product
DESCRIPTION
our group's presentationTRANSCRIPT
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Product
decisions
Nguyen Thuong Huyen
Le lien Huong
Nguyen Thu Lan
Nguyen Van Quyen
Principles of Marketing
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Outline
I. Product Overview
II. Individual Product Decisions
III. Product Line Decisions
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I. Product Overview
1. Definition
2. Classifications
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1. Definition
Anything that can be offered to a market to satisfy a want or need.
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
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2. Classifications
Product
Consumer products(Bought by final consumersfor personal consumption.)
Industrial products(Bought by individuals & organizations
for further processing or for use
in conducting a business.)
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II. Individual product decisions
Prod. attributes
Branding
Packaging
Labeling
Support services
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Case: The Electrolux Group
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Electrolux Group Overview
- 500 companies- The world's largest manufacturer of appliances:Household: refrigerators, washing
machines, vacuum cleaners.Commercial: refrigeration and laundry
equipment.Outdoor: chain saws, lawn mowers, and
trimmers.
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Electrolux History Timeline
1901
1912
1920
1944
1962
1968
1978
Outdoor lamps
Vacuum cleaners
Refrigerators
Washing machines
Cookers
Lawn mowers
Chain saws
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- Electrolux- BEAM- Eureka- Frigidaire- Gibson- Kelvinator- Simpson- Tornado- Volta- Voss Electrolux- Westinghouse- Zanussi- etc.
Consumer brands Professional brands
- Electrolux Professional- Dito-electrolux- Molteni- Zanussi Professional
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Step 1: Product Attributes
• Quality: - Durability- Reliability- Ease of operation- Reparability
• Features: - Washing and drying - Talking
- Using LCD large display
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• Designs:
+ Style: Front door (majority)
+ Washing technology: Magic ball
Silver ion
Jetsystem
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LCD Display
Front door
Label
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Step 2: Branding
To brand or not to brand
Brand name selection
Brand sponsor
Brand strategy
Brand repositioning
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Brand name selection
Electrolux = Electronic + Luxurious
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Brand sponsor
Brand sponsorBrand sponsor
Manufacturer’s brand
Manufacturer’s brand
Private brandPrivate brand Licensed brandLicensed brand Co-brandingCo-branding
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Manufacturer’s brand
Manufacturer’s brand
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Brand strategy
Line extension
Brand extension
Multibrands New brands
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Line extension
Adding items (with new colors, flavors, etc.) to a given product category under a
successful brand name.
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EWF 1073 EWF 1073A
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Brand extension
The use of a successful brand name to launch new or modified products in a new
category.
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Tumble dryer
Electrolux T4300S Stacked Tumble Dryer
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Vacuum cleaner
Electrolux Z8220
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Air cleaner
Electrolux Z8020
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Step 3: Packaging
Function: To perform sale tasks
To stay competitive
To offer product protection
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Step 4: Labeling
To identifyTo identify To describeTo describe To promoteTo promote To gradeTo grade
√ √ X X
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Logo & Brand name
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Step 5: Product support service
Offline customer-care centerOnline customer-care centerFree catalogue downloadFree Instruction download
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III. Product line decisions
1. Product line length
2. Product line modernization
3. Product line pruning
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1. Product line length1.1. Stretching downward
PresentProd.
New
Prod.
Low High
Quality
High
Low
Price
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Eg: Mercedes Benz + Swiss watch manufacturer Swatch = Smart (1993).
Smart???
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1.2. Stretching upward
NewProd.
Present
Prod.
Low High
Quality
High
Low
Price
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Eg: Toyota introduced Lexus
- Launched: 1989- Founder: Toyota chairman Eiji Toyoda
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1.3. Stretching both ways
PresentProd.
Low High
Quality
High
Low
Price
New
Prod.
NewProd.
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Eg: NOKIA
NOKIA 1110i: 3rd quarter 2006
NOKIA E90: 2nd quarter 2007
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NOKIA 1110i
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NOKIA E90
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1.4. Line filling
New products are added to a company’s present line.
Eg: The Unza Group
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Unza Shower Foam
Enchanteur 1980s
Eversoft 1980s
Gervenne 1993
Romano 2000
Source: www.unza.com
Romano
Eversoft
Enchanteur
Gervenne
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2. Product line modernization
Modernizing the product to satisfy customers and compete well with competitors.
Eg: Honda: Future NEO 2005
Future NEO 2007
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Future NEO 2005 Future NEO 2007
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3. Pruning
Discontinuation of a product or a line in response to declining demand or insufficient financial returns.
Eg: Yamaha: Mio 2004
(Mio) Classico 2006
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Mio 2004
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Classico 2006
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Conclusion
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Q & A