ProductStrategiesfortheAsiaPacific.pptVIP

Product Strategies for the Asia Pacific Asia-Pacific Marketing Federation Certified Professional Marketer Copyright Marketing Institute of Singapore Outline Product Hierarchy Product-Mix Decisions Product-Line Strategies New product development in ASPAC Positioning Repositioning Brand decisions Introduction Product (or service) is the main element of the marketing mix Therefore, need to determine the Product Strategies before deciding on the remaining marketing mix 7-Levels of Product Hierarchy Product need—to satisfy a need e.g. feet protection Product class—a family of products having similar function e.g. all shoes Product line—a group of products with closely related functions e.g. sports shoes Product type—products within a line having similar form e.g. basket-ball shoes Brand—a name representing a product or line e.g. Nike Item (Stock Keeping Unit)—a unit item e.g. one pair of Nike basket-ball shoe Product-Mix Decisions Decisions on the product mix (the number of product lines and items in each line) that the company may offer A single product Most firms started off as a single-product company Multiple products e.g. Creative Technology markets sound cards as well as MP3 players A systems of products e.g. Nikon sells camera, lenses, filters other options Product-Line strategy How many product lines should we have? Example: Delft Sensor Systems offer a comprehensive range of products, including portable and platform mounted night vision systems and thermal imaging systems, head- and helmet mounted displays, laser rangefinders and fire control systems (Source: http://www.oip.be/press/brazil.htm) Product-Line strategy (cont’d) How many product items in each line? Example: Both Gardenia and Bonjour launched new flavors in January 1999 to nibble away at each other’s market share of a loaf estimated to be worth about $80 million (Source: ST, Home, Jan29/99) Expanding the Product Line Product line extension: add an item to the existing product line M