P& BM Unit 2

Noida Institute of Engineering and Technology, Greater Noida
New Product Strategy

Unit-2
Product and Brand Management

Ms.Priyanka Malhotra
(AMBA-MK0312)
Asst Prof.
MBA-3rd Sem Dept of MBA
Faculty Name : Ms.Priyanka Malhotra

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Index
S.No Topics
1. Name of Subject with code, Course and Subject Teacher
2.
Brief Introduction of Faculty member with Photograph
3. Evaluation Scheme
4. Syllabus
5. Content
6. Unit Objective(s)
7. Course Outcome(s)
8. CO-PO & PSO Mapping
9. Requisite & Recap

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Index
S. No. Topics
10. Objectives of Topic/Session
11. Topic Mapping with course outcomes
12. Lecture
13. Video Links
14. Daily Quiz
15. MCQs
16. Assignment
17. Old Question Papers
18. Summary
19. References
20. Result Analysis (Department Result, Subject Result and
Individual Faculty Result)
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Ms. Priyanka Malhotra

Assistant Professor
Department: Management Studies
Email ID: priyankamalhotra@niet.co.in
Qualification: BBA, MBA, UGC NET, Ph.D (submitted)
Specialisation: HRM & OB
Total Teaching Experience: 14 years
Teaching Area: HR and Marketing

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05/07/2024 Faculty Name : Ms.Priyanka Malhotra 5

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Syllabus
UNIT-I
• Introduction to Product Management 08 Hours
Introduction to Product & Product Related Concepts: Product Management & Scope,
Define Product, Classification of Product, Product Levels, Product Hierarchy.
Product Life Cycle: Product Life Cycle Stages and corresponding Strategies and
Product Evaluation.
Product Portfolio: Concept, Factors influencing Product Portfolio, The BCG Growth
Matrix, Shell’s Directional Policy Matrix
UNIT -2
• New Product Strategy 08 Hours
New Products: New Product Categories, Organization for Product Management,
prototyping, New Product Development Process, test marketing.
New product strategy: The need for Product Innovation Strategy, the components of
new Product Strategy Commercialization: Test Marketing, Time to Market, Breaking
into the Market, Managing Growth, Resistance to Change, Leveraging new Product
Growth, Sustaining Differentiation
Managing the mature Product: Offensive Strategies, Extending the product life cycle,
Customer Relationship Management.
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Syllabus
UNIT-3
• Introduction to Brand Management and Brand Equity 08 Hours
Branding Basics: Brand, branding and significance of branding, Branding challenges
and opportunities, Brand equity concept, Strategic brand management process,
Identifying and establishing brand positioning, Planning and implementing brand
marketing programs, Measuring and interpreting brand performance, growing and
sustaining brand equity.
Brand Equity concept and Brand Equity Models: Brand Asset Valuation, Aaker
Model, Brand Resonance.
UNIT-4
• Brand Positioning and Brand Marketing Programs 08 Hours
Brand knowledge, Customer-based Brand equity Sources of brand equity - Brand
Awareness, Brand Image, The Four steps of brand building, Creating customer value
Identifying and establishing brand positioning, Positioning guidelines.
Planning and Implementing Brand Marketing Programs: Choosing brand elements
to build brand equity, Options and tactics for Brand, Integrating marketing
communication to build brand equity, Conceptualizing the leveraging process, Co-
branding, Celebrity Endorsement.
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Syllabus
• UNIT-5
Measuring, Growing and Sustaining Brand Equity 08 Hours
The brand value chain, Designing brand tracking studies, Capturing
customer mind set through quantitative research techniques.
Brand architecture, Brand hierarchy, Designing brand strategy, Brand
extensions- advantage and disadvantage- Reinforcing brands,
Revitalizing brands, Brand Failures.

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Branch wise Applications
• It will help to identify the critical information needed to develop a

product and brand strategy that generates both quick-wins and long-
term value.
• It also reflects on the different types of product and brand strategies
that are undertaken by a business institution for developing and
enhancing the product’s presence in the target market.
• To create an activity plan to bring your brand strategy to life - both
externally towards consumers and internally to employees.
• Defining the right metrics for determining success in the
implementation product and brand strategy, considering any
adjustments that may need to be made under a test and learn
methodology.
• Making critical decisions about brand repositioning and extension.
• It will help to manage both products and brands to engage more
audience

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Course Objective
• The objective of this course is to learn fundamentals of Product

and Brand Management.
• The aim of Product Management Part is to make participants
understand competition at product level as well as brand level.
• The objective of Brand Management is to make students
understand, role of brands, components of brands, brand
equity etc.
• The main aim for Brand Management is to make sure that
students understand the Brand Positioning and Brand
marketing Programs.
• To provide insights into the conceptual framework for Strategic
Brand Management.
Faculty Name : Ms.Priyanka Malhotra Unit

