Product and operation strategy

Product expansion requires intensive planning to ensure that the expected returns outweigh the costs and risks involved.

Product and operation strategy

Types[ edit ] Brand extension research mainly focuses on consumer evaluation of extension and attitude toward the parent brand. In their model, Aaker and Keller provide a sufficient depth and breadth proposition to examine consumer behaviour and a conceptual framework.

The authors use three dimensions to measure the fit of extension.


First, the "Complement" refers to consumers taking two product classes extension and parent brand product as complementary in satisfying their specific needs. Lastly, the "Transfer" describes the relationship between extension product and manufacturer which "reflects the perceived ability of any firm operating in the first product class to make a product in the second class" [11] The first two measures focus on the consumer's demand and the last one focuses on the firm's perceived ability.

From the line extension to brand extension, however, there are many different types of extension such as "brand alliance", [12] co-branding [13] [14] or "brand franchise extension".

In his suggestion, it can be classified into two category of extension; extension of product-related association and non-product related association. In this scenario, the brand-owner works with a partner sometimes a competitorwho takes on the responsibility of manufacturing and sales of the new products, paying a royalty every time a product is sold.

These emotional connections are generally done through social experiments where brands express Product and operation strategy concern and offer small solutions thereby making the brand standout and seem righteous.

Guerilla marketing is a very effective way of connecting with the target market and reaching out to different markets, this extension into the vast demographic while creating brand awareness is highly effective for brands [17] Categorization theory[ edit ] Researchers tend to use "categorization theory" as their fundamental theory to explore the effects of brand extension.

A consumer can judge or evaluate the extension product with his or her category memory. Consumers categorise new information into specific brand or product class label and store it. Some studies suggest that consumer may ignore or overcome the dissonance from extension i.

The early works of Aaker and Keller find no significant evidence that brand name can be diluted by unsuccessful brand extensions. The failure of extension [26] may come from difficulty of connecting with parent brand, a lack of similarity and familiarity and inconsistent IMC messages. They suggest that if the brand name is strong enough as Nike or Sonythe negative impact has no specific damage on general brand image and "the dilution effect is greater on product brand image than on general brand image".

Consequently, consumers may maintain their belief about the attributes and feelings about parent brand, however their study does show that "brand extension dilutes the brand image, changing the beliefs and association in consumers' mind".

The flagship product is a money-spinner to a firm. Marketers spend time and money to maximise exposure and awareness of the product.


In theory, a flagship product has the top sales and highest awareness in its product category. In spite of Aaker and Keller's research, which reports that prestigious brands are not harmed from failure of extensions, some evidence shows that the dilution effect has great and instant damage to the flagship product and brand family.

Still, some studies suggest that even though overall parent belief is diluted; the flagship product would not be harmed. In addition, brand extension also "diminish[es] consumer's feelings and beliefs about brand name.

One mistake can damage all brand equity. A classic extension failure example would be Coca-Cola launching " New Coke " in Not only did Coca-Cola not succeed in developing a new brand but sales of the original flavour also decreased.

Coca-Cola had to make considerable efforts to regain customers who had turned to Pepsi cola. Although there are few works about the failure of extensions, literature provides sufficient in-depth research into this issue. Studies also suggest that brand extension is a risky strategy to increase sales or brand equity.

It should consider the damage of parent brand no matter what types of extension are used. Brand equity Brand equity is defined as the main concern in brand management and IMC campaign.

Every marketer should pursue the long term equity and pay attention to every strategy in detail.Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy.

Operations strategy is the tool that helps to define the methods of producing goods or a service offered to the customer. The product-process matrix is a tool for analyzing the relationship between the product life cycle and the technological life cycle.

It was introduced by Robert H.

Product and operation strategy

Hayes and Steven C. Wheelwright in two classic management articles published in Harvard Business Review in , entitled "Link. Developing Operations Strategies: What, Why, and How? December Report Agenda •What Is An Operations Strategy •Developing The Right Operations Strategy •Managing A Strategy To Achievement Business Strategy Product, Marketplace and Customer Value Proposition Operations Strategy.

Operations executives are facing extraordinary new opportunities to be at the forefront of global business transformation. Digital operations are revolutionizing the way companies develop, make, and distribute their products and services.

But the confluence of global trends, changing industry. The Engineering AMADA: AMADA is a Total Sheet Metal Fabrication Machine Manufacturer that meets the needs of customers engaged in manufacturing. § Life-cycle management and product support (a) Guidance on Life-Cycle Management.-The Secretary of Defense shall issue and maintain comprehensive guidance on life-cycle management and the development and implementation of product support strategies for major weapon guidance issued pursuant to this subsection shall-(1) maximize competition and make the best .

Lean Manufacturing Strategy {Strategos}