MindMap Gallery Product Strategy
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Edited at 2021-12-23 11:45:44This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
This Valentine's Day brand marketing handbook provides businesses with five practical models, covering everything from creating offline experiences to driving online engagement. Whether you're a shopping mall, restaurant, or online brand, you'll find a suitable strategy: each model includes clear objectives and industry-specific guidelines, helping brands transform traffic into real sales and lasting emotional connections during this romantic season.
This Valentine's Day map illustrates love through 30 romantic possibilities, from the vintage charm of "handwritten love letters" to the urban landscape of "rooftop sunsets," from the tactile experience of a "pottery workshop" to the leisurely moments of "wine tasting at a vineyard"—offering a unique sense of occasion for every couple. Whether it's cozy, experiential, or luxurious, love always finds the most fitting expression. May you all find the perfect atmosphere for your love story.
The ice hockey schedule for the Milano Cortina 2026 Winter Olympics, featuring preliminary rounds, quarterfinals, and medal matches for both men's and women's tournaments from February 5–22. All game times are listed in Eastern Standard Time (EST).
Product Strategy
1. product mix strategy
Overall product concept
The traditional view is that a product is an object with a specific physical shape and purpose. Modern market science believes that this view is too narrow. A product does not only refer to a tangible object, but should include many intangible features. Consumers buy products not only to purchase a tangible and tactile object, but also to obtain the satisfaction of desires. For example, when a consumer purchases a camera, he not only obtains a camera, but also acquires it to satisfy entertainment requirements, art, hobbies, or as a souvenir. In this sense, services should also be included in the product scope.
definition
The overall concept of product refers to anything that is provided to the market and used to meet certain needs of people. It includes physical objects, service places, thoughts or ideas, strategies, etc.
Classification
Core Products
Core products refer to the benefits and services that consumers pursue when purchasing a certain product. (For example, when purchasing cosmetics, you not only need them to have certain chemical properties, but also pursue a kind of beauty enjoyment)
①The core product is the most basic level in the product concept. ②The core product is the purpose for consumers to buy the product. ③The core product is the most important part of the overall product concept. ④The core product is the basis for the product to be exchangeable.
The exact same product may bring different benefits to different consumers. Therefore, the utility and benefits of a product do not refer to the objective usefulness of the product, but to people's subjective understanding of the utility of the product. The size of the utility often depends on the subjective feelings of consumers when using the product.
body products
Physical products refer to various specific product forms that transform core products into tangible things so that they can be sold to customers and meet customer needs. In the market, it is usually reflected in the quality level, appearance, style, characteristics, brand name, packaging, etc. of the product. Physical products are the material carriers of core products.
Additional products
Add-on products refer to all the additional services and benefits that people receive when they purchase a tangible product. (such as providing credit, free shipping, guaranteed equipment installation and after-sales service, etc.) Add-on products reflect the degree of reliability in achieving the product's utility.
Summarize
In short, the overall concept of products in marketing is centered on customer needs, which means that the product value of a product is determined by customers, not producers.
American market experts assert that the key to future competition lies not in what products the factory can produce, but in the additional benefits provided by the product, that is, services, advertising, user consultation and purchase credit, timely delivery and everything that people measure by value.
product portfolio
concept
product portfolio
Product portfolio is also called the collection of various varieties of products. It refers to the combination or matching of all product categories and product items produced and operated by an enterprise, that is, the scope and structure of the enterprise's production and operation.
product line
A product line refers to a group of closely related products and refers to the product categories in a product portfolio. The division of this product category can be based on: the products are similar in function, connected in consumption, supply the same customer group, have the same distribution channels or belong to the same price range.
product items
Product items refer to specific products of different varieties, specifications, quality and prices in a certain product.
Product portfolio breadth, length, depth, relevance
Product portfolio breadth
Product portfolio breadth
Product portfolio breadth refers to the number of product lines included in an enterprise's product portfolio.
Product portfolio length
The length of the product portfolio refers to the total number of product items in all product lines of the company.
Product portfolio depth
The depth of product portfolio refers to the number of colors, styles, flavors and specifications provided by each product in each product line of the company, that is, the difference provided by each product. If toothpaste has three specifications and two flavors, then the product depth is 2*3=6 Average depth = length/breadth = average length
relevance
The relevance of product portfolio refers to the degree to which an enterprise's various product lines are closely related in terms of end use, production conditions, distribution channels, etc. In the modern Western economy, there are more and more large companies operating products with little relevance.
Enhance the significance of product portfolio breadth, length, depth and relevance
(1) The significance of increasing the breadth of product portfolio ① It can expand the business scope and increase sales. ② It can fully tap and utilize the various resources of the enterprise and improve economic benefits. ③It can reduce business risks and implement diversified operations.
