Product marketing continued Product range management New Product Development
Creating a product range Line extensions same brand name, same product category, new features ‘lite’ ‘gti’ Levi’s sta-prest, twisted targeting different segments/needs Multi-brands different brand names, same category eg VW/Audi, Thomson/Portland avoids down/up-market associations different marketing channels
Brand extensions New Brands same brand name, new product categories eg Virgin , Ministry of Sound CDs exploiting ‘brand values’ New Brands new category with no relevant associations diversification
Case Study Parent company Line extensions Brand extension http://www.eurocamp.co.uk/pages/help_advice/other_options.cfm Parent company Line extensions Brand extension Multi-branding New brands
Product Portfolio management Used to allocate marketing resources analyse products by market share market growth
The Boston matrix Market share Low High Stars Problem children Market growth Dogs Cash cows Low
The Boston matrix Market share Low High Problem children Stars Market growth Growth Polish Introduction Feed Dogs Cash cows Maturity Milk Decline Shoot Low
Where do new ideas come from? Pressures to cut costs Changing customer needs New technologies Creative response Adapting concepts from other sectors/countries Copying the competition ‘me too’ products eg from a PEST analysis
The New Product Development Process Idea generation Screening Concept testing Business Analysis Development Market testing Commercialisation
Idea generation Take a fresh look at Customer Benefits - what do they really want? Product Attributes - why do they choose? Delivery systems - can we meet the needs in a better way (technology, service, image)? There are no new leisure products only new ways of delivering the same benefits
Idea screening Need? Market? Capability? Compatibility Profitability?