Setting Product Strategy

“Chapter 12”

S.M. Siraj Uddin Chowdhury

myrubel@yahoo.com

University of Dhaka

We are going to discuss…

“Design As A Powerful Marketing Tool”

“Rationalizing Brand Portfolios for Growth”-

“Making Ingredient Branding Work”-

“Marketing Spotlight on TOYOTA as well as on Walton”

Setting Product Strategy with………………………..

INTRODUCTION

At the heart of a great brand is a great product. Product is a key elementin the market offering. To achieve market leadership, firms must offer products and services ofsuperior quality that provide unsurpassed customer value.

5 levels of product

PRODUCT

A product is anything that can be offered to a market to satisfy want or need.

Product Differentiation

Form Features Performance

Quality Conformance

Quality Durability Reliability Repair ability Styles

Marketers have traditionally classified products on the basis of characteristics; durability, tangibility, and use.To be branded, products must be differentiated.

Differentiation

And the next one is Services Differentiation

After differentiating the physical product the key to competitive success may lie in adding valued services and improving their quality.

Differentiation

DesignThe Integrative Force

Design is the totality of features that affect how a product looks and functions in terms of customer requirements.

Design is particularly important in making and marketing retail services, apparel, packaged goods, and durable equipment.

Design?

Design is a way of changing life and influencing the future

Brief…

Design is about demonstrating how beautiful something can be

Design is the fundamental soul of a man-made creation

Design is the no. 1 determinant of whether a product-service-experience stands out or not

Finally…

Design as a Powerful Marketing Tool

Manufacturers, service providers, and retailers seek new designs to create differentiation and establish a more complete connection with consumers.

Holistic marketers recognize the emotional power of design and the importance of how things look and feel.

Design is now more fully integrated into the marketing management process.

Marketing Insight

The Scandinavian company Finland’s Nokia, is credited with taking a little black blob with tiny buttons and turning it into an object of desire. Nokia was the first to introduce user changeable covers for cell phones, the first to have elliptical shaped, soft, and friendly forms, and the first with big screens. In the early 1990s, Nokia controlled only 12% of the global market for cell phones. Today, it is the world leader in handsets, with 38% of the market.

Sweden’s IKEA has become one of the top furniture retailers in the world in part through its ability to design and manufacturing inexpensive furniture that doesn’t seem cheap.

After seeing some of their brands lose share to competitors with stronger designs and aesthetics, Procter & Gamble appointed a Chief Design Officer in 2001 and now hands out an A.G. Lafley Design award each year.

Examples

Sony’s e-Villa internet appliance was intended to allow consumers to have internet access from their kitchens. But at nearly 32 pounds and 16 inches, the mammoth product was so awkward and heavy that the owner’s manual recommended customers bend their legs, not their back, to pick it up. The product was eventually withdrawn after three months.

A bad design can ruin a product’s prospects…

Awareness!

Rationalizing Brand Portfolios for Growth

Marketing INSIGHT

Brand?

A brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Brand portfolio is the set of all brands and brand lines offered by a particular firm for sale

Brand Portfolio?

Brands of Unilever In 1999, Unilever owned more than

1600 distinct brand.

Unilever

Famed Brand More than 90% profit of Unilever came

from just 400 brands.

Fact

Statement of Unilever Co-Chairman ‘Niall Fitz Gerald’

He linked the brand reduction to weeding a garden so the light and air get into the blooms which are likely to grow the best.

‘Niall Fitz Gerald’

Most of the multi brand company focus on core brand.

Summary

Co-BrandingCo-Branding products are often combined with products from other companies in various ways. A rising phenomenon is the emergence of co-branding, also called dual branding or brand bundling, in which two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

Co-Branding

Ingredient Branding Ingredient Branding is the brand

policy (goals, strategies, instruments) concerning a branded object (necessary condition) of materials, components, or parts (raw materials, component materials, or component parts)that represents a brand for the respective target group(sufficient condition).

Ingredient Branding

 Making Ingredient Branding Work.......

INGREDIENT BRANDS CREATE VALUE

Marketing Memo

Improve

Produc

t Quality

Create Differentiation

Provide Alternative Market Strategy

In 3 ways

Requirements for success in ingredient Branding…

Consumers must informed about the ingredient product and companies have to educate the customer about the ingredient system.

Need to create some faiths in the believe of consumers that the ingredient is good as well as superior.

Some Requirements

Requirements for success in ingredient Branding…

A clear identity needed for establishing the success. Such as a distinctive logo.

Effective marketing programs and steps can help consumers to understand the importance of ingredient branded product.

Some Requirements

So, shortly we can say that there are four requirements for success in ingredient branding

Relevance

Credibility

Differentiation

Consistency

In a Sentence

DuPont®

DuPont has introduced a number of innovative products,such as Corian® solid-surface material, for use in markets ranging fromapparel to aerospace. Many, such as Tyvek® house wrap, Teflon® non-stickcoating, and Kevlar® fiber, became household names as ingredient brandsin consumer products manufactured by other companies. Since 2004,DuPont has introduced more than 5,000 new products and received over 2,400 newpatents. One of its recent award winners, Sorona® is a renewably sourced or bio-basedpolymer for use in carpet and apparel markets.

Example

DuPont’s Stainmaster carpets havebecome a household name.

Marketing Spotlight

TOYOTA&

WALTON

A case study on

About Toyota Founded : August 28, 1937

Founder(s) : Kiiciro toyoda

Employees : 317,734 (2010)

Headquarters: Toyota

City, Aichi,

Japan

Production output: 7,308,039

units (FY2011)

Profit : (US$5.07 billion)

CEO: Fujio Cho 

At a glance

key success factors of Toyota

Products are offer for different price points

evaluate each customer group need want

strategy differs from their products to products & geographical location

Wide variety of model can create very inexpensively

Success Factors

Where is Toyota vulnerable

Weakness

Litigation Have Seriously Damaged The Company’s Brand Image

1. Lawsuits over Deaths or Serious Injuries

2. Lawsuits for Emotional Distress, Diminished Value

3. Shareholder Lawsuits North America, Japan, And Europe

Dangerous downturn. Introducing Leading Edge Product

Recommendations as a senior marketing executives

Recommendations

Cost-cutting and developing competitive new vehicles

bring the changes in designing their car.

compensate those families who have been affected by car accident by using their car.

mass advertising about the significance of global warming

take the promotional strategy in Japan, Europe , North America,

Some strategies ….

Different themes for different models Marketing massage can educate

consumers Marketing massage must be positive Product variation Product-price variation Learning the future product Manufacturing power and speed Manufacturing network

Toyota Believes

Walton

Established in 1977

Established by R.B Group

More than 120 outlets

At a glance

Market Segmentation

Demographical bases (age, family size, life cycle, occupation)

Geographical bases (states, regions, countries)

Behavioral bases (product knowledge, usage, attitudes, responses)

Segmentation

11 zones

Dhaka North

Dhaka South

Dhaka South-West

Comilla

BarisalSylhet

Mymensingh

Rajshahi

Bogra

Jessore

Chittagong

Geographic Segmentation

Segmentation

SWOT analysis of WALTON

SWOT

Some recommendations for WALTON

Switch to Market Penetration Pricing without compromising quality

Customer Loyalty Program

Yearlong incentives and special offers

Recommendations

***Thank you everyone***

I am very proud to make you the final audience of this presentation.

Iam

Grateful If you have any question to make you clear about any topics I have discussed……..

?Please ask