Jan 22, 2019 a smart product strategy can give you a competitive advantage and ensure that your business will become successful. The study also identified strong positive impact of consumers satisfaction on product line and brand loyality among consumers. This article develops a mathematical product line model that analyzes the marketing strategy implications of product interdependency. This whitepaper shares an indepth exploration of product line strategy and roadmapping. See how product lines need crossorganization roadmaps and strong business strategy linkage. Companies sell multiple product lines under their various brands. P r c setting a price for a product or service can be a chal. A framework for deconstructing and improving product lines strategies. Click download or read online button to get a strategic analysis of colgate s toothpaste product line book now. Manufacturing footprint strategy for product line expansion. When a product is dropped, the turnover of the company is considerably affected.
One brand concentrates on one price brand but the larger brands have the deep pockets to start multiple product lines which can target multiple customer segments, premium or otherwise. Once your product grows steadily, you should be able to carry out this exercise if it is helpful. Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. Lt2 uses a common architecture with common data, standards, processes, and components. Extending a product line involves adding new features to existing products, rather than developing completely new products. The increasing number of consumer goods and services offered in recent years suggests that product. A product line extension strategy is an approach to developing new products for your existing customers or for prospects who do not currently buy from you. The product line length within a company keeps changing. This technical note describes a technique, which is based on wellknown procedures for defining and evaluating a business strat. In order to evaluate the pros and cons of the same line and. Trim line strategies, one needs to examine the impact of each strategy on the expected sales or. Distribution includes both sales and delivery of everything that surrounds a product including customer service and customer experience. Link the product linestrategy with the product development plan and process.
Discuss different product mix and productline strategies. The production strategy for a software product line is the highlevel description of how the production system realizes both the core assets and products. The result was a completely new operations strategy and transformation roadmap, which streamlined the clients operations and product portfolio while also. How to launch your own beauty products start a cosmetic line. These results are used to inform a recommended scenario based strategy for product line expansion. A product strategy outlines a companys strategic vision for its product offerings by stating where the products are going, how they will get there and why they will succeed. 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 attributes. Product line extension strategy new product development. The products are similar and focus on the same market sector. Analysis strategies for software product lines 3 we refer the reader to a recent survey benavides et al. It outlines the steps needed to bring your vision to life, reach your target market and overcome any challenges that may arise. Product line strategy overview template clickstarters.
The 3 types of product line stretching and why companies take. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company. The strategy describes how the product line practices should be employed so that the product line organization will achieve its production goals. Thus, product line width is a depiction of the number of product lines which a company has. Linking product line strategies to competitive advantage. Product line modification strategy product line modifications strategy generally involve changes in products or their respositioning by the enhancement of the promotional focus. In the equation for profitability, p, the r stands for revenue, and c stands for costs. Miracle there is real need for increasingly rigorous generalizations and analytical nnodels of the behavior of the elements in any given marketing system. Thus, the company has witnessed consistent aboveaverage market growth in the year 2016 and is a strong global contender.
A pricing and licensing model that aligns with the revenue model and financial goals of the corporate strategy. This study addresses the outcome of utilizing a product line strategy consisting of 3 service lines during the past 5 years at the university of wisconsin hospital and clinics uwhc. Whenever a new product launches in the market, it is difficult for the company or brand to forecast where the product will reach or how it will shape up. Product line managers work with all relevant business stakeholders to create a strategic capability and investment roadmap for each product line. A larger assortment, it is often argued, keeps customers loyal and allows firms to charge higher prices. The product based strategy is a bruteforce approach. Generally, there are three price bands which exists in any market lower priced products, middle priced products and premium products. The production strategy is derived from the organizations business strategy and is intended to coordinate the actions of the core asset and product. 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.
Product decisions are central to shaping both the corporate and. A product line extension is when a company creates a new product in the same product line of an existing brand. Pdf linking product line strategies to competitive advantage. Formulation of a production strategy for a software. When evaluating price, it is important to know all costs, as they are a significant variable for business profitability. This 2001 report provides a practical introduction to product line requirements modeling. Selling your product if you follow the steps inside, you will be able to get past the idea stage and hold your finished product in your hand. It is also common for distribution strategy to vary by region as a firm may seek. A product line is a group of products that a company creates under a single brand. Pdf effects of brand portfolio and product line strategy on brand.
