Creating a product strategy

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setting product strategy by Mahendranath reddy Manohar Venkata ravindranath reddy Venkata suresh Mohana shyam Balakrishna Sharath chandra 06/06/2022
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    21-Oct-2014
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    Marketing

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creating a product strategy is vital part in marketing this presentation will help u to know more

Transcript of Creating a product strategy

Creating a product strategy

setting product strategy

by Mahendranath reddyManoharVenkata ravindranath reddyVenkata sureshMohana shyamBalakrishna Sharath chandra

28-Apr-14

SYNOPSIS

ProductProduct levelsProducts classificationsProducts differentiationProduct HierarchyProduct line and Product mixCo-Branding and ingredient BrandingPacking, labeling, warranties and guaranteesconclusion

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product

product is anything that can be offered to a market that might satisfy a want or need.

It can be goods or service or ideas such as intellectual property

Product may be tangible or intangible

3

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Product levels

Product levels of house

Product classifications

Durability and tangibility:-Nondurable:Tangible goods consumed in one or few usesPurchased frequentlyStrategy : availability , low priced , heavily advertised

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Contd..

Durable goods:Tangible goods that survive many usesRequire more personal selling and serviceHigher margins and requires seller guarantee

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Contd..

Service:Intangible product.Requires more quality control and credibility.

Consumer goods classification

Convenience GoodsInexpensive, frequently purchased.Little effort needed to purchase them.Staples, Impulse and emergency goods.

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Contd..

Shopping GoodsNot as frequently as convenience productsCostlyConsumer does research before purchase.

Contd..

Specialty GoodsUnique features.Consumer is prepared to pay a premium price.

Contd..

Unsought GoodsThose good that consumers do not know orDoesnt think of buying.

Industrial goods classification

Materials and Parts

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Raw Materials

Manufactured materials and parts

Farm Products

Natural Products

contd..

Materials and Parts

Raw Materials

Manufactured materials and parts

Component materials

Component Parts

contd

Materials and Parts

Raw Materials

Manufactured materials and parts

Component materials

Component Parts

Contd..

Capital ItemsInstallationsEquipment

Contd

SuppliesMaintenance and repair items Operating supplies

Business ServicesMaintenance and repair servicesBusiness advisory services

Contd

Product Form: Many products can be differentiated in the form-size, shape, or physical structure of the product.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Features: products can be offered with varying features that supplement the basic function.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Customization: marketers can differentiate product by differentiating them for different userMass customization such example

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Performance : level at which the products primary feature operates.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Conformance quality : ensuring that the product is oh highest grade

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Durability : measure of product operating life.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Reliability: it is the measure of the probability that the product will not fail with in a given time.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Repairability: measure of how easily product can be fixed.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Style: describes the products looks and feel to the buyer.

Product FormFeaturesCustomization Performance qualityConformance qualityDurabilityReliabilityRepairabilitystyle

Product differentiation

Product Hierarchy

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Contd..

Need family core need that underlies the existence of a product family .Product family satisfy a core need with reasonable effectiveness.Product class group with in product family recognized as having a certain functional coherence.Product line group with in product class that are related they perform a similar function.Product type group with in product line that share 1 of several possible forms of the product.Item distinct unit with in a brand.

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Product Line

group of related products that are physically similar or are intended for the same market.

Product line analysis

Sales and profitsMarket profileCore productStaplesSpecialties Convenience items

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Product line stretching

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Down-MarketStretch

Up-Market Stretch

company from upper/middle market introduces a lower-priced line

companies enter the high end of the market to achieve more growth

company in middle decide to stretch their line in both directions

Two-Way Stretch

Product Mix

a companys assortment of product lines and individual offerings.

Product mix dimensions

Width: number of product linesLength: total number of items in mixDepth: number of product variants Consistency: degree to which product lines are related

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Product mix pricing

Product line pricing: product lines rather than single products.Introduce price stepsEx: mens suite at three price levelsOptional feature pricing:Optional products, features, services, along with main productPricing is sticky problemEx: economy model of auto companies, restaurants with low food price but high liquor price

Contd..

Captive product pricing:Products that require use of ancillary products.Ex: cellular phones with lock- in period, ID makers/printers using ink.Two part pricing: Fixed fee plus variable usage fee.Ex: telephone postpaid plans .Fixed fee low enough, profit from usage fee.

Contd

By product pricing:If the by-products have value to a customer group, they should be priced on their value.Ex: sugar refinery which sells by products of its sugar canesProduct bundling pricing:Pure bundling product is offer only as bundle.Tied in sales.Ex: actor and other talents in a film company .Mixed bundling- less cost than if sold separately.

Co Branding

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Two companies join to create a new product carrying both their brands. Examples:Taco bell and KFC.McDonalds & movie Mulan.Pizza Hut & Pepsi.Cereal box with other thing inside.

Ingredient branding

creating a brandfor an ingredient or component of aproductIntel Insidefor processors andchipsetsin computers of various producers.NutraSweet andCanderel, a brand name for theartificial sweetener Aspartamein the food industry (Coca-Cola light)

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packaging

All activities of designing and producing the container for a product.The fifth P.An element of product strategy.Buyers first encounter with product.

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Contd..

Self service: 50-70% of all purchase sold on self service basis .Packaging should: attract attention, describe the product features, creates consumer confidence, make favorable overall impression.Consumer affluence: rising consumer affluence means more willingness to pay for convenience, appearance, dependability and prestige of better packages.

Contd

Company and brand image:Instant recognition of company brand. Create visible billboard effect.Innovation opportunity:Unique materials and features that could benefit consumers and increase profit of producers.

Packaging objectives

Identify the brandDescriptive and persuasive informationTransportation and protectionAt home storageAid product consumption

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Warranties and guarantees

All sellers are legally responsible for buyers normal or reasonable expectations.WARRANTIESFormal statements of expected product performance by manufacturer.Products can be returned to manufacturer for repair, replacement, or refund.

Functions of Labels

Identifies

Grades

Describes

Promotes

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Contd..

EXTENDED WARRANTIESBest Buy & Circuit City.GENERAL & SPECIFIC GUARANTEESP&G - product returned if customer satisfaction not met.CROSS - pens & pencils guaranteed for life.

Warranties and guarantees

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conclusion

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