HOW DOES IT BEGIN WITH THE PRODUCT MANAGER ????? By STRATEGIC PLANNING
Long term Profitability and Growth
WHY is strategic planning done
Managerial Process Of Creating And Maintaining A Fit Between The Organization’s Objectives + resources And Evolving Market Opportunities
Long Term Profitability And Growth
Long Term Commitments Of Resources
Ranbaxy fighting polio or infant birth diseases
Gili to buy carbon & other brands
Kellogs Indian breakfast or maggi soups
Kmart filed bankruptcy closed 300 stores lost profitable brands like Disney, Bossinni..
By MARKETING PLAN
How is strategic planning done
Process of anticipating future events and changing markets
Determining strategies to achieve organization objectives in the future
Written document that acts as a guidebook of marketing activities for the Manager
WHAT IS A MARKETING PLAN ?
Elements of marketing plan
SAMPLE MARKETING PLAN MARKETING MYOPIA
Young, mobile executives with incomes over Rs.30,000 per annum, frequent travelers, computer –dependent individuals
PRODUCT – personal mobile phone
Brand name – NOKIA YV14
Features – simultaneous voice/data ommunications, internet access, operation within buildings, link-ups to data subscription an email services, heavy data storage, colours, light weight, 800 hours battery backup, 5 year unlimited warranty on parts and labour, 24 hour technical support, leather or titanium carrying case
TARGET MARKET SELECTION
Price – retail price of Rs. 12000, assuming mild price sensitivity and future price wars, finance options available, corporate discounts 20% on volume purchases
FIRST QUARTER – complete marketing research on Price, design, promotional campaign, sign contracts with intermediaries..
SECOND QUARTER – public relations campaign, product introduction at trade shows, advertising rollout
THIRD QUARTER – test market, international markets….
(SBU MAY REQUIRE DIFFERENT MARKETING PLAN)
THE MARKETING MIX
Product can be defined as anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need.
Tangible components Intangible components
size, feature, colours, style, quality, image ,
durability, package , prestige, warranty,
taste brand name
Components of a product
PRODUCT LEVELS Core benefit - Sleep Potential product – all possible Augmented product – fresh flowers Expected product – clean bed Basic product – hotel room
Durability and tangibility
Lasts a long time
Example: Tax preparation
Durability and tangibility
Classified by shopping habits:
Durability and tangibility
Materials and parts
Supplies and business services
Maintenance and repair
PRODUCT MIX PRODUCT MIX is a combination of products manufactured by the same business house to reinforce their presence in the market, increase market share and increase their profitability along with the satisfaction of consumer needs.
THE PRODUCT MIX
This is the total sum of all product and variants offered by an organisation.
The set of all product lines and items that a particular seller offer for sale to buyers.
The composite group of product that a company makes available to markets.
A product items is an individual product or brand.
A product line is a group of products that are closely related because they function in a similar manner , are sold to the same groups, are marketed through the same type of outlets, or fall within given price ranges.
