06. product strategy

THARAKA DIASMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK),

FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia),

MSLIM

� What are the characteristics of products

and how do marketers classify products?

� How can companies differentiate

products?

How can a company build and manage its � How can a company build and manage its

product mix and product lines?

2AOT - www.tharakadias.com

� How can companies combine products to

create strong co-brands or ingredient brands?

� How can companies use packaging, labeling,

warranties, and guarantees as marketing warranties, and guarantees as marketing

tools?


A product is anything that can be offered to a

market to satisfy a want or need, including

physical goods, services, experiences, events,

persons, places, properties, organizations, persons, places, properties, organizations,

information, and ideas.


YouTube - McDonalds FUNNY AD.mp4

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YouTube - McDonalds FUNNY AD.mp4

3455.wmv

AOT - www.tharakadias.com

Value-based prices

Attractiveness

of the market

offering

Product

features

and quality

Services

mix and

quality


• TransportCore product

• Product features, design, quality, brand and packagingBasic product

• Level of performance, comforts, Expected product

• Level of performance, comforts, reliability, and thrill, status, prestige

Expected product

• After sales support, customer service, delivery, credit etc.

Augmented product

• Better fuel economy, enhanced design etc.

Potential product


Durability

Tangibility

Use

Tangibility


Nondurable

goods

ServicesDurable

goods


Convenience Shopping

UnsoughtSpecialty


� Convenience products- relatively inexpensive and frequently

purchased

1. Staple goods- bread, milk, toothpaste

2. Impulse goods – chocolates, perfumes, mags

3. Emergency products – umbrella, medicine, battery

� Shopping products – less frequent purchased products

( Appliances, bicycle, cameras, furniture, clothing, airline etc)

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( Appliances, bicycle, cameras, furniture, clothing, airline etc)

� Specialty products - products with unique characteristics or

brand identification ( Cars, watches, designer clothes, medical

advisory, legal)

� Unsought products – normally does not plan to buy

( catalogues, insurance, encyclopedia, blood donation etc)


Materials and parts

Supplies/

business servicesCapital items


� Product form� Features� Customization� Performance� Conformance� Conformance� Durability� Reliability� Repairability� Style


� Ordering ease

� Delivery

� Installation

� Customer training

Customer consulting� Customer consulting

� Maintenance and

repair

� Returns


� Product system

� Product mix

� Product assortment

� Depth� Depth

� Length

� Width

� Consistency


Product Product

Line 1Line 1

Product Product

Line 2Line 2

Product Product

Line 3Line 3

TABLESTABLES

••KitchenKitchen

CHAIRSCHAIRS

••Dining RoomDining Room

LAMPSLAMPS

••TableTable

• Width of Product Mix

••KitchenKitchen


••EndEnd

••CoffeeCoffee

••OutdoorOutdoor

••ConferenceConference

••ComputerComputer


••Living RoomLiving Room

••BedroomBedroom

••OutdoorOutdoor

••DeskDesk

••TableTable

••CeilingCeiling

••TrackTrack

••DeskDesk


Down-Market StretchDown-Market Stretch

Up-Market StretchUp-Market StretchUp-Market StretchUp-Market Stretch

Two-Way StretchTwo-Way Stretch


Pruning weak brands

can strengthen the

remaining brands in

the line


� Product-line pricing

� Optional-feature pricing

� Captive-product pricing

Two-part pricing� Two-part pricing

� By-product pricing

� Product-bundling pricing


Packaging, sometimes called the fifth

P, is all the activities of designing and

producing the container for a product.


Self-serviceSelf-service

Consumer affluenceConsumer affluence

Company/brand imageCompany/brand image

Innovation opportunityInnovation opportunity


� Identify the brand

� Convey descriptive and persuasive

information

Facilitate product transportation and � Facilitate product transportation and

protection

� Assist at-home storage

� Aid product consumption


Identifies

GradesGrades

Describes

Promotes


� Awareness

� Interest

Evaluation� Evaluation

� Trial

� Adoption


2.5% Innovators

Adoption ProcessAdoption Process

• Product Adopter Categories


2.5% Innovators

13.5% Early Adopters




2.5% Innovators




34% Early Majority


2.5% Innovators




34% Early Majority34% Late Majority


2.5% Innovators

13.5% Early Adopters16% Laggards



34% Early Majority34% Late Majority


Idea generationIdea generation Idea screeningIdea screening Concept testingConcept testing

11 22 33

42

CommercialisationCommercialisationTest marketingTest marketing

Business AnalysisBusiness Analysis Product DevelopmentProduct Development

66 77

44 55


Thank you

Thank you


06. product strategy

Business

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