Product and Services Strategy

What is a product? One more time…

More on product…

Goods Services Experiences

A Product Dissected:

Core benefit

Actual product

Augmented Product

Brand Name

Quality

Packaging

Features

Warranty

Delivery

Service

Installation

Other product terms

Brand: name, symbol, term, design or combination that distinguishes competitors products

Brand name Brand mark Product line Product mix

                   

Branding

To brand or not to brand– Paul McCartney applies to trademark his name– George Foreman: $137.5 Million from Salton

(Foreman Grills) “Foreman is a brand, not a grill” wsj 2/2

Brand sponsor: manufacturer, private, or licensed– Brand Equity: positive differential effect brand has

on customer response (e.g. price premium) Family brand? Multibrand?

Brand Strategies

Product Category

Existing New

Brand Name

Existing

New

LineExtension

BrandExtension

Multibrands New Brands

Packaging

Benefits for manufacturer, consumer, and reseller– communications– storage– convenience– protection– perception

“From a packaging viewpoint, Reser's most successful branding effort has been its nationwide rollout, last year, of Salad Ovals. Purely through packaging, Reser's has added value to its flagship product. The company's sales of prepackaged salads are 27% ahead of last year, attributable solely to the new package”

Product Classifications

Durables Non-durables

Product Classifications: Consumer Convenience Products

– staples, unplanned, and emergency Shopping Products Specialty Products Unsought Products

Product Classifications: Industrial Materials and Parts: become part of the

product Capital Items: aid in production or

operations– installations and accessories

Supplies and Services

Services are…

Intangible Inseparable Variable Perishable