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    Product Policy of An Organization and Selection of A Profitable Product

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    arun
    This document discusses product policy and selection of profitable products. It explains that product policy is a top management decision that becomes the unique selling proposition of a company. Organizations can opt for different policies like lowest price, highest quality, or compromise between cost and quality depending on the product. When selecting a profitable product, organizations should do a SWOT analysis to understand their strengths, weaknesses, opportunities, and threats. They should also consider customer requirements, cost, design, and in-service needs to pick the optimal product.

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    Product Policy of An Organization and Selection of A Profitable Product

    Uploaded by

    arun
    27 views16 pages
    This document discusses product policy and selection of profitable products. It explains that product policy is a top management decision that becomes the unique selling proposition of a company. Organizations can opt for different policies like lowest price, highest quality, or compromise between cost and quality depending on the product. When selecting a profitable product, organizations should do a SWOT analysis to understand their strengths, weaknesses, opportunities, and threats. They should also consider customer requirements, cost, design, and in-service needs to pick the optimal product.

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    Product design and Development

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    lec3

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    This document discusses product policy and selection of profitable products. It explains that product policy is a top management decision that becomes the unique selling proposition of a company. Organizations can opt for different policies like lowest price, highest quality, or compromise between cost and quality depending on the product. When selecting a profitable product, organizations should do a SWOT analysis to understand their strengths, weaknesses, opportunities, and threats. They should also consider customer requirements, cost, design, and in-service needs to pick the optimal product.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views16 pages

    Product Policy of An Organization and Selection of A Profitable Product

    Uploaded by

    arun
    This document discusses product policy and selection of profitable products. It explains that product policy is a top management decision that becomes the unique selling proposition of a company. Organizations can opt for different policies like lowest price, highest quality, or compromise between cost and quality depending on the product. When selecting a profitable product, organizations should do a SWOT analysis to understand their strengths, weaknesses, opportunities, and threats. They should also consider customer requirements, cost, design, and in-service needs to pick the optimal product.

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    of 16

    Lesson 03

    Product Design and Development


    Product Policy of an Organization and Selection of a
    Profitable Product

    Dr. Inderdeep Singh


    Department of Mechanical and Industrial Engineering

    1
    Product Policy of an Organization
    Product Policy of an Organization

     Product policy is the top management decision.


     Every organization has its own product strategies or policies.
     These policies becomes the unique selling proposition (USP) of
    the company.

     The same company can opt for different policies for the different
    products.
    Various Product Policies
     Lowest price
     Highest quality
     Compromise between cost and quality
     Safety
    Lowest price
    • Lower cost is the main criteria used to compete in the market.

    • Company offer the product at the cheaper price than its competitor.

    • Profit is less, but the company makes the substantial profit by the
    large volume.
    Example: Sanitary paper,
    Carry bags
    Highest quality

    • Some organizations offer highest quality products irrespective of


    the cost.

    • It is to fulfill the need of special class of customers who value the


    quality as the only criteria to purchase the product.

    Example: Medical Equipment


    Compromise between cost and quality
    • Some organizations offer the product with the optimum blend of
    quality and cost to capture the larger section of the customers.

    • The products are reasonably of good quality in proportion to its


    price.

    • The
    organizations try to give good value to the customer for his
    money
    Example: Mobile, Television
    Safety

    • Safety is the main criteria on which they compete the market.


    Example: Electrical gadgets,
    Medical instruments,
    Home appliances
    • Product policy is not only concerned with the product, but also with the functions
    the product fulfills.

    • Products can be classified according to various features, some of which are


    important in preparing product policies.
    Feature Explanation Example
    Durability Non-durable Vs. Durable Hair spray Vs. Automobile
    Re-usability Non- reusable Vs. Reusable Detergent Vs. Glass bottles
    Recyclability Non-recyclable Vs. Recyclable Pesticides Vs. Paper
    Way of Mass production (Standardized) Vs. Light bulb Vs. Craft made furniture
    production Craft made goods (Non-standardized)
    Selection of a Profitable Product
    Selection of a Profitable Product
    • Before selecting a product, organizations have to carryout SWOT
    Analysis in order to know their strength areas, weaknesses or
    limitations, opportunities and the perceived threat.

    • Product selection is a team effort.


    SWOT Analysis
    Strength

    Threat SWOT Weakness

    Opportunity
    Strengths Weaknesses
    • Abundant financial resources • Limited financial resources
    • Well-known brand name • Weak spending on R & D
    • Superior management talent • Limited distribution
    • Better marketing skills • Higher costs
    • Committed employees • Poor marketing skills
    • Limited management skills
    • Under-trained employees.
    Opportunities Threats
    • Rapid market growth • Entry of foreign competitors
    • Changing customer needs/tastes • Introduction of new substitute
    • New uses for product discovered products
    • Sales decline for a substitute product • Product life cycle in decline
    • Economic downturn.
    The Challenges in Selection
    An ever-increasing variety of products are now available, each having
    its own

    • Characteristics,
    • Applications,
    • Advantages,
    • Limitations.
    Select the optimal product according to the requirement of customers,
    cost, design, in-service requirements etc.
    Thank You

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