Improve quality add channels new segments maturity

• Improve
Quality
• Add Channels
• New Segments
Maturity
• Market
Modification
• Product
Modification
• Marketing Mix
Modification
Decline
• Maintain
• Harvest
• Drop
59

Sales and Profit Life Cycles
60

Common Product Life-Cycle Patterns
61

Strategies over the Life Cycle
• Introduction
– Invest Resources
– Skim by pricing high
• Growth
– Hold and build a market of
loyal customers and
distribution
– Drop prices
– Look for new opportunities
• Maturity
– Maintain
– Defend
– Innovate
• Decline
– Milk
– Rejuvenate
62

Renewing the PLC
63

Relationship between Portfolio Matrix & PLC
64

The Product Portfolio
• Product Line
– A group of closely related product items
• Product Mix or Portfolio
– The total group of products offered by the firm
• Strategic Decisions
– Variety – number of product lines offered
– Assortment – depth of each product line
65

P&G’s Portfolio of House and Home Products
66

Benefits of Offering a Large Product Portfolio
Large
Product
Portfolio
Economies of
Scale
Package
Uniformity
Standardization
Sales and
Distribution
Efficiency
Equivalent
Quality Beliefs
67

Product Line Strategy
• Covers all primary targeted market segments
• Each product offering should be sufficiently focused
– Clarity of each product line’s objectives
– Customers ability to distinguish
• Time-phased scheduling / sequencing
• all products cannot be released simultaneously
• priorization
• Similar products / product lines are coordinated
• To avoid rework and confusion in marketing and among customers
68

Internet and Product Management
Pre-Internet (simple, predictable)
• Hire MBAs to write a business plan
• Raise money
• Build (servers, storage, etc.)
• Costs ~ $$$
• Only large companies could innovate
Post-Internet
• Costs ~ 0
• Build (using cloud infrastructure)
• Deploy
• Develop business plan
• Innovation pushed to “dorm rooms”
69
( Ito 2014 )

Introduction
Brand Equity Concept
Building Effective Brands
Brand Management
70

What is a Brand?
• A “name, term, sign, symbol, or design, or a combination of them, intended to identify
the goods and services of one seller or group of sellers and to differentiate them from those
of competition.”
- American Marketing Association (AMA)
• These different components of a brand that identify and differentiate it are brand
elements .
71

What is a Brand?
• Many practicing managers refer to a brand as more than that —
as something that has actually created a certain amount of
awareness, reputation, prominence, and so on in the
marketplace.
• We can make a distinction between the AMA definition of a
“brand” with a small b and the industry’s concept of a “Brand”
with a capital b .
72

Brands vs. Products
• A product is anything we can offer to a market for attention, acquisition, use, or
consumption that might satisfy a need or want.