SETTING PRODUCT STRATEGY

Presented by Sony Kusumasondjaja, SE., M.Com

PRODUCT

Anything that can be offered to the market to satisfy a want or need 5 product levels that constitute customer value hierarchy
CORE BENEFIT BASIC PRODUCT EXPECTED PRODUCT AUGMENTED PRODUCT POTENTIAL PRODUCT

Product Classification

DURABILITY & TANGIBILITY (Non-durable, durable goods, services) CONSUMER GOODS CLASSIFICATION (convenience, shopping, specialty, unsought goods) INDUSTRIAL GOODS CLASSIFICATION

Product Differentiation

FORM PERFORMANCE QUALITY CONFORMANCE QUALITY DURABILITY RELIABILITY REPAIRABILITY STYLE

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Service Differentiation

ORDERING EASE DELIVERY INSTALLATION CUSTOMER TRAINING MAINTENANCE & REPAIR

PRODUCT HIERARCHY

Need Family Product Family Product Class Product Line Product Type Item

PRODUCT MIX

Product Width Product Depth Product Length Product Consistency

How a company lengthens its product line

LINE STRETCHING
Down-Market Stretch Up-Market Stretch Two-Way Stretch

LINE FILLING

CO-BRANDING

Two or more well-known existing brands are combined into a joint product and marketed together in some ways The brands separately have brand equity, awareness, and image The brands should have logical fit as well

Co-Branding: Pros & Cons

The co-branded product may be convincingly positioned It can generate greater sales It can reduce the cost of product introduction It can help companies to learn how others approach their customers

The risks from becoming aligned with another brand in the minds of consumers Lack of control

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Ingredient Branding

It is a special case of co-branding involving creating brand equity for components that are contained within other branded products Consumers will not buy a host product that doesnt contain the branded ingredients

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PACKAGING

All the activities of designing and producing the container for a product Three levels of packaging
Primary package Secondary package Shipping package

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PACKAGING ELEMENTS

Size & shape Materials Colors Text & graphics

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Factors affecting the growing use of packaging as marketing tools

SELF-SERVICE CONSUMER AFFLUENCE COMPANY & BRAND IMAGE INNOVATION OPPORTUNITY

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