PRODUCT MIX HAS MANY PRODUCT LINES
LGs product mix
HUL PRODUCT MIX Product line-1 Bath soaps Dove Liril Pears Rexona Lifebuoy Hamam Breeze Le sancy Product line-2 Fabric wash Surf Rin Wheel Sunlight Ala 501 Product line-3 beverages Bru Brooke bond red label Lipton green label Taaza Taj Mahal A1 PRODUCT MIX WIDTH PRODUCT LINE LENGTH
Nike Shox Deliver
Nike Shox Turbo+ Vi iD
Nike Shox NZ iD
Nike Shox Go iD
Nike Air Pegasus
Nike Dunk Low iD
Nike Shox Navina+ 2
Nike Air Rejuven8 LE Medal
Nike Air Charmer
Nike Free Women’s Thong
Nike Prima Mary Jane
Nike Celso Thong Plus
Nike Smash Pleated Tennis Skirt
Digital Motion Cut Out Swimsuit
Nike create the Future T-shirt
Nike Softest women’s jacket
Nike race day running singlet
Nike tech stripe sleeveless
Nike human race runner t-shirt
Nike air zoom super bad 2
Nike Shox r4
Nike santiam sandal
Nike Air fightposite
Nike blazer high premium
Nike total90 strike II FG
Nike Shox TW
Rafa madator of spin
Nike player thermal
Nike short sleeve club America
Nike pro ultimate fitted T
Jordan’s ribbon basketball hoodey
Jordan durasheen basketball shorts
Nike core tennis warm up
Nike swoosh flex golf hat
Nike vadal low premium
Nike new aquamotion print
Nike keystone low
Nike sunray adjust III print
Nike Jr total 90 shoe expand
Nike morgan Jr
Nike sensory motion peanut
Nike baby Fit-II
Nike little attest
Nike Dart 5 (gs/ps)
Nike little impass tailwind
Nike toddler girl’s shorts
Nike border tennis girl’s dress
Nike playette infant’s 3-piece full zip girl”s hoodie set
Nike diamond light weight jacket
Nike therma fit vest
Nike attack knit jacket
Nike fleece pants
Nike deep V pullover
Nike training scooter skirt
Nike training jacket
Nike women’s cart golf bag
Nike 62” windsheer II auto open golf umbrella
Nike player’s jacquard golf towel
Nike swoosh belts
Nike verdana women’s golf gloves
Nike levanto wire MAX polarized golf sunglasses
Nike plaid women’s golf driver’s cap
Nike TARJ RD.P (sunglasses)
Nike iPod nano 8GB
Nike running hydration pack
Nike running arm wallet/phone case
DIMENSIONS OF PRODUCT MIX
Width : refers to no. of product lines the company carries. E.g.HUL manufactures bathing soaps, detergents, toothpastes. skin care, hair care etc products.
Length : refers to total no. of items the company carries within its product lines.
e.g.oral care product line of HUL includes totthpastes which are pepsodent and close up. skin care includes fair and lovely,ponds,vaseline..
WIDTH & LENGTH PERSONAL WASH LAUNDRY SKIN CARE HAIR CARE ORAL CARE Lux Breeze Lifebuoy Liril Dove Pears Hamam Rexona 8 Surf Excel Rin Wheel 3 Fair & Lovely Pond’s Vaseline 3 Sunsilk Naturals Clinic 3 Pepsodent Closeup 2 DEODRANTS Axe Rexona 2 COLOUR COSMETICS Lakme 1 BEVERAGES TEA Brooke Bond Lipton 2 COFFEE Brook Bond Bru 2 FOODS Kissan Annapurna Knorr 3 ICE CREAM Kwality Wall’s 1
Depth : refers to no. of versions offered of each product in the product line . E.g. pepsodent of HUL has several varieties like pepsodent 2 in 1,pepsodent G, pepsodent White..
Consistency : refers to how closely related the various product lines are in end-use, production requirements, distribution channels, etc. e.g. HUL’s product lines are consistent as they are consumer products that go through same distribution channels. The lines are less consistent in a way that they perform different functions for buyers.
DEPTH OF COLGATE-PALMOLIVE
Colgate Dental cream
Colgate Total 12
Colgate Max Fresh
Colgate Kids Toothpaste
Colgate Fresh Energy Gel
Colgate Cibaca Family Protection
Colgate Advanced Whitening
Colgate Active Salt
COMPANY : PARLE PRODUCTS PVT LTD.
KRACKJACK CRISPY CREAMS
HIDE & SEEK MILANO
PARLE 20-20 COOKIES
KACCHA MANGO BYTE
MANGO BITES CHEESLINGS
MUSST STIX & MUSST CHIPS
BAILLEY MINERAL WATER
PRODUCT MIX INVOLVES THE FOLLOWING SUB ELEMENTS:- PRODUCT ATRIBUTES BRANDING PACKAGING LABELING PRODUCT SUPPORT SERVICE
PRODUCT QUALITY is defined as the ability of the product to perform its functions. It includes:-
The products’s durability
Ease of operation
PRODUCT QUALITY has two dimensions :-
FEATURES are the qualities or characteristics of the product or services.
