Session 8

Question 1

describe the options PMs need to consider in case of reinforcement and protection strategies

Answer 1

1. Stay the course
   (1) … supported by diehard customers
   (2) limited competition
   (3) limited manufacturing capacity
2. Reduce the scope
   (1) scale back to smaller/niche market
   (2) focus on core users
   (3) shift communication efforts
3. Defend the perimeter
   (1) maintain products´visibility
   (2) support loyalists in customer base
   (3) reinforcement product messages

Question 2

describe the options PMs need to consider in case of renewal and revitalization strategies

Answer 2

1.Add new value
Touch points generate ideas for value enhancement.

Consideration>Purchase>Pay for>Take delivery>Inventory>Install>Use>Repair/exchange etc.

2. Product reversioning
   = allows customer to select best price-value combination
3. Reposition
   • retarget and reach “new” customers (Marlboro, Red Bull)
   • add more features to a product (Pampers P&G)
   • breakaway positioning : stripping to it baseline (naked solutions in a B2B context, “Pull-Up” B2C)
   • reverse positioning (Google versus Yahoo)

Shift from product-based to
concept-based brand (e.g Pampers - kids stuff rather than just diapers)

4. Extend the Base
   
   • Increase no. of users
     • convert nonusers
     • win users from competitors
     • enter new markets
   • Increase usage rate per user
     • find new applications
     • encourage more frequent use

Question 3

describe the options PMs need to consider in case of relaunch strategies

Answer 3

Extreme form of renewal

* reborn unused brand
* intense repositioning of a product

	- same planning as for new product launch
	- rethink value proposition – positioning
	- consider input cross-functional team
	- update, reengineer, reconsider pricing
	- align with channels/distribution/sales

Take a look at the past:
Are there old concepts or products that were ahead of their time and might work now? Can you resurrect them?
Are there discontinued brand names that still have value for customers?
Can you repurpose a component, subcomponent, or complete product to create new value?

Question 4

describe the options PMs need to consider in case of rationalization and retirement strategies

Answer 4

“What about retirement?”

Retiring products is part of product line rationalization.
The definition of rationalize is to “weed out unwanted or unnecessary things”
Rationalization refers to making changes to a product mix (including retirement) to increase its profitability.

Create a rationalization process:

• Monitor profitability trends
• Develop criteria for ongoing evaluation:

Consider product line impacts
Sales volume, revenue, profitability
Part commonality
Cost of variety
Compatibility with manufacturing processes
Functionality
Customer need/competitive advantage
Future potential

-Decide which products to retain, to renew or to retire