Specifically, it should seek an answer to questions such as the following. To display line numbers, enable show line numbers under the code editor. Indepth and interactive exploration of how to develop powerful product line strategies coupled with detailed execution roadmaps. 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.
Productline extensions and pricing strategies of brand. Product line strategy greatly improving strategies and. In large corporations, you want to narrow this to the business line or customer journey. 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. You will learn about pricing strategy for cultural products and services.
An important benefit of having a broad product line like that for little remedies is it enables both consumers and. Heres the battletested product strategy formula we recommend. A product strategy is the ultimate vision of the product which also explains the direction of your product efforts. The vision is your high level, ultimate view of where the company or business line is going. The strategy helped take equity bank to its millionth customer. Marketing 3 managing the product flashcards quizlet.
After a product is manufactured it is typically shipped and usually sold to a distributor. Marketing mix strategy, bottom of the pyramid bop, brazilian market. Pearson prentice hall, 2009 first of all it is necessary to situate the subject that will be dealt with throughout this. It involves an expansion of the product line as well as the promotional strategies. 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. Jul 27, 2016 but, they cannot create a successful strategy on their own. Pdf effects of brand portfolio and product line strategy. The new design was a proquality, portable contractor fan for use on construction sites in hot, humid conditions. Productline extensions and pricing strategies of brandname. Define platform strategy first and productline strategy next. 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. Product line pricing requires a different look at setting price. Although more is becoming known about the relationships among elements of the marketing mix. This paper investigates the effects of brand portfolio and product line strategy of cellphone brands market share in china.
Goes to the last line that was edited in the editing window for a. Planning an the value line guide to investment strategy. General electrics approach, a broad attack upon markets susceptible to electrical technology. We study multiproduct cournot suppliers who offer menus of differentiated qualities. This is your homepage, which is what most visitors will see when they come to your site for the first time. The strategy describes how the product line practices should be employed so that the product line organization will achieve its production goals. The remainder of this survey is structured as follows. The development of the term constituted a step forward in the classification of interrelated marketing efforts. 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 distribution strategy is a plan to reach customers with goods and services. But you should have some sort of defined approach to developing a winning product strategy. A pricing strategy should be based on the perceived value that a customer has for a particular product.
What is a product line pricing strategy a strategically priced product line can result in cost savings, increased company growth and longer product life cycles, according to louise e. Article evaluates the innovative marketing strategies adopted by corporate. Feb 19, 2016 this strategy is to be followed regardless of the width and depth of the product mix. 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. The distributor then sells the product to retailers or customers distribution strategy 4.
Any macrolevel strategy for these markets should focus on availability, accessibility and affordability. An important benefit of having a broad product line like that for little remedies is. Corporate brand names are used when the companys name is powerful and can be used to help the product line. Only recently did cocacola abandon its strategy of no line additions. The broad categories that you should maintain in some. Need to have a quick overview worksheet to help visualize your 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. It addressed the need to move air to enhance the environmenta hunter fan brand proposition, confirmed by research and accepted by home depot. Product line extension strategy new product development. The pdf format options include panes for options specific to cell, column, and. Sep 06, 2011 manage and improve product strategy like any other business process. Development of a strategic plan for the existing product line is the most critical element of a companys marketing planning activity. Focused attention needs to be paid to market research that goes on to reduce the uncertainly in. A product strategy template is similar to a roadmap which has all destinations earmarked.
Benefits and savings this template will save you time and effort in creating a similar template from scratch. This strategy is typically adopted where you wish to market to different customer types or wish to anchor your products. Link the product linestrategy with the product development plan and process. That said, you should not compress things too much.
Distribution includes both sales and delivery of everything that surrounds a product including customer service and customer experience. Companies utilise the product strategy in strategic planning and. Marketing mix strategies towards the bottom of the. This paper deals with the problem of formulating a longrun competitive marketing strategy for a new product.
A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. Quick response systems qrs and global positioning system gps. Guidelines for developing a product line production plan. 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. It includes speed, accuracy and care throughout the process. 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. What is product line strategies life and experiences.
