Product Strategies - October 8 2024 PDF

Product Strategies October 8 2024  GENERAL SCHEDULE October 8 TUES CLASS LECTURE October 10 THURS DBME MEETING/ASYNCHRONOUS October 12 SAT BTS 1 October 15 TUES CLASS LECTURE October 17 THURS LONG QUIZ October 19 SAT BTS 2 October 22 TUES BIDA AWARDING/ ASYNCHRONOUS October 26 SAT MIDTERM...

Product Strategies October 8 2024  GENERAL SCHEDULE October 8 TUES CLASS LECTURE October 10 THURS DBME MEETING/ASYNCHRONOUS October 12 SAT BTS 1 October 15 TUES CLASS LECTURE October 17 THURS LONG QUIZ October 19 SAT BTS 2 October 22 TUES BIDA AWARDING/ ASYNCHRONOUS October 26 SAT MIDTERM EXAMS  PRODUCT A bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants and needs. PRODUCT PORTFOLIO is the menu of goods or services that a firm produces and offers for sale. is the collection of all the products or services offered by a company. can provide nuanced views on a stock type, company growth prospects, profit margin drivers, income contributions, market leadership, and operational risk may be straightforward and consist of a single product, or it may consist of multiple, diversified product lines. Width – Number of Product lines Width or breath of the product mix means the total number of product lines that a company offers to sell. Depth – Product Variation Depth of a product mix means the total number of variations for each product a company offers within. There may be different variations in the product e.g., size, flavor, taste, and many other characteristics. Length – Total Products The length of the product mix means total number of product items within the company product lines. PRODUCT PORTFOLIO STRATEGIES Product Line Length The total number of items in a product line. Expand the Line: Add new products to increase market share or fill gaps. Prune the Line: Remove underperforming or obsolete products to streamline offerings and focus on bestsellers. Product Line Filling Adding more items within the existing range of a product line. Introduce variations in size, flavor, or features to meet diverse customer preferences. Offer products at different price points to capture various market segments. Product Line Extension Introducing new products that are related to the existing product line. Leverage brand equity to introduce new flavors, scents, or models (e.g., a beverage company adding new flavors). Ensure that new products align with customer expectations and brand values. Product Line Modernization Updating or redesigning existing products to maintain relevance. Incorporate modern trends and technologies (e.g., eco-friendly materials). Refresh branding and packaging to attract new customers and retain existing ones PRODUCT STRATEGY A product strategy is a high-level plan that defines the unique value proposition of a new product, its target audience, and how the product will meet key goals across its entire lifecycle. Also known as a product development strategy, this critical foundation links user needs with organizational goals to communicate the real purpose of the product; it's the first step in turning the product vision into action. A product strategy often goes through several iterations in the early stages as you get more product feedback and test product-market fit—it needs to be flexible enough to meet changing user needs and market conditions. But once it’s set, the strategy should act as a stable touchpoint, aligned with the company’s core vision. While the product strategy only changes in response to major shifts, the product roadmap, initiatives, and backlog can change as needed. PRODUCT DEVELOPMENT STRATEGY Introduce new products to existing markets. Innovating or improving product features. Conducting market research to understand customer needs. Investing in R&D for new product ideas LEADER/ALPHA STRATEGY all about creating a product that leads the market. CHALLENGER/QUALITY STRATEGY your product challenges the current market leader by offering an improved product experience. NICHE/FOCUS STRATEGY tailor your product to meet the particular needs of a very specific segment of the market, rather than aiming to dominate the market as a whole. COST STRATEGY focus on highlighting your product through the cost of your offer. LINE EXPANSION The task of adding any other related new products to product line is called line expansion. This includes two strategies. They are filling the line and expanding the line. Stretching up: The task of adding new goods of more prices to the existing same product line is called stretching up. Stretching down: The task of adding new products of low prices to the existing same product line is called stretching down. PRODUCT CONSISTENCY Consistency of product line shows how many things are related to the use, production and distribution of the products. To increase the consistency of the product, related product should be added to the product line. If the consistency of the product is to be decreased, the unrelated products of the product line should be added. PRODUCT CONTRACTION A company narrows