ACBA - Presentation-Product Strategy

1/21/2016
Marketing in Changing Environment:

Product Strategy
Afsar Uddin Ahmed

Director Commercial
Beximco Pharmaceuticls Ltd.
afs@bpl.net
Marketing Mix Strategies

Marketing Mix are generally concerned with Seven Ps
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What is a PRODUCT ?
 A product is a collection of physical, service

and symbolic attributes which yield
satisfaction or benefits to a user or buyer.
 A product is a combination of physical

attributes say, “size and shape”; and
subjective attributes say “image or quality”.
 A customer purchases on both dimensions.
Three levels of product

Installation
Augmented
product
Packaging
Actual
Brand
Delivery name
Features product
and Core After-
credit benefit sales
or service service
Core
Quality Styling
product
Warranty
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The CORE product is NOT the

tangible, physical product.
You can't touch it. That's
because the core product is
the benefit of the product
that makes it valuable to you.
Example:
The benefit of a Car is convenience i.e. the ease at which
you can go where you like, when you want to.
The ACTUAL product is

the tangible, physical
product. You can get
some use out of it.
Example:
It is the vehicle that you test drive, buy and then collect.
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The AUGMENTED product is

the non-physical part of the
product. It usually consists of
lots of added value, for which
you may or may not pay a
premium.
Example:
When you buy a car, part of the augmented product would
be the warranty, the customer service support offered by
the car's manufacture, and any after-sales service.
PRODUCT DECISIONS OR STRATEGIES
Product strategy calls for making

coordinated decisions on –
Product Design
Packaging & Labeling
Product Mixes
Product Lines
Product Differentiation (Branding)
Segmentation, Targeting, Positioning
Product Portfolio Management
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PRODUCT STRATEGY:
Product Design
 Largely dictated by whether they would improve the
prospects of greater sales, over the accompanying
costs. (Energy saving light)
 Also subject to cultural pressures. The more culture-
bound the product is, for example food, the more
adaptation is necessary. (Vegi-Mac)
 The application the product is put to also affects the
design. (Insulin pen)
 Perceptions of the product's benefits may also
dictate the design. (Color of Iron tablet)
PRODUCT STRATEGY:
Product Design
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PRODUCT STRATEGY:
Product Design
When Nike learned

that this stylized
“Air” logo resembled
“Allah” in Arabic
script, it apologized
and pulled the shoes
from distribution.
PRODUCT STRATEGY:
Product Packaging and Labeling
Packaging can be described as a

coordinated system of preparing goods
for transport, warehousing, logistics,
sale, and end use (information).
Labeling is any written, electronic, or

graphic communication on the package
or on a separate but associated label
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PRODUCT STRATEGY:
PRODUCT STRATEGY:
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PRODUCT STRATEGY:
PRODUCT STRATEGY:
« Diet » has a negative
meaning in many countries.
Packaging, It was changed to « light » in
USA name and South Europe and Japan.
formulas (same problem with « coke »
can be in French !)
different
in local
markets Cherry flavor for
the US market
China
Thailand
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PRODUCT STRATEGY:
Product Mix
The product mix is the full list of all

products offered for sale by a
company.
The structure of the product mix has
dimensions of width, length, depth,
and consistence.
PRODUCT STRATEGY:
Product Mix
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PRODUCT STRATEGY:
Product Line
A group of products associated by
function, by consumer group, by
distribution channel or by price range.
A cosmetic company's makeup product line
might include Foundation, Concealer, Powder,
Blush, Eyeliner, Eye shadow, Mascara and
Lipstick products that are all closely related.
A company might offer more than one product
line.
PRODUCT STRATEGY:
Product Line
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PRODUCT STRATEGY:
Product Line
A group of products that are closely related either
because they –
satisfy a class of need,
are used together,
are sold to the same customer groups,
are marketed through the same type of outlets,
fall within given price ranges
possess reasonably similar physical
characteristics
PRODUCT STRATEGY:
Product Mix
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PRODUCT STRATEGY:
Product Differentiations
Product Differentiation is any

perceived difference in a product or
brand when compared with others.
Favorable product differentiation is

one of the best assets a product or
brand can possess.
PRODUCT STRATEGY:
Product Differentiation (Branding)
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PRODUCT STRATEGY:
Product Differentiation (Branding)
 Differentiation is one of the most important
strategic and tactical activities in which
companies must constantly engage.
 If consumers don't perceive your brand(s) as
being different from those offered by the
competition, you won't win the marketing war.
 The battle for consumer minds is a battle of
perceptions, not products.
 Favorable product differentiation is one of the
best assets a product or brand can possess.
PRODUCT STRATEGY:
Segmentation, Targeting, Positioning
Product differentiation and market