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Course Outcome
CO1 :Students will develop an understanding of Product and brand

management
CO2 :Students will develop an understanding of competition at Product

Level and Brand level
CO3 :Students will acquire the skill to Brand management and Brand equity.
CO4 :To enable learners to understand basics of brand equity, insights into
the conceptual framework for Strategic Brand Management.
CO5 :Understand the various aspects of Product Management and Product

Strategy, strategic significance of Product and Brand Management in
business.
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Programme Objectives(Pos)
PO1: Knowledge of Management theories and practices
PO2: Analytical & Critical thinking abilities
PO3: Value based leadership
PO4: Understand, analyze and communicate all aspects

of business
PO5: Achievement of Organizational goals

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CO-PO Mapping
Mapping of course Outcomes and program Outcomes
S No CO/PO PO1 PO2 PO3 PO4 PO5 PO6

1 CO1 1 3 3 3
2 CO2 1 3 2 2 3 3
3 CO3 2 2 1 3
4 CO4 1 3 2
5 CO 5 2 2 2
High =3 ,Medium =2 ,Low =1

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Program Educational Outcomes
PEO1: Conceptual Knowledge to adapt in rapidly changing environment

and learn new skills and demonstrate application of management
principles in professional work setting.
PEO2: Apply appropriate tools for decision making for solving complex
managerial problems in local or global context
PEO3: Exhibit Integrity, social responsibility and teamwork
PEO4: Exhibit ethics, communication skills, leadership qualities and

entrepreneurial mindset

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Result Analysis (Department Result, Subject Result
and Individual Faculty Result)

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Prerequisite and Recap
Pre requisite of the Unit

Having an understanding of concepts of Marketing and business
environment. Also having an understanding of Basics of Product
and Brand Management
Recap:
• Knowledge of product and concepts
• Product Life cycle

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Introduction to the subject
•Product Management is important to understand competition at product

level as well as brand level.
•New product development is the process involved in bringing any new
product into being and then launched onto the market. So it is more than
simply designing and then developing the product itself, it involves defining
the market for the product, testing the market, bringing the product to the
commercial market and advertising it and so on.
•A brand is any company's name, logo, symbols and slogans which gives a
unique identity to whatever is marketed.
•Brand equity is a set of brand assets and liabilities linked to a brand name
and symbol, which add to or subtract from the value provided by a product
or service.
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Session / Objective of Topic
Students will learn

• about the New product s
• about Product Management & Scope
• about New product development process
• the New product Strategy

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What is a new product (CO2)
• “By new product we mean original products, product improvements,

product modification and new brands that the firm develops through
its own research and development efforts”.
• “A new product is one which is really innovative which is significantly

different from existing and imitative products that are new to the
company.”According to William J. Stanton, M.J. Elzel and B.J. Walker

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New Product Categories (CO2)
Booz, Allen and Hamilton have identified six categories

of new product in the terms of their newness to the
company and to the market place.
i. New to the world Products create an entirely new
market. Smallest category of new products.
Designed to increase market share among existing
customers. Eg phones, tabs etc. Samsung Fold
ii. New product lines– these products are not new to

the marketplace but are usually new to the
company. allow a company to enter an established
market for the first time. Eg Samsung Flip
iii. Line extensions or Additions to the existing product

lines – New products that supplement a company’s
established product line. Eg Electric cars

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New Product Categories (CO2)
Product improvements: New products that provide improved

performance or greater perceived value and replace existing
product. For example, cosmetics, detergent products and
food (diet, fat-free, allergen-free products) industries.
Re-positioning: These are existing products targeted to new

markets, it involves introducing a new application for an
existing product that is aimed towards a new market
segment. Eg Tata Safari
Cost reductions: these products offer similar benefits at a

lower cost. They are not new products to the company from
the consumer point of view, but from design and production
standpoint, they usually represent significant change.

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Need of New Product Development
• Changing consumer
• Increasing competition
• Technological advancement
• New opportunities (growth and development)
• Risk diversification
• To increase company & brand reputation
• To utilise excess capacity (ONGC originally was an oil
exploration company; subsequently it went into
refinery and now they have entered into retail
distribution and marketing of petroleum products.)
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Daily Quiz
1. This is a group of closely related products. They are related through

technical, marketing, or user considerations.
• Product line.
• Product line depth.
• Product mix.
• Product item.
2. Are imitative products considered as new products?
• Yes
• No
3. Give one eg. Of line extension.
4. Give 2 reasons why a company introduces a new product in the market

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Product Management
Product management is an organisational

function within a company dealing with new
product development, business justification,
planning, verification, forecasting, pricing,
product launch, and marketing of a product or
products at all stages of the product lifecycle.