(2) The significance of increasing the length of product portfolio ①Enrich the product line. ②Add more changing factors to each product.
(3) The significance of increasing the depth of product portfolio ① Can adapt to the different needs and hobbies of a wider range of consumers. ②Attract more customers.
(4) The significance of increasing the relevance of product portfolio ①Increasing the consistency between the company's product lines can improve the company's reputation in a certain region or industry. ② It can make various products of the enterprise drive sales to each other.
Three methods for product portfolio analysis and evaluation
There are two principles to follow for product portfolio: 1. It is helpful to promote sales, 2. It is helpful to increase the total profit of the enterprise.
1. Three-factor method
2. American Boston Matrix Method
Sales growth rate versus market share.
(1) The most likely way Problem category - star category - Taurus category - dog category.
① Star category: refers to strategic business units or products with high sales growth rate and high relative market share. Due to the rapid market growth of this type of strategic business unit, companies must invest heavily to support their development. Finally, when the market growth rate drops, this type of business unit will change from a cash user to a cash provider, that is, it will become a gold bull type.
②Golden Bull category: refers to strategic business units with low sales growth rate and high relative market share. This type of unit can provide the enterprise with more cash, which can be used to support the survival and development of other units.
③Problem category: refers to strategic business units with high sales growth rate but low relative market share. This type of unit has an uncertain future. Whether to invest heavily in turning it into a star category, or to streamline, merge, or even eliminate it, we should carefully consider and make timely decisions.
④ Dog category: refers to units or products with low sales growth rate and relative market share. Such units or products may be self-sufficient or may suffer losses. They are usually products that are at the end of their production cycle and should be eliminated.
(2)Strategy
① Development strategy: that is, increasing the market share and sales growth rate of major product categories, but this requires more investment and is only suitable for products in the problematic category that are expected to become star categories.
②Maintenance strategy: that is, maintaining the market share of major product categories, and is suitable for Taurus products with large cash income.
③ Harvest strategy: that is, the pursuit of short-term cash income from major product categories. It is suitable for Taurus products with poor environment, and can also be used for problem or dog products.
④Abandonment strategy: that is, selling and cleaning up certain product categories, which is suitable for problematic products and dog products that have no development prospects or hinder the company from increasing profits.
General Electric Company Law (CE Law, Strategic Business Planning Network)
The General Electric Company Law believes that in addition to market growth rate and relative market share, more influencing factors must be considered. These factors can be divided into two broad categories:
1. Industry attractiveness includes market capacity, sales growth rate, profit margin, competitor strength, business cyclicality, seasonal economies of scale, learning curve and other factors
2. The second is the business strength of the enterprise, that is, its competitiveness. Including relative market share, price competitiveness, product quality, customer understanding, marketing efficiency, market location and other factors.
The first area: There are three squares in the upper left corner, namely "big strong", "big medium" and "medium strong". This is the best area. For business units in this area, an "expansion strategy" should be adopted, that is, additional investment to promote their development and stay in the green zone.
The second area: The three squares on the diagonal, namely "small strong", "middle" and "big weak", are the medium area. For business units in this area, a "maintenance strategy" should be adopted, that is, maintaining the current investment level, neither increasing nor decreasing, in the yellow zone.
The third area: There are three squares in the lower right corner, namely "small and medium", "small and weak" and "medium and weak". This is an area where industry attractiveness and corporate competitiveness are weak. The business units in this area should adopt a "cut" or "abandon" strategy and no longer make additional investments or withdraw existing investments, which is in the red zone.
Adjust product line length
1. The primary issue in an enterprise’s product portfolio is to determine the length of the product line
If adding product items can increase profits, it means that the product line is too short; if reducing items can increase profits, it means that the original product line is too long. How long a product line is good depends on the company's goals. If the company's goal is to occupy a dominant position in a certain industry and requires higher market share and market growth rate, the product line should be longer; if the goal is higher profit margins, the product line should be shorter. , just select those product items with higher profit margins.
2. The reason why companies in Western countries have a tendency to lengthen their product lines
(1) Pressure on production capacity forces product line managers to look for new project development (2) The new project is just an improvement of the original product and is easy to design. (3) Sales staff and dealers require additional product items to meet customer needs (4) Product line managers increase product projects in order to expand sales and increase profits
However, as the product line lengthens, some costs will also increase, so it will be reviewed and studied by relevant parties, and then projects that are not worth the gain will be eliminated, resulting in the shortening of the product line. This kind of fluctuation in product lines often occurs repeatedly.
3. Ways to increase product line length
(1) Product line extension
Product line extension refers to breaking through the scope of the original business grade and lengthening the product line.
