Product Strategy

Product strategy. How does a company create brand loyalty, brand recognition and brand value? Company's must first create the positioning statement defining what is best about your product. Then the value proposition is creates showing why your product is better than the others.  These two statement help the company and the consumer see the reason for producing a product.  In the Dilbert comic is can scene that positioning statement is the product is a string. Where as the value proposition is missing and only uses coolness to sell it. 

Dual branding and co branding are a integral part of today's society. Apple and Nike have participated in co branding with the iPhone apps and running equipment. This has increased the recognition for the brands and generated more sales.  Dual branding on the hand can have a different affect.  Dual branding allows for a company to have a basic and luxury lines (think Toyota and Lexus).  This creates a different image in the consumer head as they to to purchase a vehicle.  Another dual branding, can downward branding of luxury items. Target and Neiman Marcus created a partnership which brought Neiman Marcus clothes to target.  This can affect the market because the higher luxury brand could suffer because it is available to the masses. 

Through out class, I have talked about working in the aerospace industry and how the industry must work to create brand recognition and brand loyalty.  Both Boeing and General Electric produce commercials for television to broad cast their brands message to the masses, even if they are not the end consumer.  Here Boeing wants the public to know that it is a brand that service and protects our military forces. General Electric shows how they are prepared for the future and can be part of everyday life. 

Drucker discusses the five deadly sins of marketing and how they cause companies and product to fail. One of Drucker's sins was the worship of high profit margins and premium pricing. This is also one the easiest because it helps to give the consumer an air of exclusivity.  But that is not what Drucker had as chasing premium price.   Drucker was concerned the companies sought to keep adding more features to the product and adding a high cost even is those addons were not of quality.   He was not concern of increasing the price for a better products but for increasing the "size" of a product and increasing price.

As for my shopping habits, I know that I will spend a price premium for NorthFace jackets, bags, hat, etc because of their quality and branding.  I have never had an issues with their products and want to wear them because of what they provide as well as the legacy the product brings. Being an avid adventures (skiing, biking, hiking ect) my NorthFace product gets a lot of wear and havent failed me yet. But if you ask the girls in Uggs, legging and the ubiquitous NorthFace fleece on campus I'm they will respond they are head over to ice climb or strop on some skis. 

Product life cycle is important in product strategy.  There are five main parts of the life cycle: R&D, introduction, growth, maturity and decline. With each of these segments there are five different consumers. The innovation diffuses into population as disease does as innovators are head of the curve. They become opinion leaders, group leaders and buy the product by  internal motivation.  Early adopters have to have the product first. They have  an external need to be seen from a social perspective.  They are at the tipping point of market before the early majority join. They are the masses of the market. The late majority move in after the market has been established.  They contribute to market saturation.  Then the laggards join when they are forced to join because their other options are no longer available.  At this point, the innovators have already moved on to new product.