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