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SETTING PRODUCT STRATEGY

Luis Angelo M. Ibarra12.01.09

Top 10 Concepts

Setting Product Strategy

1. Product levels must be addressed2. Create a brand identity3. Provide value-added services for

further differentiation4. Market an optimal set of products5. Offer customizable product mixes

Setting Product Strategy

6. Create a product map to assess the competition

7. Utilize line stretching to cater to a spectrum of markets

8. Product-mix pricing provides customers with options

9. Involve in co-branding and ingredient branding to maximize exposure

10. Looks do matter

1. Product Levels

1. Core Benefit – end in mind of customer2. Basic Product – how or what to provide3. Expected Product – customer expectations4. Augmented Product – value add aside from

expected5. Potential Product – vision of what it can

become

2. Brand Identity

Brand Identity differentiates a product from others. It can be different through the following:1.Form2.Features3.Customization4.Performance Quality5.Conformance Quality6.Durability7.Reliability8.Repairability9.Style

3. Valued Services

Services differentiation –creating identity through the services provided.1.Ordering Ease2.Delivery3.Installation4.Customer Training5.Customer Consulting6.Maintenance and Repair

4. Product Hierarchy

6 levels of product hierarchy:1.Need Family – benefit provided2.Product Family – products providing satisfying a core need3.Product Class – products with functional coherence4.Product Line – with similar function with other products5.Product Type – items which share forms of the product6.Item – distinct unit

5. Product Mixes

6. Product Map

To see the competition’s offering and which are directly against your product.

Also to identify market segment.

7. Line Stretching

Stretches that may be done:1.Down-Market Stretch2.Up-Market Stretch3.Two-way Stretch

8. Product-Mix Pricing

Product-mix pricing options:1.Product line – different offerings in a line2.Optional feature – additional features3.Captive product – printer and ink4.Two-part pricing – same network rates, other network rates5.By-product6.Product bundling – bundled together, value meals

9. Branding

Co-Branding. Joining two known brands into a joint product.

Ingredient Branding. Like co-branding, but creates brand equity for materials, components, or parts needed for other branded products –e.g., Dell and Microsoft.

10. Packaging

Aesthetics matter. With good packaging, consumers are made more confident of the products quality. And if the packaging is uniquely done, it helps build brand identity.

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SETTING PRODUCT STRATEGY

Luis Angelo M. Ibarra

Top 10 Concepts