①Downward extension: Some companies that produce and operate high-end products gradually add some lower-end products.
a. Applicable situations: 1. High-end products are threatened by competitors in the market 2. Sales growth rate of high-end products declines 3. It turns out that the development of high-end products is just to give people the impression of excellent quality. To establish a high-end corporate image, we have already prepared to develop a large number of lower-end products when conditions are ripe. 4. Fill the vacancies in the product line with lower-end products to prevent new competitors from getting involved, or use lower-end and low-priced products to attract customers.
b. Face risks: 1. The launch of lower-end products may shrink the market for original high-end products. 2. Launching lower-end products may force competitors to develop high-end products 3. Dealers may be reluctant to deal in low-end goods.
② Upward extension: Some companies originally produced and operated low-end products and gradually added high-end products.
a. Applicable situations: 1. Because high-end products have higher sales growth rates and gross profit margins; 2. In order to pursue a complete product line of high, medium and low-end products 3. Use higher-level product items to improve the status of the entire product line.
b. Face risks: 1. The development of high-end products may prompt companies that originally produced high-end products to adopt downward extension strategies, thereby increasing their own competitive pressure. 2. Customers may lack trust in the company’s ability to produce high-end products; 3. The original sales staff and dealers may not have enough skills and experience to sell high-end goods.
③ Two-way extension: Some companies that produce and operate mid-range products gradually extend to high-end and low-end products under certain conditions, which is called two-way extension.
(2) Product line expansion
Product line expansion refers to adding product items within the scope of an existing product line.
The purpose of product line expansion: ①In order to increase profits ②In order to meet the requirements of dealers, too few projects will reduce dealer turnover. ③Attempt to utilize excess production and operation capacity. ④Trying to gain a dominant position in the entire product line of the industry ⑤Prevent competitors from entering
Product Line Modern Decisions
1. Update item by item
(1)Advantages Before the entire product line is fully updated, the reaction of customers and middlemen can be tested to understand market trends and save investment.
(2)Disadvantages Allow competitors to gain insight into the company's intentions and thus update its product lines.
2. Comprehensive update
(1)Advantages It is not easy for competitors to understand the intentions of the company, and the company can win by surprise.
(2)Disadvantages The investment required is relatively large.
2. product life cycle
definition
Product life cycle, also called product market life, refers to the entire period from the beginning of a new product entering the market until it is eliminated by the market. A typical product life cycle can be divided into four stages
Features
(1) Strictly speaking, product life cycle refers to the life cycle of product varieties. (2) The product life cycle is different from the service life of the product. (3) The market life cycle is only a theoretical description, and not every product must go through these four stages. (4) It is difficult to judge each stage of the product life cycle. (5) In general, due to the advancement of science and technology, the improvement of consumer demands and fierce market competition, the life cycle of products on the market is getting shorter and shorter.
How to determine the stage of a product
1.Experiential judgment method
2. Analogy
3.Sales growth rate ratio method
Companies use changes in sales and profits earned by the company to measure the stage of a product. This is based on the sales growth rate data (△Y/△X) of a certain period (usually one year) to develop a quantitative standard to divide the various stages of the product life cycle.
Refer to the following empirical data: 1. If the value of △Y/△X is less than 10%, the product is in the introduction stage; 2. If the value of △Y/△X is greater than 10%, the product is in the maturity stage; 3. When the value of △Y/△X is between 0.1-10%, the product is in the maturity stage; 4. When the value of △Y△X is less than 0, the product is in the decline stage.
While referring to empirical data, the following analysis and research must be conducted: ①Collect and organize historical data on various products. The time depends on different products, generally 3 to 5 years is appropriate. ② Among similar products, the number of new products developed and entered the market and their position in the market, the performance, quality and other technical indicators of new products, market demand and extent, the width of new product circulation channels, the effectiveness of advertising and promotion, etc. ③Analyze the competition situation of the market. Analyze the impact of selling the same quantity of product in the market and compare the strengths and weaknesses. ④Collect historical data of operations. ⑤ Analyze market information based on market research and forecasts, and specifically understand the changes in consumer demand for a certain product.
4. Method for judging social popularity
When the product is on the market 1. When the penetration rate is less than 5%, it is the introduction period; 2. When the penetration rate is 5% to 50%, it is the growth stage; 3. When the penetration rate is between 50% and 90%, it is in the mature stage; 4. When the penetration rate is above 90%, it is in the decline stage.
Characteristics of each stage of the product life cycle
1. Investment period Definition: The investment period refers to the trial marketing stage after the product is successfully trial-produced and put into the market. Characteristics: low sales volume, small production volume, high costs, low profits, and few competitors.
2. Growth period Definition: The growth stage refers to the stage of mass production and sales expansion after successful trial production of the product. Features: increased sales, expanded production, reduced costs, increased profits, and intensified competition.
3. Maturity period Definition: The mature stage refers to the stage when the market has reached saturation. Features: Large sales volume, large production volume, low cost, high profit, and fierce competition.
