Madhavi Garikaparthi

gmadhavi@ibsindia.org
rmmadhavi@yahoo.co.in
Dr. Spencer Silver discovers a
unique, repositionable while
working as a Senior Scientist in
3M's Corporate Research Lab.
Silver shops his discovery
around to other 3M scientists,
trying to discover a problem
that it can solve.
While singing in his church
choir, Art Fry, another 3M
scientist, tires of losing his
place in the hymnal.

He dreams of a bookmark
that's lightly adhesive.
Then he remembers Silver's
adhesive, and his dream
begins to become real.
Fry overcomes
manufacturing obstacles
to produce enough Post-
it® Notes to supply 3M's
corporate headquarters,
and 3M employees are
soon hooked.
After test markets show mixed
reactions to Post-it® Notes,
marketers realize that the secret
to success depends upon
sampling the product.

After saturating the office supply

industry with samples, an
astonishing 90 percent of
consumers who try the product
say they'll buy it.

The product is given the green

light by management.
Post-it® Notes are introduced
in 11 Western states with
heavy sampling.
The test is such a success,
that consumers start shipping
the notes to their co-workers
in cities where the product is
not yet available.
Post-it® Notes are
introduced nationally in the
United States. Lee Iacoca
and other Fortune 500
CEOs write to say how
much they love the product.
 Post-it® Notes are introduced in
Canada and Europe.

Post-it® Notes celebrate their

10th anniversary and are
Post-it® Brand Mark 1991
featured on many lists of top
consumer products of the
decade.
 Today, there are more than 600 Post-it®
Products. The now famous "not-so-sticky"
is also used on several other 3M products.

It would take approximately 506,880,000 Post-it® Notes to circle the world once.
(Based on the earth's circumference of 24,000 miles and using 2-7/8 inch square Post-
it® Notes.)
Product Management Rule #1

There is no wrong way or right way to do product

management – you should do what gets you the result
you want.

So what is the result you want??

What is Product Management

A process for delivering the right features at the right

time

Product Management is NOT about extensive

documentation!!
Product Management Basics

The primary job of the product manager is to clarify

Product Management Basics

The secondary job of the product manager is to be the

person who says “no” (and have good reasons for
saying it)
 Agency media department
Company media department
Suppliers Media sales reps
Advertis-
Trade Manufactur ing
-ing and agency Media
Suppliers Premium
distribution suppliers
Research Premium
and Promotion screening Store
development services testing Sampling
Couponing

Product Packagin
Legal
manager g

Designers
Purchasin Researchers
Fiscal g

Market Publicity Suppliers

research
Sales
Research
suppliers Trade
Product Manager at Work
The SUV Market : Competing in the Middle Segment
Feature-wise Comparison
Dimensions, fuel efficiency, Performance, Engine,
Transmission, Suspensions, Brakes, Wheels & Price
Brand image of the Products
SWOT Analysis
Product Manager – Required
Qualities & Skills
Excellent Communication Skills
Customers & the company
Various departments within the company
The company & the customers
Ability to manage the product portfolio
Ability to manage cross-functional coordination
Persistent learning
Passionate about the product
Duties & Responsibilities
Adjusting the Marketing Mix
Boundary Spanning
Dealing with Uncertainty
The value Chain & Profitability
Tools required
Information Systems and Analytics
 Use of agents
 Suitable architecture
 Retrieval of knowledge
 Constant up gradation
Customer interactions
 Listening to customers
 Interaction with advanced users
 Toolkits for innovation
Access to knowledge regarding emerging trends
Product Portfolio Analysis Models
SWOT & Benchmarking
Product-Focused Structure
Head of
company/division

Manufacturing Marketing Corporate

Finance
communications

Marketing Product
Support
Research management

Manager of Manager of Manager of

product A product B product C
 Product
Sales Corporate
Development
Communications
& Marketing

Product Channel Public Trade

Marketing
Marketing Merchandising Relations Shows

- Specification
- Cross Product Programs - Channel Promotions - Organize Press Tours - Trade Shows
- Positioning
- Road Shows - Channel Advertising - Press Communications
- Pricing - Seminars - Coop Advertising - Editorial Opportunities
- Spokesperson - Third Party promotions
Internal & External - Events
- Promotions - Creative Services
- Advertising
- Product Strategy
- Product Analysis
- Anything Cross
Functional
- Keep communication
flow going
 Ron Zarrella
VP & group executive, North American Operations

