Product Strategies: Prepared By-Abhinay Jain PG 15-15 Kunal Parab PG 15-35

PRODUCT STRATEGIES
PREPARED BYABHINAY JAIN PG 15-15

KUNAL PARAB PG 15-35
PRODUCT POSITIONING STRATEGY

It is that unique positioning that a product occupies in the mind of
consumer.
Positioning is the single largest influence on the buying decision.
Different approaches to positioning
Attributes
Price
Use of application
Product user
Product class
Respect to comepititor
SINGLE BRAND STRATEGY

It is to maximize its benefits with a single brand
the company must try to associate itself with a
core segment in a market where it plays a
dominant role.
Eg. MERCEDES
MULTIPLE BRAND STRATEGY

Business units introduce multiple brands in market for two major reasons.
a)To seek growth by offering varied products in different segments of the market.
b)To avoid competitive threats to a single brand.
Ex-Tata Group
PRODUCT REPOSITIONING STRATEGY

It is done basically to increase the life of the product and correct the
original positioning mistake.
3 ways of repositioning are
REPOSITIONING AMONG EXISTING CUSTOMERS:
Can be accomplished by providing alternatives uses for it.
Eg. Various scheme launched by mobile service provider for their
existing customers.( Vodafone, Airtel, Aircel etc. )
REPOSITIONING AMONG NEW USERS:
Repositioning among new users requires that the product be
presented with a different twist to people who have not been favorably
inclined towards it.
Eg. Amul light by Amul
REPOSITIONING FOR NEW USERS:
It requires searching for hidden uses/new uses of the product in the
users.
Eg. Brittania Nutri Choicebiscuits
PRODUCT OVERLAP STRATRGY

It refers to a situation where a company decides to compete against its own
brand.
It is done in 3 Alternative ways.
COMPETING BRANDS:
In order to gain a large share in the market, many companies introduce
competing products in the market.
Eg. Consumer durable goods from LG and Samsung.
PRIVATE LABELING:
It refers to manufacturing a product under another companys brand name.
Eg. Companies like Samsung and LG manufacture mobile phones for TATA
and RCOM CDMA phones
DEALING WITH ORIGINAL EQUIPMENT MANUFACTURERS(OEMs):
A company may sell to competitors the components used in its own product.
This enables competitors to compete with the company in the market.
Eg. Carl Zeises make lenses for SONY, Nikon Cameras.
PRODUCT SCOPE STRATEGY
The product scope strategy deals with the perspective of the product mix
of the company. It is determined by taking into account the overall mission
of the business unit.
SINGLE PRODUCT STRATEGY:
The business unit only has one product and tries to live on the success of
the one product.
Concentration on a single product leads
to specialization which helps achieve economies
of scale and profitability gains. Its main advantage
is profitability.
Eg. CEAT Tyres
MULTIPLE PRODUCT STRATEGY:
To cover the risk of potential obsolescence of a single product by adding
additional products.
Eg. Seagrams
SYSTEM OF PRODUCT STRATEGY:

To increase the dependence of the customer on the
companys products as well as to prevent competitors
from moving into the market by having a close
understanding of the customers needs and uses of the
products.
PRODUCT DESIGN STRATEGY

The product design strategy deals with the standardization of a
product. The company has a choice among the following strategic
options.
STANDARD PRODUCTS:
To increase economies of scale of the company.
The benefits are they yield cost benefits and can be merchandised
nationally much more efficiently.
Eg. Bridgestone Tyres.
CUSTOMIZED PRODUCTS:
To compete against mass producers or standardized products through
product design flexibility.
Eg. Dell Computers
STANDARD PRODUCTS WITH MODIFICATIONS:
With this strategy, a customer may be given the option to specify a
limited number of desired modifications to a standard product.
Eg. Hercules Cycles( Hercules Atom, Hercules Wayfinder)
PRODUCT ELIMINATION STRATEGY

