Product Brand Management TATA Global Beverages TATA Global
Product & Brand Management
TATA Global Beverages TATA Global Beverages (formerly Tata Tea) is poised to hit kids street. The beverage company, which till date has been focusing only on the adult population, is looking to introduce children food products as part of its strategy to diversify into foodspace, which is beyond beverages. The company, which has grown inorganically over the past few years, is also open to the idea of acquisition in the foodspace. Talking to ET, RK Krishna Kumar, vice-chairman of Tata Global Beverages, said: “We will be looking at nutritional food and wellness products in the food category. Nutritious food like fortified candies can be introduced for children. The kids segment is an area which we will be exploring. While it may be in both in the liquid and solid foods category, we cannot divulge our plans at this point. ” Advertisement
TATA Global Beverages Elaborating, he said: “Our mission is to provide products in the market that delivers physical and functional benefits and satisfying emotional and wellbeing needs. Our vision is to be the leading ‘good for you’ beverage company. ” He also indicated acquisition in the beverage space, both in India and abroad, in the next five years to become a $5 -billion company by 2015. The Tata Global Beverages vice-chairman also indicated that while the company will continue with innovations in its areas of strength, it will also seek to partner with others in other beverage segments aligned with the company’s mission of offering wellness and nutritional products. “These partnerships will either help us build scale or enable us to acquire interests in new, emerging, fastgrowing categories, ” he said.
Incidentally, the company had already announced a non-binding memorandum of understanding with Pepsi. Co to form a JV. “Our JV with Pepsi will enable us to market non-tea liquid bottled products, ” Mr Krishna Kumar said.
• Targets $5 -billion turnover by 2015 Our Bureau KOLKATA TATA Global Beverages (TGB) is targeting a $5 billion ( 23, 000 crore) turnover and 15% EBIDTA growth by calendar 2015. The growth is proposed to be achieved through expansion in core markets, ramping up scale in the US and Russia, introducing innovative products, expanding beverage categories in India and entering new geographies. At present, Tata Global Beverages has a consolidated turnover of 5, 821 crore. Along with its plans to grow its business, the company also has plans to restructure Tetley’s operations, which had joined Tata Global Beverages in 2000. Tetley is now present in 70 countries in the world with a 28% value share in the UK market. This was indicated by TGB chairman Ratan Tata at the company’s AGM on Monday.
Mr Tata said the TGB will make investments in all its brands and innovation. “Going ahead, our plan is to make TGB a global player, addressing new markets in India and abroad with new products and new innovations, ” said Mr Tata. Incidentally, TGB’s plan is to enter 100 new countries by 2015. In the US and Canada, TGB witnessed a 189% growth in revenues. The company increased prices of its
In the US and Canada, TGB witnessed a 189% growth in revenues. The company increased prices of its products in the UK, Africa and Canada. The company introduced Tetley Infusions in the Canadian market. Eight O’Clock Coffee, a brand acquired by TGB in 2005, has emerged as the third largest coffee brand with a 5% share in the US retail coffee market. Mr Tata was extremely bullish about Tion, a ready-todrink cold beverage launched in 2008. “Tion has carved a niche for itself and we are planning to launch the product across India, ” he said.
Mr Tata said the company’s proposed JV with Pepsi. Co would be leveraged for domestic and international distribution of TGB’s products. “We are now examining how best we can leverage this JV, ” Mr Tata said. The proposal envisages initially offering existing health and wellness products and later diversifying into foods with the intent to address nutritional and lifestyle challenges. To shareholder queries, Mr Tata said: “We have not exited Kolkata. We regret we had not been able to do what we had planned for West Bengal. We hope to dedicate the Tata Cancer hospital this year to the people of West Bengal. We have increased our investments in the cancer hospital, which is coming up at Rajarhat. ”
Product Portfolio Strategy - Introduction to the Boston Consulting Matrix The Business portfolio is the collection of businesses and products that make up the company. The best Product portfolio is one that fits the company's strengths and helps exploit the most attractive opportunities.
Product Portfolio Strategy Contd…. The company must: (1) Analyze its current business portfolio and decide which businesses should receive more or less investment, and (2) Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained
Methods of Portfolio Planning: The two best-known portfolio planning methods are from 1. The Boston Consulting Group and 2. The General Electric/Shell. In each method, the first step is to identify the various Strategic Business Units ("SBU's") in a company portfolio. An SBU is a unit of the company that has a separate mission and objectives and that can be planned independently from the other businesses. An SBU can be a company division, a product line or even individual brands - it all depends on how the company is organized.
