Product designing strategy

2. 
 INTRODUCTION
 PRODUCT STRATEGY
 PRODUCT DESIGNING PROCESS
 STAGES OF PRODUCT LIFE CYCLE
 DIMENSIONS OF PRODUCT DESIGN STRATEGY
 CAUSES OF NEW PRODUCT FAILURE
 PRODUCT DEVELOPMENT SYSTEM
CONTENTS

6. 
 Definition: The product-design strategy deals with the degree of
standardization of a product. The company has a choice among the following
strategic options: standard product, customized product, and standard product
with modifications.
 Objectives:
 Standard product: to increase economies of scale of the company.
 Customized product: to compete against mass producers of standardized
products through product-design flexibility.
 Standard product with modifications: to combine the benefits of the two
previous strategies.
Product Design Strategy

7. 
 Requirements:
 Close analysis of product/market perspectives and environmental
 changes, especially technological changes.
 Expected Results:
 Increase in growth, market share, and profits. In addition, the
 third strategy allows the company to keep close contacts with the market
and
 gain experience in developing new standard products.
Product Design Strategy

8. 
Idea
Development
Product
Screening
Preliminary
Design and
Testing
Final Design
Product Designing
Process

9. 
Step 1 - Idea Development - Someone thinks of a need and a
product/service design to satisfy it: customers, marketing,
engineering, competitors, benchmarking, reverse engineering
Step 2 - Product Screening - Every business needs a
formal/structured evaluation process: fit with facility and labor
skills, size of market, contribution margin, break-even analysis,
return on sales
Step 3 – Preliminary Design and Testing - Technical specifications
are developed, prototypes built, testing starts
Step 4 – Final Design - Final design based on test results, facility,
equipment, material, & labor skills defined, suppliers identified
The Product Design Process

10. 
Stages of the Product Life Cycle

11. 
 Product-Positioning.
 Product-Repositioning.
 Product-Overlap.
 Product Scope.
 Product-Design.
Dimensions of Product Strategies
• Product Elimination.
• New Product.
• Diversification.
• Value-Marketing.

12. 
1. Techniques
2. Single vs. Multiple Brand Strategy
Product Positioning Strategy

13. 
1. Reposition among existing customers
2. Reposition among new users
3. Reposition for new uses
Product-Repositioning Strategy

14. 
1. Competing brands
2. Private Labeling
3. OEM strategy
Product-Overlap Strategy

15. 
 Society
 Environment
 Economy
Product- Scope

16. 
1. Standard products
2. Customized products
3. Standard product with modifications
Product-Design Strategy

17. 
1. Harvesting
2. Line-Simplification
3. Total-Line Divestment
Product-Elimination Strategy

18. 
1. Product Improvement/Modification
2. Product Imitation
3. Product Innovation
Development Process:
Idea Generation
Idea Screening
Project Planning
Product Development
Test Marketing
Commercialization
New-Product Strategy

19. 
1. Concentric Diversification
2. Horizontal Diversification
3. Conglomerate Diversification
Diversification Strategy

20. 
1. Quality Strategy
2. Customer Service Strategy
Value Marketing Strategy

21. 
 Poor up-front intelligence
 Failure to stick close to what the company does best
 Lack of competitive advantage
 Failure to satisfy a need or want
Some Causes of New Product Failure

22. 
© 2011 Pearson Education, Inc.
publishing as Prentice Hall
Product Development System
Scope of
product
development
team
Scope for
design and
engineering
teams
Evaluatio
n
Introduction
Test Market
Functional Specifications
Design Review
Product Specifications
Customer Requirements
Ability
Ideas