Strategy and Products

8/9/2019 Strategy and Products

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Strategy andStrategy and

ProductsProductsHow do we get there:How do we get there:

Creating Functional LevelCreating Functional LevelStrategiesStrategies


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Issues and FocusIssues and Focus

Strategy for developing new products forStrategy for developing new products for

existing marketexisting market

Strategy for developing new products forStrategy for developing new products for

new marketsnew markets Product strategy for gaining competitiveProduct strategy for gaining competitive

advantageadvantage

elationship !etween "uality and Priceelationship !etween "uality and Price #i$usion of innovation#i$usion of innovation

Product portfolio managementProduct portfolio management


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%hy new products &%hy new products &

Products experience PLC and !ecome o!soleteProducts experience PLC and !ecome o!solete Consumer taste and preferences changeConsumer taste and preferences change 'C( matrix which products to keep and kill'C( matrix which products to keep and kill

'rand image and expectations'rand image and expectations )nhancing pro*ta!ility for the future)nhancing pro*ta!ility for the future+ew versions to retain old customers+ew versions to retain old customers,o create di$erentiation !ut core products same,o create di$erentiation !ut core products same,o create and sustain competitive edge,o create and sustain competitive edge 'alancing risk versus return'alancing risk versus return


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+ewness of+ewness othe market tothe market to

the *rmthe *rm

+ewness of+ewness ofthe product forthe product for

the *rmthe *rm

L-%L-% HI(HHI(H

HI(HHI(H New products forNew products forthe rm. Presentthe rm. Presentcustomer newcustomer newproduct lineproduct line

New products forNew products forthe rm. Newthe rm. Newcustomers ,customers ,DiversicationDiversication

L-%L-% ReformulatedReformulatedproducts. Presentproducts. Present

customers Nextcustomers NextGeneration Generation

ImprovedImprovedproductsproducts

Extension ofExtension ofexistin productsexistin products

New customersNew customers.!ddition to.!ddition to

existin productexistin productlineslines


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.ey Lessons in new product success.ey Lessons in new product success

"ni#ue superior di$erentiated products"ni#ue superior di$erentiated products ! stron mar%et orientation! stron mar%et orientation International orientation in product desinInternational orientation in product desin

E&cient pre'development wor%E&cient pre'development wor%

(harp, )lear and earl* product denition(harp, )lear and earl* product denition ! well conceived and properl* executed launch! well conceived and properl* executed launch +he oraniational structure+he oraniational structure +op manaement support+op manaement support Products aimed at attractive mar%etsProducts aimed at attractive mar%ets (harper pro-ect selection decisions(harper pro-ect selection decisions (peed and multi stae approach(peed and multi stae approach


6/19

+ew Product Planning+ew Product Planning

,his is the strategic stage during,his is the strategic stage during

which the *rm examines is currentwhich the *rm examines is current

portfolio/ S%-, and determines theportfolio/ S%-, and determines the

type of product which would !e !est *ttype of product which would !e !est *t

with the corporate strategywith the corporate strategy
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Idea (eneration 0 ScreeningIdea (eneration 0 Screening

Speci*c ideas for the product are putSpeci*c ideas for the product are put

forward collected from di$erentforward collected from di$erent

internal as well as external sourcesinternal as well as external sources

In screening and evaluation ideas areIn screening and evaluation ideas are

checked for technical feasi!ility/checked for technical feasi!ility/

functional via!ility and marketa!ilityfunctional via!ility and marketa!ility
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,echnical development,echnical development

)ngineering and production issues are)ngineering and production issues are

resolved and prototype !uilt andresolved and prototype !uilt and

tested in house and with selectedtested in house and with selected

panel of users and design approvedpanel of users and design approved


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1arket 2ppraisal and Launch1arket 2ppraisal and Launch

12.), P-,)+,I2L formal market12.), P-,)+,I2L formal market

research with potential customers isresearch with potential customers is

carried out to access the product3scarried out to access the product3s

market potentialmarket potential

L24+CH provided all the other factorsL24+CH provided all the other factors

are in place the product goes intoare in place the product goes into

production and the marketing plan forproduction and the marketing plan forit is developed and implementedit is developed and implemented


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+P# outes+P# outes

Product ChampionProduct Champion

+ew Product ,hink ,anks+ew Product ,hink ,anks

5enture ,eams5enture ,eams-utside Consultancy-utside Consultancy

6ve78ve 2spects6ve78ve 2spects


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#i$usion of innovation#i$usion of innovation

+ew products are not immediately adopted !y+ew products are not immediately adopted !y

all consumersall consumers

Innovation takes time to *lter through populationInnovation takes time to *lter through population

,he process of *ltration is called di$usion,he process of *ltration is called di$usion It is partly determined !y the nature of theIt is partly determined !y the nature of the

customers and partly !y nature of innovationcustomers and partly !y nature of innovation

itselfitself

2wareness 9 ,rial 9 2doption2wareness 9 ,rial 9 2doption elative 2dvantage/ Compati!ility/ Complexityelative 2dvantage/ Compati!ility/ Complexity

trial a!ility will determine speed of 2#-P,I-+trial a!ility will determine speed of 2#-P,I-+


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2,2 1-#)L2,2 1-#)L

2%2)+)SS created as a result of2%2)+)SS created as a result of

promotional activities !y the *rmpromotional activities !y the *rm

,I2L for low price products customers,I2L for low price products customers

are encouraged to purchase for maorare encouraged to purchase for maor

purchase customers seek trialspurchase customers seek trials

2#-P,I-+ this is the stage at which the2#-P,I-+ this is the stage at which the

consumer decides to !uy the product orconsumer decides to !uy the product ormake it part of the regular shopping listmake it part of the regular shopping list


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How consumer perceiveHow consumer perceive

innovation&innovation&

elative advantageelative advantage

Compati!ilityCompati!ility

ComplexityComplexity,rial a!ility,rial a!ility

-!serve a!ility-!serve a!ility


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2SS)SS FI+2+CI2L IS.2SS)SS FI+2+CI2L IS.

'reak even point'reak even point

2!ility to reach !reak even point2!ility to reach !reak even point

Capital ac;uisition potentialCapital ac;uisition potential

Financial performance vary with PLCFinancial performance vary with PLC

Financial risk assessment should !e un8Financial risk assessment should !e un8

!iased and to !e carried out !ut outsider!iased and to !e carried out !ut outsider


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PIC) 0 "42LI,


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Price7"uality StrategicPrice7"uality Strategic

approachesapproaches

Strategy and Products

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