chapter 9
DESCRIPTION
CHAPTER 9. PRODUCT STRATEGY. PRODUCT STRATEGY. Developing New Products Product Life Cycle Branding Strategy. DEVELOPING NEW PRODUCTS. New Product Process New Product Failures. NEW PRODUCT PROCESS. Creative Ideas. Creative Business Ideas. Development and Testing. Introduce New Product. - PowerPoint PPT PresentationTRANSCRIPT
NEW PRODUCT PROCESS
Creative Ideas
Time
Creative Business Ideas
Development and Testing
Introduce New Product
SEARCH FOR CREATIVE IDEAS
• Create cross-functional committees
• Collect stakeholder ideas
• Listen to customers
TYPES OF CREATIVE IDEAS
• Never been done before
• Improved product technology
• Creative twist of an existing idea
CREATIVE IDEAS EXAMPLES
• Charles Schwab
• Ralph Lauren Polo Shirts
• Houston National Bank
• Blue Chip Forecast
FEASIBILITY STUDIES
Studies of potential new products, with evaluations of resources and time in screening creative ideas
FEASIBILITY STUDY PROCESS
Potential New Products
Financial Viability
Time and Resources
Proceed or Drop Creative Idea
PRODUCT DEVELOPMENT AND TESTING
• Product development - Types of new products - Product design
• Testing - Beta testing - Store audits
NEW PRODUCT FAILURES
• Failure to define target market
• Lack of customer knowledge
• Poor product performance
STAGES OF PRODUCT LIFE CYCLE
Stage Sales ProfitsIntroduction Low NegativeGrowth Climbing RisingMaturity Stable PeakingDecline Dropping Declining
CHARACTERISTICS OF THE INTRODUCTION STAGE
• Negative Profits
• Heavy Promotion Cost
• Heavy Distribution Cost
ASTRATA THEFT BOX
• Stops motor on stolen trucks
• Locks doors remotely, trapping thieves
• Programmed to notify police
CHARACTERISTICS OF THE MATURITY STAGE
• Intense Competition
• Maintain Promotion
• Layering Strategy
DECLINE STAGE STRATEGIES
• Simplify Product Line
• Minimize Promotional Cost
• Discontinue Product Line
• Sell Product Line
BRANDING STRATEGY
• Product Names
• Major Types of Branding
• Multiple Branding Strategy
• Brand Extension
MANUFACTURING BRANDS ARE LOSING TO STORE BRANDS
• Mass media universe has shattered
• Mass channel universe has consolidated
• High gross margins for store brands
MULTIPLE BRANDING STRATEGY
• BLANKET BRANDS - Same brand name
• INDIVIDUAL BRANDS - Different brand names
BRAND EXTENSION
A company with a well-known brand uses that brand to market to a different product category.