1. CHAPTER 9 PRODUCT STRATEGY

2. Developing New Products Product Life Cycle Branding Strategy

3. DEVELOPING NEW PRODUCTS New Product Process New Product Failures

4. NEW PRODUCT PROCESS Creative Ideas Time Creative Business Ideas Development and Testing Introduce New Product

5. SEARCH FOR CREATIVE IDEAS Create cross-functional committees Collect stakeholder ideas Listen to customers

6. TYPES OF CREATIVE IDEAS Never been done before Improved product technology Creative twist of an existing idea

7. CREATIVE IDEAS EXAMPLES Charles Schwab Ralph Lauren Polo Shirts Houston National Bank Blue Chip Forecast

8. Ralph Lauren Polo Shirt for Dogs

9. CREATIVE BUSINESS IDEAS Company Fit Financial Analysis - Feasibility study - Business Plan

10. COMPANY FIT Existing Production Fit Existing Distribution Fit Product Strategy Fit

11. FEASIBILITY STUDIES Studies of potential new products, with evaluations of resources and time in screening creative ideas

12. FEASIBILITY STUDY PROCESS Potential New Products Financial Viability Time and Resources Proceed or Drop Creative Idea

13. PRODUCT DEVELOPMENT AND TESTING Product development - Types of new products - Product design Testing - Beta testing - Store audits

14. COMMERCIALIZATION Launch new product Design and place promotions Fill distribution pipeline

15. NEW PRODUCT FAILURES Failure to define target market Lack of customer knowledge Poor product performance

16. NEW PRODUCT FAILURE EXAMPLES Betamax Harley Davidson Perfume Susan B Anthony Dollar

17. PRODUCT LIFE CYCLE Sales IntroductionGrowthMaturityDecline Time

18. STAGES OF PRODUCT LIFE CYCLE Stage SalesProfits Introduction Low Negative Growth ClimbingRising Maturity StablePeaking Decline DroppingDeclining

19. CHARACTERISTICS OF THE INTRODUCTION STAGE Negative Profits Heavy Promotion Cost Heavy Distribution Cost

20. INTRODUCTION STAGE EXAMPLES Electric vehicles Life Straw Astrata

21. ASTRATA THEFT BOX Stops motor on stolen trucks Locks doors remotely, trapping thieves Programmed to notify police

22. CHARACTERISTICS OF THE GROWTH STAGE Increasing Revenue Experience Curve Increasing Profits

23. GROWTH STAGE EXAMPLES Kindle Greek Yogurt Smart Phones Zip Lines Audio Books

24. SALES OF KINDLES 2009 2 million 2011 12 million

25. AUDIO BOOK SALES 1997$480 Million 2013$1,200 Million

26. CHARACTERISTICS OF THE MATURITY STAGE Intense Competition Maintain Promotion Layering Strategy

27. MATURE STAGE EXAMPLES Crayola Baby carrots Campbell soup

28. CONCEPT OF LAYERING Sales Time

29. LAYERING EXAMPLES Chicken Soup for the Soul Movies Dental Services

31. MOVIE EXAMPLES OF LAYERING Shrek Star Trek Halloween

32. LAYERING OF DENTAL SERVICES Cosmetic Straighten Teeth Bonding Teeth Whiten Teeth

33. DECLINE STAGE STRATEGIES Simplify Product Line Minimize Promotional Cost Discontinue Product Line Sell Product Line

34. DECLINE STAGE EXAMPLES Hostess Brands Kodak Yellow Pages PC Decline

35. YELLOW PAGES REVENUE 2005 14 Billion 2011 9 Billion

36. BRANDING STRATEGY Product Names Major Types of Branding Multiple Branding Strategy Brand Extension

37. PRODUCT NAMES Commodity Any company can use Grade Defined by government Brand Owned by a company

38. COMMODITY EXAMPLES Aspirin Gasoline Nylon

39. GRADING EXAMPLES Grade AA eggs Choice beef Organic foods

40. MAJOR TYPES OF BRANDING National Brands by Manufacturers Store Brands by Retailers

41. MANUFACTURING BRANDS ARE LOSING TO STORE BRANDS Mass media universe has shattered Mass channel universe has consolidated High gross margins for store brands

42. MULTIPLE BRANDING STRATEGY BLANKET BRANDS - Same brand name INDIVIDUAL BRANDS - Different brand names

43. EXAMPLES OF BLANKET BRANDS IBM Whole Foods (365) Costco (Kirkland)

44. EXAMPLES OF INDIVIDUAL BRANDS Yum Brands Sears

45. YUM BRANDS Pizza Hut Taco Bell Kentucky Fried Chicken

46. SEARS RETAIL BRANDS Kenmore Craftman Diehard

47. BRAND EXTENSION A company with a well-known brand uses that brand to market to a different product category.

48. BRAND EXTENSION SUCCESSES Visio JELL-O pudding IAMS pet insurance

49. BRAND EXTENSION FAILURES New Coke BIC pantyhose Hooter’s airline

50. MOST POWERFUL BRANDS IN 2013 #1) Apple #2) Microsoft #3) Coca Cola #4) IBM #5) Google