Product line extension is another form of diversification that aim at reaching those market segments which the firm has not yet penetrated. It involves an expansion of the product line as well as the promotional strategies. The canvas explicitly plots your products factors vs competitors to visualise why your product is different. Product characteristics and marketing strategy 19 the term marketing mix suggests a relationship between interacting, elements.
Assign process ownership to an individual with technical marketing skills. Oct 25, 2018 pricing is one of the most important elements of the marketing mix and has the greatest effect on whether the strategy is successful. This paper investigates the effects of brand portfolio and product line strategy of cellphone brands market share in china. Although more is becoming known about the relationships among elements of the marketing mix. Productline extensions and pricing strategies of brandname. The strategy helped take equity bank to its millionth customer.
Jan 17, 2017 it addressed the need to move air to enhance the environmenta hunter fan brand proposition, confirmed by research and accepted by home depot. The vision is your high level, ultimate view of where the company or business line is going. A product line is a group of related products under a single brand sold by the same company. Value line guide planning an investment strategy the value line guide to planning an investment strategy.
Little remedies product line strategy page 1 of 1 the product line for the little remedies products from vetco, inc. This paper deals with the problem of formulating a longrun competitive marketing strategy for a new product. Productline extensions and pricing strategies of brandname drugs facing patent expiration song hee hong, phd. Product line pricing is a pricing strategy used to sell different products in the same range at different price points based on features or benefits. Adequate appraisal of the product line should be made so that the opportune time of product abandonment in the product line contraction strategy may be identified.
Pdf analysis of pricing strategies for new product introduction. In section 2, we give a short introduction to software product lines using a running example and we present an overview on important software analysis that have been applied to soft. The pricing strategy of brandname drugs going off patent is equally controversial. Focused attention needs to be paid to market research that goes on to reduce the uncertainly in. Product x is the first in a line of products that will help us transition to a productfocused company. You will learn about pricing strategy for cultural products and services. First, the company used consumer tracking panels to classify products by both household purchases and usage. Value line guide 2 planning an investment strategy a change could make a huge difference to your financial life and would need to be addressed in your portfolio.
Product strategy needs to fit within the context of the company strategy. Determining whether to create, expand or retire product lines is part of the overall product line strategy. A product strategy template is similar to a roadmap which has all destinations earmarked. The goal of product line pricing is to maximize profits. Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. Developing a price point for each line will differentiate between the product lines, giving the customer a clear choice. Product x is the means by which we and our clients will measure the impact of adopting agile methods. Need to have a quick overview worksheet to help visualize your product line. The distributor then sells the product to retailers or customers distribution strategy 4. Sep 06, 2011 manage and improve product strategy like any other business process. Quick response systems qrs and global positioning system gps. The coreasset developers create the strategy while the core assets are being created. The pdf format options include panes for options specific to cell, column, and. Marketing mix strategy, bottom of the pyramid bop, brazilian market.
In brazil, a fullline strategy is typical in tires, soft drinks, ice cream, and other massproduced products subject to price controls and oligopolistic competition. That said, you should not compress things too much. Manage and improve product strategy like any other business process. Planning for retail in an online world march 6, 2018. Development of a strategic plan for the existing product line is the most critical element of a companys marketing planning activity. It is common for firms to adopt multiple distribution channels to reach customers in convenient ways. Product line extension may be valid if it is an area in which the consumers enjoy a wide variety of brands to choose from and are accustomed to switch over from one to another, or if the competitors lack a. Marketing 3 managing the product flashcards quizlet. This is your homepage, which is what most visitors will see when they come to your site for the first time. This strategy outlines the endtoend vision of the product, particulars on achieving the product strategy and the big picture context in terms of what the product will become. Marketing mix strategies towards the bottom of the. There are five common product line pricing strategies captive pricing, leader pricing, bait pricing, price lining, and price bundling. After a product is manufactured it is typically shipped and usually sold to a distributor.
The strategy describes how the product line practices should be employed so that the product line organization will achieve its production goals. Trading up refers to the adding of a higher priced prestige product to the existing lines with the intention of increasing sales of the existing. An introduction is given to strategic management and its. Every product strategy is the foundation of a product life cycle. This strategy is typically adopted where you wish to market to different customer types or wish to anchor your products. Product line extension strategy new product development. The broad categories that you should maintain in some. Jul 27, 2016 but, they cannot create a successful strategy on their own. With a line of products to price, you need to consider the whole product mix, the product life cycle within the mix, and your product positioning strategy often new products will enter and exit a line.
Pricing management and strategy for the maritime equipment manufacturers and service providers 14 december, 2017 3. We study multiproduct cournot suppliers who offer menus of differentiated qualities. Or, if youd prefer to think of it this way, you should follow a series of steps that will help you clear a path for inspiration to strike. Link the product linestrategy with the product development plan and process. Product line strategy greatly improving strategies and. Analysis strategies for software product lines 3 we refer the reader to a recent survey benavides et al. It is also linked to the execution plan for further development. Product mix concepts product mix set of all products offered by the company for sale product line a group of related products constitute a product line e. Once wedded to a product line, the customer can then focus on variables other than price, such as color and size. Companies utilise the product strategy in strategic planning and. Pdf effects of brand portfolio and product line strategy.