John Middlebrook Phil Guarascio Roy Roberts John Middlebrook William Lovejoy VP
VP & GM, vehicle VP & GM, advertis- VP & GM, field sales Support staff group & GM, service parts
brand marketing ing & corp. mktg. service & parts directors operations

Division marketing Regional general Service parts

general managers (6) manager(s) organization

Regional Regional
Brand services Regional Regional
Brand teams support divisional
managers service parts
manager marketing
manager manager
manager

Marketing area
managers

Area sales Area parts

Area service manager
manager manager
 Head of the
company/division
 Vice president, marketing

Assistant vice president, Assistant vice president, Assistant vice president,

consumer marketing business marketing interindustry marketing

Marketing planning and

Product management Carrier marketing
product development

Operations and sales Product management Operator services

Customer billing Operations

Revenue and
Directory products
market forecasting
 Head of the
company/division

Corporate
Manufacturing Marketing Finance
communications

Product Sales Marketing

Advertising
marketing promotion research
 Chief Marketing Officer

VP, Customer VP, Marketing VP, Experience

Management Technology Design

Director, Director,
Director, Director, Director, Creative Multimedia
Research Cohort 1 Cohort 2 Development Production

Director, Director, Director,

Director, Marketing
Customer Service Marketing Delivery Customer
Asset Management
Systems Systems Database
Relevance of Product Management
Web
Data Explosion
Increased emphasis on brands
Changes in the balance of market power
Increased importance of customer retention
programs
Increased global competition
Relevance of Product Management
Tendency to buy on credit card
Lifestyle marketing
Untapped rural marketing
Increase in event sponsorships
Emerging Trends
Spoilt-for-choice customers
Global Competition
Ineffectiveness of Mass Communication
Personalization
Value additions
Need for Product Management
Need to focus on various Customer Segments
Easier Targeting
Enabling Innovation
Communication Through Multi-channels
Managing the Product’s Life Cycle
A Basic PM Process
Feature List
Visionary Clarification of Requirements

Requirements Feature Review

QA

Sales

Broad Scoping
Competitors Specifications

Clarification of Specs
Customers/Users

Engineering
Basic Documents
• Feature List
– A loose list of all features that have been requested
• Overview
– A document outlining briefly what features are in a release
and their purpose to the release
• Requirements
– A document listing all new requirements for the release
– Old requirements are assumed unless changed
• Specs
– A response to requirements with choices and consequences
Product Management Basics

The job of product management is a

strange but wonderful intersection of
business, technology, marketing, project,
and process--all combined with deep
market knowledge
Some think….

The Product Manager should be the most empowered

employee in a company!!
- Yes, even more than the CEO -
Changing Role of Product Manager
New Products
Climate Change Chocolate Bar
World's First Non-Contact Thermometer
Plate Flipper - License Plate Message Text
Earth Dog Tags - When You're Lost in Space
Classification of Consumer Product
Characteristics Convenience Shopping Specialty
Example Grocery Items Clothing/Fashion Fancy Goods/
Appliances
Major Motive Easy availability Spend effort Long deliberations
Knowledge prior High Medium Low
to purchase
Effort spent to Minimal Moderate As much as
acquire necessary
Frequency of Regular Season/occasion Varies
Purchase
Willingness to High Moderate Low
accept substitutes
Buyer behavior Little info. Search Comparing Intensive
options consultation
Industry View of PM - FMCG
Staples
Impulse goods
Emergency goods
Characteristics of FMCG from
Consumer’s Perspective
Frequent purchase
Low involvement
Low price
Characteristics of FMCG from
Marketer’s Perspective
High volumes
Low margins
Extensive distribution networks
High stock turnover
Product Mix & Line Decisions
Width, depth, length & Consistency
Line Stretching
Line filling
Line modernization
Line featuring
Growth Strategies
Multibrand strategy
Product Flanking
Brand Extensions
Building Product lines
New product Development
Innovations in core product
Growth Strategies (continued..)
Long-term outlook
Extending the PLC
Expanding the markets by usage
Wide distribution network
Monitoring the pulse of the consumers
Advertising and media coverage
Sales promotion
Managing Line Extensions
Customer Segmentation
Consumer desires
Pricing breadth
Excess capacity
Short-term gain
Competitive intensity
Trade pressure
Managing Line Extensions (cont..)
Trade pressure
Energizing the brand
Exploitation of variety fulfillment
Expanding a brand’s core promise to new users
Managing true innovation
Blocking or inhibiting competitors
Managing a dynamic environment
Testing ground for National launch