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Organisation for Product Management
• Product managers: Who are already handling existing

products. Drawback is that they are not able to give
ample time to new products as they are busy handling
existing products.
• New Product managers: They professionalise the new
product function. Drawback is that they are limited to
their product and its line extensions.
• New Product committees: High level committees are
charged with reviewing and approving proposals.

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Organisation for Product Management
• New Product Departments: This special department is

headed by a manager who has substantial authority and
access to top management. Its major responsibilities include
generating and screening new ideas, working with the R&D
Deptt. & carrying out field testing and commercialisation.
• New Product Venture Teams: A group brought together

from various operating departments and charged with
development of a specific product or business. They are
“intrapreneurs” who are relieved from other duties, given a
time frame and budget and informal work settings to focus
on development of new products.

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Prototyping
• A prototype is an early sample, model, or release of

a product built to test a concept or process. It can
be of design, electronics, and software programming
and is generally used to evaluate a new design to
enhance precision by system analysts and
users. Prototyping serves to provide specifications
for a real, working system.

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Features of a Prototype
• A product prototype is an example of a product you intend

to manufacture on a much larger scale.
• Compared to mass production, prototyping has a high cost

per individual unit. Overall costs are significantly lower if
you get a bulk order of your new product.
• A working prototype may differ from the final product.

brainstorming might lead to a rapid prototyping process,
which in turn may lead to a significant change in product
design.
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Types of prototyping
• Low-fidelity prototyping: fast and cheap, often

paper-based, enables a quick preview of the
product, and typically doesn’t allow for proper
testing by users.
• High-fidelity prototyping: realistically appearing
and functioning as similarly as possible to the
actual product before launch, interactive and
providing meaningful feedback; also, good for
demonstration in front of potential investors or
stakeholders.
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New Product Development (NPD)
• According to Wheelwright and Clark (1992), NPD is defined as

effective activity organisation and management to bring
products to market with low development costs and short
development times.
• Product Development & Management Association (PDMA)
defines NPD as,
“A disciplined and defined set of tasks and steps that describe
the normal means by which a company repetitively converts
embryonic ideas into saleable products or services.”
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New product Development Process

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Daily Quiz
1. _____________are those who are already handling existing

products.
2. What is product management?
3. An early sample, model, or release of a product built to test
a concept or process is called a ____________.
4. A realistic and functional prototype is called a ___________
prototype.
5. __________ is defined as effective activity organisation and
management to bring products to market with low
development costs and short development times.
6. Name the steps in NPD process.

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8 STAGES OF PRODUCT DEVELOPMENT PROCESS
• Idea Generation: In this stage, the company comes up with many different and unique
ideas based on both internal and external sources.
Internal idea sources refer to the in-house research and development teams of the
company.
External sources refer to competitor innovations, the customer wants, distributors and
suppliers, and so on. The company thereby focuses on coming up with as many feasible
ideas as possible.
• Idea Screening: The primary objective of this stage is to focus on ideas that are in line
with the company’s customer value and financial goals. The stage focuses on the filtering
out of ideas that are poor or are not feasible and retain those that have good potential.
Errors in idea screening:
• Drop error: a mistake made by a company in deciding to abandon a new product idea
that, in hindsight, might have been successful if developed.
• Go error: a failure at any stage (but especially at the screening stage) in the new product
development process when a decision is made to proceed with a product which, in
hindsight, should have been abandoned.

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•Concept Development and Testing: The good product

ideas must be developed into detailed product concepts
that are conveyed in consumer-oriented terms. The
concept must be made in order to project the product in
terms of how it is perceived by consumers and how it will
potentially be received in the market and by which set of
potential customers. This concept must then be tested by
presenting it to the target consumers and their response
must be taken into account.
•Development of Marketing Strategy: The new product
development process in marketing is covered in stage four.
In this step, the company tries to come up with strategies
to introduce a promising product into the market. The
company must therefore come up with the price, potential
revenue figures as well as advertising and distributing
channels in this step.

