MANAGING THE PRODUCT

2

4 Ps

PRODUCT PRICE PLACE PROMOTION

PRODUCT : Anything that can be offered to a market to satisfy a need and want

3

PRODUCT & ITS LEVELS

CORE BENEFIT : The fundamental service customer is buying

BASIC PRODUCT : To turn core benefit into basic product

EXPECTED PRODUCT : Set of attributes & condition buyer expects

AUGMENTED PRODUCT : Exceeds customer expectations

POTENTIAL PRODUCT : Future augmentation & transformation of product

4

HOTEL INDUSTRY

CORE BENEFIT REST & SLEEP

BASIC PRODUCT BED, BATHROOM,

TOWELS EXPECTED PRODUCT

CLEANLINESS, AMBIENCE

AUGMENTED PRODUCT FRESH FLOWERS, FINE

DINING, ROOM SERVICE

POTENTIAL PRODUCT SUITES

5

PRODUCT HIERARCHY

Need family: Core need underlines existence of pdt.

Product family: All pdt. Classes satisfying core need.

Product class: Grp.of pdts within family having certain functional coherence

Product line: Pdts. Closely related as they perform similar functions

Product type: Grp. of items within pdt. Line that share several forms of product.

Brand: Name given to identify the source

6

PRODUCT CLASSIFICATION

Durability & Tangibility Non durable: consumed in one or few uses Durable: tangible goods survive for long Services: Intangible, inseparable, perishable pdt.

Consumer Goods Classification Convenience Goods: purchases frequently, immediately, min.

effort Staples, impulse goods, emergency goods

Shopping Goods: suitability, quality, price, style furniture, clothing

Specialty Goods: unique characteristics or brand specific. cars, cameras

Unsought Goods: smoke detectors

7

INDUSTRIAL GOODS

Materials & Parts Raw Materials Manufactured materials

Capital Items Installations Eqipment

Supplies & Business Services Operating Supplies Maintenance & repair services Business Advisory Services

8

PRODUCT MIX

WIDTH Different product line

LENGTH Total no. of items in the mix

DEPTH Variants offered of each product in the line

CONSISTENCY How closely related are product lines

9

PRODUCT LINE DECISIONS

PRODUCT LINE LENGTH

LONGER LINES : Company seeking high

market share & growth SHORT LINES : Company emphasizes on

profitability

10

LINE STRETCHING

DOWN MARKET STRETCH Strong growth opportunities : Wal-Mart Tie up with lower end competitors Stagnation of middle market

UP MARKET STRETCH Growth, margins Full line manufacturers

TWO WAY STRETCH

MERCEDES

TOYOTA

MARRIOTT HOTEL

11

LINE FILLING

ADDING MORE ITEMS

Incremental profits Satisfied dealers Utilization of excess capacity Leading Full Line Company

12

BRANDING

ATTRIBUTES BENEFITS VALUES CULTURE PERSONALITY

MERCEDES BENZ

13

BRAND EQUITY

BRAND RECOGNITION PERCEIVED QUALITY ASSOCIATIONS PATENTS,TRADEMARKS,CRM

ADVANTAGES REDUCE MARKETING COST POWER TO BARGAIN WITH DISTRIBUTOR CHARGE HIGH PRICE LAUNCH EXTENSIONS DEFEND COMPETITION

14

BRANDING CHALLENGES

BRANDING DECISIONS

BRAND SPONSOR

BRAND NAME BRAND STRATEGY

BRAND MANUFACTURE BRAND

INDIVIDUAL NAME LINE EXTENSION

NO BRAND DISTRIBUTOR BRAND

BLANKET FAMILY BRAND EXTENSION

SEPARATE FAMILY MULTI BRANDS

CO.INDIVIDUAL NAME

NEW BRANDS,CO BRANDS

15

BRANDING DECISION

ADVANTAGES

Easy To Process Orders

Legal Protection To Features

Attract Loyal Customers

Segment Markets

Strong Corporate Image

16

BRAND SPONSOR

Why do Middle men bother to sponsor ?

High profitability Low Cost No differentiation between National & Store brands

But National brands should invest in R&D, New

brands, line extension, quality & partnership with

distributors.

17

BRAND NAME DECISION

INDIVIDUAL NAME - HLL

BLANKET FAMILY- AMUL & JONHSON

SEPARATE FAMILY- DIFFERENT GRADES OF FOOD ITEMS

COMPANY INDIVIDUAL NAME - PHILIPS, CADBURY

QUALITIES PRODUCT BENEFIT QUALITY EASY TO PRONOUNCE DISTINCTIVE NO POOR MEANING

18

BRAND STRATEGY

LINE EXTENSION - DETTOL & LUX

BRAND EXTENSION - HONDA

MULTIPLE BRANDS - HLL DETERGENTS

CO BRANDS - GE WITH HITACHI LIGHTS

NEW BRANDS

19

PACKAGING

Activities of designing & producing thecontainer for product

• Self Service:• Attract attention, Pdt features, Consumer confidence

• Consumer Affluence:• Convenience, Appearance, Prestige

• Company & brand image• Innovation opportunity

potent mktng. tool

20

LABELING

Simple tag attached to the product or elaborately designed graphic

Identifies product Grading Describe pdt:

who, where, when ,what it contains. how to use

Promotion

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