Product Packaging and Product Purchase Strategy from the Perspective of Product Strategy (1)

Teaching purposes and requirements: Products are the carrier of social wealth, and the basis for the survival and development of enterprises. In the fierce market competition, enterprises must fully study the market, conduct market segmentation, find the target market that is conducive to the self-development of the enterprise and give full play to their operating advantages, and adopt appropriate market strategies and product strategies so as to make the company in the fierce market. The tenacious survival and healthy development in the competition. To learn from this chapter, students must master the concept of the correct managers, understand the theory of product life cycle, study the product development strategy of industrial and commercial enterprises and the packaging of products, trademark strategies, and purchase strategies of commodities.

The first section of modern managers' product concept

Enterprises must be invincible in the fierce market competition, first of all must have a modern product concept, that is, the product of the concept of the times, the overall concept of the product, product life cycle concept, product quality and economic concepts.

First, the product of the concept of the times

Commodities are products of certain materials, technologies, production, organization, and social conditions. They are the comprehensive response of material civilization and spiritual civilization of an era. The operators of industrial and commercial enterprises can only correctly determine the strategic direction of product development, and keep up with the trend of development of the times. In the fierce market competition, the managers of the industrial and commercial enterprises can only have the concept of the era of products.

In today's era, the general trend of changes in commodity demand is: 1 new, fast, beautiful, and healthy; 2 light, thin, short, and small; 3 comprehensive, specialized, high, and convenient.

Second, the overall concept of the product

The modern product concept is also called the overall product concept. It is a product-entity ten service. Specifically, it consists of three levels of content, namely, the physical product (or core product), the formal product, and the additional product (or augmented product).

Third, product life cycle concept

History is developing and society is improving. Every kind of product has its input, growth, maturity, and the emergence of alternative products, and the process of exiting competitive markets. No product will ever endure, and the time for the product to be sold in the market is limited. This limited time is called the life cycle of the product. According to the changes in sales, profits, costs, and prices after the product is put on the market, the product life cycle can be divided into four stages: input period, growth period, maturity period, and decline period. With the advancement of science and technology, the product life cycle has gradually reduced.

Fourth, product quality economic analysis concept

The economic analysis of product quality is mainly about the analysis of the relationship between the product quality, price, cost and other factors. In real business activities, if you do not consider whether the company is profitable, do not analyze the actual needs of users, and simply improve the quality in order to improve the quality, the “excess quality” may be formed because the functional design exceeds the actual needs of the user, or because of quality. Excessively high, the cost is too high and the price is expensive, making consumers daunting and turning into quality for appreciation only. Only blindly pursue the company's profit, simply cut corners to reduce production costs, shoddy, ignore the necessary guarantees for product features, the result is that although the price is cheaper, but because the quality is too low, and not popular with consumers. Both of the above tendencies are incorrect ideas in business activities. The modern concept of quality should be the production and sale of "suitable quality" products, that is, satisfying the needs of users and ensuring product quality.

Section II Product Life Cycle and Product Strategy

Studying the product life cycle theory is of great significance for correctly formulating product decisions, timely improving old products, developing new products, systematically updating products, and correctly formulating various business strategies.

I. Product life cycle and its characteristics

The product life cycle refers to the duration of the product from the time it enters the market until it is eliminated from the market by the market. It reflects the process of product economic value change in the market, also known as the product market life cycle. The product life cycle reflects the relationship between the sales volume or demand of the product over time and is usually expressed in the product life cycle curve. From the curve of product life cycle, product life cycle is divided into investment period, growth period, maturity period, and decline period.

1. The investment period refers to the trial sale period when new products are put on the market. The characteristic of this stage is that since the products have just been put on the market, consumers lack understanding and understanding of the products, and only a few consumers do some trial purchases, and the sales volume of products is increasing slowly. At this stage, the characteristics of the product in terms of sales growth rate are: small sales base, large fluctuations in sales growth rate, sales growth rate is positive or negative. In order to open up the market, companies must invest a lot of money in propaganda and marketing, and at the same time, the volume of production is small and the cost is high, so companies can only make modest profits, and sometimes even lose money.

2. Growth period means that after the product has been widely recognized and understood in the market, the test sale has been successful, and the sales volume of the product has started to rise rapidly. In addition to the first batch of consumers, following the consumers also started to purchase a large number of products. Sales channels continue to expand. As the production process, product structure has matured, and the promotion of promotional activities continues to improve, so that the production and sales volume increases, the cost dropped significantly, the company's profit levels increased significantly. At this stage, the sales growth rate of the product is greater than 10%. At this stage, due to the attraction of profit opportunities, competitors began to flood the market and continue to launch their distinctive products.

3. The mature period means that the product has been widely recognized and accepted in the market. The sales volume of the product has reached the highest point. The production and sales volume has formed a scale, the product cost is low, and the profit has been maximized. At this stage, the product tends to be saturated in the market, and sales growth slows down and stabilizes until a downward trend occurs. At this stage, the sales growth rate of the products is between 0% and 10%. A large number of products and competitors flood the market. Companies are facing fierce competition and severe marketing management. The phenomenon of oversupply in the late maturity period began to appear, and a few weaker competitors began to withdraw from the market.

4. The recession period refers to the period when the products begin to age and become obsolete, and the sales volume has a clear downward trend, and the products are transferred to the replacement stage. The downward trend of different products is very different. Some declines are slow, last longer, some fall rapidly, tend to be very low in the short term or completely withdraw from the market. At this stage, profits are rapidly reduced until losses occur, and the production and sales of such products are stopped. In the recession period, the sales growth rate of products is generally negative.

In actual business activities, the life cycle of some products does not change according to the above laws. To sum up, there are three situations:

1. Fashionable product life cycle.
2. Infinitely extended product life cycle.
3. Life-cycle product life cycle.
Second, the product life cycle extension

Extending the product life cycle is mainly to prolong the maturation period of the product. There are two main methods for this:
1 Improve existing products; 2 Change marketing strategies.

1. Ways to improve your product.

(1) Improve product appearance and packaging performance.
(2) Change product quality. Through the change of product quality, meet different levels of demand.
(3) Change the function of the product and expand the use of the product.

2. Change the marketing strategy.

(l) Transfer markets. Products from more advanced industrial countries can often find their markets for recessionary products in developing countries; they can also invest their recession products in economically backward areas in regions with high domestic economic levels.
(2) seek new uses. The search for new uses of products means developing new uses without changing the quality, features, and functions of the products.

3. Change marketing mix strategy. Combining the changes in the product itself, as well as changing the price strategy, advertising strategy, sales channel strategy, and sales mix strategy, will also often prolong the product life cycle.

Third, product technology reserves and replacement

Doing a good job of product reserves and timely upgrading of products are the core issues to be studied in the basic principles of product life cycle.

1. Product replacement. When the product has entered a recession period, companies should gradually withdraw to avoid unsold sales. The market gap should be filled by new products to meet the needs of consumers and maintain the market share of the company's products.
2. Product technology reserves and timing. To be able to successfully complete the upgrading of products, we must do a good job of product selection and product launch time (or update the timing) choice. When the product enters a mature period, there is no obvious drop in sales and profits. At this time, competitors have swarmed and products have been threatened and must be prepared.