The Boston Consulting Group Box ("BCG Box") /matrix
Using the BCG Box a company classifies all its SBU's according to two dimensions: On the horizontal axis: relative market share - this serves as a measure of SBU strength in the market On the vertical axis: market growth rate this provides a measure of market attractiveness By dividing the matrix into four areas, four types of SBU can be distinguished
Stars - Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. Cash Cows - Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars.
Question marks/Trouble Child - Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management have to think hard about "question marks" - which ones should they invest in? Which ones should they allow to fail or shrink? Dogs - Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in.
Using the BCG Box to determine Strategy • Once a company has classified its SBU's, it must decide what to do with them. In the diagram above, the company has one large cash cow (the size of the circle is proportional to the SBU's sales), a large dog and two, smaller stars and question marks. • Conventional strategic thinking suggests there are four possible strategies for each SBU
(1) Build Share: Here the company can invest to increase market share (for example turning a "question mark" into a star) (2) Hold: Here the company invests just enough to keep the SBU in its present position (3) Harvest: Here the company reduces the amount of investment in order to maximise the short-term cash flows and profits from the SBU. This may have the effect of turning Stars into Cash Cows. (4) Divest: The company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere (e. g. investing in the more promising "question marks").
Goals Of Portfolio Management is used to select a portfolio of new or product development projects to achieve the following goals: 1. Maximize the profitability or value of the portfolio 2. Provide balance 3. Support the strategy of the enterprise
Product Management Process
Product Management Process • Product management is an organizational lifecycle function within a company dealing with the planning or forecasting or marketing of a product or products at all stages of the Product Life cycle • Product management (inbound focused) and product marketing (outbound focused) are different yet complementary efforts with the objective of maximizing sales revenues, market share, and profit margins. • The role of product management spans many activities from strategic to tactical and varies based on the organizational structure of the company. Product management can be a function separate on its own and a member of marketing or engineering.
Product Initiation Feasibility Design & Plan Launch Development Testing Operation Decommissioning Product Management Process
Product management is an occupational domain which holds two professional disciplines: 1. Product Planning (Inbound) 2. Product marketing (outbound) This is because The Product's functionality is created for the User via Product Planning efforts, and The Product value is presented to the buyer via Product marketing activities
Product Management Product Planning Product Marketing Customer Advocacy Business Value Copyright © 2010 Blackblot. All rights reserved.
Product planning: • Defining new products • Gathering market requirements • Building product roadmaps, particularly Technology roadmaps • Product life cycle considerations • Product differentiation Product marketing: • Product positioning and outbound messaging • Promoting the product externally with press, customers, and partners • Bringing new products to market • Monitoring the competition
Product Management Function
Product Management Function • • • A product management Function is a carefully Planned detailed strategy Of the product from concept stage moving across different stages in getting the product to the market up to its disposal stage The product management function is the hub of many activities around the product. In others, it is one of many things that need to happen to bring a product to market. Product management often serves an interdisciplinary role, bridging gaps within the company between teams of different expertise, most notably between engineeringoriented teams and business-oriented teams
• While the Product Management function had existed for many years and is employed at many companies today, • The roles, responsibilities and activities vary from company to company, so there is no single “blueprint” for the function that a company can use. • In fact, the product management function should vary from company to company, since each has its own unique business model. • In addition, each organization already has processes in place, so the product management overlay requires a degree of change management. • A product manager investigates, selects, develops, products for an organization, performing the activity of Product management.
The Product Management Functions
The Main Functional Areas DEVELOPMENT FUNCTIONS BUSINESS FUNCTIONS TESTING FUNCTIONS Product management Functions Management Execution FUNCTIONS Functions SUPPORT FUNCTIONS
1 BUSINESS FUNCTIONS: • Market analysis • Business rules • New Product Ideas • Requirements • Coordinate product launches • Decide product tradeoffs • Assess cost • Feasibility
2 DEVELOPMENT FUNCTIONS: • Architecture and Design • Coding • Hardware Design • Prototyping • Unit Testing • Deployment • Maintenance – Plan manufacturing – Manufacture – Build/Assemble • Test (quality check)
3 TESTING FUNCTIONS: • Test Case Design • Market Compliance • Product Quality Assurance • Product Gap Tracking • Feed Back Reporting
4 Management FUNCTIONS Product MGMT FUNCTIONS: • Project tracking • Communications Planning • Scheduling • Budgeting • Resource Allocation • Issue Resolution
5 SUPPORT FUNCTIONS: • Customer issue resolution • Defect Reporting • Customer Training • Sales Training
6 Execution FUNCTIONS DOCUMENTATION FUNCTIONS: • Create all product documents • Sales Training Materials • Complete process DOCUMENTATION • Customer Training Materials • Online and office help documents • Additional as-needed documentation • Execution , Feed Back & Monitoring of the product up to End-Of- life. • Sell and Deliver • Maintain and Support • Dispose
Draw backs Of The Product Portfolio Approach
Draw Backs: Portfolio Approach 1. 2. 3. 4. 5. It is very subjective some times to maintaining & balanced the product portfolio. The Portfolio is unbalanced when there are too many problem child & dogs, and not enough stars and cash cows. The product portfolio approach most of the time fails to understand individual product ‘s Market Penetration, Product development, Market development, Diversification of the product Etc. . Different products in the portfolio has different roles Enough investments is needed to maintain the market share of such product. But the portfolio approach may not considered. Most Companies will not have resources to invest in many trouble child Products.
