1st strategy on the assignment sheet 2) Product repositioning strategy

Reviewing the current position of the product and its marketing mix and seeking a new position for it that seems more appropriate

Objectives:
To increase the life of the product To correct an original positioning mistakes

Requirements:
1. If this strategy is directed towards existing customers, repositioning is sought through promotion of more varied uses of the product. 2. If the business unit wants to reach new users, this strategy requires that the product be presented with a different twist to the people who havent favorably inclined towards it. In doing so care should be taken that in the process of getting new customers current customers should not be disturbed. 3. If this strategy aims at presenting new users of the product it requires searching for latent uses of the product.

Expected results:
1. Among existing customers the result is increase in sales growth and profitability. 2. Among new users the result is enlargement of overall market thus putting the product on growth route and increase profitability. 3. New product uses the result is increase in sales, market share & profitability.

3) Product overlap strategy

Meaning of Cannibalizing in marketing: The loss of products market share by other product from the same company Definition of overlap strategy: Competing against ones owns brand through introduction of competing products, use of private labeling and selling to original equipment manufacturers.

Objectives:
1. To attract more customers to the product and thereby increase the overall market. 2. To work at full capacity and spread over it. 3. To sell to competitors to realize economies of scale and cost reduction

Requirements:
1. Each competing product must have its own marketing organization to compete in the market. 2. Private brands should not become profit drains. 3. Each brand should find its special niche in the market. 4. If it doesnt happen it will create confusion among customers. 5. In the long run one of the brands may be withdrawn.

Expected results:
1. Increase in market share. 2. Increase in growth.

4) Product scope strategy:

Definition: The product scope strategy deals with the perspectives of the product mix of the company. The product scope strategy is determined by taking into account the overall mission of the business unit. The company may adopt a single product strategy, a multiple product strategy or a system of product strategy.

Objectives:
1. Single product - To increase economies of scale by developing specialization. 2. Multiple products - To cover the risk of potential obsolescence of the single product by adding additional products. 3. System of products - To increase the dependence of customers on companys products as well as to prevent competitors from moving into the market.

Requirements:
1. Single product company must stay up to date on the product and even become the technology leader to avoid obsolescence. 2. Multiple products products must complement one another in a portfolio of products. 3. System of products company must have a close understanding of customer needs and uses of the product.

Expected results:
1. Increased growth, market share and profits in all three strategies. 2. With system of products strategy the company achieves monopolistic control and which may lead to some problems with the justice department.

5) Product Diversification strategy:

1. Concentric diversification (products introduced are related to existing ones in terms of marketing or technology) 2. Horizontal diversification (new products are unrelated to existing ones but are sold to the same customers) 3. Conglomerate diversification (products are entirely new) It deals with the product perspective of the company that is with the no of product lines and items in each line that the company may offer. It is related with business mission that is what sort of business it is going to do and what product mix to serve that mission. It involves a care about long term commitment. Strategy should be changed from time to time as per the shifts in the environment. This market strategy related to three variants. 1. Single product: a unit may have just one product in its line and try to lead on its success. advantages are concentration on single product leads to specialization and second, management operations will be more focused as concentration on a single product and third, in todays environment where growth leads most companies offer multiple products where single product company can stand with its specialization in competition. 2. Multiple products: here the strategy is related with two or more products. With this strategy a company having multiple products can manage with the products which are having poor performance. It is essential for companys overall growth. They can be related or unrelated. 3. System of products: it is related with the functions followed by the organization to fulfill the promise given to the customers. It inputs transportation, maintenance, repairs, consultancy services, etc.

6) Product design strategy:

A business unit may offer a standard or a customized product to each individual customer. This decision whether to go for standard or customized product can be simplified by asking three questions: 1. What are our capabilities? 2. To whom we are going to serve? 3. What business are we in? There is a danger of over identification of capabilities for a specific product. If capabilities are over identified, when the product will be in decline stage business unit will face difficulty in sales of that product. Standard products: it leads to two benefits: 1. Standard products are more amenable to the experienced effect than our customized products consequently they lead cost benefit. 2. Standard products can be merchandized nationally much more efficiently.

Customized products: 1. Customized products are sold on the basis of the quality of the finished product, that is, on the extent to which the product meets the customer specifications. Standard products with modifications: 1. The strategy of modifying standard products represents a compromise between the two strategies given above. With this strategy a customer may be given the option to specify a limited number of desired modifications to a standard product.

7) Product elimination strategy:

Marketers have believed for a long time that sick products should be eliminated. A business units various products represent a portfolio, with each product playing a unique role in making the business viable. If products role diminishes or if does not fit into the portfolio it loses its importance. When a product reaches the stage where continuous support is no longer justified because of the performance it is desirable to pull out that product. The reasons or characteristics of this kind of products are: 1. Low profitability 2. Stagnant or declining sales volume 3. Technology obsolescence 4. Entry into mature or decline phase 5. Poor fit with the business units strengths or it is not matching the business mission It includes three strategies: 1. Harvesting: it refers to getting the most from a product while it is in the last stage. 2. * Line simplification or Pruning strategy: it refers to a situation where a product line is trimmed to a manageable size by pruning the number and variety of products or services offered. This is called as defensive strategy that is adopted to keep falling line stable. It gives benefits like potential cost saving, reduced inventories, forceful concentration on marketing, and R&D. 3. Total line divestment: it is a situation of reverse acquisition. It may also be dimension of market strategy but to the extent that the decision is approached from the products perspective. Divestment helps to restore balance to business portfolio. If the company has too many high growth businesses it needs resources (funds) in early stage. If company has too many low growth businesses it often generates cash with minimum investment. Certain questions are important: 1. What is the earning pattern of the unit? 2. Does the business generate any cash? 3. Will selling the unit hurt the acquisition effort?

8) New product strategy:

1. Product improvement modification: a set of operations that introduces: a. Within the business a product new to its previous line of products b. On the market a product that provides a new type of satisfaction. Three alternatives are there: product improvement modification, product imitation, product innovation. Objectives: To meet new needs and to sustain competitive pressure on existing products Requirements: A new product strategy is difficult to implement if a new product development system does not exist within a company. 5 components of this system should be assessed : 1. Corporate aspirations towards new product 2. Organizational openness to creativity 3. Environmental favor towards creativity 4. Screening method of new ideas 5. Evaluation process Result: Increased market share and profitability

9) Value marketing strategy:

It concerns delivering promises made for product or service. These promises involve product quality, customer service and meeting time commitments. Objectives: Value marketing strategies are directed towards seeking total customer satisfaction. It means striving for excellence to meet customer expectation. Requirements: a. Examine customer value perspective b. Design programs to meet customer quality, service and time requirement c. Train employees and distributors to deliver on promises. Results: This strategy enhances customer satisfaction which leads to customer loyalty and hence higher market share. This strategy makes the firm less vulnerable to price wars permitting the firm to charge higher prices and earn higher profits.