4. Recession period Definition: The recession period refers to the stage when the product has aged and is gradually eliminated by the market. Characteristics: Sales volume declines, production shrinks, costs rise, profits drop significantly, and competition weakens.
Strategies at each stage
1. Investment period (quick) The investment period should usually focus promotions on high-income groups. (1) Use existing famous brands to boost sales of new products (2) Use discounts, free fees, etc. to induce customers to try it out (3) Enlist the support of middlemen and provide them with preferential treatment or subsidies. (4) Handle the relationship between price and promotion well
① High price and high promotion: Also called the head start strategy, it means that companies launch new products at high prices and high promotion costs. High price and high promotion conditions a. Potential consumers do not know the product yet. b. After understanding the product, consumers are willing to pay a high price to buy it. c. Enterprises face the threat of potential competitors and urgently need to build momentum and win consumers.
② High price and low promotion: Also called selective penetration, it means that companies introduce new products at high price and low promotion. Conditions for high price and low promotion: a. The market size is limited and consumers are relatively stable. b. The product is well-known and consumers are willing to pay a high price to buy it. c. Competitive threat is small.
③ Low price and high promotion: Also called intensive penetration, it means that companies launch new products at low price and high promotion. Conditions for low price and high promotion: a. The market size is large. b. Consumers do not understand the product, but are very sensitive to price. c. The threat of competition is great. d. Enterprises can reduce product costs through mass sales.
④ Low price and low promotion: Also called low price penetration, it means that companies launch new products at low prices and low promotions. Conditions for low price and low promotion: a. The market size is large. b. Consumers are price sensitive, demand elasticity is high, and products are well-known. c. The threat of competition is great.
2. Growth period (good) A sign that a product has entered the growth stage is a sharp increase in sales. (1) Improve product quality and add new functions, colors and styles (2) Actively explore new market segments and new distribution channels (3) The focus of advertising should shift from building product awareness to persuading consumers to buy (4) Lower selling prices at appropriate times to expand sales and curb competition. The growth period is a critical period for enterprise product development. Enterprises should adopt expansion strategies and penetration strategies.
3. Maturity period (long) A sign that a product has entered a mature stage is a slowdown in sales growth.
(1)Improve products ①Improve product quality. ②Add new functions. ③Improve the style. ④Expand additional benefits. ⑤Add service items.
(2) Adjust the market ① Look for new market segments and marketing opportunities, especially new markets that have not used this product. ② Try to encourage existing customers to increase usage and usage. ③Reposition the brand to attract a larger customer base.
(3)Revise marketing mix Change one or several variables in the marketing mix to stimulate consumer demand, such as reducing prices, adopting more effective advertising, expanding business promotion activities, strengthening personal selling, changing channel strategies, etc.
4. Recession period (transfer)
(1) Maintain marketing strategy Maintaining the marketing strategy means continuing to implement the original strategy, maintaining the original target market, using the past marketing mix strategy, and continuing to sell in the original market.
(2) Concentrated marketing strategy Concentrated marketing strategy refers to concentrating energy on the most favorable market segments and distribution channels to achieve the greatest possible economic benefits. Enterprises simplify their product lines, narrow their business scope, concentrate their human, material and financial resources, produce the most beneficial products, use the most advantageous middlemen, and sell in the most advantageous market segments to achieve the greatest possible economic benefits. .
(3) Extraction marketing strategy/retrenchment strategy Extractive marketing strategy/retrenchment strategy refers to reducing sales expenses, increasing profits, and promoting the decline of the product. Within a certain period of time, we do not voluntarily give up the production of weak products, but significantly reduce promotional expenses and forcibly reduce costs. In this way, although sales have declined in the short term, the company can still maintain a certain level of profit due to reduced costs.
How to effectively deal with "over-aged" products: ①Establish a system. ②Determine marketing strategies: maintenance marketing, concentrated marketing, and extraction marketing. ③Make the decision to give up. When deciding to abandon a certain "overage" product, the following decisions must be made: Should it be completely discontinued, or should the brand be sold to other companies? Should it be abandoned quickly or phased out gradually? Reserve the products that have been sold. How many parts or services?
How to effectively deal with "over-aged" products: ①Establish a system. ②Determine marketing strategies: maintenance marketing, concentrated marketing, and extraction marketing. ③Make the decision to give up. When deciding to abandon a certain "overage" product, the following decisions must be made: Should it be completely discontinued, or should the brand be sold to other companies? Should it be abandoned quickly or phased out gradually? Reserve the products that have been sold. How many parts or services?
Strategies to extend product life cycle (growth and maturity stages)
1. Increase usage 2. Change usage 3. Develop new products and find new customers 4. Discover new uses for products
3. New product development
New product
definition
A new product refers to a product that innovates, transforms or changes any part of the overall product concept. Any product that an enterprise provides to the market that has not been produced in the past can be called a new product.
