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    Chapter 9 - Product Strategy

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    The document discusses strategies for developing new products, managing a product's life cycle, and branding. It describes the new product development process including searching for creative ideas, feasibility studies, product testing, and commercialization. It then outlines the typical stages in a product's life cycle - introduction, growth, maturity, and decline - and strategies for each stage. Finally, it covers branding strategies such as product naming, national vs store brands, multiple branding, and brand extensions.

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    Chapter 9 - Product Strategy

    Uploaded by

    akjsdkuw
    91 views50 pages
    The document discusses strategies for developing new products, managing a product's life cycle, and branding. It describes the new product development process including searching for creative ideas, feasibility studies, product testing, and commercialization. It then outlines the typical stages in a product's life cycle - introduction, growth, maturity, and decline - and strategies for each stage. Finally, it covers branding strategies such as product naming, national vs store brands, multiple branding, and brand extensions.

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    The document discusses strategies for developing new products, managing a product's life cycle, and branding. It describes the new product development process including searching for creative ideas, feasibility studies, product testing, and commercialization. It then outlines the typical stages in a product's life cycle - introduction, growth, maturity, and decline - and strategies for each stage. Finally, it covers branding strategies such as product naming, national vs store brands, multiple branding, and brand extensions.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    91 views50 pages

    Chapter 9 - Product Strategy

    Uploaded by

    akjsdkuw
    The document discusses strategies for developing new products, managing a product's life cycle, and branding. It describes the new product development process including searching for creative ideas, feasibility studies, product testing, and commercialization. It then outlines the typical stages in a product's life cycle - introduction, growth, maturity, and decline - and strategies for each stage. Finally, it covers branding strategies such as product naming, national vs store brands, multiple branding, and brand extensions.

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    CHAPTER 9

    PRODUCT STRATEGY
    PRODUCT STRATEGY

    • Developing New Products

    • Product Life Cycle

    • Branding Strategy
    DEVELOPING NEW PRODUCTS

    • New Product Process

    • New Product Failures


    NEW PRODUCT PROCESS

    Creative Ideas

    Creative Business Ideas

    Development and Testing

    Introduce New Product

    Time
    SEARCH FOR CREATIVE IDEAS

    • Create cross-functional committees

    • Collect stakeholder ideas

    • Listen to customers
    TYPES OF CREATIVE IDEAS

    • Never been done before

    • Improved product technology

    • Creative twist of an existing idea


    CREATIVE IDEAS EXAMPLES

    • Charles Schwab

    • Ralph Lauren Polo Shirts

    • Houston National Bank

    • Blue Chip Forecast


    Ralph Lauren Polo Shirt for Dogs
    CREATIVE BUSINESS IDEAS

    • Company Fit

    • Financial Analysis
    - Feasibility study
    - Business Plan
    COMPANY FIT

    • Existing Production Fit

    • Existing Distribution Fit

    • Product Strategy Fit


    FEASIBILITY STUDIES

    Studies of potential new products, with evaluations


    of resources and time in screening creative ideas
    FEASIBILITY STUDY PROCESS

    Potential New Products

    Financial Viability

    Time and Resources

    Proceed or Drop Creative Idea


    PRODUCT DEVELOPMENT
    AND TESTING

    • Product development
    - Types of new products
    - Product design

    • Testing
    - Beta testing
    - Store audits
    COMMERCIALIZATION

    • Launch new product

    • Design and place promotions

    • Fill distribution pipeline


    NEW PRODUCT FAILURES

    • Failure to define target market

    • Lack of customer knowledge

    • Poor product performance


    NEW PRODUCT FAILURE
    EXAMPLES

    • Betamax

    • Harley Davidson Perfume

    • Susan B Anthony Dollar


    PRODUCT LIFE CYCLE
    Sales

    Introduction Growth Maturity Decline


    Time
    STAGES OF PRODUCT LIFE CYCLE

    Stage Sales Profits


    Introduction Low Negative
    Growth Climbing Rising
    Maturity Stable Peaking
    Decline Dropping Declining
    CHARACTERISTICS OF THE
    INTRODUCTION STAGE