There are five common product line pricing strategies captive pricing, leader pricing, bait pricing, price lining, and price bundling. This report will tell you exactly how you can launch your own product line but we cant do it. We identify the conditions under which the manufacturer extends her product line or replaces the old product with a new product, and find that i a higher retailer. When selling a product line a firm has to consider the costs of communicating about the different products to the consumers. Read articles about product strategy from product management experts at productplan. Since its launch a few years ago, sales of the new product have grown twice as fast as sales of its traditional products, and now account for more than onethird of all units sold. Dealing with product line strategies is nevertheless one of the most important areas in.
Assign process ownership to an individual with technical marketing skills. Product mix and product line understanding product length. Software product lines are of strategic importance to the organizations that adopt them, affecting. The 3 types of product line stretching and why companies. Likely expansion scenarios and decision points consolidation, acquisition, capital expenditures, etc. Market research for a new product introduction pricing strategy tuesday 329 lecture thursday 331 class discussion on a. Sometimes experience may show that improving an existing product may be more profitable and.
A product strategy template is similar to a roadmap which has all destinations earmarked. We study the pricing and product line strategy of a riskaverse manufacturer who sells her products through a riskaverse retailer. The ultimate competitive strategy is to choose a specific buyer profile, geographical area, or product niche that allows you to achieve scale gains. Communication strategies and product line design citeseerx. A distribution strategy is a plan to reach customers with goods and services. Download as pptx, pdf, txt or read online from scribd. It addressed the need to move air to enhance the environmenta hunter fan brand proposition, confirmed by research and accepted by home depot. Download a strategic analysis of colgate s toothpaste product line or read online books in pdf, epub, tuebl, and mobi format. Determining whether to create, expand or retire product lines is part of the overall product line strategy.
Pepsi, for example, is a case of a company that has managed to restructure itself by adopting a strategic focus. Scribd is the worlds largest social reading and publishing site. It is also linked to the execution plan for further development. Goals, priorities and strategies outlines the goals, priorities, and strategies to meet the mission 3 4 overarching goals aligned with mission. Opinion on product line strategy and even competitive adv antage is a complex concept. An approach for identifying cannibalization within product line. What is product line strategies life and experiences. Define platform strategy first and product line strategy next. For example, apple offers computers, smart phones, tablets, mp3 players, smart watches, and online services. Product characteristics and marketing strategy gordon e. When selling a product line, a firm has to consider the costs of communicating about the different products to the consumers.
A strategic analysis of colgate s toothpaste product line. Pdf this paper investigates the effects of brand portfolio and product line strategy of cellphone brands market share in china. The changes in product often furnish superior product satisfaction, thereby generating high initial buying and greater, switching from existing brands. In fact, most products actually belong to a line sold through the same distribution channel and this is true for cars, dog foods, electronic equipment, or even raw materials or travel tour packages. Pdf product strategies of companies in the fmcg industry.
Overall the reader will have clear idea about importance of product line, brand identity and strategies to a company. Scalability while many competing ecommerce solutions are following conventional wisdom in their. A group of individual products that are closely related in some way. One strategy for improved efficiency in patient care while keeping quality high is utilization of a product line matrix.
Manage and improve product strategy like any other business process. These efforts yielded a new, highly successful product line tailored to younger americans and customers in india, china, and other emerging markets. The product strategy enables you to focus on a specific target market and feature set, instead of trying to be everything to everyone. They oversee the product line s full lifecycle, continually shifting funding and resources when the product line s strategy. This site is like a library, use search box in the widget to get ebook that you want. Jan 17, 2016 use pdf download to do whatever you like with pdf files on the web and regain control. Product line strategy in this case study sawtooth technologies conducted research into consumer preferences regarding mortgage product lines, modeled preferences for client and competitive products, and recommended an unexpected product strategy. Prior to the lt2 product line, live training systems were developed separately by a variety of different manufacturers. Product line strategy greatly improving strategies and. Web to pdf convert any web pages to highquality pdf files while retaining page layout, images, text and.
