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Matakuliah : J0114/Manajemen Pemasaran
Tahun
: 2008
Product Strategy
Pertemuan 15
Learning Outcome
•Students are able to classify products into
different type and categories
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Material Outline:
• Product: formulation, packaging, design, and value
proposition
• Types of product
• Product attributes
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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)
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Product
• Flow of a new concept:
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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
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.
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Product
• Consumers do not buy packaging of a product. But
without packaging, there can be no product
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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)
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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.
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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
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
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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
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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.
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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.
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Product Attributes:
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Core benefit
Packaging
Design
Price
Brand
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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.
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