Product and CUEGIS
by: Claire 11T
Culture and Ethics
Globalization
Innovation
Strategy
brands are glocalized to cater for local preferecnes
products focus and adapt to on needs of customers globally, which vary according to local culture and ethical views
Example: McDonald product adaptations in Indonesia
Indonesia is a Muslim country, therefore, McDonald's adapted to the needs of the population by replacing pork with fish in their products
McDonald's outlets in Indonesia serve rice since Indonesians prefer rice over bread.
increased competition hence products must be modified and adapt accordingly
Change
Example: Kodak's camera films were quickly overthrown due to continuous innovation, leading to the presence of new digital technologies that were becoming more affordable as innovation leads to more cost-effective production as well
expansion opportunities for the marketing of products internationally created
allows for an increased exposure and customer base (global brands)
shortens product life cycle
cost saving through marketing consistency of products
Example: Coca-Cola's similar branding and packaging globally
products must change according to customer needs to succeed
in particular, products must adapt to current tastes and trends such as in technology and fashion
Example: Nintendo used to sell playing cards but since then has produced many games
the market is dynamic, hence products cannot be stagnant due to complacency
Marketing Mix
BCG Matrix
Position Mapping
SWOT
Product Portfolio
to remain competitive, businesses must have a DIVERSE product portfolio
diverse product portfolios mitigate risks and increase likelihood of striving through change
multi brand strategy to market the different products with different strategies
might result in product cannibalism when brands from the same business compete with each other
Example: Coca-Cola has other brands such as Fanta and Sprite to gain greater shares of the soft drink market (dominate the market)
gives information regarding a customers view and perception of a product, therefore allowing businesses to plan and allocate resources accordingly
the marketing mix supports a product to ensure it is marketed sufficiently and efficiently to ensure the success of a product in various diverse markets
products need all the other elements of the marketing mix so the product can succeed in a competitive market. Pricing that is too high for example might discourage consumers or marketing a place that does not market to a large audience, might not be effective
gives insight into ways to deal with products that are classified as stars, cash cows, problem children and dogs
1. Build -- strategy to turn question marks into stars involving added investment in resources to gain market share
2. Harvest -- gaining the most benefit out of a product, involving large amount of advertising to turn stars into cash cows
3. Hold -- maintaining the position of a product such as a cash cow through minimal yet sufficient investment
4. Divest -- selling off unprofitable products (dogs) of the business to allocate resources elsewhere
enables managers to analyze strengths, weaknesses, opportunities, and threats for the business. This allows them to determine the market suitable for their products and what products would likely succeed
Successful products
provide added value
functional value: what the product does for a customer
emotional value: psychology or feel good factor of having the product
value through product strategy such as design and branding, which depends on culture and preferences of a specific region
foster brand loyalty
allows for the success of new products under the same brand name (brand extension strategies)
Example: Samsung has an array of different products such as TVs, smartphones, washing machines and more.