Product Management Basic things about Product Management Department of Pharmaceutical Sales and Branding.

1. Product Management 5

2. Brand Business
 Business Strategy
 New Product Development Process
 Growth Strategies
 Competitive Strategies
 Marketing Strategies in different situations

3. For New Product Development
BUSINESS STRATEGY
MARKETING STRATEGY
MARKETING PLAN

4. For Existing Product/ Brand
BUSINESS STRATEGY
BRAND STRATEGY/
BRAND PLAN
MARKETING PLAN

5. Business Strategy Document
New Product Proposal: Existing Brand/ New
Brand
Business Analysis
– Consumer NEED Analysis:Trends & Practices,
Habits & Attitudes, Need gap assessment
– Competitive Analysis: Positions, Strategies….
SWOT
– Corporate Analysis: Mission, Policy, …Portfolio
Analysis…SWOT

6. Business Strategy Document
 Business Objective:
– Competition Focus- Reactive- Market Threat
– Self Driven- Proactive- Market Growth/ Leadership
 Business Strategy:
– Market Penetration,
– Market Development,
– Product Development
– Diversification
 Business Potential: Volume Projection, Demand
Estimation… User-Usage-Frequency
 Business Plan: 3 year financial projection ( Turnover,
Investment details, Profits)

7. NPD: Process
 Stage 1: Formulation of Business Strategy
 Stage 2: Product Development Stage
 Stage 3: Testing & Developing the
Marketing Strategy
 Stage 4: Commercialization
 Stage 5: Market Rollout

8. Stage 1: Ideation to Business
Strategy

9. Idea Generation Process
 Objective: To identify categories of interest
for the next 3 years
 Internal ( multifunctional) Brainstorming
session from time to time
 Various techniques used to Capture the Needs
/ Voice of the Consumers
 Rule: Quantity over Quality… To generate
multiple ideas without applying “judgment”

10. Idea Generation Triggers : Case
Illustration
 Brand : Parachute, Product : Coconut Hair Oil
 Triggers : (mental map)
– Hair Needs: Wash to dry-clean, Natural style to
Colouring, Split ends to Dandruff.
– Oil Needs: Non oily oil, Non Smelly oil… single use
oil, Ayurvedic oil, massage oil
– Coconut needs: Haircare to skincare…..soaps to
shampoos

11. Idea Screening Process:
Innovation Funnel
 Assessment of Ideas generated so as to PRIORITIZE
the same
 Application of “ Judgment”: rationalization,
quantification techniques,feasibility studies
 Key Inputs :
– Business Direction of the Organization
– Consumer Trends: Usage & Attitude Studies
– Environment / Market Scan: segment size & growth
– Competitive Analysis

12. Screening : Case Illustration
 Process of Rationalization:
– Skincare , Hair Colourants: Low priority
– Split ends & Dry Clean: Niche Markets
– Shampoos : Extremely Competitive
 Process of Prioritization:
– Hair Problems that can be addressed by a hair oil (
dandruff , hair growth etc)
– Modern forms of Hair oils ( light , perfumed etc)

13. Concept Development & Testing
 Conversion of Ideation to Product Ideas
 Formulation of Product Concepts from Product ideas
 Product Concept captures the product benefit,
product usage details….image details
 Concept Testing : Projective techniques amongst
target consumer segments or end user segments

14. Product Idea To Product
Concept : Case Illustration
 Product Idea: Hair oil to fight hair problems…dandruff,
greying, hairfall etc
 Product Concept 1: Herbal hair oil for strong hair
 Product Concept 2: Hair oil + Anti dandruff agents for
Dandruff
 Product Concept 3:Hair oil + sunscreens for greying
 Product Concept Test : amongst hair oil users

15. Product Concept vs Positioning
Concept
 Product positioning Idea: A specialized hair oil to
fight dandruff
 Pdt Positioning Concept 1 : A herbal hair oil
containing ingredients which also fight dandruff
 Pdt Positioning 2 : An effective dandruff treatment
oil, which is better than other dandruff treatment
products
 TARGET SEGMENT
 Concept Test 1 : Hair oil users having dandruff
 Concept Test 2: Anti Dandruff Product users also
using hair oil

