Introducing marketing textbook equity open education. Product line state of the practice report sei digital library. In this case, starbuck looks for a set of prices that maximizes its profits on the total product mix. Business modeling is a fundamental practice that provides input into a number of decisions that are made by organizations using or considering using the product line strategy. A product line is a related set of products offered by a firm. A product strategy is the ultimate vision of the product which also explains the direction of your product efforts. Identify appropriate marketing strategies for products in different life cycle stages. Product line optimization, choice modeling, decisionsimulator summary a global manufacturer of specialty personalcare products needed to develop a response to major changes made to the category leaders product line. Most of these strategies involve a change in the product mix. Product development strategy with examples 2021 guide. Companies with documented history in software product line. Product development strategy is the means to mitigate risk in developing a product concept, to improve the fit between products and markets, to overhaul a product line, and to increase the sales of existing products by enhancing it. Product mix and product lines for product strategy submitted to professor sameer mathur 2. Starbuck uses the product line pricing for every product.
This report will tell you exactly how you can launch your own product line but we cant do it. Software product lines are of strategic importance to the organizations that adopt them, affecting. In most businesses, strategic decisions are implemented by changes in the components of the product line or shifts in emphasis within a product line. The production strategy is derived from the organizations business strategy and is intended to coordinate the actions of the core asset and. Section 3 introduces two concepts that can assist with the product strategy development process.
Since practically no marketer operates as a monopoly, most of the strategy issues considered by a. Learn the very essence of a good product line strategy. Product platform strategy sits between the product vision and product line strategy which guides individual product development. Its going to be a grueling uphill battle moving your. The production strategy for a software product line is the highlevel description of how the production system realizes both the core assets and products. The production strategy is derived from the organizations business strategy and is intended to coordinate the actions of the core asset and product. Poor productmarket fit is one of the most common reasons for. Proactive and reactive product line strategies management science 522, pp. The strategy describes how the product line practices should be employed so that the product line organization will achieve its production goals. Software product line practice is an effective strategy for developing families of softwareintensive products. Product line optimization using a decisionsimulator. Improve our average customer rating by one star on the major.
Feb 19, 2016 a company has several strategies at its disposal with respect to the width, depth and consistency of its product mix. Jan 11, 2005 the increasing number of consumer goods and services offered in recent years suggests that product. Pdf purposethis study examines the relationships between product line strategies and competitive advantage in nigerian foods and. A firms strategy or action in product line or other. You want to ensure that everyone in your organization understands where the product is. Fit has to do with the ways a companys activities interact and reinforce one another. In mature markets the profitability is often stable but the market potential is less as most of the players have already taken market share based on the segment they are. This product strategy template is designed to guide you through the process of preparing a new product strategy, either for an existing product or a new product line the process seeks to guide the team through the necessary steps to pool knowledge and expertise in order to produce the most effective strategy. Software product lines challenge traditional analysis techniques, such. A product line is a group of products that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels, or fall within given price range. It also addresses indirectly the fundamental skills that are needed to make this possible. In general, every action will likely have anticipatory and reactive components of which the anticipatory component is important to study venkataraman et al.
This may affect the product line design in general, and which products or services are offered in particular. A product platform is not what is sold to customers. To get started on your product strategy, download your free product strategy templates. A product strategy template is similar to a roadmap which has all destinations earmarked. Formulation of a production strategy for a software product line. A product strategy is a set of dynamic guidelines on how a business must plan the various aspects of a product line. A software product line is a family of software products that share a common set of features. The aim of the thesis is to analyze product line strategies and brand image adopted by dabur. Market potential of product line strategy at porsche. Marketing strategy competition among beer companies before. The author has seen the importance of product line. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand.
It is imperative for sales and marketing to articulate. Strategy outline for apples ipod product line may 2014 potential product redesign to meet changing consumer behavior make ipod shuffle, nano and classic compatible with spotify, pandora, etc given the fact that there seems to be a shift in consumer behavior from downloading and permanently storing music to streaming music, it might make. From the initial vision to implementation of your strategies, its often a fluid and dynamic process. Product line analysis it is analyzing relationships between product items and their attributes eg. Download product strategy example pdf download product strategy sample powerpoint, pptx. These product mix dimensions helps business to expand. It is the foundation of product strategy because in high tech companies, many products are. Setting product strategy product business business. Increase freetrial downloads by 50% in the next 6 months. An empirical analysis of firms product line decisions william p.
Capacity investment and product line decisions of a. Quick response systems qrs and global positioning system gps. Purposethis study examines the relationships between product line strategies and competitive advantage in nigerian foods and. Section 2 discusses the problems and solutions around product development. From the initial vision to implementation of your strategies. Download your free product strategy templates powerpoint. Setting product strategy free download as powerpoint presentation. A product strategy framework covers every component thats crucial for a product s success. The product line generally refers to a type of product within an organization.