It cuts in the composition of a companys business unit product portfolio by
pruning the number of products within a line or by totally divesting a division or
a business.
Three alternatives for product elimination strategy are:
HARVESTING:
It refers to getting the most from a product while it lasts. It is a controlled
divestment whereby the business unit seeks to get the most cash flow it can
from the product. This strategy is usually applied to a product or business
whose sales volume or market share is slowly declining.
Eg.
LINE SIMPLIFICATION:
It refers to a situation where a product line is trimmed to a manageable size by
pruning the number and variety of products or services offered.
This strategy becomes especially relevant during times of rising costs and
resource shortages.
TOTAL LINE DIVESTMENT :
It is a situation of reverse acquisition. It is to get rid of the product that is not

doing well in the growing market.
NEW PRODUCT STRATEGY

New
product development is an essential activity for companies seeking growth. By adopting the new product
strategy as their posture, companies are better able to sustain competitive pressures on their existing products
and make headway.
The three alternatives are
PRODUCT IMPROVEMENT MODIFICATION:
It is the introduction of a new version or an improved model of an existing product.
Eg. Autodesk
PRODUCT IMITATION:
The imitation strategy means that it transfers the risk of introducing an unproven idea/ product to someone else.
It also saves investment in research and development. This strategy suits companies with limited resources.
Eg.
PRODUCT INNOVATION:
It includes introducing a new product to replace an existing product in order to satisfy a need in an entirely
different way or to provide a new approach to satisfy an existing need.
This strategy suggests that the entrant is the first firm to develop and introduce the product.
Eg. 3M, Red Chief Shoe
DIVERSIFICATION STRATEGY
Diversification refers to seeking unfamiliar products or
markets or both in pursuit of the growth.
It is a risky strategy and the company should choose this
path only when current product does not seems to provide
further opportunities for growth.
It has three alternatives
CONCENTRIC DIVERSIFICATION:
It means the products introduced bear a close synergistic
relationship to either the companys marketing or technology,
or both.
Eg.
HORIZONTAL DIVERSIFICATION:
New products are unrelated to existing ones but are sold to the same customers.
Eg. Vijaya dairy products
CONGLOMERATE DIVERSIFICATION:
The new product bears no relationship to either the marketing or technology of the
existing product(s).
In other words we can say that a company launches itself into an entirely new p
roduct/ market.
Eg. HIRA GROUP
Value Marketing Strategy

Value marketing strategy stresses real
product performance and delivering on
promises.
Eg. LG Refrigerator.
VALUE MARKETING STRATEGY

The value marketing strategy concerns the delivering on promises made for the product or
service. These promises involve product quality, customer service, and meeting time
commitments.
QUALITY STRATEGY:
Traditionally, quality has been viewed as a manufacturing concern. The idea of total quality
is perceived in the market, that is quality must exude from the offering itself and from all the
services that it comes with it.
Eg. PIDILITE (FEVICOL)
CUSTOMER SERVICE STRATEGY:
A customer service strategy is an important part of any business plan. Since business relies
on customer satisfaction, any good business should develop a strategy that not only draws
in customers, but keeps them happy so they are not tempted to try out a competitor.
Eg. Eureka Forbes easy clean plus 800 watt Vacuum Cleaner.
TIME BASED STRATEGY:
When a product market changes quickly, companies must respond quickly if they want to
preserve their positions.
In todays changing markets time based strategy that aims to beat that competition has
assumed new dimensions.
To implement this strategy the entire production process must be redesigned for speed.
Briefly it means doing it fast which forces a firm to do it right the first time.
Eg. Maruti Suzuki
THANK YOU

Product Strategies: Prepared By-Abhinay Jain PG 15-15 Kunal Parab PG 15-35

Uploaded by

Copyright:

Available Formats

Product Strategies: Prepared By-Abhinay Jain PG 15-15 Kunal Parab PG 15-35

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Product Strategies: Prepared By-Abhinay Jain PG 15-15 Kunal Parab PG 15-35

Uploaded by

Copyright:

Available Formats

PRODUCT STRATEGIES

PREPARED BYABHINAY JAIN PG 15-15

PRODUCT POSITIONING STRATEGY

SINGLE BRAND STRATEGY

MULTIPLE BRAND STRATEGY

PRODUCT REPOSITIONING STRATEGY

PRODUCT OVERLAP STRATRGY

PRODUCT SCOPE STRATEGY

SYSTEM OF PRODUCT STRATEGY:

PRODUCT DESIGN STRATEGY

PRODUCT ELIMINATION STRATEGY

It is a situation of reverse acquisition. It is to get rid of the product that is not

NEW PRODUCT STRATEGY

Value Marketing Strategy

VALUE MARKETING STRATEGY

You might also like