CAMBODIA EXPORT DIVERSIFICATION AND EXPANSION PROGRAM (CEDEP I) PRODUCT STRATEGY AND PRODUCT...

CAMBODIA EXPORT DIVERSIFICATION AND EXPANSION PROGRAM (CEDEP I)

PRODUCT STRATEGY AND PRODUCT DEVELOPMENT PLAN

By: Gabriela BYRDE, Consultant in product design and development, International Trade Centre Date: 22 October 2013

INTRODUCTION TO THE PROJECT STRATEGY:

THE WIZE MAN AND THE « FOOL »

INTRODUCTION

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The product strategy in the project context

In the past then years, the consumption picture has drastically changed, forcing enterprises to revise their approach to innovation:

TOO MUCH!! Consumers are overloaded with product offering… more end people are getting fed up with too much consumering that creates so much pain and waists => Less but better

EVERYTHING IS ABOUT CONCEPT… true concepts are rare, many companies just surf on trends movements: eg. green washing => End buyers are getting more sceptical => Long term vision

GAP WORLD… everywhere, companies tent to propose same products to everyone everywhere in the world => In opposition, many consumers look for unique goods, vintage, small scale collections

AWARNESS: more and more scandals in production supplying, also more and more designers and brands are concerned about producing fair trade goods and many suppliers adapted their production methods to this new rising demand. Consequently, competition in “fair trade” market niche is getting stronger => Product as the main mean to sale – the brand core aspect

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Project objectives in terms of product development

PROJECT IS ABOUT HIGH VALUE SILK, ALSO, THE PROJECT AIMS AT ASSISTING COMPANIES TO REACH A HIGHER LEVEL OF QUALITY: QUALITY DESIGN, QUALITY PRODUCTS, QUALITY PRODUCTION METHODS, ETC.

COMPANIES TO DEVELOP THEIR « TRUE CONCEPT » AND GET MORE COMPETITIVE IN THE NEW CONSUMPTION CONTEXT

EACH COMPANY DEVELOPS ITS OWN PRODUCT AND EXPORT STRATEGY BASED ON ITS NEEDS, OBJECTIVES AND POTENTIAL

EACH COMPANY DEVELOPS A UNIQUE AND CLEARER BRAND IDENTITY

EACH COMPANY DEVELOPS THE RIGHT PRODUCT FOR THE RIGHT TARGET MARKET

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The right and left brains

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The brain 2 hemispheric parts work differently:

LEFT BRAIN RIGHT BRAIN

Each of us is inclined to use more the right or left part of the brain, depending on our education, experience, personality

The “wise” manLogicRationalizingStrategy

=> Reflexion

The “fool”ImaginationCreativityCommunication

=> Intuition

THE RIGHT AND LEFT BRAINS

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Product Strategy is about conciliating both hemispheric parts in order to create market oriented designs

WHEN LEFT AND RIGHT BRAIN PARTS MEET:

Imagine new product line based on realistic market needs and demand

Create new product line in an organized and comprehensible manner

=> Intuition: I imagine the idea… => Reflexion: How will I implement it?

PRODUCT STRATEGY METHODOLOGY:

THE GLASS-CLOCK STRATEGY

PART A

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Product strategy methodology

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A. The Brief:

1. Methods

2. Objectives

B. Context Analysis:

1. Internal context

2. External context

C. Concept Definition:

A. Ideas and objectives

B. Main steps to achieve these objectives

DONE WITH PROJECT BENEFICIARIES SINCE PREVIOUS MISSION:

EXPORT PLAN

DONE WITH PROJECT BENEFICIARIES SINCE PREVIOUS MISSION:

EXPORT PLAN

DONE FOR EACH COMPANY SINCE LAST MISSION: BRAND LOOK

BOOK


BOOK


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2. CONCEPT

1. ANALYSE

3. DEVELOP

A. The Brief:

1. METHODOLOGYThe glass-clock strategy:1. Self analysis/environment2. Concept3. Brand/product development


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A. The Brief:

1. OBJECTIVES

To create new product line, new brand or improving its identity:

The questions to ask are:For whom?: for what type of buyersFor what? When?Where?How?

