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Product Management

Product Management. Some Facts. A Product is basically a ‘need satisfying entity’ offered at an exchange in the market. A Product succeeds when it gives the consumers the ‘value’ they are looking for. So how to find out this ‘value’? Analysing customers Analysing competitors

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Product Management

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  1. Product Management

    Teena Y. Sharma
  2. Some Facts A Product is basically a ‘need satisfying entity’ offered at an exchange in the market. A Product succeeds when it gives the consumers the ‘value’ they are looking for. So how to find out this ‘value’? Analysing customers Analysing competitors Identifying the motives of the consumers in buying the product Product Motive Patronage Motive Product should be in line with business / corporate strategy/ plan. Teena Y. Sharma
  3. A Product can attain different Levels We already know that a product is a ‘need satisfying entity’. But no Product offering remains at the basic level of just need satisfaction. The firms takes it to higher levels by infusing several inputs into the basic product like: advanced features, some more functions, a distinctive brand name, attractive and convenient packaging, affordable price etc, effective positioning. So the product is a combination of many such offerings, and hence it attains different levels. Generally described as a six-level approach. Teena Y. Sharma
  4. Levels which a Product can attain: Teena Y. Sharma
  5. Product Levels: The Generic Product: Unbranded and Undifferentiated commodity. Here the product does not have a differentiated identity, such as a name/brand and is not linked to a maker or owner. Eg: Unbranded flour (atta), rice The Branded Product: A product which gets its identity through a ‘name’ Eg: Kohinoor Basmati, Annapurna Atta etc All packaged products are normally branded products. Teena Y. Sharma
  6. Product Levels: The Differentiated Product: Though all branded products are supposed to be ‘differentiated’ products, but … Differentiated Products enjoy a clear cut distinction from other similar products/ brands in the market. Eg: Maggi Noodles in the noodle market, Dettol in antiseptic liquid market. The Customized Product: A product that is designed according to the requirements and specification given by an individual customer. Eg: IT softwares, mobile service plans are good examples (Services) Bufori car of Kuala-Lumpur (Product) Teena Y. Sharma
  7. Product Levels: The Augmented Product: Here the product is a result of voluntary improvements brought about by the firm in order to enhance the ‘value’ of the product. The firm may go beyond the expectations of the consumers. Eg: Hero Honda Passion to Passion Plus and then to Passion Pro The Potential Product: The tomorrow’s Product. A lot of R&D done under given technological, economic and competitive conditions. Eg: Robots Teena Y. Sharma
  8. Main tasks in Product Management Appraisal of each Product Line and each Product/ Brand in the Line. Decisions on Packaging. Product Differentiation and Positioning. Managing Brands and Developing Brand Equity. New Product Development: What will be the product? What will be its components? Managing Product Quality Pricing Promotion Managing the PLC. Teena Y. Sharma
  9. Product and its Components A product is more than a Physical Entity, It has a Personality. A Product is not just a mere object. It does have an identity or a personality of its own. Users associate many meanings with the product, they derive satisfaction. The physical entity is just one component. A product has other tangible/ intangible features associated with itself. Teena Y. Sharma
  10. Components of Product Personality The Core Product The Associated features The Brand name The Logo The Packaging, Label Price The Type of the Product Consumer good Business Good Product Mix and Product Line Teena Y. Sharma
  11. Some important Terms:-Product Mix and Product Line Product Mix: Denotes the complete set of all products offered for sale by the company. Product Line: A group of closely related constitute a product Line. The Product Mix comprises of several such Product Lines. Length of Product Line: Number of Products/Brands in the Product Line Width of Product Mix: Number of Product Line the company carries. SKU (Stock Keeping Unit) An independent item of the product offered for sale. Eg: Heads and Shoulder Shampoo available in many varieties like for Dandruff, Hair fall, different colors and different packs of 200 ml, 150 ml and 5 ml packs, each is a SKU. Teena Y. Sharma
  12. Product Management:Step 1:- Appraisal Appraisal of each Product Line and each Product/Brand in it: Tasks involved: Is the Product Line achieving its sales/profit targets? Is it maintaining its market share? Does the line carry too many products/brands, making it difficult to maintain? Is there too much competition between the products within the line? Is the competition good or bad for the health of the line? Other Pricing and Distribution related issues. Teena Y. Sharma
  13. Step 1: Appraisal Business growth comes only after increasing and maintaining Product Lines. Adding new products, related or unrelated (expanding the Product Mix) Adding new items to the existing the Product Lines. Deepening the existing products by adding more variants, pack sizes etc. Line Stretching and Line Filling – Two ways of Increasing Line Length. Teena Y. Sharma
