Product Strategy 517

1
Product Strategy 517

• Mix, Brand, Packaging
• Product Marketing

2
What is a product?

• Tangible
• Physical entity or service
• Harley motorcycle
• Extended
• Tangible plus services surrounding it
• Verizon Wireless Cell phone
• Generic
• Essential benefits buyer expects to receive
• Revlon Shampoo
• Product as complete experience-customer
  satisfying object

3
Product Value

• What matters is the customers viewpoint of the
  price/quality tradeoff
• Focus on providing customer value
• This is a sustainable competitive advantage
• Maintain measurement from customers view

4
Product Mix

• Mix is all products sold by firm
• Line is like products (class of need, used
  together, same customers, similar channels, or
  price ranges)
• Product line extension has many tradeoffs

5
Branding

• Legal term is trademark
• Brand increases strength of the product image
• Quality products do their job (Windex)
• Ads and mktg tell the story well (Pepsi/Visa)
• Distribution intensity (Marlboro/Coca Cola)
• Brand personality (Disney)
• Brand should be simple, unique, memorable
• Should evoke trust, confidence,security, strength

6
Extending your brand

• Line extension
• Uses brand to enter a new market segment
• Diet Coke, Liquid Tide
• Brand extension
• Uses brand to enter complete new product class
• Jello Pudding Pops, Ivory Shampoo
• Family branding
• Corp name for new product class /market segment
• Honda Lawnmowers, Toyota Lexus
• Co-Branding
• 2 brands together Alaska Airlines/Starbucks

7
Brand Equity

• Set of assets attached to a brand (pro/con)
• Proctor Gamble
• Tide, Bold, Cheer, Dreft, Oxydol, Dash
• Private label vs generic brands
• Determined by the consumer of the product

8
Packaging

• Differentiates the product
• Key aspect of the brand or support for it
• Many gotchas in pkg design
• Cost Manufacturing
• Distribution Final assembly
• Retailer Category/customer set
• Creative team Timelines

9
Marketing Mgr vs Product Mgr

• One mgr for entire line
• All aspects (ads,sales, promotion, planning)
• Category management
• All brands viewed collectively

• Brand manager for one product
• Authority not mapped to responsibility
• Drives profit for single brand which could affect
  others