Strategic

Product
Planning

Product

A
product
is
basis
for
satisfying
the
customer need, want or demand
Strategic product decisions become important once we
understand customer need

Product Competitive Advantage

Theoretically mean "distinctive competence" or "provision of
superior customer value".
This positional related performance superiority could be due to
relative superiority in the skills, resources and knowledge that a
business unit has, how it deploys them and the timing of such
deployment.

Value Added Services:

Yes to Added Service, but Create New
Product
Product Innovation:
Changing Business Definition

FRAMEWORK FOR DEVELOPING

PRODUCT STRATEGIES

FRAMEWORK FOR DEVELOPING

PRODUCT STRATEGIES
The Expanded Ansoff Matrix
Products
EXISTING
Markets

NEW

Existing

New

Market Penetration Strategy

Product Elimination Strategy

Product Design Strategy

New Product Strategy

Product Overlap Strategy

Product Scope Strategy

STRATEGIES FOR EXISTING PRODUCTS

Competence is important enough to be

incorporated into product strategy because
the internal analysis for any SBU brings
this dimension as basis for core
competence.
Core competence has to deliver superior
customer-felt value.
Simple Ansoff Matrix
for existing
products requires modification to include
dimensions of competence, as can be seen
in the table.

Directions For Strategy Options For Existing Products

Competence
EXISTING
Markets

NEW

Existing

- Market penetration Strategy

- Market Consolidation Strategy
(sales promotion / brand switching /
targeting new customers)

- Product Withdrawal Strategy

- Product Rejuvenation Strategy
(new brands / logo / packaging / new sizes /
repositioning)

New

- Market Development Strategy

(segments / geographic / distribution
expansion)

- Emerging New Opportunities

(start afresh)

EXISTING MARKET-EXISTING COMPETENCE

There might be a possibility to hold/protect current

market position.
The existing competencies can help strategic marketers
to penetrate into existing market by sustaining the
product offer.
It can be achieved by holding the quality, features, size,
etc., of the current product through appropriate sales
promotion techniques, encouraging brand switching or
advertisement appeals directed for non-users.
A Bank customer can be persuaded to use Internet for
their banking needs.

NEW MARKET-EXISTING COMPETENCE

Strategic marketers might find their existing products

useful in new markets.
Initially, computers to industrial markets and then
starting focusing on home segment as well
Product strategies can be developed to through market
development by expanding the served market
geographically.

EXISTING MARKET NEW COMPETENCE

The marketer must consolidate/rejuvenate the existing

market while stretching the existing product with the
new competencies
The new competencies might be to bring out new
package, package sizes, new logo, brand positioning,
brand extension etc.

EXISTING MARKET NEW COMPETENCE

Five Steps of Rejuvenation:

Determine the reasons for the product's abandonment or

decline supply chain problem or limited customerdelivered value.
Examine whether a rejuvenation strategy can be appropriate
in the macro economic environment.
Examine what the product name communicates to the
customers.
Explore whether there is a potential segment to be reached
(including assessment of competitors' strengths and
weaknesses).
Examine the probable value-creation for customers.

NEW MARKET-NEW COMPETENCE

When the business is preparing itself for market

development by covering the un-served market,
expanded geographic or distribution channels, the
business needs to reconsider the role of its existing
competencies in the new market conditions.
SBU must have new competence to respond to new
market needs
The advent of Internet and e-business has opened-up
new opportunities for existing products
Here, the marketer needs to develop new competence less responding time (skills), quicker Internet access
instruments in place, entered data and computerised
transactions (resources)