These should be drawn based on your historical performance, market demand and your future strategic plans


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B. Contextual analysis:

1. INTERNAL CONTEXT ANALYSIS MAIN STEPS:

a. Historical analysis

a. The current product offering

a. SWOT analysis

a. Strategic plan for future market positioning


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1. INTERNAL CONTEXT

a. Historical analysisthe brand story

the person behind it

the brand creation

the brand vision

the brand philosophy

… all aspects that makes the brand DNA

Objective => coherent brand image/identity, what makes it unique from others


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1. INTERNAL CONTEXT

b. The current product offeringtype of products’ lines

products that most represent the brand

products that have better potential -> Best sellers

Good ideas to be improved

Better presented

Objective => select products to focus on, rationalise existing product ranges


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1. INTERNAL CONTEXT

c. Brand SWOT analysis

se. se.

STRENGTHS WEAKNESSES

OPPORTUNITIES TREATS

oMain strengths to focus on oMain weaknesses to elude

oOpportunities to catch upoThreats to be aware of

Objective => better define the company strategy, by assessing its potential and limits

Define realistic target market segmentation and positioning

positivepositive

internalinternal

externalexternal

negativenegative


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A. Contextual analysis:

1. INTERNAL CONTEXT

d. Strategic plan for future market positioning where

market segment

potential future buyers

BRAND BOOK FOR EACN COMPANY

Current export positioning: Buyers’ profiles: Trade fair buyers

Target export positioningBuyers’ profiles: High End

Objective => Set strategy goals / mid-long term visionFocus!!


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1. EXTERNAL CONTEXT ANALYSIS MAIN STEPS:

a. Market Trends: to anticipate buying behaviour

a. Potential market niche: the right product for the right market

a. End client profile: its needs and way of consumption



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1. EXTERNAL CONTEXT:

a. Market Trends:

It can be compare to “weather forecas”t for fashion industry and lifestyle; like weather forecast, it not exact science, always in move, there are cycles, it goes and come back…

The wise man will analyse people behaviour in domains as different as art, food, beauty, decoration, fashion, free time.

The “fool” will absorb everything that surrounds him in magazines, movies, in trade shows, in the street,


Objective => to anticipate consumers’ buying behaviour and create products in line with target market expectations


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1. EXTERNAL CONTEXT:

a. Market trends

Their are 2 major kinds of trends:

Long terms movements, as consequences of historical facts, politics, economy, medias, environment preocupations. They that deeply influences people way of buying in most all market segments: Going green, fair trade, slow fashion, nolstagia…

Short terms/seasonal trends, inspired by fashion/couture high end brands, street fashionistas, with 2 trends forecasts;

summer withgenerally bright and light colours, fresh fabrics, fancy motives and shapes

winter: with warmer materials, darker colours, winter related motives…


The question to ask then: To what movement I belong, and what related latest trends in that movement?


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a. Market Trends


Following trends are not an obligation and are not 100% trustful, but it is definitely a “safer” way to insure your collection success when exporting and most companies do follow them. BUT, all companies around the world are getting inspired by the same trends, so:

- BE IN, follow trends and be different. Evolve. - BE YOU, break free of trends, differentiate frontally. Innovate. - ME TOO or not ME TOO ? Respond to competition.

Following trends are not an obligation and are not 100% trustful, but it is definitely a “safer” way to insure your collection success when exporting and most companies do follow them. BUT, all companies around the world are getting inspired by the same trends, so:

- BE IN, follow trends and be different. Evolve. - BE YOU, break free of trends, differentiate frontally. Innovate. - ME TOO or not ME TOO ? Respond to competition.