its product mix to eliminate lower-performing products or lines or to simplify remaining products or lines. DEVELOPING NEW USES FOR EXISTING PRODUCTS A company finds and communicates new uses for current products without disturbing lines or products. PRODUCT SEGMENTATION build different versions of a product to meet the unique needs of different personas PRODUCT DIFFERENTIATION successful product differentiation requires that you define the unique benefits of what you are selling and communicate those benefits to potential customers. The goal is not to focus on competitors but instead prioritize what sets your product apart and why customers should choose you Having a strong product differentiation strategy allows you to create a competitive advantage. This means that your target market views your product or service as superior to what your competitors are selling. When prospective customers understand what makes your product different (and how it will solve their problems), they are more likely to be interested in trying it. In turn, this can lead to increased sales, greater brand loyalty, and long- term growth for your business.  FEATURE A PHYSICAL CHARACTERISTIC Any product attribute or performance characteristics and is often added or The Product’s Advantages: Prove subtracted from a product to It! differentiated form competitors ADVANTAGE - A PERFORMANCE CHARACTERISTIC The Product’s Benefits: What’s in it for Many product marketing managers emphasize Me? features The chances of making a sale BENEFIT – A RESULT OF ADVANTAGE Examples: are increased by describing the product’s advantages Size How a product can be used People are interested in what the Color product will do for them Price How a product will help the buyer Benefits can be both practical and Shape psychological The company should Examples: Fastest-selling Emphasizing benefits increases sales periodically survey buyers who have used the product Store more information Diamond ring – images of success, and ask these questions: investment, to please a loved one Copy on both sides of the how do you like the product? paper Camera film – memories of places, Which specific features of friends, and family the product do you like most Which features could we improve the product?  PRICE DESIGN Is your product priced lower or higher than Does your product look different or your competitors? The price of your offering function better than others? For should reflect the overall value that you example, a product that is sleek and provide. You can justify a higher price if provides a simple user experience is customers recognize that your product offers more appealing than one that is unsurpassed quality — this is price clunky or dated. differentiation in action. CUSTOMER SERVICE PRODUCT’S UNIQUE Does your company offer a SELLING POINT Complete Product Experience helps you determine how QUALITY (CPE) — including superior your product will stand Does your product simply customer service? The features out from the crowd and work better than your of your product may be similar compete on the competitors’ products? Can to others in many ways, but you marketplace in terms of: users expect the product to can achieve successful product Usability last longer than other differentiation by assembling a products? Selling a product stand-out support team and Quality with superior construction earning a reputation for being Cost and dependability can ultra-responsive to customers' Niche focus provide a strong needs, requests, and ideas. Customizability competitive advantage. Features DATA-INFORMED PRODUCT STRATEGIES is based on data, qualitative and quantitative. So instead of guessing what customers need, you use data from their behavior, feedback, etc., to understand what they need. A data-informed product strategy is founded on a simple truth: The better you know your customers, the better you can serve them. And the better your data, the better you know your customers. According to a survey by Forbes, companies that effectively use data are “six times more likely to be profitable” year over year. Higher-level data can help you make product and feature decisions. Product analytics is the process of analyzing how users engage with a product or service. It enables product teams to track, visualize, and analyze user engagement and behavior data. Teams use this data to improve and optimize a product or service. Differentiation Strategy Distinguish products from competitors. Emphasizing unique features, quality, or brand reputation. Developing a strong brand identity. Offering superior customer service or support. Sustainability Strategy Incorporate sustainable practices into product development and marketing. Using eco-friendly materials and processes. Highlighting sustainability in marketing messages. Engaging in corporate social responsibility initiatives. Cross-Selling Opportunities Encouraging customers to buy complementary products. Bundle products together at a discounted price. Create marketing campaigns that suggest additional purchases based on previous buying behavior. PRODUCT ROADMAP The product roadmap is your key to bringing the product strategy to life. It’s a high-level plan for how your product will achieve its strategic goals and what the product priorities are. It should give a clear overview of how the strategy will be translated into action, provide a timeline for product development, and put key metrics in place to measure success.  