In the practice of Russian marketing, this is exactly the name of a policy that combines in itself: the assortative policy and the brand policy of a company.
Thus, the document "product policy" consists of 2 sections:
Brand policy (brand policy)
Brand policy determines the number of brands of the company, assortment content and positioning in the market of each of them. Brand policy reflects the mutual position of brands, if a company offers several brands to the market. The policy assigns to the brands the price and consumer segments of the market, with the sole exception of the possibility of internal competition between the brands of the company. The policy of brands, fixing the foundations, makes it possible to concentrate efforts on the promotion, maintenance and replacement of brands, depending on the life cycle of the brands and the goals of the company.
Here, perhaps it would be possible to finish the introductory part and start writing if there were no competitors. In a dynamically developing market, the policy of brands will and must undergo periodic changes, the reason for which is: successful, or not so much, the company's activities on the implementation of brand policies and the activities of competitors that prevent us from implementing such a policy written by us. Regular countermeasures, as a response to changes in the market situation, displayed in a changing brand policy is the formation of an effective brand policy of an enterprise.
Assortment policy - description and consolidation of the company's product range, depending on the needs of the market, the financial condition of the company and its strategic goals. Usually assortment policy has long-term goals. But not just usually, but without fail, since the assortment management requires significant financial costs and management efforts. Wandering from side to side, constant attempts to include something very minutely profitable in the assortment will be distracted by the efforts of managers and financial resources.
A fixed assortment policy is an element of your competitive strategy. The reason for asking questions about expanding or narrowing the company's product range may have various reasons depending on the whole complex of specific conditions: industry, product group, size of the company and other conjuncture components. Nevertheless, general rules and dependencies can and should be defined and formulated in the assortment policy based on the analysis of the state and development of existing market segments (external factors) and financial changes occurring within the company (internal factors).
The choice of assortment policy should be based not only on the assessment of changes in cash flows caused by changes in the assortment, but also on the forecast of the state of cash flows in the future. As noted above, any expansion of the product range will inevitably entail an increase in the company's resources. At the same time, it must be remembered that positive financial results from changes in the assortment are only assumed and will be only in the future.
The objectives of the product policy of the enterprise
It may be stupid, but first, first ... The development of a product policy should reflect a certain marketing goal in relation to the "market-company-goods company", defined and formulated in advance. In other words, product policy is a part of the company's marketing policy, time. Product policy - there is a fixation of the company's commodity goals in relation to those markets in which the company is present.
Before writing a product policy, let's understand the possible goals that a company can set for itself. Moreover, the goal can certainly be only one in respect of one brand.
Goal 1. Increase sales, profits, company value, brand.
Goal 2. Achievement .... given profit margin; a certain profitability.
Goal 3. Reduce risks. expanding the customer base, smoothing seasonal fluctuations, reducing the impact of competitive brands on the market, ensuring the stability of the brand, due to the diversification of product offerings.
Goal 4. Reduction of production costs, logistics due to capacity utilization, increase in turnover, increase in profitability.
We noticed that the goals are always financial, and the means of their realization are marketing, and the tool for realization is always a commodity ?! That is the way to always set a goal.
In other words, improving reputation (brands, companies) is not the goal. What is the purpose of improving reputation? In the future, increase the value of the brand, the company to sell it? Or do all this in order to increase sales? Then the goal is again financial and it is in this volume.
More products, good and different ...
When drafting a product policy, please note that it must reflect:
Like stamps in your price list;
So are the brands that you plan to enter in the price list. What are these stamps? See sections of marketing policy in terms of development: new regions, new markets;
And the brands for which you have already decided: you will display them, or replace themon new stamps.