Product n Classification of products n New product

Product n. Classification of products n. New product design and development n. The product life cycle n. Extension strategies n. Product diffusion curve n. Product portfolio analysis n. Branding

Classification of products n Product mix = The whole range Product line = Close mix e. g. Mars (Mars, Snickers, Whiskas, Pedigree etc. ) n

New product design and development n New product or extend product line n Aim to differentiate and achieve USP Needs to be market led e. g. Google Docs n

New product design and development Brainstorm ideas (anything) n Develop ideas (sort out) n Create the product (prototype) n Refine and carry out final testing of the product (comments from control group) n Launch (full promo) n Ensure continual development n

Product life cycle Development (R&D, CF negative) n Introduction (Promo, CF still negative) n Growth (Sales take off, diff pricing) n Maturity (Stabilize, less on promo) n Decline (Sales fall, extend or let die) n

Product life cycle

Extension strategies PLC might last 1 -2 years or decades e. g. mobile phone or board game n Change mostly to product in M-mix n Need to identify when the product is to be left to die e. g. typewriters n Care to take correct marketing decisions n

PLC Extension strategies

Product diffusion curve Innovators (first, risk) n Early adopters (some reviews) n Early majority (only if positive feedback) n Late majority (more skeptical) n Laggards (only when old product is useless) n

Product diffusion curve

Product portfolio analysis

Boston Consulting Group matrix n Cash cow: high profit, little marketing n Star: market grows, high marketing n Question mark: carefully select and invest n Dog: No chance unless second benefits

Using BCG in strategic decision making Usually works for quick sketching but: n It assumes you need a large market share (but some might work in a niche) n It assumes fast growing market is best (but new entrants might reap the share of competirors) n To be used only in conjunction

Branding Perception to be better than other product n Brand awareness (recognition) n Brand development (increase the power) n Brand loyalty (come back with friends) e. g. Apple, Nescafe, Nike, Coca-cola

Types of branding Family branding (Mars ice cream) n Product branding (individual brand) n Company branding (Virgin) n Own-label branding (Retailers) n Manufacturer’s brands (producer’s) n Global branding: to become known around the world n

Videos n http: //www. youtube. com/watch? v=JKIAO ZZritk