how comapnies set product strategy

1. Product Strategy

2. Customer value hierarchy Core benefit Basic product Expected product Augmented product Potential product

3. Electric cars

4. Tesla Roadster

5. Consumer Product classifications Convenience goods Staples Impulse goods Emergencies Shopping goods Homogeneous Heterogeneous Specialty Unsought

6. B2B Products Materials and parts Capital items Installations Equipment Supplies and business services

7. FMCG vs Durables Danger of commoditization Importance of advertizing Eg – Perfetti – Alpenliebe, Big Babol, Chloromint Availability

8. Product differentiation Form Features Customization Performance quality Conformance quality Durability Reliability Repairability Style

9. Product Mix Width Length Depth Consistency

10. BCG Matrix

11. GE/McKinsey

12. Product line management Core products – hi vol, high promo, low margins Staples – low vol, low promo, hi margins Specialities – low vol, hi promo Convenience items – hi vol, low promo, high margins (accessories)

13. Product line management Line stretching Up down Line filling Line pruning

14. Marico Parachute Hot oil Aftershower Starz Jasmine ShantiAmla Mediker Nihar

15. Product variants: Close up HUL has 32% of India’s toothpaste market HUL’s first gel toothpaste Second is sales after Pepsodent Not doing well worldwide

16. Product variants Tingly red Oxy fresh Eucalyptus waves Whitening (with shade card) Lemon mint Flavalicious: Tangerine Burst Flavalicious: Luscious Lyche Chocolate?

17. Product recall

18. Cost of delayed recall Toyota owners dying from unintended acceleration started making mews in the US in 2009 Toyota did nothing for a while and alleged deaths rose to 37 Ultimately recalled 9 million cars worldwide for floor mat/accelerator pedal Lost 5 billion dollars Brand took a beating