Pbm Week One

PRODUCT PRODUCT MANAGEMENTMANAGEMENT

HOW DOES IT BEGIN WITH THE PRODUCT MANAGER ?????

By

STRATEGIC PLANNING

Long term Profitability and Growth

WHY is strategic planning done

Managerial Process Of Creating And Maintaining A Fit Between The Organization’s Objectives + resources And Evolving Market Opportunities

Long Term Profitability And GrowthLong Term Commitments Of Resources

PRACTICALRanbaxy fighting polio or infant birth diseasesGili to buy carbon & other brandsKellogs Indian breakfast or maggi soupsKmart filed bankruptcy closed 300 stores lost

profitable brands like Disney, Bossinni..

STRATEGIC PLANNING

•By MARKETING PLAN

How is strategic planning done

• Process of anticipating future events and changing markets

• Determining strategies to achieve organization objectives in the future

• Written document that acts as a guidebook of marketing activities for the Manager

WHAT IS A MARKETING PLAN ?

Elements of marketing plan

SAMPLE MARKETING PLAN

MARKETING MYOPIA

-SLIDE 44

-SLIDE 45

Young, mobile executives with incomes over Rs.30,000 per annum, frequent travelers, computer –dependent individuals

MARKETING MIX◦ PRODUCT – personal mobile phone◦ Brand name – NOKIA YV14◦ Features – simultaneous voice/data ommunications, internet

access, operation within buildings, link-ups to data subscription an email services, heavy data storage, colours, light weight, 800 hours battery backup, 5 year unlimited warranty on parts and labour, 24 hour technical support, leather or titanium carrying case

TARGET MARKET SELECTION

Price – retail price of Rs. 12000, assuming mild price sensitivity and future price wars, finance options available, corporate discounts 20% on volume purchases

IMPLEMENTATION◦ FIRST QUARTER – complete marketing research on

Price, design, promotional campaign, sign contracts with intermediaries..

◦ SECOND QUARTER – public relations campaign, product introduction at trade shows, advertising rollout

◦ THIRD QUARTER – test market, international markets….

(SBU MAY REQUIRE DIFFERENT MARKETING PLAN)

OBJECTIVES CONT…

THE MARKETING MIX

PRODUCT

• Product can be defined as anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a want or need.

• Tangible components Intangible components size, feature, colours, style, quality, image , durability, package , prestige, warranty,

taste brand name

The product

Components of a product

• Product variety• Quality• Design• Features• Brand name• Packaging• Sizes• Services• Warranties• Returns

PRODUCT LEVELS

Potential product – all possible

Augmented product – fresh flowers

Expected product – clean bed

Basic product – hotel room

Core benefit - Sleep

PRODUCT CLASSIFICATION

• Durability and tangibility

• Consumer goods• Industrial goods

• Nondurable– Tangible – Rapidly consumed– Example: Milk

• Durable– Tangible – Lasts a long time– Example: Oven

• Services– Intangible– Example: Tax preparation

PRODUCT CLASSIFICATION

• Durability and tangibility

• Consumer goods• Industrial goods

• Classified by shopping habits:– Convenience goods– Shopping goods– Specialty goods– Unsought goods

PRODUCT CLASSIFICATION

• Durability and tangibility

• Consumer goods• Industrial goods

• Materials and parts– Farm products– Natural products– Component materials– Component parts

• Capital items– Installations– Equipment

• Supplies and business services– Maintenance and repair– Advisory services

PRODUCT MIXPRODUCT MIX is a combination of products manufactured by the same business house to reinforce their presence in the market, increase market share and increase their profitability along with the satisfaction of consumer needs.

THE PRODUCT MIX

• This is the total sum of all product and variants offered by an organisation.

• The set of all product lines and items that a particular seller offer for sale to buyers.

• The composite group of product that a company makes available to markets.

• A product items is an individual product or brand.

PRODUCT LINE

• A product line is a group of products that are closely related because they function in a similar manner , are sold to the same groups, are marketed through the same type of outlets, or fall within given price ranges.

•PRODUCT MIX HAS MANY

PRODUCT LINES

LGs product mix

• REFRIGERATORS• WASHING MACHINES• MOBILES• AC• MICROWAVE• GAS STOVES• TV• ...