A mathematical modeling approach to product line decisions. Life cycle productline management objective the lcpm contract will establish a deliberate approach to life cycle management lcm proactively address all life cycle phases maintain or improve systems performance and operational readiness ensure relevancy improve system maintenance while reducing total ownership costs. Alternatively, because this is how a strategy works, the brand also has to decide. Consumer preferences and productline pricing strategies. A company has several strategies at its disposal with respect to the width, depth and consistency of its product mix. The strategy for an extension could be a different color or size, and it may have. The total assortment of products and services marketed by a firm. A product vision and value proposition that addresses target customer need and strongly positions the product in the market.
In the last ten years, the product management role has expanded its influence in technology companies. The model presented here provides a means of predicting, or justifying, a marketing mix for a product with given characteristics. Maybe their function or channel distribution are the same or similar. In most businesses, strategic decisions are implemented by changes in the components of the product line or shifts in emphasis within a product line. Link the product line strategy with the product development plan and process. As product managers it is your responsibility to drive the vision and the strategy for your products. It lays out the value of product line strategies, their roadmaps, and special techniques for driving success topics covered include.
Pricing and product line strategy in a supply chain with risk. A product line is a related set of products offered by a firm. It is the marketing strategy of offering several related products for sale. Most of these strategies involve a change in the product mix. Formulation of a production strategy for a software product line. A product line is a similar group of products that are sold by the company under the same brand. Nov 06, 2018 focus on a particular segment, product, or market. A capabilities strategy for successful product development. A product line strategy is a coherent approach that focuses work and decisions across related products. 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. Sep 06, 2011 manage and improve product strategy like any other business process. Use the product line strategy overview template to help create the framework for your product line strategy. Product line management is fundamental to the new it.
At such times, brands design the product strategy the product strategy determines all the steps which a brand will have to take to make the product a success. The production strategy is critical to the success of that product line. Define platform strategy first and productline strategy next. Elements of an effective product strategy roman pichler. Learn the very essence of a good product line strategy. The marketing mix established for one product may affect the sales of another product. This may affect the product line design in general, and which products or services are offered in particular. Key words research design, data collection techniques, strategies, product line, brand identity etc. A matrix approach article pdf available in journal of marketing january 1976 with 390 reads. For decades, a common strategy of firms has been to offer multiple brands andor brand variants which compete within the same product category.
Demand modeling in product line trimming teckhua ho. The strategic role of product management how a marketdriven focus leads companies to build products people want to buy 5 product management is a wellunderstood role in virtually every industry except technology. But to actually get to this point, you must take action. The product portfolio strategy must be matched to the right distribution, pricing, and promotion strategy. Product line analysis is part of product line development. Lawrys defense distribution strategy tuesday 45 lecture tuesday 47 class discussion on. Product strategy tuesday 322 lecture thursday 324 class discussion on truearth healthy foods. 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 features and investments in innovation that will address the specific problems of your target customers. Benefits and savings this template will save you time and effort in creating a similar template from scratch. It is common for firms to adopt multiple distribution channels to reach customers in convenient ways. A product line is a group of related products under a single brand sold by the same company. Conceptually, the three strategies of product line verication have different strengths and weaknesses.
An innovation and product management consultant to some of the worlds biggest and best companies, oconnor lays out the essence of great product line strategies. Stretching the product line the marketing study guide. He shows how to deconstruct a product line strategy into a system of parts, and to rebuild the strategy through brilliant pivots and strategy. Perhaps their physical attributes, prices, quality, or type of customers are the same. When your stakeholders ask for your product strategy this can be a daunting task where you can feel overwhelmed by the sheer number of potential ways for your product to develop.
Each of these would be considered a separate product line and under each product line they could offer a broad range of different products designed for different needs. United states army live training transformation lt2. Indepth and interactive exploration of how to develop powerful product line strategies coupled with detailed execution roadmaps. The remainder of this survey is structured as follows. Product strategies, which set the stage for selecting strategies for each of the remaining components of the marketing program, forms a leading edge of a positioning strategy. 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. Download fulltext pdf planning product line strategy. This type of market stretch is observed when a brand is present in the middle or the upper premium markets but does not want to lose the lower level markets which might have a high level of consumption or which might pose a threat to the middle and upper level of market. This dropping of a product or the slimming of the product line is known as product line contraction. The secret to a focused product strategy most aspects of our lives are about achieving specific goals. Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only.
The new design was a proquality, portable contractor fan for use on construction sites in hot, humid conditions. A product strategy is the ultimate vision of the product which also explains the direction of your product efforts. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. Marketing strategies for mature industrial products.
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