Product strategy is critical to the success of the overall marketing strategy

1. PRODUCTSTRATEGY
Dr.Timotius Febry. ST., MT

2. Product strategy is
critical to the success
of the overall
marketing strategy

3. Value is
captured in
two key areas
Product
Strategy
Branding
Product value
is derived
from
Features
Benefits
received

4. Product
Strategy
Quality
Design
Packaging
Labeling
Product Development

5. Quality
Put simply, how well the product
satisfies customers
 Basic functionality is only the price of entry.
 Superior quality attracts business.
 Poor quality can lead to negative word-of-mouth

6. Design
Quality comes from design,
components/ingredients and
processes
 At the forefront of many categories.
 Includes “emotional quality” – the impact of design
on how it makes the customer feel

7. Packaging
 Keeps products safe.
 Helps companies burnish their brand imagery and
highlight points of differentiation

8. Labeling
 Communicates product contents, uses and warnings.
 Conforms to national, regional and local laws and
requirements mandating warnings, allowable use of
certain phrases, and even the size and type of words
used.
 Helps attract attention, stand out from retail clutter

9. Product
Development
 Idea generation.
 Screening of new ideas.
 Initial concept testing.
 Business analysis.
 Prototype design.
 Market testing.
 Commercialization.
 Monitoring customer reaction

10. Product
Strategy and
The Product
Development
Process
Idea
Generation
and
Screening
Initial
Concept
Testing
Business
Analysis
Design
Prototype
Market
Testing
Commercialization
Based on
customer
needs and
wants
Screen out
unprofitable
or
unsuitable
ideas
Research
customer
value of
product
concepts
Refine
concept
based on
research
Estimate
development,
production
and marketing
mix costs
Compare
costs with
potential
share, sales,
profitability to
identify good
candidates
Design and
produce
working
prototypes
Test
prototype
functionality
, customer
appeal
Limited
market
trials or
simulate
d testing
Test
different
marketin
g mix
combinat
ions for
support
Plan targeting and
timing of launch
Plan production and
marketing mix
support for launch

11. The Product
LifeCycle
(PLC)
Introduction
Growth
Maturity
Decline
Introduction Growth Maturity Decline
Launch the new
product.
Support launch with
marketing mix
programs to build
customer awareness,
make product
available, and
encourage trial.
Enhance product (new
features, improved
quality, added services,
new packaging).
Support rising sales with
expanded channel
coverage, pricing for
market penetration, and
communications to start
and reinforce customer
relationships.
Add brand or line
extensions.
Defend market
share through
competitive
pricing, channel
expansion,
communicating
differentiation,
and promotion to
reinforce
customer loyalty.
Reposition,
reformulate, or cut
struggling
products.
Manage
profitability
through careful
pricing, pruning
channel outlets,
and minimal or
highly targeted
communications.

12. Planning
Branding
Branding gives a product a distinct identity
and differentiates it from competitive
products using: words, designs, and symbols
Company name
and individual
brand
Individual
name
Private-
label brand
Multiple Brands
(co-branding,
ingredient
branding)

13. BrandsShould
Be…..
1. Meaningful.
2. Recognizable and memorable.
3. Capable of being legally
protected.
4. Suitable for international markets

14. Branding and
Positioning
 Branding not only identifies a particular product, but
it sets it apart from the competition (both direct and
indirect).
 Positioning: What the target group perceives about
your brand relative to how they perceive the
competition

15. REFRENCES
 T. Hill, Production/Operations Management, Prentice Hall 1991
 Heizer, J. Render, B. Operations Management, Prentice Hall 2005
 S.N. Chapman,The fundamentals of production planning and
control; Prentice Hall 2006
 K.N. McKay,V.C.S.Wiers, Practical production control.A survival
guide for planners and schedulers,, APICS, J.Ross Publishing 2004

16. THANKS
Timotius.F.C.W. Sutrisno. Ph.D
Profile
- Ph.D in Operation Research and
Management
- Lecturer International Business
Management Ciputra University
(INA)
- Owner Rumah Manajemen
Consultant
Perum Green Eleven B1-08
Jalan Raya Bangil, Kenep, Pasuruan JawaTimur
67154-Indonesia
+62 811 337 3131
Rumah Manajemen Consultant