HUL PRODUCT MIX

Product line-1Bath soaps

DoveLirilPearsRexonaLifebuoyHamamBreezeLe sancy

Product line-2Fabric wash

SurfRinWheelSunlightAla501

Product line-3beverages

BruBrooke bond red labelLipton green labelTaazaTaj MahalA1

PRODUCT MIX WIDTH

PRODUCT LINE LENGTH

• PRODUCTS NIKE• • • WOMEN• • FOOTWEAR• • Nike Shox Deliver• Nike Shox Turbo+ Vi iD• Nike Shox NZ iD• Nike Shox Go iD• Nike Air Pegasus• Nike Dunk Low iD• Nike Shox Navina+ 2• Nike Air Rejuven8 LE Medal• Nike Air Charmer• Nike Free Women’s Thong• Nike Prima Mary Jane• Nike Celso Thong Plus• • • • APPAREL• • Nike Smash Pleated Tennis Skirt• Digital Motion Cut Out Swimsuit• Nike create the Future T-shirt• Nike Softest women’s jacket• Nike race day running singlet• Nike tech stripe sleeveless• Nike human race runner t-shirt• •

• MEN• • FOOTWEAR• • Nike air zoom super bad 2• Nike Shox r4• Nike santiam sandal• Nike Air fightposite• Nike blazer high premium• Nike total90 strike II FG• Nike Shox TW• • • APPAREL• • Rafa madator of spin• Nike player thermal• Nike short sleeve club America• Nike pro ultimate fitted T• Jordan’s ribbon basketball hoodey• Jordan durasheen basketball shorts• Nike core tennis warm up• Nike swoosh flex golf hat• •

• 3. KIDS• • FOOTWEAR• • Nike vadal low premium• Nike new aquamotion print• Nike keystone low• Nike sunray adjust III print• Nike Jr total 90 shoe expand• Nike morgan Jr• Nike sensory motion peanut• Nike baby Fit-II• Nike little attest• Nike Xccelerarion• Nike Dart 5 (gs/ps)• Nike little impass tailwind• • APPAREL• • Nike toddler girl’s shorts• Nike border tennis girl’s dress• Nike playette infant’s 3-piece full zip girl”s hoodie set• Nike diamond light weight jacket• Nike therma fit vest• Nike attack knit jacket• Nike fleece pants• Nike deep V pullover• Nike training scooter skirt• Nike training jacket• • • 4. ACCESSORIES• • Nike women’s cart golf bag• Nike 62” windsheer II auto open golf umbrella• Nike player’s jacquard golf towel• Nike swoosh belts• Nike verdana women’s golf gloves• Nike levanto wire MAX polarized golf sunglasses• Nike plaid women’s golf driver’s cap• Nike TARJ RD.P (sunglasses)• Nike iPod nano 8GB• Nike running hydration pack• Nike running arm wallet/phone case•

DIMENSIONS OF PRODUCT MIX

• Width: refers to no. of product lines the company carries. E.g.HUL manufactures bathing soaps, detergents, toothpastes. skin care, hair care etc products.

• Length: refers to total no. of items the company carries within its product lines.

e.g.oral care product line of HUL includes totthpastes which are pepsodent and close up. skin care includes fair and lovely,ponds,vaseline..

WIDTH & LENGTHPERSONA

L WASH

LAUNDRY SKIN CARE

HAIR CARE

ORAL CARE

LuxBreezeLifebuoyLirilDovePearsHamamRexona 8

Surf ExcelRinWheel 3

Fair & LovelyPond’sVaseline 3

Sunsilk NaturalsClinic

3

PepsodentCloseup

2

DEODRANTSAxeRexona

2

COLOUR COSMETICSLakme 1

BEVERAGESTEABrooke BondLipton 2COFFEEBrook Bond Bru 2

FOODSKissanAnnapurnaKnorr

3

ICE CREAMKwality Wall’s  1

• Depth: refers to no. of versions offered of each product in the product line. E.g. pepsodent of HUL has several varieties like pepsodent 2 in 1,pepsodent G, pepsodent White..

• Consistency: refers to how closely related the various product lines are in end-use, production requirements, distribution channels, etc. e.g. HUL’s product lines are consistent as they are consumer products that go through same distribution channels. The lines are less consistent in a way that they perform different functions for buyers.

DEPTH OF COLGATE-PALMOLIVE

• Colgate Dental cream• Colgate Total 12• Colgate Max Fresh• Colgate Kids Toothpaste• Colgate Fresh Energy Gel• Colgate Herbal• Colgate Cibaca Family

Protection• Colgate Advanced

Whitening• Colgate Active Salt

• COMPANY: PARLE PRODUCTS PVT LTD.• • • BISCUIT GOODIES-• • PARLE G• KRACKJACK• KRACKJACK CRISPY CREAMS• MONACO• KREAMS• HIDE & SEEK MILANO• DIGESTIVE MARIE• PARLE MARIE• MILK SHAKTI• PARLE 20-20 COOKIES• NIMKIN• • SWEETS-• • MELODY• MANGO BITE• KACCHA MANGO BYTE• POPPINS• KISME TOFFEE• KISME GOLD• ORANGE CANDY • XHALE• • SNACKS-• • MUSST BITES• MANGO BITES CHEESLINGS• SIXER• MUSST STIX & MUSST CHIPS• • MINERAL-• BISLERI• BAILLEY MINERAL WATER•

PRODUCT MIX INVOLVES THE FOLLOWING SUB ELEMENTS:-

•

PRODUCTATRIBUTES

BRANDING PACKAGING LABELING

PRODUCTSUPPORT SERVICE

PRODUCT QUALITY• PRODUCT QUALITY is defined as the ability of the product to

perform its functions. It includes:-• The products’s durability• Reliability• Precision• Ease of operation• Repair• PRODUCT QUALITY has two dimensions:-• QUALITY LEVEL• QUALITY CONSISTENCY

PRODUCT FEATURES

• FEATURES are the qualities or characteristics of the product or services.

