Principles of Marketing

1. Principles of Marketing Lecture-6

2. Today’s Topics

3. Product Strategies and Features

4. Product Mix and Product Line • Product Mix • The set of all product offered for sale by a company is called a product mix. • Breadth and Depth • Breadth = the number of product lines carried • Depth = variety of sizes, colors and models within each product line. • Product Line • A group of products similar in usage and physical characteristics.

5. Product Mix – Kraft Foods • Beverages • Coffee • Refreshment Beverages • Cheese & Dairy • Snacks • Confectionery • Salty snacks • Biscuits • Convenient Meals • Grocery • Desserts • Enhancers (dressings and spreads) • Cereals

6. Kraft –Beverages • Beverages > Coffee

7. Kraft –Beverages • Beverages > Coffee

8. Kraft –Beverages • Beverages > Coffee

9. Kraft –Beverages • Beverages > Refreshment Beverages

10. Kraft –Beverages • Beverages > Refreshment Beverages

11. Kraft –Beverages • Beverages > Coffee

12. Kraft – Cheese and Dairy

13. Kraft – Cheese and Dairy

14. Product Mix – Kraft Foods • Snacks • Confectionery • Salty snacks • Biscuits • Convenient Meals • Grocery • Desserts • Enhancers (dressings and spreads) • Cereals

15. Lets end here……

16. Positioning the Product • Management's ability to bring attention to a product and to differentiate it in a favorable way from similar products goes a long way toward determining that product’s revenues and the company’s profits. Thus management needs to engage in positioning, which means developing the image that a product projects in relation to competitive products and to the firm’s other products. • Marketing executives can choose from a variety of positioning strategies. Sometimes they decide to use more than one for a particular product. Here are several major positioning strategies.

17. Positioning in Relation to Competitor • For some products the best position is directly against the competition. This strategy is especially suitable for a firm that already has a solid differential advantage or is trying to solidify such an advantage. To fend off rival makers of microprocessors, Intel Corp. launched a campaign to convince buyers that its product is superior to competitors. The company even paid computer makers to include the slogan, “Intel Inside,” in their ads. In other fields, Cadillac introduced the Allante model to regain sales lost to European-made prestige cars, but it failed. And Coca-Cola and Pepsi-Cola compete directly with each other in virtually every element of the marketing mix (even celebrity endorsers). • For other products, head-to-head positioning is exactly what not to do, especially when a competitor has strong market position. In France, the La Cinq television network decided to compete directly against the well-established TF-1 network. La Cinq could not gain an advantage over TF-1, however, and this positioning error was a major reason for La Cinq’s failure.

18. Positioning in Relation to a product Class or Attribute • Sometimes a company’s positioning strategy entails associating its product with (or dissociation it from) a product class or attribute. Some firms promote their wares as being in a desirable class, such as “Made in America,” or having an attractive attribute, such as “low energy consumption” or “environmentally friendly.” • This strategy is widely used now for food products. For example, Libby’s, Del Monte, Campbell’s, Kellogg’s, and competing companies have introduced lines of vegetables, soups, cereals, and other foods with one common denominator---they contain no (or very little) salt. These items are positioned against products that are packed with the conventional amounts of salt. Similarly, as discussed in the chapter-opening case, makers of healthful frozen foods really are positioning their products in relation to not just salt but also calories, cholesterol, and fat content. Sometimes what’s in (rather than left out of) the product in emphasized. That’s the case with Volvo, which constructed a steel frame around the passenger compartment of its brand of automobile.

19. Positioning by Price and Quality • Certain producers and retailers are known for their high-quality products and high prices. In the retailing field, Saks Fifth Avenue and Neiman-Marcus are positioned at one end of the price-quality continuum; discount stores such as Target and Kmart are at the other. We’re not saying, however, that discounters ignore quality; rather, they stress low prices. In recent years, J. C. Penney has tried with limited success to reposition its retail stores on the price-quality continuum by upgrading apparel lines and stressing designer names.

20. End of Lecture -6