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b. Potential market niche: the right product for the right market, based on the company strengths, limits

Suitable consumption movements, behaviour to target:

Fair trade, green, slow fashion, fast fashion, vintage

=> Depending on the company potential

Type and style of products generated by the specific movement

Ex: slow fashion or high end consumers will expect quality timeless products that stand for long

In contrary, fast fashion/lower end consumers will expect products that follow the latest trends, whatever the quality is


Objective => Identify best potential niche market for the company products


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B. EXTERNAL CONTEXT :

a. End client profile . Within selected niche market: Type of person

lifestyle

age range

price range


Objective => To have a better vision of end buyers’ needs when designing goods in line with his expectations


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C. Concept Definition:

1. IDEAS AND OBJECTIVES:By taking in account internal and external analysis made, build up a coherent company development project/concept

2. MAIN STEPS TO ACHIEVE THESE OBJECTIVESDefinition of main steps to achieve the concept objectives

Objective => To set a company realistic development plan and the main steps to implement them

PRODUCT STRATEGY METHODOLOGY:

NEW CONCEPT IMPLEMENTATION /DEVELOPMENT

PART C

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A. BRAND IDENTITY IMPROVEMENT/DEVELOPMENT:

a. Company story board

b. Main aspects of the brand identity: Brand DNA

c. Graphich chart

B. COLLECTION PLAN

A. Product as the core aspect of the brand:

B. Collection structure

C. Main aspects of a collection plan

D. Collection themes

C. PRODUCT/BRAND ENVIRONMENT

A. Marketing tools

B. Packagging

C. Merchandising

OPTIONAL: ONLY IF REQUIRED BY

THE BRIEF

OPTIONAL: ONLY IF REQUIRED BY

THE BRIEF


BOOK


BOOK

NEXT STEP: BRAND LOOK BOOK

NEXT STEP: BRAND LOOK BOOK


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1. BRAND IDENTITY DEVELOPMENT MAIN STEPS:

a. Company story board: Board with a mix of representative pictures and short sentences that well define the brand univers

a. Core aspects of the brand identity: Brand DNA/codesThe brand source of inspiration

The brand univers

The brand story

The brand colours

The brand style

a. Graphich logotype: The brand codes translate into:The brand name

The logo

Main brand slogan


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B. COLLECTION PLAN

b. Product as the core aspect of the brand: In order to be different and unique from others the brand codes has to be translated into the prooduct

Product as the brand sign: Lacost or Ralph Lauren polos,

Product carries the brand codes: Hermes: orange, horse, travels

Details make the product: Red sole of Louboutin shoes

b. Collection themes /2-4 collection lines, based on:

Brand identity codes: univers, colours, style, motives

Trends: atmosphere, colours, style, motives

Coherence between the different collection themes will come from the brand codes represented in each theme


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B. COLLECTION PLAN

a. Collection structure

Image product: Products that testify of your brand specificity, univers and production quality

Trendy products: “fashionable” products that follow the latest trends in terms of motives, style and colors

Basic: Products that are selling well: price and design efficiency. They don’t change much, just small modification following colours trends

PROFIT

IMAGE


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B. COLLECTION PLAN

c. Main aspects of a collection plan

Products categories: different collection lines such as jewelleries, bags and scarves: Careful not to get too many products line as it may look dispersed and incoherent = bad image

Collection colours: depending on the trends, colours are added to the brand main colours

Material used: Also define a restricted ranges of material to remain clear, readable

Type of shapes, in line with brand style (and capacity…)


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C. PRODUCT ENVIRONMENT

The product is the core aspect of the brand as it is the main income generator, however, without an appropriate environement, client may not even notice the product

The prodcut environement is the main sign of the brand, it illustrates the brand univers and codes

All aspects of the prodcuct environment contricute to better sell the products, but also to comfort buyers as you look « professional »

a. Marketing tools: Catalogue, website, flyers, etc.

b. Packagging: Bags, tags,

c. Merchandising: store decoration, window scenography, product display, booth decoration


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TRENDY/FASHIONABLE PRODUCTS

BRAND DNA

IMAGE PRODUCTS

BASIC/APPEALING PRODUCTS

PRODUCT ENVIRONEMNT

PRODUCTSMARKETING TOOLS

MERCHENDIZING

PACKAGGING


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Conclusion

The “Product Strategy” goes beyond product development, it’s a whole process, a company project to be more innovative

The “Product Strategy” does not enlarge the collection lines, it reduces it to then built on stronger and coherent basis

The “Product Strategy” allows to focus and not get lost with trends, market information and evolution

The “Product Strategy” gives the brand a longer term vision and a clearer direction

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Show case

PRESENTATION OF BRAND BOOKS

OPEN DISCUSSION ON « PRODUCT STRATEGY » METHODOLOGY

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