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Product Strategy

Product Strategy. - Ralston. Agenda. Levels of Product Product Mix Product Strategy. Levels of Product. Levels of Product. Product Mix. The set of all products that a particular seller offers for sale to buyers. Also known as product assortment. Product Mix.

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Product Strategy

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  1. Product Strategy - Ralston

  2. Agenda • Levels of Product • Product Mix • Product Strategy

  3. Levels of Product

  4. Levels of Product

  5. Product Mix • The set of all products that a particular seller offers for sale to buyers. • Also known as product assortment.

  6. Product Mix • Product Line : A group of closely related products constitutes a Product Line. • Product Width : The number of Product Lines the company carries • Product Length : Length of a Product Line is decided by the number of Products in the Product Line • Product Depth : Depth of the Line denotes the total number of items under each product in the line • Product Consistency : How closely are the products related in the end use, production, distribution etc....

  7. Product Mix Example

  8. Product strategy begins with a strategic vision that states where a company wants to go, how it will get there, and why it will be successful. Product strategy is like a roadmap, and like a roadmap it’s useful only when you know where you are and where you want to go.

  9. What is Product Strategy??

  10. Product Platform Strategy • Platform is an architecture of the common elements implemented across a range of products • One element in the platform usually represents a defining technology • Dictates life cycle, capabilities, limitations • Important to understand the role of a defining technology • The choice if defining technology is perhaps the most critical strategic decision that a hi-tech company makes

  11. Product 1C Product 1 Product 2 Product 3 Product 1B Product 5 Product 1A Product Platforms Unique product elements and common channel elements of product line Segment A Segment B Segment C Element A Common Platform Elements Element B Element C

  12. Benefits of Platform Strategy • Focuses management on key decisions at the right time • Simplifies the strategy processs, helps concentrating on critical decisions • Enables rapid & consistent product development • Encourages a long-term view on product strategy • Can leverage operational efficiencies • Manufacturing costs • Design costs • Makes marketing and support easier

  13. Example of Product Platforms

  14. Product Line Strategy • A time-phased plan for developing products from a common platform, each product targeting a specific market segment • The true potential of a platform strategy is extracted with an effective product line strategy

  15. Product Line Strategy • Covers all primary targeted market segments • Each product offering should be sufficiently focused • Time-phased scheduling / sequencing • all products cannot be released simultaneously • priorization • Similar products / product lines are coordinated • To avoid rework and confusion in marketing and among customers

  16. Product Line Strategy • Lengthening the Product Lines • Line Stretching • Deepening the line by adding more variants / formulae / pack sizes to the line • Pruning and rationalising the lines by withdrawing items/integrating them. • Stretching Up & Stretching Down • Two Way Stretching • Line Filling

  17. Leveraged Expansion The success of expansions to new product markets depends highly on ability to leverage: • Existing market knowledge • Technical skills

  18. Leveraged Expansion

  19. Examples of Leveraged Expansion • Microsoft • DOS  Windows • Windows + Internet  Internet Explorer & MSN

  20. Sustained Differentiation …is achieved with vectors of differentiation that are significant to the customer • One very prominent featureor • An appealing combination

  21. High-Tech Differentiation • Unique features • Measurable benefits • Ease of use • Improved productivity • Unique fundamental characteristics • Design

  22. See you next week!

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