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PRODUCT STRATEGY

Presented by:-A.MANIVVANNAN

Nov10

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What Is a Product ?

Product:

A bundle ofattributes

The Total Product Tangible attributes: materials, size, weight, design,

packaging, performance, comfort

Intangibles: brand image, styling, other benefits

(installation, delivery, credit, warranty, after-sale

service, return policy)

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Marketing Mix 4 ps

Product -----

Price ----------

Place ---------

Promotion -

Customer Value

Cost to the customer

Convenience

Communication

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Product strategy - Marketing mix

Marketing mix are controllable variable which

has to be carefully managed and must meet

the needs of the target group. All elements of

the mix are linked and must support each

other.

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Product strategies

When an organisation introduces a product in amarket

they must ask themselves a no of questions.

1.Who is the product aimed at ?

2.What benefitwill they expect ?

3. How do they plan to position the product within the

market?

4.What differential advantage will the product offer

over their competitors?

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Product strategy 3 Levels of product

Philip kotler suggested that a product should be viewed in three levels.

Level 1: Core Product.What is the core benefit your product offers?.Customers who purchase a cameraare buying more then just acamerathey are purchasing memories.

Level 2 Actual Product: All cameras capture memories. The aim is to ensurethat your potential customers purchase your one. The strategy at this levelinvolves organisations branding, adding features and benefits to ensurethat their product offers a differential advantage from their competitors.

Level 3: Augmented product:What additional non-tangible benefits can youoffer? Competition at this level is based around after sales service,warranties, delivery and so on. Viveks a retail store offers free five year

guarantee on purchases of their Television sets, this gives their `customersthe additional benefit ofpeace ofmindover the five years should theirpurchase develop a fault.

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Total Product Concept

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Marketing Mix

Product strategies

Product

Decisions

Branding Quality Features

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Product Decisions

When placing a product within a market many

factors and decisions have to be taken into

consideration. These include:

Product design Will the design be the selling

point for the organisation as we have seen

with the new VW Beetle.

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Product Decisions

Product quality: Quality has to be consistent

with other elements of the marketing mix. A

premium based pricing strategy has to reflect

the quality a product offers.

Eg. Honda

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Product Decisions

Branding:- In principles of marketing by philip

Kotler and Gary Armstrong a brand is defined

as the name, term, symbol or combination of

these that identifies the maker or seller of the

product.

Brand must stand out and be recognizable and

should help the firm differentiate itself from

its competitors.

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Product Decisions

Product features: What features will you add

that may increase the benefit offered to your

target market?Will the organisation use a

discriminatory pricing policy for offering these

additional benefits?

Eg. Apple i-pod

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Global Product Decisions

Existing Products

Product phase-out

Product modification

Product introduction into new markets

Product performance management

New Product

Product development Product introduction

Product performance management

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Product Strategy

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Eg. TATA Indica - Positioning

& Ace

Multiple brand positioning - HUL

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Eg:- Kissan Jam ( other than spreading on bread can

be used on chappati, paratas etc)

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Th

e View from Toyota

Our global strategy used to center on world

cars, which we would modify slightly to

accommodate demand in different markets.Today our focus is shifting to models that

we develop and manufacture especially for

selected regional markets.

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The View from Honda

We are the most international of the Japanese companies.

At the moment we are the most diversified, and we will

be more diversified in the future. Still, I think it would be

very hard to build a one-type world car. In the end, I

dont think it would be very efficient.

---Nobuhiko Kawamoto

President and CEO, Honda Motor Company

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Tha

nk You!!!