Classification
newly invented products
Newly invented products, also called brand-new products, refer to unprecedented products made by companies using new principles, new structures, new technologies, and new materials. That is, products invented to meet a new need relying on the advancement of science and technology. The use of such new products often changes the production methods or lifestyles of users or consumers. When this type of new product enters the market for the first time, users go through a process of acceptance and popularization.
Replacement of new products
New generation products, also called partially new products, refer to products that are partially made of new technologies and new materials based on original products and have significant improvements in product performance and other aspects. That is, they use the achievements of science and technology to improve existing products. products to undergo major innovations. After this type of new product enters the market, users often go through a process of acceptance and popularization, but this process is shorter and easier.
Improve new products
Improving new products is also called improving existing products. This new product is not a major product innovation due to the advancement of science and technology, but only certain changes in the quality, features, structure, style and packaging of existing products. This type of new product is not much different from the original product. After entering the market, it is easier for users to accept it, but it is also easy for competitors to imitate, so the competition is fierce.
New products of our company
The company's new products are also called new brand products and imitation new products, which refer to new products produced by the company by imitating existing products on the market. After this type of product enters the market, as long as it has certain features, it will be easily accepted and popularized by users. However, the competition for this type of new product is more intense.
The significance of developing new products
Pay attention to the reasons for product innovation
Customer satisfaction is relative
As long as there is unmet demand in the market, companies will have opportunities to innovate products and make profits.
Innovative products can reduce corporate risk
Innovative products make efficient use of by-products
The way out for my country's existing enterprises lies in innovation. In short, innovative products are an important symbol of enterprise vitality.
The significance of developing new products
Developing new products is necessary for the survival and development of enterprises
Developing new products is a guarantee to meet changing consumer needs
Developing new products is a requirement for scientific and technological progress
Developing new products is an important means for enterprises to enhance market competitiveness
New products development
Requirements for developing new products
There must be sufficient needs (basic requirements, primary requirements)
Products must have characteristics
Enterprises must be capable
Be economically beneficial
New product development trends
Multi-functional and high-energy; small, micro and light; simplification; diversification; serialization and combination; public welfare, energy saving; fitness and comfort.
new product development methods
Independently developed by the company
Generally speaking, enterprises with relatively strong financial and scientific research capabilities are suitable to adopt this form.
Implement technology introduction
The implementation of technology introduction is a form of development of new products commonly used by many enterprises. It can save research and development costs, gain time, shorten gaps, fill gaps, is conducive to competition, and has obvious economic effects.
Combining independent research and development with technology introduction
The combination of independent research and development and technology introduction is currently a form commonly used by domestic and foreign companies to develop new products.
new product development process
1. Set goals and collect materials
2. Detailed evaluation, screening and filtering
3. Comprehensive analysis and calculation of effects
4. Product development and system review
5. Formulate plans and market test sales
Bringing successfully trial-produced products to the market for trial sales is the most effective and reliable inspection of the product.
The benefits of test marketing: you can understand consumers' potential needs and consumption habits; you can collect favorable marketing information; you can discover product defects and help improve products.
Disadvantages of test marketing: sometimes it cannot accurately reflect market demand because some objective factors are sometimes difficult to predict; it is easy to leak the company's new product information and be used by competitors. Therefore, not all products go through this stage.
6. Officially produced and fully launched.
The development of new products begins with conception, which mainly comes from consumers, scientific and technological information, competitive products, business personnel and dealers.
New product promotion
New product launch decisions
Delivery time
New products must be launched at the best time.
Placement area
It is best to choose the most attractive markets to focus on, and then expand to other regions after gaining a foothold.
Target customers
They were early adopters of the product.
They are huge adopters of the product.
They have positive reviews for the product and have some influence over others.
It costs very little to get close to them.
Marketing strategy
Enterprises should design the most advantageous marketing strategies to introduce new products into the market.
General rules for consumer acceptance of new products
1.Awareness stage
2.Interest stage
3. Evaluation stage
4.Trial stage
5. Adoption Phase
From the trial stage to the adoption stage, personal information is much more important than advertising, and customers' mutual dissemination of information plays an important role in widespread customer use. When in the evaluation stage, consumers generally have to repeatedly weigh the pros and cons of using this new product, driven by purchasing motives.
