Product

1,318 views

Published on

our group's presentation

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,318
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
65
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Product

  1. 1. Product decisions Nguyen Thuong Huyen Le lien Huong Nguyen Thu Lan Nguyen Van Quyen Principles of Marketing
  2. 2. Outline <ul><li>I. Product Overview </li></ul><ul><li>II. Individual Product Decisions </li></ul><ul><li>III. Product Line Decisions </li></ul>
  3. 3. I. Product Overview <ul><li>1. Definition </li></ul><ul><li>2. Classifications </li></ul>
  4. 4. 1. Definition <ul><li>Anything that can be offered to a market to satisfy a want or need. </li></ul>Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
  5. 5. 2. Classifications Product Consumer products (Bought by final consumers for personal consumption.) Industrial products (Bought by individuals & organizations for further processing or for use in conducting a business.)
  6. 6. II. Individual product decisions Prod. attributes Branding Packaging Labeling Support services
  7. 7. Case: The Electrolux Group
  8. 8. Electrolux Group Overview <ul><li>- 500 companies </li></ul><ul><li>- The world's largest manufacturer of </li></ul><ul><li>appliances: </li></ul><ul><li>Household: refrigerators, washing machines, vacuum cleaners. </li></ul><ul><li>Commercial: refrigeration and laundry equipment. </li></ul><ul><li>Outdoor: chain saws, lawn mowers, and trimmers. </li></ul>
  9. 9. Electrolux History Timeline <ul><li>1901 </li></ul><ul><li>1912 </li></ul><ul><li>1920 </li></ul><ul><li>1944 </li></ul><ul><li>1962 </li></ul><ul><li>1968 </li></ul><ul><li>1978 </li></ul><ul><li>Outdoor lamps </li></ul><ul><li>Vacuum cleaners </li></ul><ul><li>Refrigerators </li></ul><ul><li>Washing machines </li></ul><ul><li>Cookers </li></ul><ul><li>Lawn mowers </li></ul><ul><li>Chain saws </li></ul>
  10. 10. <ul><li>Electrolux </li></ul><ul><li>BEAM </li></ul><ul><li>Eureka </li></ul><ul><li>Frigidaire </li></ul><ul><li>Gibson </li></ul><ul><li>Kelvinator </li></ul><ul><li>Simpson </li></ul><ul><li>Tornado </li></ul><ul><li>Volta </li></ul><ul><li>Voss Electrolux </li></ul><ul><li>Westinghouse </li></ul><ul><li>Zanussi </li></ul><ul><li>etc. </li></ul>Consumer brands Professional brands - Electrolux Professional - Dito-electrolux - Molteni - Zanussi Professional
  11. 11. Step 1: Product Attributes <ul><li>• Quality: - Durability </li></ul><ul><ul><ul><ul><ul><li>- Reliability </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Ease of operation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- Reparability </li></ul></ul></ul></ul></ul><ul><li>• Features: - Washing and drying </li></ul><ul><li>- Talking </li></ul><ul><li> - Using LCD large display </li></ul>
  12. 12. <ul><li>• Designs: </li></ul><ul><li>+ Style: Front door (majority) </li></ul><ul><li>+ Washing technology: Magic ball </li></ul><ul><li>Silver ion </li></ul><ul><li>Jetsystem </li></ul>
  13. 13. LCD Display Front door Label
  14. 14. Step 2: Branding To brand or not to brand Brand name selection Brand sponsor Brand strategy Brand repositioning
  15. 15. Brand name selection <ul><li>Electrolux = Electronic + Luxurious </li></ul>
  16. 16. Brand sponsor Brand sponsor Manufacturer’s brand Private brand Licensed brand Co-branding
  17. 17. Manufacturer’s brand
  18. 18. Brand strategy Line extension Brand extension Multibrands New brands
  19. 19. Line extension <ul><li>Adding items (with new colors, flavors, etc.) to a given product category under a successful brand name. </li></ul>
  20. 20. <ul><li>EWF 1073 EWF 1073A </li></ul>
  21. 21. Brand extension <ul><li>The use of a successful brand name to launch new or modified products in a new category. </li></ul>
  22. 22. Tumble dryer Electrolux T4300S Stacked Tumble Dryer
  23. 23. Vacuum cleaner Electrolux Z8220
  24. 24. Air cleaner Electrolux Z8020
  25. 25. Step 3: Packaging <ul><li>Function: </li></ul>To perform sale tasks To stay competitive To offer product protection
  26. 26. Step 4: Labeling To identify To describe To promote To grade √ √ X X
  27. 27. Logo & Brand name
  28. 28. Step 5: Product support service <ul><li>Offline customer-care center </li></ul><ul><li>Online customer-care center </li></ul><ul><li>Free catalogue download </li></ul><ul><li>Free Instruction download </li></ul>
  29. 29. III. Product line decisions <ul><li>1. Product line length </li></ul><ul><li>2. Product line modernization </li></ul><ul><li>3. Product line pruning </li></ul>
  30. 30. 1. Product line length <ul><li>1.1. Stretching downward </li></ul>Present Prod. New Prod . Low High Quality High Low Price
  31. 31. <ul><li>Eg: Mercedes Benz + Swiss watch manufacturer Swatch = Smart (1993). </li></ul><ul><li>Smart??? </li></ul>
  32. 33. 1.2. Stretching upward New Prod. Present Prod . Low High Quality High Low Price
  33. 34. <ul><li>Eg: Toyota introduced Lexus </li></ul><ul><li>Launched: 1989 </li></ul><ul><li>Founder: Toyota chairman Eiji Toyoda </li></ul>
  34. 36. 1.3. Stretching both ways Present Prod. Low High Quality High Low Price New Prod . New Prod.
  35. 37. <ul><li>Eg: NOKIA </li></ul><ul><li>NOKIA 1110i: 3 rd quarter 2006 </li></ul><ul><li>NOKIA E90: 2 nd quarter 2007 </li></ul>
  36. 38. <ul><li>NOKIA 1110i </li></ul>
  37. 39. NOKIA E90
  38. 40. 1.4. Line filling <ul><li>New products are added to a company’s present line. </li></ul><ul><li>Eg: The Unza Group </li></ul>
  39. 41. Unza Shower Foam Enchanteur 1980s Eversoft 1980s Gervenne 1993 Romano 2000 Source: www.unza.com Romano Eversoft Enchanteur Gervenne
  40. 42. 2. Product line modernization <ul><li>Modernizing the product to satisfy customers and compete well with competitors. </li></ul><ul><li>Eg: Honda: Future NEO 2005 </li></ul><ul><li>Future NEO 2007 </li></ul>
  41. 43. Future NEO 2005 Future NEO 2007
  42. 44. 3. Pruning <ul><li>Discontinuation of a product or a line in response to declining demand or insufficient financial returns. </li></ul><ul><li>Eg: Yamaha: Mio 2004 </li></ul><ul><li>(Mio) Classico 2006 </li></ul>
  43. 45. Mio 2004
  44. 46. Classico 2006
  45. 47. Conclusion
  46. 48. Q & A

×