segmentation are two related
product strategies. They may be
employed by firms who wish to
engage in non-price competition in
markets characterized by imperfect
or monopolistic competition.
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PRODUCT STRATEGY:
 Through Segmentation strategy, a company

recognizes that its total heterogeneous market is
made up of many smaller homogeneous units.
 Each of these smaller units has a different set of

wants, motivations, and other characteristics.
 The companies then attempts to develop different

products, each one suited to one or more of these
market units.
PRODUCT STRATEGY:
Targeting is the act of evaluating and

comparing the identified groups (segments)
and then selecting one or more of them as
the prospect(s) with the highest potential.
After the market has been separated into its
segments, the marketer will select a segment or
series of segments and 'target' it/them. Resources
and effort will be targeted at the segment.
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PRODUCT STRATEGY:
Positioning is about how you

differentiate your product or service
in the mind of your prospect.
After segmenting a market and then targeting
the segment(s), the marketer would proceed to
position a product within that target market
(according to the needs & wants of the target buyer)
Example:
A producer of Calcium tablet, for instance,

can market the identical product to the
Juvenile market and to the Geriatric market,
but the positioning could be different.
For Juvenile market the positioning could be
as a supplementation for the growth of
healthy bone, whereas for Geriatric group
the positioning could be as prevention and
delaying degeneration of bones.
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PRODUCT STRATEGY:
 Single Segment with Single Product

Example: Paracetamol Tablet for relieving Fever.
 One Product for all Segments

Example: Paracetamol Tablet for relieving Fever, Toothache,
Arthritic Pain, Post Surgical Pain, Traumatic Pain, Headache etc.
 Multi-product Multi-Segment
Examples:
 Paracetamol Syrup for Pediatric patients.
 Paracetamol Tablet for in Adult patients.
 Paracetamol Suppository for patients with vulnerable GIT and
patients at NPO condition.
 Paracetamol I. V. for hospitalized patients at NPO condition.
PRODUCT STRATEGY:
Product Portfolio Management
A product portfolio may comprise of different
categories of products, different product lines and
finally the individual product itself, which are
properly diversified and balanced along the
timeline and stages of the product life cycle model.
It is difficult to manage all the products profitably.

There needs to be a hierarchy and priority in terms
of resource allocation. This is where product
portfolio management steps in.
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PRODUCT STRATEGY:
Goals of Portfolio Management:

• Value Maximization;
• Balance;
• Business Strategy Alignment;
• Pipeline Balance;
• Sufficiency;
PRODUCT STRATEGY:
Product Portfolio Management encompasses many topics
which include:
• Market opportunity assessment (Business Case);
• Product feature prioritization (Feature Matrix);
• Product enhancement (Road Mapping and
versioning via an MRD);
• Product/feature termination;
Product classification is done through the BCG Matrix,

which classifies products on the basis of the market share
as well as the growth rate which a product may have.
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PRODUCT STRATEGY:
BCG Matrix
PRODUCT DECISIONS OR STRATEGIES
Product strategy calls for making

coordinated decisions on –
Product Design
Packaging & Labeling
Product Mixes
Product Lines
Product Differentiation (Branding)
Segmentation, Targeting, Positioning
Product Portfolio Management
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Focus on Value Proposition
We don’t sell a Product or Service, we sell

Benefits and again the benefits should
support the Customers’ Value Proposition
A value proposition is a promise of value to
be delivered and a belief from the customer
that value will be experienced.
A value proposition can apply to an entire
organization, or parts thereof, or customer
accounts, or products or services.
Thank you
Thank YOU
Question – Answer Session
19

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1/21/2016

Marketing in Changing Environment:

Afsar Uddin Ahmed

Marketing Mix Strategies

 A product is a collection of physical, service

 A product is a combination of physical

Three levels of product

Three levels of product

The CORE product is NOT the

Three levels of product

The ACTUAL product is

Three levels of product

The AUGMENTED product is

PRODUCT DECISIONS OR STRATEGIES

Product strategy calls for making

When Nike learned

Packaging can be described as a

Labeling is any written, electronic, or

The product mix is the full list of all

Product Differentiation is any

Favorable product differentiation is

Product differentiation and market

 Through Segmentation strategy, a company

 Each of these smaller units has a different set of

 The companies then attempts to develop different

Targeting is the act of evaluating and

Positioning is about how you

A producer of Calcium tablet, for instance,

 Single Segment with Single Product

 One Product for all Segments

It is difficult to manage all the products profitably.

Goals of Portfolio Management:

Product classification is done through the BCG Matrix,

PRODUCT DECISIONS OR STRATEGIES

Product strategy calls for making

Focus on Value Proposition

We don’t sell a Product or Service, we sell

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