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Daily Quiz
• Business Analysis: The product concept is put

through a vigorous business analysis or test in order
to ascertain projected sales and revenue and also
assess risk and whether the production of the
product is financially feasible. The company’s
objectives are considered and if these are satisfied,
the product is moved on to the next step.
• Product Development: The research and
development wing of the company then works on
the product concept to come up with a working
and functional prototype of the product concept.
Components have to be designed in terms of
length, width, diameter, angle etc., and arranged
to be assembled in a manner which provides the
features and benefits of the selected product
concept. The product is tested to analyse its
functional performance and the degree of customer
acceptance

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Daily Quiz
• _____ is the development of original products, product improvements,
product modifications, and new brands through the firm’s own R&D efforts.
a. Idea generation
b. Concept testing
c. Test marketing
d. New product development
• New-product development starts with _____.
a. Idea screening
b. Idea generation
c. Concept development and testing
d. Marketing strategy development
• What are the errors in idea screening?
• An attractive idea must be developed into a _____.
a. product idea
b. product concept
c. product image
d. test market

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Daily Quiz
•_____ calls for testing new-product concepts with groups of target consumers.
a. Concept development
b. Concept testing
c. Idea generation
d. Idea screening
• The marketing strategy statement in new product development consists of three
parts: _____, _____, and _____.
a. idea generation; idea screening; concept development
b. idea generation; concept development; concept testing
c. idea generation; idea screening; idea management
d. target market description; planned product positioning; sales, market share, and
profit goals for the first few years.

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•Test Marketing: Test marketing is a marketing method that aims to explore

consumer response to a product or marketing campaign by making it
available on a limited basis before a wider release. It provides an insight into
how the product will be introduced into the market, advertised, produced,
packaged, distributed, and eventually sold to the customers, and therefore
any optimizations if required can be made by the company.
Advantages of Test Marketing
•Gain an idea of how well the product will sell which allows the marketer to
build more realistic budgets, gain buy-in from other members of the
company, and make any changes needed.
•It helps you determine the most suitable and effective channels for
marketing.
•It helps you identify the best distribution channels and build a data-driven
distribution strategy for when the product launches.
Any weaknesses or flaws in your strategy will be exposed without any
disastrous consequences.

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Test Marketing
Disadvantages of Test Marketing

• Danger of the competition learning about the product and coming up with a
response before the full launch
• Test market may not be representative of the full target market, leading to
inappropriate decisions
• Delays in full launch may limit the revenue opportunity in markets subject to rapid
change
• Costly and time-consuming to administer.
Types of test markets

• Consumer goods Market testing
• Industrial goods Market testing
• The Consumer goods market testing explains all the goods that are used by
consumers directly, this test is conducted to know the consumer behavior towards
the product. The companies aim customers to go through this entire flow:
Trial —> Repeat —>Adoption —-> Purchase
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Test Marketing
• Sales-wave Research
This test is conducted to determine the potential of the product to be
consumed/accepted every time it is offered to the customer. The samples are often
distributed for free to analyze the willingness of consumers to accept the product.
One major example is a free trial of new lipsticks, perfumes offered to the existing
customers, and feedback.
• Simulated Market test
This test is conducted to ascertain the preference of the customer and their product
selection. A group of people are invited to the stores and are given some discount
offers to motivate them to shop in the store. The New Product is placed with the old
ones or the competitors and customers are observed closely, to know if the new
product was picked up over other alternatives.
The products are also distributed for free to acquire more customers for the test and
they are inquired about the product later on. The example is in departmental stores
where new products are placed and consumers’ behavior is tracked.

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Test Marketing
•Industrial Goods
All the goods that are produced for further use to make the final good are
considered industrial goods. They are divided into two major categories:
•Alpha Testing
This is a cost-effective way to gather initial feedback about the product. The
companies distribute their product increments inside the organization itself
and ask for feedback from the users.
Most of the telecommunication giants use it, such as Jio distributes most of
the products to the employees to use it as they would have a better take on
the product not as a consumer but as a business owner who will purchase the
product.
•Beta testing
The testing is done outside the firm with real customers, these tests are
conducted often in events, shows, exhibitions where a set of the particular
audience are gathered. These methods help you based on, customer’s gain
immediate feedback from potential clients and see their reactions to the
product.
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Test Marketing
•Controlled Market test

In this test new products are introduced to the chain stores and the presentation of the
product is controlled by the brand- their presentation, sales, pitch, introduction, etc. It
is not distributed for free to make people try the product for the price they will get in
the future. In cafes, you are pitched by the waiter for their new recipes and they even
ask you to share the feedback multiple times.
•Test Markets
Every brand has its market, they know the demographics and geographics of their
customers. A test market is a set of particularly selected areas or segments of the
audience used for a launch (product launch on a small scale), this small test market is
representative of the entire market size of the company.
For example, many tech companies launch their new features in particularly selected
areas on the basis of sales, customer loyalty, etc.

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New Product Development Process
• Commercialization: Based on the information gathered

during the test marketing process, the business
management may either decide to go ahead with the
launch of the product or put it on the backburner. In case
the go-ahead is given, the product is finally introduced
into the market and this process is called
commercialization. This stage often leads to massive
costs in terms of initial infrastructural investments as well
as sales promotions and advertisements. There are two
ways of commercializing the products: Roll out (phased,
limited to specific geographic areas) and mass
marketing (whole market simultaneously)
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Daily Quiz
• _____ is the stage of new-product

development in which the product and
marketing program are tested in more realistic
market settings.
• Give two advantages of test marketing
• Give two disadvantages of test marketing
• How is test marketing done in consumer markets?