Formulation of a production strategy for a software product line. When a product is dropped, the turnover of the company is considerably affected. Product line strategy overview template clickstarters. Corporate brand names are used when the companys name is powerful and can be used to help the product line. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Product line pricing requires a different look at setting price. What is product line strategies life and experiences. The strategy canvas used to convey to the rest of the business and your team why your product is set up to compete and add unique value to your market. Product line pricing, and aims to evaluate the situations where it is most effective.
Formulation of a production strategy for a software. A good product strategy allows businesses to zero in on a specific target audience to draw the focus on a specific product along with consumer. A matrix approach a strategy for the effective organization and use of hard data on sales, market share, and profitability in an integrative approach to product line planning. Feb 19, 2016 this strategy is to be followed regardless of the width and depth of the product mix. This technical note describes a technique, which is based on wellknown procedures for defining and evaluating a business strategy, for formulating the production strategy of a production system. To display line numbers, enable show line numbers under the code editor. By working backward from your desired end state, you can set goals and initiatives to guide the implementation of your strategy and a timeline to achieve them. A distributor is the middleman between the manufacturer and retailer. A pricing strategy should be based on the perceived value that a customer has for a particular product. Article evaluates the innovative marketing strategies adopted by corporate.
Distribution strategy 3 definition distribution is one of the four aspects of marketing. Only recently did cocacola abandon its strategy of no line additions. Use the product line strategy overview template to help create the framework for your product line strategy. Strategic product planning is the process of defining how you will achieve your vision. Promotional strategies for services in rural market. The production plan for a product line captures the strategy for developing products from the core assets. Finding the right pricing strategy for your business is imperative, as it one of the key drivers to your success. But, they cannot create a successful strategy on their own.
Pdf analysis of pricing strategies for new product. Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials. Fullline strategy financial definition of fullline strategy. General electrics approach, a broad attack upon markets susceptible to electrical technology. The marketing mix, as part of the marketing strategy, is the set of controllable, tactical marketing tools that a company uses to produce a desired response from. Transformative retail planning and strategy for public agencies. Heres the battletested product strategy formula we recommend. This strategy is to be followed regardless of the width and depth of the product mix. You will be informed about various distribution strategies for your products and services. Under the fullline strategy, distribution becomes the key focus of competition, and delivery, terms, and captive versus other channels are companies most important points of. Pearson prentice hall, 2009 first of all it is necessary to situate the subject that will be dealt with throughout this. Product line pricing is oriented on separating goods into cost categories in order to create various quality and feature levels in the minds of consumers.
Communication strategy community feedback goals to make sense of chaotic, qualitative research data to find patterns and anomalies, and to look at the world in new ways to act as a procedural steppingstone between research and insight method transcribe all of the research data explode the data, blending utterances across participants. Guidelines for developing a product line production plan. Under conditions that include linear and constantelasticity demand. The remainder of this survey is structured as follows. It addressed the need to move air to enhance the environmenta hunter fan brand proposition, confirmed by research and accepted by home depot. An editorial on the subject of this article appears on pages 77273 of this issue. An important benefit of having a broad product line like that for little remedies is. Early in this century general motors committed itself to a full line of automobiles, a strategy that proved superior to fords. So, before embarking on a productline contraction strategy, the firm should compare each item with that of the competitors and assess its relative strength or weaknesses. We need a few core things for our product strategy to be successful.
The properties of product line prices olin business school. Optimization and handling of risks and cost within the service contracts 1 march, 2017 4. It includes speed, accuracy and care throughout the process. A product strategy is the ultimate vision of the product which also explains the direction of your product efforts. Based on the 15month data of chinese cellphone markets, the authors. The development of the term constituted a step forward in the classification of interrelated marketing efforts. Full line strategy is many product choices that may cover more market segments. To achieve the above described goals, the paper starts in chapter 2 with the theoretical background of this research. The new design was a proquality, portable contractor fan for use on construction sites in hot, humid conditions.
But you should have some sort of defined approach to developing a winning product strategy. Product strategy defines what your product should achieve and how that supports the organisation, and is brought to life through the product road map. The production strategy is a key driver of the design of the core assets. In large corporations, you want to narrow this to the business line or customer journey.
Planning an the value line guide to investment strategy. The figures prompted snackcos senior managers to develop a new productline strategy. Productline brand names may be used if a company has more than one product line. Pricing is one of the most important elements of the marketing mix and has the greatest effect on whether the strategy is successful. Benefits and savings this template will save you time and effort in creating a similar template from scratch. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. For example, if the company strategy is revenue growth, it might be unwise to undertake a large, long development effort that wont result in revenues for 24 months. The strategic decision making of ship owners in investing in maritime equipment manufacturers and service providers 7 june 2017.
A product line is a similar group of products that are sold by the company under the same brand. Companies sell multiple product lines under their various brands. Limited line two or less product types only target small segment of target market. Indepth and interactive exploration of how to develop powerful product line strategies coupled with detailed execution roadmaps. Define platform strategy first and productline strategy next. A distribution strategy is a plan to reach customers with goods and services. Goes to the last line that was edited in the editing window for a.
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