Expanding a firm’s product range through product line extension is a very common strategic decision. Along with product improvements, product line extensions form the majority of new product launches for established firms.Please note that the product line extension is just one of the main classifications of a new product.What is a product line extension?A product […]
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Probably a good example of a product repositioning exercise is Mother Energy drink in Australia, which is a Coca-Cola brand. When it was first introduced into the marketplace, driven by Coca-Cola’s goals be a market leader in the energy submarket, the overall launch campaign was well executed.All the marketing mix elementsLaunch campaign is a good
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A new category product is one of several classifications of new products (please see separate article). Other classifications of new products include: new-to-the-world product, product line extensions, product improvements and product repositioning.When a firm introduces a new type of product to the firm, which is an established product in the marketplace, this is known as
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New-to-the-world products are one of several classifications of new products (please see separate article). Other classifications of new products include: new categories, product line extensions, product improvements and product repositioning.As suggested by the name, a new-to-the-world product is one that is introduced by a company or an organization that has never been marketed all been
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In reality, most new product introduced to the market are NOT new to the market – they are only new to the firm.
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Michael Porter outlined the value chain model in his book “competitive advantage”.(Here is a link to Google books for this textbook.) Porter’s Value Chain is a model that is sometimes included in a marketing principles textbook, but is more commonly found in a book on marketing strategy.Using Porter’s Value ChainThe value chain is a model
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Creating value for customers is a fundamental aspect in marketing success. To aid the process of value creation, Michael Porter developed tool for finding new ways to create customer value, which he refers to as the “the value chain”.Nine components of Porter’s Value ChainPorter’s value chain focuses on nine strategic activities that can create value
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In marketing strategy subjects, you often learn about different strategic models – some of these will include portfolio models, or portfolio matrixes, or portfolio analyses – which are all interchangeable terms for the same concept.What is a business portfolio?A business portfolio is essentially the same concept as a share portfolio for an individual investor. Someone
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Ways to identify a suitable value propositionProviding a value proposition is a central part of a firm’s offering in the marketplace. A value proposition helps differentiate firms and brands by having something unique about their “offering”.In marketing terms, an “offering” is the collection of benefits that is available to potential customers from transacting with the
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The strategy hierarchy is often taught in business and marketing schools today, stating that a strategy can be formulated at three different levels: corporate level, strategic business unit level (SBU), and functional (or departmental) level. It is important concept to understand because at these different levels, different strategic issues are addressed. Therefore, it will give
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