6. In assumption that cash flow will be determined by product’s position in the matrix is weak. Some stars will show a healthy positive Cash flow as will some dogs in the markets where competitive activity is low. 7. The analysis ignores interdependence among products. A dog may complement a star. Customers may want a full product line. 8. Competitions Reaction are not assessed. 9. These Matrix does not define a market i: e Whole market or a Segment. 10. The Matrix does not identify the criteria such as Market attractiveness, competitive Strength and weighing different Criterion and also does not suggests which Product to be Build, harvest or Dropped.
PRODUCT MANAGER : Scopes, Responsibilities &Authority
PRODUCT MANAGER : Scopes, Responsibilities &Authority 1. 2. 3. 4. 5. The product manager will be responsible for managing the entire product life cycle from strategic planning to tactical execution. A product manager investigates, selects, develops, products for an organization, performing the activity of Product management. Develop market requirements, maintain feature requirements for current & future products by conducting market research and on-going visits to customers as well as prospects. Develop and write product requirements, maintain and develop all product documentation including business case, product requirements, Packaging, pricing and policies. Analyzing potential partner relationships for the product and implement a company-wide go-to-market plan, working with all departments to execute in time.
6. PRODUCT MANAGER : Scopes, Responsibilities &Authority The product manger is responsible for Managing products through complete life cycle, from strategic planning to end-of-life. 7. Defines the product strategy and roadmap Establish product roadmap across multiple product releases 8. Ability to influence cross-functional teams without formal authority. Should Have excellent team work skills 9. Build and maintain prioritized feature lists from requests from partners, customers, internal findings, existing product analysis, and industry trends 10. Participate in formal product development processes by working with product development team to provide guidance 11. Develop product management documentation, including, product concept proposals, business cases, formal product requirement specification for each release, launch plans, product collateral, sales training
PRODUCT MANAGER : Scopes, Responsibilities &Authority 12. Establish relationships with sales and sales engineers to position and sell product successfully, providing training and leadership on strategic opportunities 13. Work closely with Marketing group to optimize marketing of product/solutions through all marketing channels and provide guidance on all product collateral 14. Support financial requirements of product management including pricing, budgets and forecasting. Set pricing to meet revenue and profitability goals. Also , Deliver a monthly revenue forecast 15. Other Functions as assigned From time to time related to the product by the top management. 16. Work with external third parties to assess partnerships and licensing opportunities.
PRODUCT MANAGER : Scopes, Responsibilities &Authority 17. Work with external third parties to assess partnerships and licensing opportunities 18. Be an expert with respect to the competition 19. Act as a leader within the company 20. Brief press & analysts and go on press tour
The Need For A Product Management system
• • • Today, challenges faced by product development teams include globalization, outsourcing, mass customization, fast innovation and product traceability. Additionally, organizations are being asked to do more with fewer resources; product complexity is increasing while product lifecycles are compressing. Furthermore, to be competitive, manufacturers not only need to increase the rate of product innovation but also accelerate time to market, while tightly managing costs and relentlessly driving quality. New product development challenges also include external factors such as product proliferation, consumer awareness, fast-moving consumer trends and changing government regulations. At the same time, manufacturers must comply with an increasing number of standards and regulations. Equally important, interest in global product development is growing dramatically, driving new demands for distributed processes, collaboration, and global data management. PM systems are gaining acceptance for managing all information about the corporation's products throughout their full lifecycle, from conceptualization to operations and disposal. The PLM philosophy and systems aim at providing support to an even broader range of engineering and business activities.
• PM enables the entire design and supply chain to track, document, and report on important details including design intentions, considerations, test results, decision rationale, and compliance requirements within the context of the asdesigned product configuration.
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