anna_ria

na@yahoo.com

Presented by : Anna Riana Putriya

Week 1OWeek 1O

Developing and Developing and Pricing ProductsPricing Products

What Is a Product ? What Is a Product ? What Is a Product ? What Is a Product ?

Features : qualities, tangible and intangibleBenefits : the want-satisfying valueValue package : bundle of value-adding attributes

Features ?

Benefits ?

http://www.marthastewart.com/

http://www.dagadu.co.id

Goods & Goods & Goods & Goods &

ServicesServicesServicesServices

Capital ItemsCapital ItemsCapital ItemsCapital Items Shopping GoodsShopping GoodsShopping GoodsShopping Goods

Expense ItemsExpense ItemsExpense ItemsExpense Items Specialty GoodsSpecialty GoodsSpecialty GoodsSpecialty Goods

Convenience GoodsConvenience GoodsConvenience GoodsConvenience Goods

The Product Mix

Product mixProduct mixProduct mixProduct mix is a group of products that a firm makes available for sale (e.g. )

Product lineProduct lineProduct lineProduct line is a group of similar products intended for a similar group of buyers who will use them in similar ways

http://www.sahabatnestle.co.id

1.1.1.1. NutrisiNutrisiNutrisiNutrisi untukuntukuntukuntuk AnakAnakAnakAnak :::: Nestlé Dancow Instant, Nestlé Dancow Instant Coklat, Nestlé Dancow Full Cream, Nestlé Dancow 1+, Nestlé Dancow 3+, NestléDancow 6+, Nestlé MILO, Nestlé MILO 3in1, Nestlé Nutren Junior, Nestlé Fizz. 2.2.2.2. NutrisiNutrisiNutrisiNutrisi untukuntukuntukuntuk KesehatanKesehatanKesehatanKesehatan :::: Nestlé Omega, Nestlé Calcium Plus Non Fat , NestléNesvita, Nestlé Bear Brand, Nestlé Nutren Fibre, Nestlé Nutren Diabetik, NestléPeptamen, Nestlé Nutren 1.0, Nestlé Bonus. 3.3.3.3. MinumanMinumanMinumanMinuman :::: Nescafé Classic, Nescafé Ice, Nescafé Black Ice, Nescafé Gold Blend, Nescafé Gold Blend Decaf, Nescafé 3in1. 4.4.4.4. ProdukProdukProdukProduk KulinerKulinerKulinerKuliner :::: Nestlé Milkmaid, Maggi Sup, Maggi Bumbu Komplit, MaggiBumbu Kaldu, Maggi Saus Tiram, Maggi Seasoning, Maggi SiSedap. 5.5.5.5. PermenPermenPermenPermen dandandandan CoklatCoklatCoklatCoklat :::: FOX’S, FOX’S Oriental, FOX’S Sugar Free, KitKat, POLO, Smarties, Nestlé Classic, Nestlé Eclairs, Nestlé MILO Nugget. 6.6.6.6. MakananMakananMakananMakanan BayiBayiBayiBayi :::: Nestlé Bubur Susu dan Nestlé Bubur Bergizi. 7.7.7.7. SerealSerealSerealSereal SarapanSarapanSarapanSarapan :::: Nestlé Koko Krunch, Nestlé Honey Stars, Nestlé Honey Gold, Nestlé Milo Cereal, Nestlé Corn Flakes, Nestlé Trix. 8.8.8.8. BisnisBisnisBisnisBisnis Food Services :Food Services :Food Services :Food Services : Nestlé Coffee-mate, Nestlé Carnation Coffee-mate, Nestea, Nestlé Lemonade, Maggi Vegetarian Stock, Maggi Tom Yam Paste, Maggi Beef Stock, Maggi Sup, Maggi Seasoning, Maggi Saus Tiram, MaggiChefs Master Stock, Nescafé, MILO.

http://www.unilever.com/ourbrands/

Products Life Cycle (PLC)

The New Product Development Process

Product MortalityProduct MortalityProduct MortalityProduct Mortality

Speed to marketSpeed to marketSpeed to marketSpeed to market

The Seven-Step Development Process

Product IdeasProduct Ideas

ScreeningScreening

Concept TestingConcept Testing

Business Business

AnalysisAnalysis

PrototypePrototype

Testing & Testing &

MarketingMarketing

CommercializationCommercialization

Extending Product Life : An Alternative to New Products

• Product extension is an existing product that is

marketed globally

• Product adaptation is the product modified to

have greater appeal in foreign markets

• Reintroduction is the process of reviving for new

markets products that are obsolete in older ones

Branding Products

BrandingBrandingBrandingBranding is the process of using symbols to communicate the qualities of a product made by a particular producer

1. Brand equity 2. Brand awareness

Types of Brand Names

1.1.1.1. National brandNational brandNational brandNational brand2.2.2.2. Licensed brandLicensed brandLicensed brandLicensed brand3.3.3.3. Private brandPrivate brandPrivate brandPrivate brand or Private labelPrivate labelPrivate labelPrivate label

http://www.sosro.com/indonesia/teh_sosro_produk.htm

Packaging and Labeling Products

�PackagingPackagingPackagingPackaging

� LabelingLabelingLabelingLabeling

What Is Pricing ?

Process of determining what a company will receive in exchange for its products

How much your cost ?

Berapa harga minyak goreng ini menurut anda?

Spesifikasi produk :FILMA Minyak Goreng Refil2 Liter/kantongNon kolesterol

Pricing to Meet Business Objectives

1.1.1.1. ProfitProfitProfitProfit----Maximizing ObjectivesMaximizing ObjectivesMaximizing ObjectivesMaximizing Objectives

2.2.2.2. Market Share ObjectivesMarket Share ObjectivesMarket Share ObjectivesMarket Share Objectives

3.3.3.3. Other Pricing ObjectivesOther Pricing ObjectivesOther Pricing ObjectivesOther Pricing Objectives

1.1.1.1. CostCostCostCost----oriented pricingoriented pricingoriented pricingoriented pricing� Mark-up

2.2.2.2. Break Event AnalysisBreak Event AnalysisBreak Event AnalysisBreak Event Analysis� Variable cost� Fixed cost� Break event point (BEP)

Simple Price-setting tools

Existing ProductExisting ProductExisting ProductExisting Product

Pricing Strategies Pricing Strategies Pricing Strategies Pricing Strategies

New ProductNew ProductNew ProductNew Product

---- Price skimmingPrice skimmingPrice skimmingPrice skimming

---- Penetration pricingPenetration pricingPenetration pricingPenetration pricing

EEEE----BusinessBusinessBusinessBusiness

---- Dynamic pricingDynamic pricingDynamic pricingDynamic pricing

---- Fixed pricingFixed pricingFixed pricingFixed pricing

Pricing Tactics

1.1.1.1. Price liningPrice liningPrice liningPrice lining2.2.2.2. Psychological pricingPsychological pricingPsychological pricingPsychological pricing

�Odd-even pricing3.3.3.3. DiscountDiscountDiscountDiscount

Price Lining

Psychological Pricing

Discount

International Pricing

�Pricing products for other countries is complicated because additional factors are involved.

�One strategy calls for increasing foreign market share by pricing products below cost.