Produc的t+and+Brand+Management.pptVIP

Product and Brand Management What is a product? A product is any offering by a company to a market that serves to satisfy customer needs and wants. It can be an object, service, idea,etc. New Product Development Most new product development is an improvement on existing products Less than 10% of new products are totally new concepts. Success rate of new products The success rate of new products is very low – less than 5%. ‘You have to kiss a lot of frogs to find a prince.” Product obsolescence is rapid with improvements in technology Shorter PLCs Product Development Stages Idea generation Idea screening Concept development and testing Concept testing Conjoint analysis – to find out the best valued attributes by consumers Business analysis The most customer appealing offer is not always the most profitable to make Estimate on costs, sales volumes,pricing and profit levels are made to find out the optimal price – volume mix. Breakeven and paybacks Discounted cash flow projections Market testing Test markets Test periods What information to gather? What action to take? Commercialization When? (Timing) Where? (Which geographical markets) To whom? (Target markets) How? (Introductory Marketing strategy) Product Levels Customer value hierarchy Core benefit Basic product Expected product Augmented product Potential product Customer Delight When you exceed customer expectations Product Hierarchy Need Product family Product class Product Line Product type Brand Item Product classification Durable Non – durable Services Consumer goods classification Convenience goods Shopping goods Specialty goods Unsought goods Industrial goods classification Materials and Parts - raw materials - manufactured materials and parts Capital items Supplies and business services Product Mix The assortment of products that a company offers to a market Width – how many different product lines? Length – the number of items in the product mix Depth – The no. of variants offered in a pr