They are a competitive tool for differentiating the company’s product from the competitor’s product
COLGATE ADVANCED WHITENING
Restores natural whiteness.
Prevents stains from adhering.
Fights tarter, cavities and plaque.
PRODUCT STYLE AND DESIGN
Style simply describes the appearance of the product.
Style can be eye catching/grabs attention or can be yawn producing.
DESIGN contributes to a products usefulness as well as to looks.
It involves deep understanding of customer needs thereby delivering consumer product and service experience.
BRANDING is a name, term, sign, symbol, or design, or a combination of these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors .
BRANDING adds VALUE to the product.
Advantages of branding to CONSUMERS:-
Helps them identify products that might benefit them.
Tell buyer about the product quality.
Advantages of branding to sellers:-
Brand name becomes the basis on which a whole story about a product’s special qualities can be built.
Brand name and trademark provide legal protection for unique features that otherwise may be copied by competitors.
Packaging involves designing and producing the container or wrapper for the product. It includes:-
Product’s primary container
Product’s secondary package
Shipping package necessary to store , identify, and ship the product.
Labeling, printing information appearing on or with the package.
Various functions of packaging involves :-
To protect the product
To perform various sales tasks like attracting attention, describing the product and making the sales.
Secondary packaging (the cardboard box containing the tube of colgate) which besides providing protection to the paste also attracts the attention of kids through its attractive pictures of bugs bunny & tweety as kids can well relate to them.
Label provides written information about product. Labeling is mandatory as it states the product’s ingredients and components.
Functions of Labeling :
Identifies the product
Describes Several things
PRODUCT SUPPORT SERVICES
It is the business unit with the primary responsibility to end user and partner requests for assistance with the company product’s and services.
A company’s offer usually includes some support services, which can be minor or major part of offering
Example: Activa - Honda
Manufactured by :- HONDA
Price – Rs 41,146
Services free - 6
Ways to lengthen product line :
1. Line stretching – It is when a company lengthens its product line beyond its current range.
Companies located at the upper end of the market stretch their lines downwards
Company located at the lower end stretch their lines upwards.
Companies located in middle range of market can decide to stretch at both ends.
2.Line filling : means adding more items within the present range of the line. The company should ensure that new items are noticeably different from existing ones.
Benefits of line filling:
Reaching for extra profits
Plugging holes to keep out competitors
PRODUCT MIX : The product mix refers to the total number of product lines carried by a firm where each line reflects one type of product .
PRODUCT LINE LENGTH refers to number of products within a product line such as different types of detergents offered by a brand.
PRODUCT DEPTH refers to the number of variation of one particular product. For eg, a range of package sizes from trial size to jumbo size.
Product line decisions
Product line length -the no. of items in the product line.
Product line stretching- it occurs when a company lengthens its product line beyond its current range.
Product line filling - it means adding more items within the present range of the line.
A group of closely related product items.
They are related in terms of
- the way in which they are marketed.
A group of product ( manufactured and distributed by an organisation ) which are similar in the way they are produced or marketed.
PRODUCT LINE DEPTH
Depth of the product line denotes the total number of items under each brand in the line, in terms of variants, shades, models, etc.
Example: lux is a brand and its variants such
lux almond, lux strawberry &cream
constitutes the depth of product line.
PRODUCT MIX WIDTH
Product line width is the number of distinct product lines offered by an organisation.
Example: HUL produces
- bath soaps
- fabric wash
Which denotes the product mix width of HUL.
This is another term for the product mix – all the lines and all the items that the company offers.
Portfolio planning is the process of managing the mix of product.
To accomplish this it is necessary to analyse the collection.
The most famous tool of analysis is the Boston matrix