New product adopter types
early adopters
The earliest adopters are very sensitive to new products, well-informed about the market, have high economic income, like to be innovative and not conservative. They account for approximately 2.5% of new product adopters.
early adopters
Early adopters like to appreciate reviews, are proud to be the first to adopt, and live in affluent conditions. This type of consumers has a great influence on the dissemination and promotion of new products. They account for approximately 13.5% of total new product adopters.
mid-term adopters
Mid-term adopters have more exposure to external things, are willing to catch up with trends earlier, and generally have better economic conditions. They account for approximately 34% of new product adopters.
late adopter
Early adopters have less external contact activities and poor economic conditions. They generally wait until most of them prove the effectiveness of the new product before they are willing to buy it. They account for approximately 34% of new product adopters.
last adopter
The latest adopters are more conservative and always have a wait-and-see and skeptical attitude towards new products. They will only adopt the new product when it is unanimously recognized. These consumers account for approximately 16% of new product adoption.
New product promotion strategy
Progressive promotion strategy
definition
The gradual promotion strategy means that the company first introduces new products into the main markets, and then gradually expands and steadily promotes new products to new markets.
advantage
It is relatively stable and can organically combine the increase of products with the expansion of the market; it is conducive to the continuous improvement of the company, the improvement of the plan, and the stable improvement of the company's reputation. Even if problems occur, the loss will not be too great.
shortcoming
The speed of promoting new products is slow and the rate of return is relatively low.
Aggressive promotion strategy
definition
The aggressive promotion strategy refers to the company pushing new products into new markets at full speed in an aggressive manner under the premise that the trial sales of new products are very effective.
advantage
The profits are quick and can effectively prevent competition.
shortcoming
Promotional costs are relatively large, and they can only be adopted if the development prospects of new products are correctly predicted.
4. Brand and packaging strategy
brand strategy
Brand related concepts
brand
Brand is a physical product, which refers to the trade name specified by the seller for its own product. It is usually represented by a word mark, a symbol pattern or a combination thereof. It is used to distinguish the products or services of different sellers, including the brand name and brand logo. The characteristics of a good brand : Beautiful appearance, distinctive, concise and eye-catching, and in compliance with the provisions of the Trademark Law.
brand name
Brand name refers to the part of the brand that can be expressed in words. Requirements for a brand name: imply the effectiveness of the product; indicate the quality and grade of the product; be easy to identify and remember, and easy to read; must have distinctive features, be distinctive, have profound meaning, and be eye-catching.
brand logo
Brand logo refers to the part of the brand that can be recognized but cannot be expressed in words, including symbols, patterns or specially designed colors, fonts, etc. Requirements for brand logo design: beautiful and generous in appearance, in line with laws and customs and popular with the public; having distinctive characteristics, preferably reflecting the characteristics of the company or product; simple and eye-catching, easy to recognize and remember.
trademark
Trademark is a legal term. After a brand or part of a brand is registered with the relevant government department, it is called a "trademark". Trademarks are protected by law, and the registrant has exclusive rights. They are an intangible asset of the enterprise, and the property rights can be bought and sold. In our country, the terms "trademark" and "brand" are common and there is no difference. There is only a difference between "registered trademark" and "unregistered trademark". Registered trademarks refer to trademarks that are protected by law after being registered with relevant government departments, which are different from general unregistered trademarks.
Branding
Branding refers to all activities in which an enterprise specifies a brand name and brand logo for its products and registers them with relevant departments. The first decision about branding is the branding decision, which is to decide whether to establish a brand for the product. The first decision after branding is the issue of brand ownership. However, in recent years, there has been a "non-branding" trend in developed countries such as the United States. Some products do not use brands and are called "unregistered products." The purpose is to save advertising and packaging costs, reduce costs and prices, and increase competitiveness.
The Role and Disadvantages of Branding
Benefits to the buyer
A brand represents a certain quality and characteristics of a product, making it easier for buyers to choose.
Can protect the interests of buyers.
Consumers can improve their self-image by purchasing brand-name goods.
Benefits to sellers
Brands and trademarks facilitate sellers’ business management.
Registered trademarks are protected by law and are exclusive. They can protect product features and prevent others from counterfeiting. If counterfeit products are found, they can be investigated and claimed according to law.
Brands can establish a stable customer base, attract consumers with brand loyalty, and keep the company's sales stable.
Brands help market segmentation and positioning. Different brands can be established according to the requirements of different market segments, and different brands can be used to invest in different market segments.
Brands can indicate the origin of goods, create differentiation, and help control demand.
Benefits to society as a whole
Brands can promote continuous improvement in product quality.
Brands can strengthen the innovative spirit of society and encourage producers to continuously innovate in competition, thus making the products on the market rich and colorful and changing with each passing day.
Brands can improve the efficiency of buying and selling activities, accelerate commodity circulation, and promote social reproduction.
Disadvantages
Branding creates unnecessary and unrealistic distinctions between products, especially those of the same type.
Branding makes consumers pay higher prices, because branding will inevitably increase advertising, packaging and other costs, and these expenses will be passed on to consumers.
Branding will strengthen people's concept of hierarchy, and people often buy certain brands to show their status.