    • Negative Profits

    • Heavy Promotion Cost

    • Heavy Distribution Cost


    INTRODUCTION STAGE
    EXAMPLES

    •Electric vehicles

    •Life Straw

    •Astrata
    ASTRATA THEFT BOX
    • Stops motor on stolen trucks

    • Locks doors remotely, trapping


    thieves

    • Programmed to notify police


    CHARACTERISTICS OF THE
    GROWTH STAGE

    • Increasing Revenue

    • Experience Curve

    • Increasing Profits
    GROWTH STAGE EXAMPLES

    • Kindle

    • Greek Yogurt

    • Smart Phones

    • Zip Lines

    • Audio Books
    SALES OF KINDLES

    2009 2 million

    2011 12 million
    AUDIO BOOK SALES

    1997 $480 Million

    2013 $1,200 Million


    CHARACTERISTICS OF THE
    MATURITY STAGE

    • Intense Competition

    • Maintain Promotion

    • Layering Strategy
    MATURE STAGE EXAMPLES

    • Crayola

    • Baby carrots

    • Campbell soup
    CONCEPT OF LAYERING
    Sales

    Time
    LAYERING EXAMPLES

    • Chicken Soup for the Soul

    • Movies

    • Dental Services
    MOVIE EXAMPLES OF LAYERING

    • Shrek

    • Star Trek

    • Halloween
    LAYERING OF DENTAL SERVICES
    • Cosmetic

    • Straighten Teeth

    • Bonding Teeth

    • Whiten Teeth
    DECLINE STAGE STRATEGIES

    • Simplify Product Line

    • Minimize Promotional Cost

    • Discontinue Product Line

    • Sell Product Line


    DECLINE STAGE EXAMPLES

    • Hostess Brands

    • Kodak

    • Yellow Pages

    • PC Decline
    YELLOW PAGES REVENUE

    2005 14 Billion

    2011 9 Billion
    BRANDING STRATEGY

    • Product Names

    • Major Types of Branding

    • Multiple Branding Strategy

    • Brand Extension
    PRODUCT NAMES

    Commodity Any company can use

    Grade Defined by government

    Brand Owned by a company


    COMMODITY EXAMPLES

    • Aspirin

    • Gasoline

    • Nylon
    GRADING EXAMPLES

    • Grade AA eggs

    • Choice beef

    • Organic foods
    MAJOR TYPES OF BRANDING

    • National Brands by Manufacturers

    • Store Brands by Retailers


    MANUFACTURING BRANDS ARE
    LOSING TO STORE BRANDS

    • Mass media universe has shattered

    • Mass channel universe has consolidated

    • High gross margins for store brands


    MULTIPLE BRANDING STRATEGY

    • BLANKET BRANDS
    - Same brand name

    • INDIVIDUAL BRANDS
    - Different brand names
    EXAMPLES OF BLANKET BRANDS

    • IBM

    • Whole Foods (365)

    • Costco (Kirkland)
    EXAMPLES OF INDIVIDUAL BRANDS

    • Yum Brands

    • Sears
    YUM BRANDS

    • Pizza Hut

    • Taco Bell

    • Kentucky Fried Chicken


    SEARS RETAIL BRANDS

    • Kenmore

    • Craftman

    • Diehard
    BRAND EXTENSION

    A company with a well-known brand uses that


    brand to market to a different product category.
    BRAND EXTENSION SUCCESSES

    • Visio

    • JELL-O pudding

    • IAMS pet insurance


    BRAND EXTENSION FAILURES

    • New Coke

    • BIC pantyhose

    • Hooter’s airline
    MOST POWERFUL BRANDS IN 2013
    #1) Apple

    #2) Microsoft

    #3) Coca Cola

    #4) IBM

    #5) Google

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