Exam Prep: TU Marketing
Unit 6: Product Strategy

Unit 6: Product Strategy

* A Product isn't just physical! It includes places, ideas, & organizations offered to satisfy a want or need.

1. Core Definitions (Entry Points)

Kotler's 5 Levels Hierarchy from core benefit to potential transformations.
New Product Dev (NPD) Creation of original/improved products via firm's own R&D.
Product Line Group of closely related products (similar function/target).
Product Mix Total number of lines and items offered by a seller.
Brand Positioning Occupying a distinctive conceptual place in consumer's mind.
Product Life Cycle (PLC) 4 stages (Intro, Growth, Mat, Dec) mapping sales/profit.

2. Strategic Analysis (High-Yield)

Product Line Strategies

  • Line Expansion: Add items inside category.
  • Stretching: Move up-market or down-market.
  • Modernization: Update current styling.
  • Featuring: Special promo attention for items.

NPD Process (4 Major Steps)

  1. Idea Generation & Screening (Avoid Go/Drop errors).
  2. Concept Dev & Testing with targets.
  3. Mktg Strategy & Business Analysis.
  4. Product Dev, Test Marketing, Commercialization.

Product Mix Dimensions

  • Width: Number of different lines.
  • Length: Total number of items.
  • Depth: Variations (size/flavor) per item.
  • Consistency: How related the lines are.

PLC Strategies

Intro: Awareness (Penetration). Growth: Max Market Share. Maturity: Defend Share (Modify mix). Decline: Harvest/Contract.

3. Visual Blueprints (Must Draw!)

Model 1: Kotler's 5 Product Levels
5. Potential Product 4. Augmented (Battleground!) 3. Expected 2. Generic Core Ex: Free Helmet

* Note: In Nepal, competitors meet "Expected", so you win on "Augmented".

Model 2: The PLC S-Curve
Sales / Profit ($) Time 0 Sales Volume Profits Intro Growth Maturity Decline Investment / Loss Phase

* Must explicitly label the below-zero start during the Introduction stage.

4. Exam Triggers & Nepal Context

High-Probability Questions:

  • 5-Mark: "Describe the 8 stages of NPD." OR "Distinguish Line vs. Mix with local examples."
  • 15-Mark: "Evaluate NPD challenges in Nepal (imitative products)." OR "Critically analyze PLC Mix strategies during Maturity & Decline."

"Must-Include" Keywords:

  • NS Mark: Mandatory for quality.
  • Line Stretching: Moving Up/Down.
  • Cannibalization: Risk of new product eating old sales.
  • Go/Drop Error: Key NPD risk terms.

Nepalese Market Reality

Imitative NPD: Local firms lack R&D capital, so they copy successful Indian/Chinese models.

Family Branding: Firms like CG, Hulas, Dabur use one name across categories to build fragile trust faster and lower promo costs!

*Score Multipliers!

5. Final Review Canvas

1. Topic Scope

Product Levels: Core $\rightarrow$ Potential.
NPD: 8 Stages (Idea to Launch).
Mix: Width, Length, Depth, Consistency.
Brand: Name, Mark, Trademark.

2. PLC Framework

Intro: High Profile (Awareness/Trial).
Growth: Enter New Segs (Mkt Share).
Maturity: Modify Market/Product (Defense).
Decline: Contract/Abandon (Cut Costs).

3. Nepal Context

Quality: Mandatory NS Mark.
NPD Style: High reliance on Imitation.
Branding: Dominance of Family Branding (lowers risk/cost).
Goods: Convenience goods dominate.