• They are a competitive tool for differentiating the company’s product from the competitor’s product

COLGATE ADVANCED WHITENING

• Restores natural whiteness.

• Prevents stains from adhering.

• Fights tarter, cavities and plaque.

PRODUCT STYLE AND DESIGN

• Style simply describes the appearance of the product.

• Style can be eye catching/grabs attention or can be yawn producing.

• DESIGN contributes to a products usefulness as well as to looks.

• It involves deep understanding of customer needs thereby delivering consumer product and service experience.

BRANDING• BRANDING is a name, term, sign, symbol, or design, or a combination of

these intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors .

• BRANDING adds VALUE to the product.• Advantages of branding to CONSUMERS:-• Helps them identify products that might benefit them.• Tell buyer about the product quality.• Advantages of branding to sellers:-• Brand name becomes the basis on which a whole story about a

product’s special qualities can be built.• Brand name and trademark provide legal protection for unique features

that otherwise may be copied by competitors.

PACKAGING• Packaging involves designing and producing the container or wrapper

for the product. It includes:-• Product’s primary container• Product’s secondary package• Shipping package necessary to store , identify, and ship the product.• Labeling, printing information appearing on or with the package.• Various functions of packaging involves:-• To protect the product• To perform various sales tasks like attracting attention, describing the

product and making the sales.• Paying heed to growing environmental concerns.

COLGATE KIDS TOOTHPASTEColgate kids toothpaste has• primary container – tube holding

colgate kids toothpaste • Secondary packaging (the

cardboard box containing the tube of colgate) which besides providing protection to the paste also attracts the attention of kids through its attractive pictures of bugs bunny & tweety as kids can well relate to them.

PRODUCT LABELLING

Label provides written information about product. Labeling is mandatory as it states the product’s ingredients and components.

Functions of Labeling :

• Identifies the product• Describes Several things• Promote• States price• Nutritional content

PRODUCT SUPPORT SERVICES

• It is the business unit with the primary responsibility to end user and partner requests for assistance with the company product’s and services.

• A company’s offer usually includes some support services, which can be minor or major part of offering

Example: Activa - Honda

• Manufactured by :- HONDA

• Price – Rs 41,146

• Services free - 6

•Ways to lengthen product line :

1. Line stretching – It is when a company lengthens its product line beyond its current range.

• Companies located at the upper end of the market stretch their lines downwards

• Company located at the lower end stretch their lines upwards.

• Companies located in middle range of market can decide to stretch at both ends.

2.Line filling: means adding more items within the present range of the line. The company should ensure that new items are noticeably different from existing ones.

Benefits of line filling:• Reaching for extra profits• Satisfying dealers• Plugging holes to keep out competitors

PRODUCT MIX: The product mix refers to the total number of product lines carried by a firm where

each line reflects one type of product.

• PRODUCT LINE LENGTH refers to number of products within a product line such as different types of detergents offered by a brand.

• PRODUCT DEPTH refers to the number of variation of one particular product. For eg, a range of package sizes from trial size to jumbo size.

Product line decisionsProduct line length-the no. of items in the

product line.Product line stretching-it occurs when a company lengthens its product line beyond its current range.Product line filling- it means adding more items

within the present range of the line.

PRODUCT LINE• A group of closely related product items.

• They are related in terms of - function - benefit - production - the way in which they are marketed.

• A group of product ( manufactured and distributed by an organisation ) which are similar in the way they are produced or marketed.

PRODUCT LINE DEPTH

• Depth of the product line denotes the total number of items under each brand in the line, in terms of variants, shades, models, etc.

• Example: lux is a brand and its variants such lux almond, lux strawberry &cream constitutes the depth of product line.

PRODUCT MIX WIDTH

• Product line width is the number of distinct product lines offered by an organisation.

• Example: HUL produces - bath soaps - fabric wash - beverages.Which denotes the product mix width of HUL.

PRODUCT PORTFOLIO

• This is another term for the product mix – all the lines and all the items that the company offers.

• Portfolio planning is the process of managing the mix of product.

• To accomplish this it is necessary to analyse the collection.

• The most famous tool of analysis is the Boston matrix

STRATEGIC PLANNING