“Setting Product Strategy”

Satyam
Office: 302, Block C, New Campus
Office Hours: by appointment (via email)
Email- satyam@iimranchi.ac.in
Before, we begin
üGroup Project (two-part)
üMarketing Plan (4Ps)- Final Report and Group Presentation
üBrand Story Project

üCase presentations (Two groups will be randomly assigned)

Product
4
 Content

• Defining Product

• Classification of Product

• The Product Mix

• Competition

• PLC Management

• Packaging
5
 Introduction

• What is a Product?

6
 Product

• A product is anything that can be offered to a market to

satisfy a want or need, including physical goods, services,
experiences, events, persons, places, properties,
organizations, information, and ideas

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 Product

Set of tangible
and intangible
attributes May be a good,
service, place,
person, or idea

Want-satisfaction
in the form
of benefits
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 Product
More Than a Set of Attributes

9
 Goods and/or Services Are the Product

Restaurant
Canned soup, meal, cell Satellite radio,
steel pipe, phone, hair styling,
paper towels automobile postal service
tune-up

100% 100%
physical service
good emphasis
emphasis Blend of
physical
good and
service

10
Five Product Levels: Customer-Value Hierarchy

11
 Product Levels
Core Benefit
(Rest and sleep)

Basic Product
(Bed, bathroom, towels)

Expected Product Customer-value

(Clean bed, fresh towels)
Hierarchy

Augmented Product
(Free Internet; free breakfast)

Potential Product
(Future augmentations) 12
 Product Classifications
Durability and Tangibility

Nondurable goods

Durable goods

Services 13
 Product Classifications
• Staples Consumer-Goods
• Impulse goods
• Emergency goods
Specialty goods

Convenience goods

Shopping goods Unsought goods 14

 Convenience Goods

• The items which are bought frequently, immediately and with

minimum shopping efforts are convenience goods.
• Generally non durable, purchased at convenient locations

• Small unit of purchase and low price

• Sales promotion, schemes are very important

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Convenience Goods

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 Shopping Goods

• Shopping is the activity of examination and selection of the goods or

services from retailers with the intent to purchase at that time. The
selection & purchasing is a result of a comparison of products based
upon their suitability, quality, price, style and so on
• Examples are furniture’s, dresses, electronic items & appliances, etc.
• Generally durables, high in price, and purchase pre planned

• Comparison is main factor

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Shopping Goods

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 Specialty Goods

• The specialty goods incur special purchasing efforts and the items
posses some special features

• The buyers are willing to spend a lot of time & money to buy them in
contrast with the shopping goods
• The rare arts collections, antiques, prestige brands, style goods, automobiles
etc.
• Limited demand, limited buyers & costly products

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Specialty Goods

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Unsought Goods

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 Product Classifications
Materials and Parts Industrial-Goods
Manufactured
materials
Capital Items
Raw materials
Installations

Supplies and Equipment

business Services

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 Product and Brand Relationships

Product Hierarchy

Product Systems/Mixes

Product Line Analysis

Product Line Length

Product Mix Pricing

Co-Branding
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 The Product Hierarchy

Item

Product type

Product line
Product class
Product family
Need family
24
 The Product Hierarchy

Jeevan
Anand
Term Life Ins.

Life insurance
Financial instruments
Income & Savings
Security
25
 Product Systems and Mixes

Width

Product
Consistency Length
Product System Mix

Depth

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 Proctor & Gamble Product Mix
Product Mix Width

Disposable Paper
Detergents Toothpaste Bar Soap
Diapers Products
Ivory Snow Gleem Ivory Pampers Charmin
Dreft Crest Camay Luvs Puffs
Tide Zest Bounty
Product Cheer Safeguard
Line
Length Dash Oil of Olay
Bold
Gain
Era 27
Marico Product Mix

28
 Product Line Analysis
Sales and Profit

Market Profile

29
Product-Item Contributions

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 Product Line Length
Up-market stretch Line modernization,
featuring, and pruning
Line stretching Two-way
stretch

Down-market stretch

Line filling

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Line Filling

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Business news of the week
• https://www.afaqs.com/news/advertising/kodas-new-car-slavia-
announced-through-a-film-celebrating-close-ties-between-indian-
and-slavic-cultures

• https://www.afaqs.com/news/mktg/dettol-lathers-up-with-new-aloe-
coconut-and-strawberry-handwash-variants