  14. Step 1: Appraisal-Increasing Line Length. Line Stretching: Aim is to enter the new price slot. Can take place in two ways: Stretching Up Stretching Down Stretching Down: By offering products in the same line for lower ends at lower prices. Most of the times an entirely new product is introduced. Eg: HUL’s Wheel to compete with Nirma Stretching UP: Offering products in the same line at higher prices. Eg:Philips Stereo to Philips Power House and then to Philips PowerPlay. Teena Y. Sharma
  15. Step 1: Appraisal-Increasing Line Length. Line Filling: The firm introduces more items to its existing line fill in the certain gaps in the present line. The intention here is to see the line as complete, so that the customers do not go to competitors for a particular variant/ mode/ pack size etc. Eg: HUL Trying to make almost all possible product required for Personal Care. Teena Y. Sharma
  16. Step 1: Appraisal- Maintaining the Line by ‘Line Pruning’. Line Pruning: After some years of growth , firms often find that their product lines have become unduly long and complicated. They might have increased this length to meet the prevailing market requirements. But now the conditions might have changed. More cost must be wasted in maintaining the line. Hence, the firm might find it beneficial to withdraw certain products/brands from the line. This is called Line Pruning. It is opposite of Line Stretching. Eg: Titan Watches, introduces many models every year, but at the same time, withdraws certain models. Teena Y. Sharma
  17. Product Management:Step 2: Decisions on Packaging. Packaging decisions include: Package Materials Package Aesthetics Handling Convenience Package Size. Package Material: Wood Paper Plastic Metal Glass Polythiene Tetra packs Cloth Thermocol Any other innovation Teena Y. Sharma
  18. Step 2: Packaging Package Aesthetics: Size Shape Finish Color Label Logo Package design Various other features Handling Convenience: May greatly contribute to the success of product. Harpic Cold Drink Cans Maggi noodles in cup Automatic Washing Machines with cabinets for detergent, both liquid and powder Net cover over Rin soap. Teena Y. Sharma
  19. Step 2: Packaging Package Size: Jumbo Packs Family Packs Economy Packs Refill Packs Reusable Containers Sachet Teena Y. Sharma
  20. Product Management:Step 3: Product Differentiation and Positioning Product Differentiation: This task has vital importance in overall Product Management A Product can be differentiated on the basis of: Tangible Attributes Intangible Attributes Teena Y. Sharma
  21. Step 3: Product Differentiation Tangible Attributes: Ingredients/ Formula– Eg: Close Up always a Gel. Functional Features – Eg: 3M Scotch Magic Tape, to stick to anything and almost invisible. Additional Features – Eg: Mobile Phones with added functions. Packaging – Eg: Kurkure engages consumers with Packaging, Me n Meri Maggi. Product Design / Styling – Eg: Titan Watches, Apple Mac Book. Product Quality – Eg: Godrej Store well bets on quality. Customer Care and Service – Eg: Microsoft, Domino’s Pizza Teena Y. Sharma
  22. Step 3: Differentiation Intangible Attributes: Luxury cars differentiate on prestige Ray Ban on styling Raymond's as Complete Man etc. Teena Y. Sharma
  23. Product Management:Step 4: Product Positioning What is Positioning? The marketer decides, how and around what parameters , the product offer will placed before the target consumers. He is seeking a platform for his offer, and this platform is consumer’s mind. And the product is positioned on this platform i.e. the target consumer’s mind. Hence, ‘Positioning’ is creating an image in consumer’s mind so that it stands apart from competing products. Teena Y. Sharma
  24. Step 4: Positioning Why Positioning is important? Connects Product offering with Target Market. E.g.: Hero Honda Glamour before entering into the market, did R & D for three years, and developed a bike with 125 cc engine and positioned it as ‘Glamour for youth, who wants Glamour in everything’ Maggi as ‘Fast to cook, Good to eat’, and recently as ‘Taste bhi , Health bhi- Nayi Me and MeriMaggi’ Through effective Positioning, the brand seeks a distinct Locus in consumer’s mind. Teena Y. Sharma
  25. Product ManagementStep 5: Managing Product Quality Product Quality is a vital area. A successful product is reliable, well engineered and a high quality product. Marketing department has to set standards for quality for firm’s products. Constantly verifying these standards and upgrading them in tune with the growing needs of the market. Teena Y. Sharma
  26. Product Management:Step 6: Managing Brand and Brand Equity Selecting brand elements: Name: Aqua guard for water purifier, Good Knight for mosquito repellant. Logo : Unileversalphabet ‘U’ , Nestle’s Nest Slogan : Nokia – Connecting People, LG : Life’s Good. Keeping the Brand live: enhancing the value through extension and Rejuvenation, relaunches, packaging innovations etc. Brand Proliferation Maintaining Brand Quality/ Reputation Monitoring Brand through its life cycle Building and Managing Brand Equity Teena Y. Sharma
  27. Product Management:Step 7: Introducing a new Product Why do firms introduce New Products? Line Filling Line Down-Stretching Brand Proliferation Market Growth New Profits For meeting changes in consumers expectations Combating competition in the market Teena Y. Sharma
  28. Step 7: New ProductStages in Introducing a New Product Teena Y. Sharma
  29. Product Management:Step 8: Managing PLC Product Life Cycle has four stages: Introduction Growth Maturity Decline Teena Y. Sharma
  30. Thank You  Teena Y. Sharma
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