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New Product Failure
• No product point-of-difference
• Limited retailer support
• Poor product design
• Established customer loyalty in the market
• Weak launch or poorly executed launch
• Adverse media attention
• Aggressive competitor actions
• Poor pricing or cost structure
• Weak supporting brand equity
• Small target market
• No clear market need or perceived product benefits
• Poor internal marketing
• Weak sales for size of company
• Insufficient time for success
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Product development strategy
Product development strategy is a subset of corporate strategy which sets the
direction for new products by establishing goals and through funding decisions.
The aim of product development strategy is to gain competitive advantage by
placing product offerings in the best possible position to drive business goals
such as sales growth, revenue, and profits. New product development strategy is
the means to:
•Mitigate risk in developing a product concept
•Improve the fit between products and markets
•Overhaul a product line
•Increase the sales of existing products by enhancing them
Eg. Apple’s product development strategy
Apple is an example of a platform/derivative strategy. They connect their top level
strategy to their product development process. The tech giant tends to
be product-driven. Apple creates products and then finds the market for them
later. Steve Jobs suggested that customers do not always know what they want
and believed that they will pay a premium for superb products and Apple tends to
focus on optimizing existing offerings. It relies on brand loyalty and is happy to
allow competitors to control the market in lower-priced products that compete
with Apple’s. Faculty Name : Ms.Priyanka Malhotra 46
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Product Innovation strategy
Meaning
A product innovation strategy is about creating winning products, which
means products that are in an attractive market, target a profitable customer
segment, address the right unmet needs, and help customers get a job done
better than any competing solution.
Need for product innovation strategy:
• Innovation strategies result in a clear focus.
• It helps you design a system to match your specific competitive needs.
• Also helps to trade-off decisions and choose all the elements of the
innovation system.
• It makes innovation measurable.
• It promotes innovation culture.

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Components of New Product strategy
Product vision
Product vision describes the long-term mission of your product. These are typically written as concise,
aspirational statements to articulate what the company hopes the product will achieve. For this reason, a
product vision should remain static.
For example, Google’s early vision statement for its search engine was, “Organize the world’s information
and make it universally accessible and useful.”
Goals
A product vision should lead to high level strategic goals. These goals will, in turn, influence what the team
prioritizes on its product roadmap. Examples of product goals include:
• Increase free-trial downloads by 50% in the next 6 months
• Generate $3MM in revenue within 12 months
• Using SMART goals is the best approach to utilize when setting goals for your product strategy. Like product
roadmaps, goals should be specific, measurable, attainable, relevant, and time-bound.
Initiatives
Initiatives are the strategic themes derived from your product goals and then placed on your roadmap.
They are significant, complex objectives your team must break down into actionable tasks
Examples of product initiatives include:
• Improve customer satisfaction and Add customer delight
• Increase lifetime customer value
• Sell new services
• Break into new industries or geographical areas
• Sustain product features
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Components of New Product strategy

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Breaking into new markets
Breaking into new markets means reaching an even wider

audience and developing more ways to earn revenue. If the
barriers are high (e.g., no significant capital investment, no
market leader to overcome, no patent or trade secret obstacles),
one's efforts must be more aggressive and one needs to break
into that market.

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Time To Market
Time to Market Concept

Time to market (also called TTM or time-to-market) is defined as the period from the conception
of a new idea until it is released to the marketplace. Another definition: it is the time
between when the team starts work and when the first unit is sold. time to market is one of
the essential product development KPIs or metrics. Many product development strategies
depend on being first to market.
Time-to-market (TTM) refers to the time from which a company initially conceives a product or
service idea to the point when the actual product or service is accessible to buyers in the
market (Afonso et al., 2008).
Types of time to market

