S.M.

Siraj Uddin Chowdhury

University of Dhaka

Setting Product Strategy

Chapter 12

myrubel@yahoo.com

INTRODUCTION

We are going to discuss

Setting Product Strategy with..

Design As A Powerful Marketing Tool

Rationalizing Brand Portfolios for GrowthMaking Ingredient Branding Work-

Marketing Spotlight on TOYOTA as well as on Walton

PRODUCT
At the heart of a great brand is a great product. Product is a key element in the market offering. To achieve market leadership, firms must offer products and services of superior quality that provide unsurpassed customer value. A product is anything that can be offered to a market to satisfy want or need.

5 levels of product

Differentiation

Product Differentiation

Form Features Performance Quality Conformance Quality Durability Reliability Repair ability Styles

Marketers have traditionally classified products on the basis of characteristics; durability, tangibility, and use. To be branded, products must be differentiated.

Differentiation
The Integrative Force

Design

Design is the totality of features that affect how a product looks and functions in terms of customer requirements.

And the next one is Services Differentiation

Design is particularly important in making and marketing retail services, apparel, packaged goods, and durable equipment.

After differentiating the physical product the key to competitive success may lie in adding valued services and improving their quality.

Design?

Brief

Design is the fundamental soul of a man-made creation

Design is about demonstrating how beautiful something can be

Design is a way of changing life and influencing the future

Finally

Design is the no. 1 determinant of whether a product-service-experience stands out or not

Marketing Insight

Design as a Powerful Marketing Tool

Manufacturers, service providers, and retailers seek new designs to create differentiation and establish a more complete connection with consumers. Holistic marketers recognize the emotional power of design and the importance of how things look and feel. Design is now more fully integrated into the marketing management process.

Examples

The Scandinavian company Finlands Nokia, is credited with taking a little black blob with tiny buttons and turning it into an object of desire. Nokia was the first to introduce user changeable covers for cell phones, the first to have elliptical shaped, soft, and friendly forms, and the first with big screens. In the early 1990s, Nokia controlled only 12% of the global market for cell phones. Today, it is the world leader in handsets, with 38% of the market.

Swedens IKEA has become one of the top furniture retailers in the world in part through its ability to design and manufacturing inexpensive furniture that doesnt seem cheap.

After seeing some of their brands lose share to competitors with stronger designs and aesthetics, Procter & Gamble appointed a Chief Design Officer in 2001 and now hands out an A.G. Lafley Design award each year.

Awareness!

Sonys e-Villa internet appliance was intended to allow consumers to have internet access from their kitchens. But at nearly 32 pounds and 16 inches, the mammoth product was so awkward and heavy that the owners manual recommended customers bend their legs, not their back, to pick it up. The product was eventually withdrawn after three months.

A bad design can ruin a products prospects

Marketing INSIGHT

Rationalizing Brand Portfolios for Growth

Brand?

brand is a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Brand Portfolio?
Brand

portfolio is the set of all brands and brand lines offered by a particular firm for sale

Unilever

Brands of Unilever
In

1999, Unilever owned more than 1600 distinct brand.

Fact

Famed Brand
More

than 90% profit of Unilever came from just 400 brands.

Niall

Fitz Gerald

Statement of Unilever Co-Chairman Niall Fitz Gerald

He linked the brand reduction to weeding a garden so the light and air get into the blooms which are likely to grow the best.

Summary

Most of the multi brand company focus on core brand.

Co-Branding

Co-Branding
Co-Branding products are often combined with products from other companies in various ways. A rising phenomenon is the emergence of co-branding, also called dual branding or brand bundling, in which two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

Ingredient Branding

Ingredient Branding
Ingredient

Branding is the brand policy (goals, strategies, instruments) concerning a branded object (necessary condition) of materials, components, or parts (raw materials, component materials, or component parts)that represents a brand for the respective target group(sufficient condition).

Marketing Memo

Making Ingredient Branding Work.......

INGREDIENT

BRANDS CREATE VALUE

In 3 ways

Improve Product Quality

Create Differentiation

Provide Alternative Market Strategy

Some Requirements

Requirements for success in ingredient Branding

Consumers must informed about the ingredient product and companies have to educate the customer about the ingredient system. Need to create some faiths in the believe of consumers that the ingredient is good as well as superior.

Some Requirements

Requirements for success in ingredient Branding

A clear identity needed for establishing the success. Such as a distinctive logo.

Effective marketing programs and steps can help consumers to understand the importance of ingredient branded product.

In a Sentence

So, shortly we can say that there are four requirements for success in ingredient branding
Relevance Credibility Differentiation Consistency

Example
DuPonts Stainmaster carpets have become a household name.

DuPont
DuPont has introduced a number of innovative products, such as Corian solid-surface material, for use in markets ranging from apparel to aerospace. Many, such as Tyvek house wrap, Teflon non-stick coating, and Kevlar fiber, became household names as ingredient brands in consumer products manufactured by other companies. Since 2004, DuPont has introduced more than 5,000 new products and received over 2,400 new patents. One of its recent award winners, Sorona is a renewably sourced or biobased polymer for use in carpet and apparel markets.

Marketing Spotlight

TOYOTA & WALTON

At a glance

Founded :

August 28, 1937

Founder(s) :
Employees Headquarters: :

Kiiciro toyoda
317,734 (2010) Toyota City,

Aichi,
Japan Production output: 7,308,039 units

(FY2011)
Profit CEO: : (US$5.07 billion) Fujio Cho

Success Factors

Products are offer for different price points evaluate each customer group need want strategy differs from their products to products & geographical location Wide variety of model can create very inexpensively

Weakness

Litigation Have Seriously Damaged The Companys Brand Image

1. Lawsuits over Deaths or Serious Injuries 2. Lawsuits for Emotional Distress, Diminished Value 3. Shareholder Lawsuits

North America, Japan, And Europe Dangerous downturn. Introducing Leading Edge Product

Recommendations

Cost-cutting and developing competitive new vehicles bring the changes in designing their car. compensate those families who have been affected by car accident by using their car. mass advertising about the significance of global warming take the promotional strategy in Japan, Europe , North America,

Toyota Believes

Some strategies .

Different themes for different models Marketing massage can educate consumers Marketing massage must be positive Product variation Product-price variation Learning the future product Manufacturing power and speed Manufacturing network

At a glance

Walton
Established in 1977

Established by R.B Group

More than 120 outlets

Segmentation

Market Segmentation
Demographical bases (age, family size, life cycle, occupation) Geographical bases (states, regions, countries) Behavioral bases (product knowledge, usage, attitudes, responses)

Segmentation

Geographic Segmentation

Chittagong

Dhaka North

Dhaka South

Jessore

Dhaka SouthWest

Bogra

11 zones

Comilla

Rajshahi Mymensingh Sylhet

Barisal

SWOT SWOT analysis of WALTON

Recommendations

Some recommendations for WALTON

Switch to Market Penetration Pricing without compromising quality Customer Loyalty Program

Yearlong incentives and special offers

If you have any question to make you clear about any topics I have discussed..

I am Grateful

?
Please ask

***Thank you everyone***

I am very proud to make you the final audience of this presentation.