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Product & Cuegis Concepts - Coggle Diagram
Product & Cuegis Concepts
innovation
ex: early portable camera market wars
has intensified competition
especially in consumer electronics
(Kodak v Fujitsu v Konica focusing on continuous development)
links to innovation
limited competition leading to stability strategies
regional competition leading to continuous improvement
global competition leading to continuous innovation
strategy
bad strategy
marketing myopia-
businesses becoming complacent toward product strategy- failing to keep up with the market
product cannibalism
products from the same brand eating each other's market share
brand extension
brand loyalty helping a business to launch and develop products under the same business
ex: samsung's full product line including tablets, phones, smart watches, etc.
firms using the same strategies to promote their global brands
ex: mercedes-benz being similarly promoted globally
essential to businesses doing well
as markets (ex: fashion, trends) continually change, only businesses that can adapt their product portfolios can do well
only selling to a single market limits revenue and is riskier because declines in sales are not offset by favorable sales of other products
The BCG Matrix:
as a strategy tool with supplementing strategies
has four main supporting strategies
Harvest- taking the profits from a product-turning stars into cash cows
Hold- investing just enough to retain positions in the matrix
Build- turning question marks into stars by investing into them
Divest- phasing out dogs, freeing up resources to harvest, build or hold
has four types of main products:
stars, succesful products with high market share in high growth markets that are continually invested into, which are hoped to become cash cows
dogs, products with low market share in low growth markets- typically prone to product extensions or disposal, and may lead to liquidity problems. Cash cows may become dogs if improperly managed.
Cash cows, products with high market share operating in low growth markets- generating large amounts of profits
question marks/problem children- products that operate in high growth sectors with low market share, and may become stars or dogs.
a few key criticisms:
however, higher profits do not always come from higher market share
ex: disneyland losing money despite large revenue and market share, even going through liquidation prevention methods
it is a quick synopsis, not precise(specific position unknown)
ex: whether a question mark is turning into a star is unknown, or whether a cash cow is in danger of turning into a dog.
multi-brand strategy
a business developing products in the same product category
ex: coca-cola developing brands such as sprite
increasing the product mix
helps businesses to profit and have alternate sources of income
globalization
creation of global brands
products that are immensely popular on international scales
ethics
cultural and ethical consideration
leading to glocalization- brands being adapted to local preferences while retaining global core elements
ex: mcdonalds adding products to local tastes
culture
leads businesses to care for overseas customers' needs
leads to glocalization(explained in innovation)
Brand management and product management become essential
tools used such as the swot matrix