The variations and types of time to market are as follows-
• Speed-Pay attention to the speed of availability by bringing the product or service to the
consumer market as quickly as possible.
• Flexibility to change –Innovation and change are the same sides of a coin, and it is a fact
that the need for change arises midway during a project. Suppose the product is for specific
consumer use and you get valuable feedback about it and make adjustment accordingly.
Then it becomes to measure time to market concept from the time you made the last
change to the delivery time.
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Time to market
• Minimizing the use of resources– Time to market is also used as a viable means to cut the
costing. Management believes that if the period between conceiving a project and its end game
is cut shorter, the project cost will automatically become less as it is consuming fewer amounts
of available resources. Organizations reduce time to market cost by increasing the number of
staff in actual case this move can prove more costly if the labor resource is very costly.
• Predictable schedules – It is more valuable to be on time as per schedule than reaching the
market as fast as you can. If you launch your product at a trade show, the product will garner
better results.
Benefits of time to market
• The benefits of time to market are as follows-
• Increasing profitability
• Garnering larger sales figures
• Speeding the time to market
• Improving the quality of the product
• Increasing productivity of a company
• Improving the communication level within the company
• Proficient managerial processes
• Higher share in the market
• Keeps you ahead in the game by dealing effectively with the competitors
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Daily Quiz
• Differentiate between time to market and

breaking into market.
• Give 2 reasons for new product failure.
• __________, _________ and ________ are
components of product strategy.

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Resistance to change
Change management is a discipline that guides organizational improvement. It results in a

permanent change as a result of observable shifts in behavior. It ensures that your
organization learns and improves in a thorough, orderly and sustainable manner. Successful
improvement projects require that individuals and groups are aligned, that they share a
common vision, that they know how they will define success, and have a path to achieve it.
Change management has three aspects:
• Acknowledging the disadvantages of the current state
• Setting clear goals that lead to genuine improvement
• Creating structures that move the organization from its current to its desired state
Change inside an organization is the result of three elements: processes, platforms, and people.
• In the domain of product development, some firms want to improve scalability. Others want
more predictable, reliable results from product development projects. Yet other companies
seek guidance in specific areas such as metrics, risk management, or product development
process

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Why is Change Management in Product Development Difficult ?

• Product development change initiatives are also hard to measure.
• Incremental measures made along the way are often unreliable. Too many companies do not
measure the numbers that really matter. They wait until the end of the process and then
measure the result — when it’s already too late to change it. The best approach is
to measure the behaviors that drive change. These are the metrics that can predict success.
• Product development also involves many functions working together. Software, Marketing,
and Finance. Each function may protect its own concerns and interests. Organizational
change management in product development often entails complex dependencies between
these functions. Tinkering with one function often has unintended consequences for
another.
• Poor communication,
• Current corporate culture,
• Poor commitment of management
• Lack of training
• Fear of the unknown.

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Leveraging new product Growth
• If a company is experiencing a steady drop in sales and revenue due

to old-fashioned products or obsolete technology, it’s time to develop
new products or enhance your services. Any businesses that no
longer reach their targets can take advantage of product
development tactics.
• Products themselves have taken the front seat in delivering relevant,
contextual, and highly personalized experiences to every user by
engaging with them at the right time and across the right stages of
the user journey. Product-led growth is both a go-to-market strategy
and a business growth strategy. It leverages the product as the
primary vehicle to acquire, activate and convert customers.
• It can be done through User-generated content, Leveraged
distribution channels and On-demand utility pricing for services.
Eg: Pinterest: It’s curated feed, personalised user onboarding, and
inherent
05/07/2024
virality make Faculty
Pinterest a poster
Name : Ms.Priyanka Malhotrachild for product-led growth
58
Unit Number-2
Offensive Strategy
What is Offensive Strategy?

An offensive strategy is when a business takes certain steps against the market leader to get
competitive in order to secure its market position.
Businesses and companies gain competitive advantages by differentiating their product, offering
it at a lower price, or having a resource advantage. The thing to keep in mind while following
the offensive strategy is that the competitors shouldn’t counter it.
Some of the famous offensive strategies are that you reduce the price to a great extent, creative
and catchy design to attract the attention, and a great marketing and advertising campaign.
An effective offensive strategy provides you a competitive edge for a long time. Strickland and
Thompson have divided the competitive edge time into three categories;
• Build-up Period
• Benefit Period
• Erosion Period
• The build-up period can be short and long depending upon the availability of resources. If
resources are readily available, then it’ll be short. Otherwise, it would be longer.
• The benefit period is a time when a business enjoys the benefits of the competition. It could
be short or long depending upon your creative offer.
• The erosion period is when the competitor has found a way to counter your offer. It means
the end of your competitive edge.
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59
Unit Number-2
Offensive Strategy
How Does Offensive Strategy Works?