16. Product Approval Process: GATE
BUSINESS STRATEGY PRESENTATION
 Presentation of the Product Concept to the Top
Management Team for Approval
 Presentation to include the Marketing Strategy :
– Market size, structure.Consumer analysis (why?)
– Product Opportunity…volumes, profitability, resources,time
frames (what?)
– Long term strategy,projected financials ( how?)
 Business analysis:Estimating Sales, Costs & profits,
financial paybacks
GO or NO GO

17. Stage 2 : Product Development

18. Technology Brief
 Project handover to the Research & Development
Team to develop a “Technical solution” to the Product
Need..within specified time frame & cost considerations
 The Technical Task : Example:
– “Effective Dandruff Hair oil”: A coconut hair oil which
reduces the dandruff flakes, & does not freeze during the
winter months
– “Fairness Soap” : A wash off product ( soap) which provides
UV protection for a minimum of 5 hours post bath

19. Product Development
 Product Brief:For the completion of the actual
product & packaging development
 Quality Function Deployment ( QFD): a
technique to translate consumer needs &
wants into a technical concept or design
– Marketing & R&D work towards a joint solution
– Translation of marketing inputs ( consumer needs,
wants & perceptions) & R&D factors ( design
attributes & specs) via a relationship matrix

20. Product Tests & Concept Tests
( Concept Use Test)
 To finetune the product attributes according to
consumer needs
 Product form tests: product attributes, delivery
system, colour, shape, perfume etc
– Example: “playtime” & absorbency of a lotion and foam & after
wash perfume of a detergent : important parameters of Quality
 Packaging options: size , colour, design , finish etc
– Example: Shampoos in sachets and Lip Balms in tubes :
deliver Convenience

21. Clinical Tests
 To quantify the product performance
 Product usage amongst the target consumer
 Technical calibration of before & after use
 Often used in communications as “ Product Claims”
 Example: Fair skin over 6 weeks or Twice as effective
as other washing powders
 Expensive & time consuming
 Competitive attack : High Legal sensitivity

22. Completion of a Benched Product
 Preparation of a product & packaging
prototype
 Quality checks to test stability & other
parameters
 Issue product Raw Material & Packaging
Material specifications to the Manufacturing
Department for the Commercialization stage.

23. Stage 3: Market Testing of
Brand Strategy

24. Brand Strategy
 Brand Positioning : Benefits, competitive
advantage
 Target Segment Definition
 Marketing mix elements ( product , branding,
packaging,price, promotion, distribution)
 Communication development
 Marketing Plan
 Brand financials

25. Market Testing Methods
 Test Market launch:
– Select markets ( Strong & weak)
– Launch prototype product with complete support
– Expensive, time consuming but reliable
– Issues on Confidentiality
 Simulated Test Market
– Simulate a test market situation
– Sample consumers exposed to advertising
– Map responses before & after product placement

26. Testing Parameters
 Volume Validation
 Key measures: awareness,trial, repeat,
adoption, purchase frequency
 Communication Effectiveness
 Pricing Test
 Priority Markets
 Finetune product / packaging
 Image Indicators

27. Stage 4 : Commercialization

28. Project Management :
Manufacturing Interface
 Plan project Schedules
 Allocate responsibilities
 Control Brand Decisions
 Co ordinate inter functional activities
 Manage changes

29. Sales Target Setting : Sales
Interface
 Market Prioritization
 Seasonal Skews
 Distribution Plan
 Selling Strategy

30. Stage 5 : Market Rollout

31. Product Launch : Front Stage
 Sales Launch Conference: Product
background ,market analysis,product support,
selling tools
 Product placement: Retail briefing, displays,
incentives…below the line activities
 Media Break

32. Important Tracks : Back Stage
 Monitor stock distribution, movement, inventory control
 Monitor sales- areawise, outletwise, SKU wise
 Monitor effectiveness of inputs – displays, promotions
 Monitor advertising effectiveness
 Monitor media effectiveness
 Take corrective action : where ever & when ever
required

33. BRAND-WAGON
Mktg Obj Mktg Obj Sales Obj
Business
Potential
Brand
Values
Segment
Target
Position
Marketing Mix:
Product/Pkg
Price
Place
Promo
Mktg
Plan
Sales Plan
Busi. Obj.
BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEG
Analysis

34. Business Strategy
Powering the Engine
 Business/ Growth Potential: Analyse Company-
Competition- Consumer
 Brand Fit: Image- Identity- Proposition-Position
G r o w t h C h a r t
N o n - U s e r s
O t h e r B r a n d s
S W I T C H
O w n B r a n d
C A N N I B A L I Z A T I O N
E x is t in g U s e r s
N e w U s e r s I n c r e a s e U s a g e Q u a n t i t y I n c r e a s e U s a g e F r e q u e n c y