Discuss different productmix and productline strategies. This section lists five strategies to address challenges to successful. 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. Oct 28, 2019 a product line is a similar group of products that are sold by the company under the same brand.
Product mix and product line product line the product line is a subset of the product mix. For example, new product introductions in supermarkets. The strategic role of product management how a marketdriven focus leads companies to build products people want to buy 2 about pragmatic marketing pragmatic marketings training is based on the fundamental belief that a companys products need to be grounded in a strategy that is driven by the market. It includes speed, accuracy and care throughout the process. See how product lines need crossorganization roadmaps and strong business strategy linkage. According to aaker and keller 1990, based on their focus, there are two varieties of horizontal brand extensions viz line extensions and franchise extensions.
This technical note describes a technique, which is based on wellknown procedures for defining and evaluating a business strat. The product based strategy is a bruteforce approach. Marketing strategy competition among beer companies. Determining whether to create, expand or retire product lines is part of the overall product line strategy. A framework for software product line practice, version 5. Before you get too far down the path of creating a product strategy and building a product roadmap based on your gut, your executive teams thoughts, or even market research, go out and talkand more important still, listento what your users tell you they want. As a result, these product managers will stress creating, developing, and managing one product at a time, often without a coherent product line strategy. The structured intuitive model for product line economics. The example formulation of a production strategy pdf format free download is a simple and comprehensive sample product strategy template. Prior to the lt2 product line, live training systems were developed separately by a variety of different manufacturers. When selling a product line, a firm has to consider the costs of communicating about the different products to the consumers. These product roadmap templates make it easy to visualize the direction of your product and show progress against your product strategy to internal teams and external stakeholders. It is also linked to the execution plan for further development.
Pdf strategy outline for apples ipod product line strategy. Download a product strategy template example for free. Product mix a product mix is the set of all products and items that are offered for sale. Download a product strategy template example for free get this free example at pdf, doc or pptx formats. The strategy is simple, gain as much penetration into the functional beverages market as possible, thus creating diffusion and adoption amongst consumers, than raise prices as the market matures, in line with other redbull products. Product line management is an important tool of competitive strategy used by firms in diverse industries.
A matrix approach find, read and cite all the research you need on researchgate. A classification and survey of analysis strategies for software. If you do not have quicktime installed on your computer, you can download it for free from apple by clicking. Pdf on jan 1, 1976, jerry wind published planning product line strategy. United states army live training transformation lt2 product. Sometimes experience may show that improving an existing product may be more profitable and. For example in nestle, there are milk based products like milkmaid, food products like maggi, chocolate products like kitkat and other such product lines. 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.
How to launch your own beauty products start a cosmetic. It aims to help a business on what to do to maximize the potential of a product vision and benefit from it. There are five common product line pricing strategies captive pricing, leader pricing, bait pricing, price lining, and price bundling. It can be a complex and abstract set of ideas and sometimes difficult to express and communicate. The effect of new models on the porsche brand and the 911 products various on factors such as maturity of the market. For example, apple offers computers, smart phones, tablets, mp3 players, smart watches, and online services. Conceptually, the three strategies of product line verication have different strengths and weaknesses. As the healthcare industry evolves, implementation of product line management is emerging as one strategy to increase efficiency, effectiveness, and profitability. United states army live training transformation lt2. Dec 11, 2018 whitepaper good product line strategy matters december 11, 2018 9. Analyzing market conditions, building strategic product roadmaps, and defining features are just a few examples of the important work that a product manager does. Formulation of a production strategy for a software. But to actually get to this point, you must take action. Product line managers need to know the sales and profits of each item in their line in order to.
Product line analysis is part of product line development. Products and servicesthe primary marketing mix element that satisfied customer wants and needs. 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. Products working in unison product lines boost performance product lines are systems share this. The success of applying marketing mix 4ps in vietnamese. Download sample resume templates in pdf, word formats. Line stretching strategies all companies that set the goal of evolution proceed in product line expansion beyond the current product range. A larger assortment, it is often argued, keeps customers loyal and allows firms to charge higher prices.
Strategy this paper will outline a joint architectural and product line strategy for integrating live training instrumentation systems across the combined marine corps and army groundtraining continuum and achieve the endstate range instrumentation training use case within two years. Presenting your roadmap is a crucial part of your job as a product manager. Thus, over times, companies introduce new products that add in the existing product line under the same brand name such as new flavors, additional ingredients, sizes, colors and packages. Strategic issues the specialty personalcare product category is dominated by one brand. Product mix pricing strategy product line and captive. Management by product line has been used successfully in the manufacturing industry for decades. Lt2 uses a common architecture with common data, standards, processes, and components. The leader with low capacity cost may introduce a product that it was holding back when the entrant has to bear the highcapacity cost and cannibalization threat is relatively small. There is a broad variety of implementation mechanisms used in product line engineering. Develop a highlevel product vision before mapping out your product strategy. Stretching the product line the marketing study guide. Linking product line strategies to competitive advantage.
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