Packaging Strategies 1. Functional Packaging Packaging designed to protect and facilitate the use of the product. Ensure that packaging is practical, easy to open, and provides necessary information about the product. Consider features like resealable options or portion control. 2. Aesthetic Packaging Visually appealing packaging that attracts consumers. Use creative design elements, colors, and graphics to make your packaging stand out on shelves. Align the design with your brand identity and target audience preferences. 3. Sustainable Packaging Environmentally friendly packaging solutions. Use recyclable, biodegradable, or reusable materials. Highlight sustainability efforts on the packaging to appeal to eco-conscious consumers. 4. Informational Packaging Packaging that communicates important product information. Include clear labeling, nutritional information, usage instructions, and safety warnings. Ensure that the text is legible and easy to understand. 5. Emotional Packaging Packaging designed to evoke emotions or tell a story. Create a packaging experience that resonates with consumers, such as using personal touches or unique unboxing experiences. Share messages that connect emotionally with your audience.  LABELING STRATGEIS Branding Consistency Reflect your brand identity through labels. Use consistent colors, fonts, logos, and design elements that align with your overall branding strategy. This helps enhance brand recognition. Visual Appeal Attract consumers through design. Use eye-catching graphics, colors, and imagery that resonate with your target audience. The label design should stand out on the shelf while remaining aligned with your brand image. Interactive Labels Enhance consumer engagement. Incorporate QR codes or NFC tags that lead to additional content, such as recipes, product usage videos, or customer feedback platforms. This adds value and interactivity. Promotional Elements Encourage purchases through special offers. Include promotional messages such as discounts, limited-time offers, or “buy one, get one free” on labels. Use vibrant colors or badges to draw attention. Personalization Create a unique consumer experience. Consider limited-edition labels or personalized messages for specific customer segments. This can enhance consumer loyalty and brand affinity. Easy-to-Use labeling Enhance user experience. Design labels that are easy to peel, read, or handle, especially for products that may require frequent use (e.g., food items). Consider clear labeling for serving sizes or application instructions.  BRAND STRATEGIES Brand Positioning Establishing a unique place in the market relative to competitors. Identify your target audience and clearly define your brand’s value proposition. Use customer insights to differentiate your brand based on factors like quality, price, or unique features. Brand Identity Development Creating visual and verbal elements that represent your brand. Develop a strong logo, color palette, and typography that reflect your brand’s personality. Create consistent messaging and tone across all platforms and communications. Ensure that brand identity resonates with your target audience’s values and preferences. Brand Storytelling Communicating your brand's history, mission, and values through compelling narratives. Create content that resonates emotionally with your audience. Share customer testimonials, behind-the-scenes stories, and the impact of your brand on the community. Brand Loyalty Programs Incentives to encourage repeat purchases and brand allegiance. Implement loyalty programs that reward customers with discounts, exclusive offers, or early access to new products. Use personalized communication to strengthen relationships. Brand Extensions Expanding your brand into new product categories or markets. Leverage your brand equity by introducing new products under the same brand name. Ensure that the new offerings align with your brand’s values and customer expectations. Consistent Brand Messaging Delivering a unified message across all channels. Create brand guidelines that outline messaging, tone, and visual elements. Ensure all marketing materials (ads, social media, website) reflect the same brand voice and messaging. Regularly review and update messaging to align with evolving market trends. Brand Partnerships Collaborating with other brands to enhance visibility and credibility. Identify complementary brands for co-marketing opportunities. Create joint promotions or events to tap into each other’s audiences. Ensure that partnerships align with your brand values and enhance your brand image.