35. Growth Strategies
 Intensive Growth Opportunities
1. Market Penetration Strategy
2. Market Development Strategy
3. Product Development Strategy
 Integrative Growth Opportunities
Backward( Supplier), Forward( Distribution),
Horizontal( Competition)
 Diversification Growth Opportunities
Current MktCurrent Mkt
New MarketNew Market
Current PdtCurrent Pdt New PdtNew Pdt
1 3
2 Diversify

36. Market Penetration Strategy: Increase
Mkt Share
G r o w t h C h a r t
N o n - U s e r s
O t h e r B r a n d s
S W I T C H
O w n B r a n d
C A N N I B A L I Z A T I O N
E x is t in g U s e r s
N e w U s e r s I n c r e a s e U s a g e Q u a n t i t y I n c r e a s e U s a g e F r e q u e n c y

37. Market Development Strategy:
Increase Availability
 New User Groups / Consumer Markets
 New Distribution Channel
 New Location/ Region

38. Product Development Strategy
 Additional/ New Features
 Improved Quality

39. Growth Strategies
G r o w t h C h a r t
C o n v e r t N o n - U s e r s o f t h e P d t C a t e g o r y
M a r k e t P e n e t r a t i o n S t a r t e g y
E g : U p g r a d e T o o t h p o w d e r u s e r s t o t o o t h p a s t e
E n t e r N e w M a r k e t S e g m e n t s
M a r k e t D e v e l o p m e n t S t r a t e g y
E g : C o m p u t e r s fr o m O ffic e t o H o m e U s e
S w it c h C o m p e t it o r 's U s e r s t o y o u r B r a n d
B r a n d S w i t c h i n g
E g : F a ir & L o v e ly u s e r s s w it c h in g t o F a ir e v e r
A t t r a c t N e w U s e r s t o t h e B r a n d
I n c r e a s in g t h e o c c a s io n s fo r u s e
U s a g e F r e q u e n c y o r R a t e
E g : B r u s h in g T e e t h T w ic e a D a y
M o r e U s a g e p e r O c c a s io n
U s a g e A m o u n t o r Q u a n t i t y
E g : A p p ly s h a m p o o t w ic e & r in s e o ff fo r b e t t e r c le a n in g
N e w / D iffe r e n t U s e s fo r t h e s a m e P r o d u c t
N e w U s e s
E g : M ilk m a id fo r D e s s e r t R e c ip e s
M o r e U s a g e

40. Growth Path
 Britannia Cheese: Major player in Niche market
 Cadbury’s Dairy milk: Leading the Chocolates
market.
 Nestle Frugurt: First Mover of the Flavoured yoghurt
market.
 Pepsi Cola: Less than 30 % share in a Competitive
market, dominated by Thums Up & Coke
 Bisleri : First mover of the Mineral water market.
Lost its position to Kinley.
 Onida TV: Erstwhile Market Leader in a competitive
Market.

41. Competitive Analysis- Porter’s Model
Five Competitive Forces determine Industry Profitability
– Threat of New Entrants/ Entry of New Competitors
 Entry Barriers: Market Leadership, Brand identity,Distribution,
Capital Reqt, Technology, Govt. Policy, Switching Cost
– Threat of Substitutes….Mobiles to Telephones, Shampoos
to hairoils
 Price- Value equation, Switching cost
– Bargaining Power of Buyers….Instore Labels
 Buyer concentration/ information/ volumes/ switching costs,
Ability to backward integrate, substitute products, relative
switching costs, price sensitivity

42. Porter’s Model
– Bargaining Power of Suppliers…Godrej Real Good
Chicken, Diamonds
 Differentiation of inputs, Importance of volume, Forward
Integration ability, Relative switching Costs
– Rivalry amongst existing competitors
 Product Differentiation, Brand identity, Industry growth,
Market penetration, Operating Costs, Exit Barriers

43. Competitive Strategies
Based on Level/ Nature of Competition
 Cost Leadership Strategy
– Lower Cost of Production than its Competitors
– May or May NOT be at the Lowest price
– Ensures Higher returns which it can use advantageously against the
Competitor
 Differentiation Strategy …. Competitive Advantage
– Differentiating the Product/ the Offering in the minds of the Consumer
– From Product Innovation to Brand Building , all aim to create a
sustainable competitive advantage
 Focus Strategy
– Selecting only a certain segment/ group in the entire market… & then
ensure a cost advantage over the competitors or a point of
differentiation to attract the consumers.

