Product and Brand Management

XIME

Product ManagementPeter Drucker Successful industries perform only two things: product innovation and marketing

XIME

2

What Is a Product ?Product: A bundle of attributes The Total ProductTangible attributes: materials, size, weight, design, packaging, performance, comfort Intangibles: brand image, styling, other benefits (installation, delivery, credit, warranty, after-sale service, return policy)

3

Product DecisionsExisting ProductsProduct phase-out Product modification Product introduction into new markets Product performance management

New ProductProduct development Product introduction Product performance management4

Product Development StrategiesAdaptation vs. Standardization

XIME

5

Global Product DevelopmentStandardization- developing same product for multiple countries Premise-- consumes share some common values, beliefs, and consumption patterns Advantages: economies of scale and scope, price competitiveness, uniform image

6

Global Product DevelopmentProduct Adaptation- modifying productto reflect characteristics of a market Premise-- consumers are not the same Advantages: improved fit between product and consumer, expanded penetration

7

Product DevelopmentMandatory product adaptationsGovernmental regulations Technological considerations (e.g., voltage, infrastructure) Cultural imperatives - is it acceptable to consumers Measurement standards: volume, length, weight, quantity

8

Ansoff Matrix

A tool to analyse product strategy of a business

XIME

9

Ansoff MatrixProduct Present New Product Development Diversification

Market PresentNew

Market Penetration Market Development

Growth vector matrix (Igor Ansoff, 1965)

XIME

10

Ansoff MatrixMarket penetration- selling existing products into existing markets. Maintain or increase the market share of current products (competitive pricing strategies, advertising, sales promotion) Secure dominance of growth markets Restructure a mature market by aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers for example by introducing loyalty schemes

XIME

11

Ansoff MatrixMarket development - sell its existing products into new markets. New geographical markets; Eg. Exporting the product to a new country New product dimensions or packaging New distribution channels Different pricing policies to attract different customers or create new market segments

XIME

12

Ansoff MatrixProduct development -introduce new products into existing markets. development of new competencies requires the business to develop modified products which can appeal to existing markets.

XIME

13

Ansoff MatrixDiversification - new products in new markets. risky strategy because the business is moving into markets in which it has little or no experience. must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

XIME

14

Classification of Products - Consumer - Industrial - Service

XIME

15

Specialty goods Convenience goods

Shopping goods Unsought goods

XIME

16

XIME

17

Materials and Parts

Raw materials

Manufactured materials

Capital Items

InstallationsSupplies and business Services Equipment

XIME

18

Terms of Product Portfolio Size

XIME

19

Product Mix WidthProduct Line LengthDetergents Ivory Snow Dreft Tide Cheer Dash Bold Gain Era Toothpaste Bar Soap Gleem Crest Ivory Camay Zest Safeguard Oil of Olay Disposable Diapers Pampers Luvs Paper Products Charmin Puffs Bounty

XIME

20

Thank YouXIME

21