Brand ownership strategy (who owns the brand and who is responsible for it)
Manufacturer brand
Manufacturer brands are also called national brands.
middleman brand
Intermediary brands are also called private brands, that is, intermediaries purchase products in large quantities from manufacturers and then market them under their own brands.
Manufacturer brands and intermediary brands coexist
Manufacturer's brand and middleman's brand coexist at the same time, that is, some products use the manufacturer's brand and some products use the middleman's brand. Manufacturer brands have always dominated the market in the past, but in recent years, middleman brands have become quite popular in the US market. As a result, brand competition arises between middlemen and manufacturers. In this kind of competition, middlemen have many advantages:
Due to the limited business area of retail stores and most retail networks are controlled by middlemen, it is difficult for manufacturers, especially those small manufacturers, to enter the retail market with their own brands.
Middlemen, especially large retailers, pay special attention to maintaining the credibility of their own brands, thereby winning the trust of consumers.
Intermediary brands are usually cheaper than manufacturer brands.
Intermediaries often reserve the best space for their own brands in product display, and they also pay more attention to changes in inventory. Manufacturer brands are in a difficult situation and their traditional advantages are weakening. Therefore, some marketing experts in the United States predict that, except for well-known and powerful brands, manufacturer brands will gradually be replaced by intermediary brands. Brand war refers to the competition between manufacturer brands and intermediary brands.
Brand naming and design decisions
It must comply with the legal regulations of the market location in order to apply for registration with the relevant departments and obtain the exclusive right to trademark.
To be closely related to the product, implying product effectiveness or quality
Strive to be simple and clear, easy to read, recognize and remember
To show the distinctive features of the company or product, to be profound and eye-catching
The brand name should be consistent with the product specific name
It must conform to traditional customs, be beautiful and elegant, and be popular with the public.
Brand quality strategy
Brand quality
The initial quality level of a brand can generally be divided into four levels: low-end products, mid-level products, high-end products and super products.
A study in the United States pointed out that the return on investment of enterprises increases with the improvement of brand quality, but higher quality is not always better. Generally speaking, the profitability of super products and high-end products is similar, while the profitability of low-end products is significantly lower.
Factors to consider when deciding on brand quality strategy
The brand's initial quality level.
Target market demand.
Purchasing power level.
The quality level of competitors.
Manage quality strategy
Continuously improve quality, create famous brands, and maintain famous brands.
Maintain the current quality of the product.
Gradually reduce product quality
family brand strategy
Individual brand name strategy
definition
Using a different brand name for each product is called an individual brand name strategy.
advantage
The success or failure of individual products can be separated from the reputation of the company, so that the failure of individual products will not tarnish the image of the entire company.
shortcoming
It is necessary to conduct separate advertising for each brand, which is very expensive.
Single family brand name strategy
definition
A single family brand name strategy is also called a unified brand strategy, which means that all products of a company use the same brand. For example, Japanese companies such as "Hitachi", "Panasonic" and "Toshiba" all use the same family brand for various products.
advantage
Launching new products can save you the trouble of naming and save a lot of advertising costs; if the brand already has a good reputation, you can easily use it to launch new products.
shortcoming
The failure of any product will cause the entire family brand to suffer losses. Therefore, companies using a single brand must strictly control the quality of all products.
Classified Family Brand Name Strategy
The classified family brand name strategy means that the various products operated by the company are named separately, that is, one type of product uses one brand. For example, the American company Sears adopts this strategy and uses different brands for its household appliances, women's clothing, furniture, etc. Some large enterprises produce and operate a wide range of products, including food, clothing and supplies, and it is not appropriate to use a single brand, such as food and fertilizers, cosmetics and pesticides, etc. It is not appropriate to use the same brand.
Corporate name plus individual brand name strategy
definition
The company name plus individual brand name strategy means to precede each brand name with the company name, using the company name to indicate the source of the product, and using the brand name to indicate the characteristics of the product.
advantage
It can not only use the company name to launch new products and save advertising costs, but also enable the brand to maintain its relative independence.
Brand development strategy
definition
Brand expansion strategy refers to using an already well-known brand to launch new or improved products
advantage
Save on promotional costs.
Conducive to the development of new product markets.
shortcoming
If a new product fails, it will affect the brand's reputation.
Multi-brand strategy
definition
Multi-brand strategy refers to the same company setting up two or more competing brands on the same product. Although this will slightly reduce the sales volume of the original brand, the total sales volume of several brands combined is higher than that of the original brand. many. For example, there are several brands of detergents produced by P&G Company in the United States. Some people call this strategy "product multiplication."
benefit
The product display space in the retail market is limited, and one more brand can occupy one more space.
Many consumers are brand switchers, are curious about novelty, and like to try new brands. The best way to capture these consumers is to launch more brands.