Businesses can use offensive and defensive strategies all the time. For instance, a publishing
company makes some tech and distribution changes. An offensive strategy would require the
company to diversify its resources into attractive markets, investing more resources, and
acquiring a patent for distributing the technology.
On the other hand, the defensive strategy would require you to wait for the right moment when the
readership falls, and then applying the popular and cheap technology.
Types of Offensive Strategies with Examples
Some of the main types of offensive strategy are as follows;
• Frontal Attack
A frontal attack is when you attack the competitor face to face by offering the same product, price,
and quality. It’s a very risky strategy and the attacker should only do it if he has a competitive
advantage.
Example:
Coca-Cola and Pepsi both are the market leader in the soft drink beverage industry. They both have
got capital and resource. They’ve got a long history of frontal attacks. When Coca Cola launched
diet coke, then Pepsi offered diet Pepsi.
• Flank Attack
A flank attack is when a challenging company attacks the blind and weak points of the competitor.
Companies Faculty Name : Ms.Priyanka Malhotra
05/07/2024 do it to secure their market leadership position. 60
Unit Number-2
Offensive Strategy
Example:
LG attacked the other colored TV manufacturers in the rural market of India. That’s how LG
became the first brand in India to target the rural market. LG found out that the village
market isn’t only price-conscious, but they’re also quality-conscious. They’re willing to pay
more for a product if it fixes their problems.
• Encirclement Attack
Enrichment attack is when you attack the competitor based on its strengths and weaknesses and
don’t leave any margin of error.
Example:
• E-commerce platforms usually follow the enrichment attack and they attack all the strengths
and weaknesses of the competitor platform. They want to win the market share and beat
the competitor.
• Bypass Attack
A bypass attack is when the smart company attacks the competitor through innovation. When a
challenging company launches an innovative product, then it creates a separate segment.
Other companies would soon copy your innovation, but the impact of the attack would last
for a long time.
Example:
Samsung fold and flip to counter Faculty
iphone and
Name gain anMalhotra
: Ms.Priyanka advantage.
05/07/2024 61
Unit Number-2
Offensive Strategy
• Guerrilla Marketing
Guerrilla marketing is when a company makes useful small changes. The repeated changes
make a huge impact on the market. A new small business first achieves popularity, then it
should provide trade and price discounts.
• Example:
McDonald’s painted the zebra crossing lines as yellow to symbolize French fries along with
the brand image like a package. The zebra lines or the French fries are coming out of the
package.
What Makes Offensive Strategy Successful
• A successful offensive strategy must keep in mind the following steps;
• A company must achieve the product acceptance of customers in a very short time. It should
be new and reasonably innovative.
• You should reduce the competition by launching a counter offer.
• You must have all the required resources for the production of the counteroffer.
• You should have a contingency plan in order to protect your position.
• If the benefit period doesn’t last long, it means that the competitors may come up with a
counteroffer at any time. They may copy your innovative differentiating product. The
offensive strategy would only work if your business has strong resources and competencies.
05/07/2024 62
Unit Number-2
Daily Quiz
• How can you leverage new product growth?

• A _______ is when you attack the competitor face to face by
offering the same product, price, and quality.
• _____________ platforms usually follow the enrichment
attack.
• Dependency on other functions is one reason of _________
to change.

Unit Number-2
Extending the product life cycle
Product is the most important ‘P’ of the marketing mix. All products go through a life cycle of
development, introduction, growth, maturity and decline. Branding is used to make a
product stand out from its rivals.
When a product reaches the decline stage, a business can act to extend its life cycle. There
are a number of extension strategies that they can use to prevent their product from
becoming obsolete.

05/07/2024 64
Unit Number-2
Extension strategies
Extension strategies:
• Change product– New and improved versions of the product can be
released… version 2.0 and then version 3.0.
• Change price– Price can be lowered to allow new customers to buy it.
• Change place– Products can be sold in different countries or territories to
gain more sales.
• Change promotion– Different advertising or sales promotion techniques
can prolong the life of the product, giving it a new image.
• Change packaging– The style of the packaging may be changed to give the
appearance of a new and improved product.
• Change usage– Existing customers can be encouraged to buy more of the
product or to use it in a different way. For example breakfast cereals used
advertising to show consumers eating cereal at different times of the day.
• Change name– If a product has suffered from bad publicity and sales are
falling, a tried and tested technique is to simply change the name of the
product.
05/07/2024 65
Unit Number-2
CRM
According to Shani and Chalasani(1992), defines Customer Relationship

Management as“an integrated effort to identify, maintain and build up a
network with individual consumers and to continuously strengthen the network
for mutual benefit of both sides, through interactive, individualized and value
added contacts over a long period of time”
Customer relationship management (CRM) has the business purpose of
intelligently finding, marketing, selling to and servicing customers.
A Customer Relationship Management strategy is a plan to grow sales and
improve customer service through a combination of processes, actions, and
technology. It typically involves the sales, marketing, and customer service
functions of a business.

05/07/2024 66
Unit Number-2
CRM
What will CRM strategy do for my business?

