Product
48
Product decisions Nguyen Thuong Huyen Le lien Huong Nguyen Thu Lan Nguyen Van Quyen Principles of Marketing
description
our group's presentation
Transcript of Product
Product
decisions
Nguyen Thuong Huyen
Le lien Huong
Nguyen Thu Lan
Nguyen Van Quyen
Principles of Marketing
Outline
I. Product Overview
II. Individual Product Decisions
III. Product Line Decisions
I. Product Overview
1. Definition
2. Classifications
1. Definition
Anything that can be offered to a market to satisfy a want or need.
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
2. Classifications
Product
Consumer products(Bought by final consumersfor personal consumption.)
Industrial products(Bought by individuals & organizations
for further processing or for use
in conducting a business.)
II. Individual product decisions
Prod. attributes
Branding
Packaging
Labeling
Support services
Case: The Electrolux Group
Electrolux Group Overview
- 500 companies- The world's largest manufacturer of appliances:Household: refrigerators, washing
machines, vacuum cleaners.Commercial: refrigeration and laundry
equipment.Outdoor: chain saws, lawn mowers, and
trimmers.
Electrolux History Timeline
1901
1912
1920
1944
1962
1968
1978
Outdoor lamps
Vacuum cleaners
Refrigerators
Washing machines
Cookers
Lawn mowers
Chain saws
- Electrolux- BEAM- Eureka- Frigidaire- Gibson- Kelvinator- Simpson- Tornado- Volta- Voss Electrolux- Westinghouse- Zanussi- etc.
Consumer brands Professional brands
- Electrolux Professional- Dito-electrolux- Molteni- Zanussi Professional
Step 1: Product Attributes
• Quality: - Durability- Reliability- Ease of operation- Reparability
• Features: - Washing and drying - Talking
- Using LCD large display
• Designs:
+ Style: Front door (majority)
+ Washing technology: Magic ball
Silver ion
Jetsystem
LCD Display
Front door
Label
Step 2: Branding
To brand or not to brand
Brand name selection
Brand sponsor
Brand strategy
Brand repositioning
Brand name selection
Electrolux = Electronic + Luxurious
Brand sponsor
Brand sponsorBrand sponsor
Manufacturer’s brand
Manufacturer’s brand
Private brandPrivate brand Licensed brandLicensed brand Co-brandingCo-branding
Manufacturer’s brand
Manufacturer’s brand
Brand strategy
Line extension
Brand extension
Multibrands New brands
Line extension
Adding items (with new colors, flavors, etc.) to a given product category under a
successful brand name.
EWF 1073 EWF 1073A
Brand extension
The use of a successful brand name to launch new or modified products in a new
category.
Tumble dryer
Electrolux T4300S Stacked Tumble Dryer
Vacuum cleaner
Electrolux Z8220
Air cleaner
Electrolux Z8020
Step 3: Packaging
Function: To perform sale tasks
To stay competitive
To offer product protection
Step 4: Labeling
To identifyTo identify To describeTo describe To promoteTo promote To gradeTo grade
√ √ X X
Logo & Brand name
Step 5: Product support service
Offline customer-care centerOnline customer-care centerFree catalogue downloadFree Instruction download
III. Product line decisions
1. Product line length
2. Product line modernization
3. Product line pruning
1. Product line length1.1. Stretching downward
PresentProd.
New
Prod.
Low High
Quality
High
Low
Price
Eg: Mercedes Benz + Swiss watch manufacturer Swatch = Smart (1993).
Smart???
1.2. Stretching upward
NewProd.
Present
Prod.
Low High
Quality
High
Low
Price
Eg: Toyota introduced Lexus
- Launched: 1989- Founder: Toyota chairman Eiji Toyoda
1.3. Stretching both ways
PresentProd.
Low High
Quality
High
Low
Price
New
Prod.
NewProd.
Eg: NOKIA
NOKIA 1110i: 3rd quarter 2006
NOKIA E90: 2nd quarter 2007
NOKIA 1110i
NOKIA E90
1.4. Line filling
New products are added to a company’s present line.
Eg: The Unza Group
Unza Shower Foam
Enchanteur 1980s
Eversoft 1980s
Gervenne 1993
Romano 2000
Source: www.unza.com
Romano
Eversoft
Enchanteur
Gervenne
2. Product line modernization
Modernizing the product to satisfy customers and compete well with competitors.
Eg: Honda: Future NEO 2005
Future NEO 2007
Future NEO 2005 Future NEO 2007
3. Pruning
Discontinuation of a product or a line in response to declining demand or insufficient financial returns.
Eg: Yamaha: Mio 2004
(Mio) Classico 2006
Mio 2004
Classico 2006
Conclusion
Q & A
