creating a product strategy is vital part in marketing this presentation will help u to know more

1. setting product strategy
by
Mahendranath reddy
Manohar
Venkata ravindranath reddy
Venkata suresh
Mohana shyam
Balakrishna
Sharath chandra
4/28/2014

2. SYNOPSIS
Product
Product levels
Products classifications
Products differentiation
Product Hierarchy
Product line and Product mix
Co-Branding and ingredient Branding
Packing, labeling, warranties and guarantees
conclusion
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3. 4/28/2014
product
product is anything that can be offered to a market that might
satisfy a want or need.
It can be goods or service or ideas such as intellectual property
Product may be tangible or intangible

4. 4/28/2014
Core benefit
Basic
product
Expected
product
Augmented
product
Potential
product
Product levels

5. Product levels of house

6. Product classifications
Durability and tangibility:-
• Nondurable:
• Tangible goods consumed in one or few uses
• Purchased frequently
• Strategy : availability , low priced , heavily advertised
•
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7. Contd..
• Durable goods:
• Tangible goods that survive many uses
• Require more personal selling and service
• Higher margins and requires seller guarantee
31-Mar-14

9. Contd..
• Service:
• Intangible product.
• Requires more quality control and credibility.

10. Consumer goods classification
• Convenience Goods
• Inexpensive, frequently purchased.
• Little effort needed to purchase them.
• Staples, Impulse and emergency goods.
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11. Contd..
• Shopping Goods
• Not as frequently as convenience products
• Costly
• Consumer does research before purchase.

12. Contd..
• Specialty Goods
• Unique features.
• Consumer is prepared to pay a premium price.

13. Contd..
• Unsought Goods
• Those good that consumers do not know or
• Doesn’t think of buying.

14. Industrial goods classification
Materials and Parts
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Raw Materials
Manufactured
materials and parts
Farm
Products
Natural
Products

15. contd..
• Materials and Parts
Raw Materials
Manufactured
materials and
parts
Component
materials
Component
Parts

16. contd…
• Materials and Parts
Raw Materials
Manufactured
materials and
parts
Component
materials
Component
Parts

17. Contd..
• Capital Items
• Installations
• Equipment

18. Contd…
• Supplies
• Maintenance and repair items
• Operating supplies

19. Business Services
• Maintenance and repair services
• Business advisory services
Contd…

20. Product Form: Many products can be
differentiated in the form-size, shape,
or physical structure of the product.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

21. Features: products can be offered with
varying features that supplement the
basic function.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

22. Customization: marketers can
differentiate product by
differentiating them for different user
Mass customization such example
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

23. Performance : level at which the
product’s primary feature operates.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

24. Conformance quality : ensuring that the
product is oh highest grade
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

25. Durability : measure of product
operating life.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

26. Reliability: it is the measure of the
probability that the product will not
fail with in a given time.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

27. Repairability: measure of how easily
product can be fixed.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

28. Style: describes the products looks and
feel to the buyer.
Product Form
Features
Customization
Performance quality
Conformance
quality
Durability
Reliability
Repairability
style
Product differentiation

29. Product Hierarchy
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30. Contd..
• Need family – core need that underlies the existence of a
product family .
• Product family – satisfy a core need with reasonable
effectiveness.
• Product class – group with in product family recognized as
having a certain functional coherence.
• Product line – group with in product class that are related they
perform a similar function.
• Product type – group with in product line that share 1 of
several possible forms of the product.
• Item – distinct unit with in a brand.
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31. Product Line
group of related products that are physically similar or are
intended for the same market.

32. Product line analysis
• Sales and profits
• Market profile
• Core product
• Staples
• Specialties
• Convenience items
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33. Product line stretching
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Down-Market
Stretch
Up-Market Stretch
company from upper/middle
market introduces
a lower-priced line
companies enter the high
end of the market to
achieve more growth
company in middle decide
to stretch their line
in both directions
Two-Way Stretch

34. Product Mix
• a company’s assortment of product lines and individual offerings.

35. Product mix dimensions
 Width: number of product lines
 Length: total number of items in mix
 Depth: number of product variants
 Consistency: degree to which product lines are related
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36. Product mix pricing
 Product line pricing:
• product lines rather than single products.
• Introduce price steps
• Ex: men’s suite at three price levels
 Optional feature pricing:
• Optional products, features, services, along with main product
• Pricing is sticky problem
• Ex: economy model of auto companies, restaurants with low
food price but high liquor price

37. Contd..
 Captive product pricing:
• Products that require use of ancillary products.
• Ex: cellular phones with lock- in period, ID makers/printers
using ink.
 Two part pricing:
• Fixed fee plus variable usage fee.
• Ex: telephone postpaid plans .
• Fixed fee low enough, profit from usage fee.

38. Contd…
 By product pricing:
• If the by-products have value to a customer group, they should be
priced on their value.
• Ex: sugar refinery which sells by products of its sugar canes
 Product bundling pricing:
• Pure bundling –product is offer only as bundle.
• “Tied in sales”.
• Ex: actor and other talents in a film company .
• Mixed bundling- less cost than if sold separately.

39. Co Branding
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•Two companies join to create a new product carrying both
their brands.
Examples:
•Taco bell and KFC.
•McDonalds & movie Mulan.
•Pizza Hut & Pepsi.
•Cereal box with other thing inside.

40. Ingredient branding
• creating a brand for an ingredient or component of a product
• Intel Inside for processors and chipsets in computers of
various producers.
• NutraSweet and Canderel, a brand name for the artificial
sweetener Aspartame in the food industry (Coca-Cola light)
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41. packaging
• All activities of designing and producing the container for a
product.
• The fifth “P”.
• An element of product strategy.
• Buyer’s first encounter with product.
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42. Contd..
 Self service:
• 50-70% of all purchase sold on self service basis .
• Packaging should: attract attention, describe the product
features, creates consumer confidence, make favorable overall
impression.
 Consumer affluence:
• rising consumer affluence means more willingness to pay for
convenience, appearance, dependability and prestige of better
packages.

43. Contd…
 Company and brand image:
• Instant recognition of company brand.
• Create visible billboard effect.
 Innovation opportunity:
• Unique materials and features that could benefit consumers
and increase profit of producers.

44. Packaging objectives
• Identify the brand
• Descriptive and persuasive information
• Transportation and protection
• At home storage
• Aid product consumption
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45. Warranties and guarantees
• All sellers are legally responsible for buyer’s normal or
reasonable expectations.
• WARRANTIES
 Formal statements of expected product performance by
manufacturer.
 Products can be returned to manufacturer for repair,
replacement, or refund.

46. Functions of Labels
• Identifies
• Grades
• Describes
• Promotes
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47. Contd..
• EXTENDED WARRANTIES
 Best Buy & Circuit City.
• GENERAL & SPECIFIC GUARANTEES
 P&G - product returned if customer satisfaction not met.
 CROSS - pens & pencils guaranteed for life.

48. Warranties and guarantees
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49. conclusion
02-Apr-14