The figures prompted snackcos senior managers to develop a new productline strategy. Finding the right pricing strategy for your business is imperative, as it one of the key drivers to your success. The goal of product line pricing is to maximize profits. Determining whether to create, expand or retire product lines is part of the overall product line strategy. Early in this century general motors committed itself to a full line of automobiles, a strategy that proved superior to fords. Product strategy needs to fit within the context of the company strategy. Use the product line strategy overview template to help create the framework for your product line strategy. An editorial on the subject of this article appears on pages 77273 of this issue.
Based on the 15month data of chinese cellphone markets, the authors. Product line pricing, and aims to evaluate the situations where it is most effective. Value line guide planning an investment strategy the value line guide to planning an investment strategy. Optimization and handling of risks and cost within the service contracts 1 march, 2017 4.
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. 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. Product characteristics and marketing strategy 19 the term marketing mix suggests a relationship between interacting, elements. 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. This strategy is to be followed regardless of the width and depth of the product mix. Pdf analysis of pricing strategies for new product introduction.
We need a few core things for our product strategy to be successful. Analysis strategies for software product lines 3 we refer the reader to a recent survey benavides et al. 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. Product strategy defines what your product should achieve and how that supports the organisation, and is brought to life through the product road map. Pdf analysis of pricing strategies for new product. In brazil, a fullline strategy is typical in tires, soft drinks, ice cream, and other massproduced products subject to price controls and oligopolistic competition. A product line is a group of related products under a single brand sold by the same company. 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. To achieve the above described goals, the paper starts in chapter 2 with the theoretical background of this research. A product line is a similar group of products that are sold by the company under the same brand. Product x is the means by which we and our clients will measure the impact of adopting agile methods. Product x is the first in a line of products that will help us transition to a productfocused company. After the introduction of yoplait lite, the price of yoplait became less product line extensions and pricing strategies of brandname drugs facing patent expiration. An introduction is given to strategic management and its.
There are five common product line pricing strategies captive pricing, leader pricing, bait pricing, price lining, and price bundling. Once wedded to a product line, the customer can then focus on variables other than price, such as color and size. Planning for retail in an online world march 6, 2018. When a product is dropped, the turnover of the company is considerably affected. Distribution strategy 3 definition distribution is one of the four aspects of marketing. Little remedies product line strategy page 1 of 1 the product line for the little remedies products from vetco, inc. Productline extensions and pricing strategies of brandname drugs facing patent expiration song hee hong, phd. Full line strategy is many product choices that may cover more market segments. 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. 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.
The coreasset developers create the strategy while the core assets are being created. It is common for firms to adopt multiple distribution channels to reach customers in convenient ways. Every product strategy is the foundation of a product life cycle. Limited line two or less product types only target small segment of target market. A distributor is the middleman between the manufacturer and retailer. 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 pricing strategy of brandname drugs going off patent is equally controversial. 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. The properties of product line prices olin business school. 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. But, they cannot create a successful strategy on their own. 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.
Companies sell multiple product lines under their various brands. You will be informed about various distribution strategies for your products and services. Strategic product planning is the process of defining how you will achieve your vision. The production strategy is a key driver of the design of the core assets. 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. Assign process ownership to an individual with technical marketing skills. Manage and improve product strategy like any other business process. Transformative retail planning and strategy for public agencies. 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. 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. Formulation of a production strategy for a software. Developing a price point for each line will differentiate between the product lines, giving the customer a clear choice.
Productline brand names may be used if a company has more than one product line. The production plan for a product line captures the strategy for developing products from the core assets. 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. Fullline strategy financial definition of fullline strategy. 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. Product line extension is another form of diversification that aim at reaching those market segments which the firm has not yet penetrated. The canvas explicitly plots your products factors vs competitors to visualise why your product is different. Promotional strategies for services in rural market. It is also linked to the execution plan for further development. Under conditions that include linear and constantelasticity demand.