strategy and products
TRANSCRIPT
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8/9/2019 Strategy and Products
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Strategy andStrategy and
ProductsProductsHow do we get there:How do we get there:
Creating Functional LevelCreating Functional LevelStrategiesStrategies
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Issues and FocusIssues and Focus
Strategy for developing new products forStrategy for developing new products for
existing marketexisting market
Strategy for developing new products forStrategy for developing new products for
new marketsnew markets Product strategy for gaining competitiveProduct strategy for gaining competitive
advantageadvantage
elationship !etween "uality and Priceelationship !etween "uality and Price #i$usion of innovation#i$usion of innovation
Product portfolio managementProduct portfolio management
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%hy new products &%hy new products &
Products experience PLC and !ecome o!soleteProducts experience PLC and !ecome o!solete Consumer taste and preferences changeConsumer taste and preferences change 'C( matrix which products to keep and kill'C( matrix which products to keep and kill
'rand image and expectations'rand image and expectations )nhancing pro*ta!ility for the future)nhancing pro*ta!ility for the future+ew versions to retain old customers+ew versions to retain old customers,o create di$erentiation !ut core products same,o create di$erentiation !ut core products same,o create and sustain competitive edge,o create and sustain competitive edge 'alancing risk versus return'alancing risk versus return
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+ewness of+ewness othe market tothe market to
the *rmthe *rm
+ewness of+ewness ofthe product forthe product for
the *rmthe *rm
L-%L-% HI(HHI(H
HI(HHI(H New products forNew products forthe rm. Presentthe rm. Presentcustomer newcustomer newproduct lineproduct line
New products forNew products forthe rm. Newthe rm. Newcustomers ,customers ,DiversicationDiversication
L-%L-% ReformulatedReformulatedproducts. Presentproducts. Present
customers Nextcustomers NextGeneration Generation
ImprovedImprovedproductsproducts
Extension ofExtension ofexistin productsexistin products
New customersNew customers.!ddition to.!ddition to
existin productexistin productlineslines
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.ey Lessons in new product success.ey Lessons in new product success
"ni#ue superior di$erentiated products"ni#ue superior di$erentiated products ! stron mar%et orientation! stron mar%et orientation International orientation in product desinInternational orientation in product desin
E&cient pre'development wor%E&cient pre'development wor%
(harp, )lear and earl* product denition(harp, )lear and earl* product denition ! well conceived and properl* executed launch! well conceived and properl* executed launch +he oraniational structure+he oraniational structure +op manaement support+op manaement support Products aimed at attractive mar%etsProducts aimed at attractive mar%ets (harper pro-ect selection decisions(harper pro-ect selection decisions (peed and multi stae approach(peed and multi stae approach
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+ew Product Planning+ew Product Planning
,his is the strategic stage during,his is the strategic stage during
which the *rm examines is currentwhich the *rm examines is current
portfolio/ S%-, and determines theportfolio/ S%-, and determines the
type of product which would !e !est *ttype of product which would !e !est *t
with the corporate strategywith the corporate strategy
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Idea (eneration 0 ScreeningIdea (eneration 0 Screening
Speci*c ideas for the product are putSpeci*c ideas for the product are put
forward collected from di$erentforward collected from di$erent
internal as well as external sourcesinternal as well as external sources
In screening and evaluation ideas areIn screening and evaluation ideas are
checked for technical feasi!ility/checked for technical feasi!ility/
functional via!ility and marketa!ilityfunctional via!ility and marketa!ility
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8/9/2019 Strategy and Products
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,echnical development,echnical development
)ngineering and production issues are)ngineering and production issues are
resolved and prototype !uilt andresolved and prototype !uilt and
tested in house and with selectedtested in house and with selected
panel of users and design approvedpanel of users and design approved
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1arket 2ppraisal and Launch1arket 2ppraisal and Launch
12.), P-,)+,I2L formal market12.), P-,)+,I2L formal market
research with potential customers isresearch with potential customers is
carried out to access the product3scarried out to access the product3s
market potentialmarket potential
L24+CH provided all the other factorsL24+CH provided all the other factors
are in place the product goes intoare in place the product goes into
production and the marketing plan forproduction and the marketing plan forit is developed and implementedit is developed and implemented
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8/9/2019 Strategy and Products
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+P# outes+P# outes
Product ChampionProduct Champion
+ew Product ,hink ,anks+ew Product ,hink ,anks
5enture ,eams5enture ,eams-utside Consultancy-utside Consultancy
6ve78ve 2spects6ve78ve 2spects
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#i$usion of innovation#i$usion of innovation
+ew products are not immediately adopted !y+ew products are not immediately adopted !y
all consumersall consumers
Innovation takes time to *lter through populationInnovation takes time to *lter through population
,he process of *ltration is called di$usion,he process of *ltration is called di$usion It is partly determined !y the nature of theIt is partly determined !y the nature of the
customers and partly !y nature of innovationcustomers and partly !y nature of innovation
itselfitself
2wareness 9 ,rial 9 2doption2wareness 9 ,rial 9 2doption elative 2dvantage/ Compati!ility/ Complexityelative 2dvantage/ Compati!ility/ Complexity
trial a!ility will determine speed of 2#-P,I-+trial a!ility will determine speed of 2#-P,I-+
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8/9/2019 Strategy and Products
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8/9/2019 Strategy and Products
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2,2 1-#)L2,2 1-#)L
2%2)+)SS created as a result of2%2)+)SS created as a result of
promotional activities !y the *rmpromotional activities !y the *rm
,I2L for low price products customers,I2L for low price products customers
are encouraged to purchase for maorare encouraged to purchase for maor
purchase customers seek trialspurchase customers seek trials
2#-P,I-+ this is the stage at which the2#-P,I-+ this is the stage at which the
consumer decides to !uy the product orconsumer decides to !uy the product ormake it part of the regular shopping listmake it part of the regular shopping list
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How consumer perceiveHow consumer perceive
innovation&innovation&
elative advantageelative advantage
Compati!ilityCompati!ility
ComplexityComplexity,rial a!ility,rial a!ility
-!serve a!ility-!serve a!ility
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2SS)SS FI+2+CI2L IS.2SS)SS FI+2+CI2L IS.
'reak even point'reak even point
2!ility to reach !reak even point2!ility to reach !reak even point
Capital ac;uisition potentialCapital ac;uisition potential
Financial performance vary with PLCFinancial performance vary with PLC
Financial risk assessment should !e un8Financial risk assessment should !e un8
!iased and to !e carried out !ut outsider!iased and to !e carried out !ut outsider
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PIC) 0 "42LI,
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Price7"uality StrategicPrice7"uality Strategic
approachesapproaches