Multiple brands can introduce competition mechanisms into the enterprise, allowing brand managers to compete with each other and improve efficiency.
Multi-branding allows a company to own several different market segments. Even if the differences between the brands are not big, they can each attract a group of consumers.
Brand repositioning decision
Due to changes in the market environment, brands often need to be repositioned. Brand repositioning generally requires improving product performance or changing the appearance of the product.
packaging strategy
Two meanings of packaging
External packaging and containers of products, i.e. packaging equipment
The operation process of packaging products, that is, packaging method
Three levels of packaging
Inner packaging: The inner packaging is the direct container of the product, such as toothpaste tubes, beer bottles, etc.
Middle packaging The role of middle packaging is to protect the product and promote sales, such as the carton outside the toothpaste tube.
Outer packaging: Outer packaging is also called storage and transportation packaging. Its function is to facilitate storage, movement and identification of products, such as cardboard boxes for shipping toothpaste. In addition, labels, that is, the text and pictures about product descriptions on the packaging, also belong to the category of packaging.
The role of packaging
Protect goods and provide convenience (basic function)
Beautify goods, differentiate goods
Easy to use, easy to store and transport
Promote sales and increase profits
Characteristics of good packaging
elements of packaging
1. Reasonable shape and structure.
2. Bright colors and patterns
3. Eye-catching trademarks and labels.
Packaging should reflect the characteristics and style of the product
Packaging should be consistent with the value and consumption level of the product
Packaging design should conform to consumer psychology
packaging decisions
To establish a packaging concept
To decide on packaging design
The importance of packaging to promotion cannot be ignored. Some people call it the "silent salesman". Packaging design should try to cater to the needs of major consumers and make consumers have the following "six senses":
Freshness. Packaging should strive to be novel and unique, not imitative and refreshing.
A sense of nobility. The packaging of valuable goods or gifts should be gorgeous and elegant, and consistent with the value of the product.
Sense of convenience. Packaging should be convenient for consumers to purchase and use, adapt to different consumer needs, and have different specifications and weights.
Artistic sense. Packaging design should strive to be pleasing to the eye and provide people with beautiful enjoyment.
Intuitive. Products with strong selectivity, such as shirts, scarves, etc., should allow consumers to see the color, style, texture and other characteristics through the packaging.
sense of trust. The shape and size of the packaging should conform to the actual product so that buyers will not misunderstand. The product ingredients, usage, weight, expiration date, etc. should also be indicated on the packaging.
Packaging decisions should be in line with social interests
Require
Packaging and labeling must match the actual product.
Packaging costs should be saved.
Packaging materials should be used to minimize waste.
Environmental pollution caused by waste packaging must be controlled
packaging strategy
Similar packaging strategies
definition
Similar packaging strategy means that various products produced by a company use the same pattern, color or other common features on the packaging, so that customers can easily find that they are products of the same company.
advantage
Save packaging design and publicity costs; expand product influence and promote sales of various products.
shortcoming
It is only applicable to products with the same quality level. If the quality is very different, high-quality products will be affected.
Combination packaging strategy (matching, multiple packaging strategies)
definition
The combination packaging strategy is that the company combines several related products in the same package and sells them at the same time.
advantage
Provide convenience to consumers, who can buy and use them in sets, making them easy to carry and store; expanding sales.
Reuse packaging strategy
definition
The reuse packaging strategy means that after the product is consumed, its packaging container can also be used for other purposes.
advantage
It saves packaging costs and enhances the attractiveness of the product; if the packaging is printed with text instructions, it can play an advertising role when reused.
Comes with gift packaging strategy
definition
The strategy of packaging with gifts is to include gifts or coupons in the packaging container to induce consumers to make repeated purchases.
advantage
Make consumers feel unexpected gains, arouse consumers' interest in purchasing, and stimulate consumers to make repeated purchases.
Change packaging strategy
If the packaging of a product has been used for a long time, we should also consider introducing new products and changing the packaging. This method of changing packaging to achieve the purpose of expanding sales is to change packaging strategy. The adoption of this strategy is conditional, that is, the intrinsic quality of the product must meet the usage requirements. If this condition is not met and the inherent quality of the product is not good, then even if the package Pretending to have made significant improvements will not help expand sales.
Hierarchical packaging strategy
definition
The graded packaging strategy refers to dividing goods into different grades according to their quality and value. Different grades use different packaging, and goods of the same grade use the same packaging.
advantage
Different levels of product packaging have their own characteristics and are easy to distinguish, allowing consumers to choose products based on the packaging.
shortcoming
Packaging design costs are higher.
Classification packaging strategy
Classified packaging strategy is to use different packaging for the same product according to different purchasing purposes of consumers. If the product is purchased as a gift for relatives and friends, it can be exquisitely packaged; if the purchaser uses it himself, it can be simply packaged.