There a number of reasons why your business needs a CRM strategy.
A good CRM strategy will help you:
• Provide an enjoyable customer experience at all touch points of the customer
journey
• Strengthen collaboration between sales, marketing, and customer service
teams
• Clearly and quickly identify the most worthwhile leads and opportunities
• Keep track of your leads and customers as they move through the buyer
funnel
• Carry out targeted marketing campaigns
• Produce concrete figures and data insights to inform and guide your future
business strategies.
• customer retention
• To cross sell products more effectively

05/07/2024 67
Unit Number-2
Daily Quiz
• Name 2 PLC extension strategies.

• Give one example of a PLC extension.
• _________ is an integrated effort to identify,
maintain and build up a network with
individual consumers.

Unit Number-2
Faculty Video Links, You tube & NPTEL Video Links and
Online Courses Details
https://www.youtube.com/watch?v=ebwo_BX_VtU
https://www.youtube.com/watch?v=Zb2cUBjPjtQ
https://strategyn.com/innovation-strategy/

05/07/2024 69
Unit Number-2
Assignment
1.What are the objectives of New product strategy?

2.Explain the Component of new product Strategy ?
3.Factors that influence Product portfolio ?
4.Extending the product Life Cycle ?

05/07/2024 70
Unit Number-2
University paper Links
http://www.aktuonline.com/mba.html
• https://www.pooripadhai.com/previous-year-question-paper/universities/aktu/
mba/
• http://www.aktuonline.com/papers/mba-1-sem-marketing-management-1-kmb
-106-2018-19.html
• http://www.aktuonline.com/papers/mba-1-sem-marketing-management-rmb-
106-2018-19.html

05/07/2024 Unit Number-2 71
Expected questions for University Exams

05/07/2024 Unit Number-2 72
Expected Questions for University Exam

05/07/2024 73
Unit Number-2
References
1) Managing Marketing, Noel Capon, SidharthShekar Singh, 4/e Wiley

2) Marketing: Lamb, Hair, McDanniel, Cengage Learning 2012.
3) Marketing Management - Ramaswamy V. S. &Namakumar S,
5/e, McGrawHill Education Publishers, 2015.
4) Marketing Management - Tapan Panda, 5/e, Excel Publication,2007

05/07/2024 74
Unit Number-2

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Noida Institute of Engineering and Technology, Greater Noida

New Product Strategy

Product and Brand Management

Faculty Name : Ms.Priyanka Malhotra

Faculty Name : Ms.Priyanka Malhotra

Ms. Priyanka Malhotra

Faculty Name : Ms.Priyanka Malhotra

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 5

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 8

• It will help to identify the critical information needed to develop a

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 9

• The objective of this course is to learn fundamentals of Product

Faculty Name : Ms.Priyanka Malhotra Unit

CO1 :Students will develop an understanding of Product and brand

CO2 :Students will develop an understanding of competition at Product

CO5 :Understand the various aspects of Product Management and Product

PO1: Knowledge of Management theories and practices

PO2: Analytical & Critical thinking abilities

PO3: Value based leadership

PO4: Understand, analyze and communicate all aspects

PO5: Achievement of Organizational goals

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 12

Mapping of course Outcomes and program Outcomes

S No CO/PO PO1 PO2 PO3 PO4 PO5 PO6

High =3 ,Medium =2 ,Low =1

Faculty Name : Ms.Priyanka Malhotra

PEO1: Conceptual Knowledge to adapt in rapidly changing environment

PEO3: Exhibit Integrity, social responsibility and teamwork

PEO4: Exhibit ethics, communication skills, leadership qualities and

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 14

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 15

Pre requisite of the Unit

Faculty Name : Ms.Priyanka Malhotra

•Product Management is important to understand competition at product

Students will learn

Faculty Name : Ms.Priyanka Malhotra

• “By new product we mean original products, product improvements,

• “A new product is one which is really innovative which is significantly

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 19

Booz, Allen and Hamilton have identified six categories

ii. New product lines– these products are not new to

iii. Line extensions or Additions to the existing product

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 20

Product improvements: New products that provide improved

Re-positioning: These are existing products targeted to new

Cost reductions: these products offer similar benefits at a

Faculty Name : Ms.Priyanka Malhotra

1. This is a group of closely related products. They are related through

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 23

Product management is an organisational

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 24

• Product managers: Who are already handling existing

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 25

• New Product Departments: This special department is

• New Product Venture Teams: A group brought together

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• A prototype is an early sample, model, or release of

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 27

• A product prototype is an example of a product you intend

• Compared to mass production, prototyping has a high cost

• A working prototype may differ from the final product.

• Low-fidelity prototyping: fast and cheap, often

• According to Wheelwright and Clark (1992), NPD is defined as

05/07/2024 Faculty Name : Ms.Priyanka Malhotra 31

P& BM Unit 2

P& BM Unit 2