44. Understanding Business Strategies
Underlying Factors of a Business Strategy
Market Attractiveness:
 Market Potential of the Category…. Market Size & Market
Growth
Competitive Position:
 Level of Competition in the Category …Market Share &
Relative Market share of the players i.e. Market Share
Relative to the largest competitor.
Where the “Market” or the Potential User Segment ( those
who will use the pdt) is first defined by the Marketer, & then
quantified.
While the competition is accordingly determined.

45. The Strategy Matrix
MarketCompetitivenessMarketCompetitiveness
LoHiLoHi
LoLo HiHi
Market AttractivenessMarket Attractiveness
Innovation DifferentiationInnovation Differentiation
Focus ExpansionFocus Expansion

46. Business Strategies of Brands
 Growth / Market Expansion….Market Leader Strategies
– When the Market Potential is high, & the level of competition is minimal
– Objective to build a User base.
– High Investment Required over a period of time
Eg : Creation of the Deodorants category in India by Rexona.
 Differentiation/ Competitive Advantage…Market Challenger Strategies
– When the Market Size is high, but there are strong existing competitors
one has to deal with.
– Objective to gain market share through Brand switches.
– Medium- High Investments
Eg: Introduction of Britannia Milkman, in the dairy pdts mkt dominated by
Amul & Nestle.

47. Business Strategies of Brands
 Focus/ Specialization….Market Nicher stategies
– When Market Size is limited, no major competitors
– Objective to focus on & gain ownership of a particular target
segment
Eg: Launch of Loreal Hair Colour in India…focused on Beauty
Parlour distribution
 Innovation+ Significant Cost advantage…Frontal/
Encirclement Attack strategy
– Need a lot of consideration before entering such a market
– Objective to displace competition
Eg: Launch of Pond’s Body Lotion at a Low Price Point in the
Skincare Market..threatening the leadership of Lakme
Maximum Moisturiser.

48. Marketing Strategies
Based on Market Position
 Market Leader:
– Market Expansion Strategy…Market Growth strategies
 Developing New Users- convert non-users to users of the
Product Category
Eg: Airlines flexible fares to attract Rail Passengers.
 Developing New Uses for the Product …New applications, new
markets.
Eg: Maggi noodles … from choice cuisine to commonplace easy
to make snack food/ tiffin.
 More Usage – Increase amount used or frequency of use of the
Product
Eg: Toothpastes promoting twice a day brushing
– Defense Strategy…Through continuous innovation
( Brand Revitalization Strategy)

49. Marketing Strategies
Based on Market Position
 Market Challenger:
– Attack Strategy- Competitive
 Frontal attack- Pitched against Competitor’s Strength
– Eg: Pepsodent- Fights germs Better than Colgate
 Flank attack- Bring to light Competitor’s Weakness
– Eg Anchor Toothpaste as 100% Vegetarian, unlike others
 Encirclement Attack- Close in on Competitor with Multiple
Attacks on all fronts
– Eg: Airtel
 Bypass Attack – Deviate to unrelated products/areas
– Eg: Reliance Mobiles with Technology, Nirma with Price
 Guerilla attack- Harass Competitor with small frequent attacks
– Eg: Nihar Coconut Hair Oil

50. Marketing Strategies
Based on Market Position
 Market Follower: Me- Too Strategy- Following or
copying the moves of the Key Competitor
– Eg: Detergents…Ghari, Coconut Hair oil…Cococare, CocoRaj
 Market Nichers:
– Specialist/ Focus Strategy- Building Customer goodwill where
competition is weak or not present or not interested.
– Eg: Gillete in men’s pdts
– Low volumes, but high growth & high margins.
– Eg: Loreal Hair Colour

51. Legal Aspects of Brand
Management
 New Product Development: Product classification/
Excise classification, Trademark registration, copyright,
patent, FDA regulations on Brand name, formulation &
packaging
 Advertising & promotions: Claim substantiation,
ASCI rulings, MRTP regulations
 Sales & Distribution: Distributor relationship, region
specific issues
 Manufacturing:Manufacturer relationship, product
specific issues