Product and Brand Management

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Product Management
Peter Drucker Successful industries perform only two things: product innovation and marketing

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What Is a Product ?
Product: A bundle of attributes The Total Product
Tangible attributes: materials, size, weight, design, packaging, performance, comfort Intangibles: brand image, styling, other benefits (installation, delivery, credit, warranty, after-sale service, return policy)

Product Decisions
Existing Products
Product phase-out Product modification Product introduction into new markets Product performance management

New Product
Product development Product introduction Product performance management
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Product Development Strategies

Adaptation vs. Standardization

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Global Product Development

Standardization- developing same product for multiple countries Premise-- consumes share some common values, beliefs, and consumption patterns Advantages: economies of scale and scope, price competitiveness, uniform image

Global Product Development

Product Adaptation- modifying product
to reflect characteristics of a market Premise-- consumers are not the same Advantages: improved fit between product and consumer, expanded penetration

Product Development
Mandatory product adaptations
Governmental regulations Technological considerations (e.g., voltage, infrastructure) Cultural imperatives - is it acceptable to consumers Measurement standards: volume, length, weight, quantity

Ansoff Matrix

A tool to analyse product strategy of a business

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Ansoff Matrix
Product Present New Product Development Diversification

Market Present
New

Market Penetration Market Development

Growth vector matrix (Igor Ansoff, 1965)

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Ansoff Matrix
Market penetration
- selling existing products into existing markets. Maintain or increase the market share of current products (competitive pricing strategies, advertising, sales promotion) Secure dominance of growth markets Restructure a mature market by aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers for example by introducing loyalty schemes

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Ansoff Matrix
Market development - sell its existing products into new markets. New geographical markets; Eg. Exporting the product to a new country New product dimensions or packaging New distribution channels Different pricing policies to attract different customers or create new market segments

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Ansoff Matrix
Product development -introduce new products into existing markets. development of new competencies requires the business to develop modified products which can appeal to existing markets.

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Ansoff Matrix
Diversification - new products in new markets.
risky strategy because the business is moving into markets in which it has little or no experience. must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

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Classification of Products - Consumer - Industrial - Service

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Specialty goods Convenience goods

Shopping goods Unsought goods

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Materials and Parts

Raw materials

Manufactured materials

Capital Items

Installations
Supplies and business Services Equipment

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Terms of Product Portfolio Size

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Product Mix Width

Product Line Length
Detergents Ivory Snow Dreft Tide Cheer Dash Bold Gain Era Toothpaste Bar Soap Gleem Crest Ivory Camay Zest Safeguard Oil of Olay Disposable Diapers Pampers Luvs Paper Products Charmin Puffs Bounty

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Thank You
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