PRODUCT DESIGNING STRATEGY

PRESENTED BY-

MEGHA JAIN

INTRODUCTION PRODUCT STRATEGY PRODUCT DESIGNING PROCESS STAGES OF PRODUCT LIFE CYCLE DIMENSIONS OF PRODUCT DESIGN STRATEGY CAUSES OF NEW PRODUCT FAILURE PRODUCT DEVELOPMENT SYSTEM

CONTENTS

Definition: The product-design strategy deals with the degree of

standardization of a product. The company has a choice among the following strategic options: standard product, customized product, and standard product with modifications.

Objectives: Standard product: to increase economies of scale of the company. Customized product: to compete against mass producers of

standardized products through product-design flexibility. Standard product with modifications: to combine the benefits of

the two previous strategies.

Product Design Strategy

Requirements:

Close analysis of product/market perspectives and environmental changes, especially technological changes.

Expected Results: Increase in growth, market share, and profits. In addition, the third strategy allows the company to keep close contacts with the

market and gain experience in developing new standard products.

Product Design Strategy

Idea

Development

Product Screening

Preliminary Design and

Testing

Final Design

Product Designing Process

Step 1 - Idea Development - Someone thinks of a need

and a product/service design to satisfy it: customers, marketing, engineering, competitors, benchmarking, reverse engineering

Step 2 - Product Screening - Every business needs a formal/structured evaluation process: fit with facility and labor skills, size of market, contribution margin, break-even analysis, return on sales

Step 3 – Preliminary Design and Testing - Technical specifications are developed, prototypes built, testing starts

Step 4 – Final Design - Final design based on test results, facility, equipment, material, & labor skills defined, suppliers identified

The Product Design Process

Stages of the Product Life Cycle

Product-Positioning.

Product-Repositioning.

Product-Overlap.

Product Scope.

Product-Design.

Dimensions of Product Strategies

• Product Elimination.

• New Product.

• Diversification.

• Value-Marketing.

1. Techniques

2. Single vs. Multiple Brand Strategy

Product Positioning Strategy

1. Reposition among existing customers

2. Reposition among new users

3. Reposition for new uses

Product-Repositioning Strategy

1. Competing brands

2. Private Labeling

3. OEM strategy

Product-Overlap Strategy

Society Environment Economy

Product- Scope

1. Standard products

2. Customized products

3. Standard product with modifications

Product-Design Strategy

1. Harvesting

2. Line-Simplification

3. Total-Line Divestment

Product-Elimination Strategy

1. Product Improvement/Modification

2. Product Imitation

3. Product InnovationDevelopment Process:Idea GenerationIdea ScreeningProject PlanningProduct DevelopmentTest MarketingCommercialization

New-Product Strategy

1. Concentric Diversification

2. Horizontal Diversification

3. Conglomerate Diversification

Diversification Strategy

1. Quality Strategy

2. Customer Service Strategy

Value Marketing Strategy

Poor up-front intelligence

Failure to stick close to what the company does best

Lack of competitive advantage

Failure to satisfy a need or want

Some Causes of New Product Failure

© 2011 Pearson Education, Inc. publishing as Prentice Hall

Product Development System

Scope of product

development team

Scope for design

and engineerin

g teams

Evaluation

IntroductionTest Market

Functional Specifications

Design ReviewProduct Specifications

Customer RequirementsAbility

Ideas

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