Product Strategy Pertemuan 15 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

Bina Nusantara Learning Outcome Students are able to classify products into different type and categories

Bina Nusantara Material Outline: Product: formulation, packaging, design, and value proposition Types of product Product attributes

Bina Nusantara Product Formulation Formulation is the product, offer that essentially satisfy the need of the consumer Formulation is called as the core benefit or what the consumer is really buying (Nelly Ma’arif, 2008)

Bina Nusantara Product Flow of a new concept: –Concept idea –Internal approval –In-depth interview –Quantitative research –Idea formulation –Internal testing –Concept improvement –Internal research –Concept and packaging external testing –Internal approval –Product test market

Bina Nusantara Product The developing a product from a concept or idea is not an easy task. An idea has to be approved by the Board of Directors. The process shows that every progress has to be tested An internal test needs confirmation from an external people, which would represent the target market of the product.

Bina Nusantara Product Consumers do not buy packaging of a product. But without packaging, there can be no product –Packaging packs and covers the product –Packaging gives shape to product –Packaging protects the product –Packaging creates a good shelf-life for the product –Packaging protects the product during shipping and handling process –Packaging offers convenience in the purchasing transaction (Nelly Ma’arif, 2008)

Bina Nusantara Product Packaging design is a part of packaging. The main purposes of packaging design are: –To conform to the government regulation where in every packaging the basic standard information has to be made available to the market. Brand name of the product Product description Name of company which produces the product Contact address including phone number List of ingredients Expiry date of product Instruction for use Net weight of product Barcode

Bina Nusantara Product –To protect the product physically from any hazardous effects during storing in the manufacturer’s storage, distributor’s godown, retailer’s godown. –To develop a shelf life that will allow the product to endure elements of nature. –Allows simpler accounting and financial operation and simpler calculation for the purpose and target setting and pricing strategies

Bina Nusantara Product Value proposition is an indication of consumer’s preference, choice and values. Product choice could easily indicate the consumer’s condition Ex. Branded clothing

Bina Nusantara Types of Product Consumer product: –A product which is produced, manufactured for the use of consumer, the end user of the product. –Ex. Shampoo, toilet soap, candy, chocolate, cosmetic product, etc. Industrial product: –A product which is produced, manufactured, designed for a particular company. –Ex. Margarine, bulk chocolate, essence for food products, etc.

Bina Nusantara Types of Product Convenience product: –Products that are bought for convenience reasons –It can be for daily use, but most products will be taken when the consumers feel like buying one. –Frequency of purchase can be daily –Availability is due to the nature of the product. It is important that this type of product available at many retail shops. (Nelly Ma’arif, 2008) Specialty product: –This product is required to improve the standard of living of consumers or enhance consumer’s quality of life.

Bina Nusantara Product Attributes: Core benefit Packaging Design Price Brand

Bina Nusantara Conclusions: Formulation is called as the core benefit or what the consumer is really buying The developing a product from a concept or idea is not an easy task. An idea has to be approved by the Board of Directors. Value proposition is an indication of consumer’s preference, choice and values.