readable
Type of shapes, in line with brand style (and capacity…)
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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C. PRODUCT ENVIRONMENT
The product is the core aspect of the brand as it is the main income generator, however, without an appropriate environement, client may not even notice the product
The prodcut environement is the main sign of the brand, it illustrates the brand univers and codes
All aspects of the prodcuct environment contricute to better sell the products, but also to comfort buyers as you look « professional »
a. Marketing tools: Catalogue, website, flyers, etc.
b. Packagging: Bags, tags,
c. Merchandising: store decoration, window scenography, product display, booth decoration
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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TRENDY/FASHIONABLE PRODUCTS
BRAND DNA
IMAGE PRODUCTS
BASIC/APPEALING PRODUCTS
PRODUCT ENVIRONEMNT
PRODUCTSMARKETING TOOLS
MERCHENDIZING
PACKAGGING
NEW CONCEPT IMPLEMENTATION /DEVELOPMENT
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Conclusion
The “Product Strategy” goes beyond product development, it’s a whole process, a company project to be more innovative
The “Product Strategy” does not enlarge the collection lines, it reduces it to then built on stronger and coherent basis
The “Product Strategy” allows to focus and not get lost with trends, market information and evolution
The “Product Strategy” gives the brand a longer term vision and a clearer direction
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Show case
PRESENTATION OF BRAND BOOKS
OPEN DISCUSSION ON « PRODUCT STRATEGY » METHODOLOGY
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