Product and Planning

8/3/2019 Product and Planning

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Product and Concept

MarketingProduct:

Anything that can be offered to market that

satisfy a want or need

Concept of product

Benefit it Conveys

Attributes

Support Service


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ProductEg NirmaCore Product: is not physical productcleans the cloth

Actual Product : TangibleWashing Powder detergentAugmented Product: Non physical

After Sales service

Value AdditionFeedbackFree scrubber


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BRAND

Collection of experience in terms of benefits

which is important to him

Reebock / Adidas : Its Your experience with

product which will create impression on yourmind space

How to Secure a position in coveted space

ie, consumers perceptual space


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RATING

Amul

Nirma

LG

Idea

Nokia

How do you rate

these brands


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BRAND MANAGEMENT

Brand Management consists of :

Positioning

Brand Loyality

Brand Extention

Brand Portfolio


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PRODUCT LIFE CYCLECONCEPT

IMPORTANT POINTS TO BE NOTED

Products have a limited life cycle

Products sales pass thru different

stages

Each stage of lifecycles posesdifferent challenges and opportunities

Each stage requires differentmarketing, financial manufacturingand purchasing and resourcing

strategies


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Introduction stage

Slow/ erratic/ Period of LeavingVolkswagen

Strategy: Offensive (Innovative co. with R&D)Defensive (Wait and Watch)

Initiative (Chinese products,lowcost)


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MATURITY STAGE

Market saturation / market share/sales/ profit level off MARUTI

Strategy: Finding new avenues of

growth Improved efficiency for

growth

Rationilising of productlines/profitability


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DECLINE STAYS

Sales/ market show/ profit all decline

Maruti 800)

Strategy: Exit

: Maintain support to existing

customers

: Reduce investment

: Improve short-runprofitability


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MARKETING MIX

What is marketing mix:

Mixer of Ingredients

Effective blending of resources


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BASIC 4Ps

PRODUCT PRICE PLACE PROMOTION

Tangible good/serviceProduct hasPLC DesignTechnologyUsefulnessConvenienceValuesQuality

PackageBrandingAccessoriesWarrenties

StrategiesSkimmingPenetrationPsychologicalCost Plus loss leader

DistributionChanelRetailWholesaleMail OrderInternetDirect salesPeer to PeerMultichannel

AllCommunication AdvertisingPublic RelationPersonalsellingSalesPromotionEndorsements

User TrialsDirect MailingLeaflets

/PostersFree GiftsCompetitions

Joint Ventures


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EXTENDED MARKETING MIX (4 Ps)

PEOPLE PROCESS PHYSICALEVIDENCE /

ENVIRONMENT

Consumer Servive

Employees

Management

Culture

Customer Service

Especially relevant toService IndustriesHow are servicesconsumedLogistic flow ofService

Smart

Run down

Interface

Comfort

Facilities


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PRODUCT MIXSTRATEGIES For Leaders, Challenges, Follower

Designing Competitive strategiesdepending on SWOT


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A: Market Leader

MS/ Volume/Value:

GM was the leader cumulativeLosses

Toyota was leader in terms ofprofitability

Sustainable competitive advantages

Product Innovation Leader

Technology Leader

Cast Leader / Service Leader


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Market Leader should have Key Strategicactions:

Market expansion thru: New use/ moreusage/ Replacement demand

Defend share by profit innovation/Improve servicedistribution effectiveness/ reduce costimprove value chain Never neglect : Area/ Territory, cost

structure, customer Feed back/ Aftersales service

Increase sales when market rise isconstant

A rising tide raises all the ships inharbour


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B. MARKET CHALLENGER

Strong but not in dominant position

Targets not only leader but other andmale players too.

Pepsi targets Coke

Identify weakness in targets position

and attack and focus all resources at

this point


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Strategic Options:

1) Price discount/ cutting2) Line extention3) New products4) Product quality5) Improve Service6) Review distribution and service7) Cost Reduction

8) Intensify promotionAttack Strategies: Frontal, Encircle,Bypass, Guerilla


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C. Market follower

Imitation, viable, least resource cost

Strategic options:

1. Counterfeiter: Illegal / Unethical

2. Cloner: Copy everything but withslight variation

3. Imitator: Imitate leader but maintain

differentiation (Chinese/ Koraenproduct)


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D. Market Nicher

Select target market

Niche should be target enough to beprofitable and small enough to be

ignored by market leader


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Successful Niche Player

1. High value added industry with highmargin i.e., Sundarm Clayton

2. Highly focused on specific market

segment3. Market high end product/ service

with premium pricing strategy

Documents

Product and Planning