Product strategy

A set of decisions regarding alternatives to the target market and the marketing mix given a set of market conditions. Elements of a product strategy

Define your target customer or market. Identify whom you are selling to, and what that market looks like.

What are you selling?Describe how potential customers will perceive your product compared to competitive products. Understand what makes your product unique in the market .

What value do you provide your customers?Determine what problems your product solves for customers. You cannot be everything to everyone within a particular market, but you can help to solve specific problems. Create a value proposition to position the value you provide and the benefits that customers will receive with your solution.

How will you price your product?State how you will price the product. Include its perceived value and a pricing model.

How will you distribute your product?Describe how you will sell your product, and how your target market will acquire your product.

Creating your product strategy

To create your product strategy, start with identifying the market problems you would like to solve. This includes interviewing your target market, understanding the competitive landscape and identifying how you will differentiate yourself.

Your product strategy will change over time as you learn more about your market, and as (if) you decide to enter different markets. Listening to your market and developing your product strategy is a circular process; as you learn more, you will evolve your product strategy and the problems you solve.

Exampleproduct strategyThe following is a brief example of a product strategy. Your product strategy will vary, and will probably be longer, but should follow the theme of the five questions above.

We build quality kitchen hardware for residential kitchen customers.

Our customers are young North American families who want kitchen hardware that can stand the wear and tear of young children. They are interested in materials that are safe for children and eco-friendly.

Our products are priced per unit, and are considered high-end hardware solutions. We sell our products through a retail channel.Power of the product strategy

The power of a product strategy comes from what you define as well as what you exclude. By identifying a particular target market in your product strategy, you are also excluding other markets. This helps your company to understand which projects fall outside the product strategy and distract from strategic goals.

TEMSA GLOBAL

One of Turkeys leading automotive companies, TEMSA Global manufactures and distributes buses and coaches with its own brand in domestic and international markets. TEMSA Global has a total annual production capacity of 11,250 vehicles in one shift at its Adana Production Plant, comprised of 3,750 buses and minibuses, and 7,500 light trucks.

With a total area of 555,000 m2, TEMSAs Adana facility manufactures Safir, from the Intercity and Touring range; Prestij midi coaches; and Avenue, from the City range, developed specifically for public transportation. The Company also produces the TS 35 and TS 30 model buses for the American market, the Avenue and Safir buses for Europe, and HD C12 for MENA, CIS and Non-Europe countries. TEMSA entered into a brand new midi coach segment with the introduction of its MD 9 model for the European market.

Having significant competitive advantages in the industry, TEMSA sells its products to 64 countries in addition to Turkey. In France alone, more than 3,000 TEMSA branded buses are on the roads. The Companys major markets in Europe include Germany, Italy, Austria, Sweden, Lithuania and the Benelux region; meanwhile, TEMSA continues to strengthen its market share in the United States through increased product diversification.Below you will find the images of TEMSA Global's Adana plant.

TEMSA-Our Brand

The TEMSA brand mark is constructed from two elements, the TEMSA roundel and the TEMSA word mark. The brand mark was designed to reflect the Smart Value proposition. Its design reflects the relationship between TEMSA and our customers and the quality of our product. We are driven by value. We know our customers want quality products at affordable prices, so that is what we deliver. But we do not stop there. Our customers are at the core of everything we do. We are a company that is approachable, agile and enterprising.OHS & Environment

Occupational Health & Safety

TEMSA sees occupational health and safety as an integral part of its corporate culture and the Company fully complies with international occupational health and safety practice. These includes: risk identification and risk assessment; occupational health and safety training and notifications; accident and incident analysis; occupational health and safety field and system controls; unannounced field inspections; periodic occupational health and safety meetings; compliance with legal requirements and evaluation studies; implementation of preventive measures and improvements related to working environment and occupational hygiene; emergency management and drills; fire and earthquake safety studies; work site controls and work permits; staff recruitment and periodic health checkups; ergonomics compliance checks; and remediation activities. In addition, the Company supports its suppliers and dealers via training and audits in occupational health and safety issues.

TEMSA maintains full compliance with its TS 18001:2008 OHSAS Occupational Health and Safety Management System Certification issued by the Turkish Standards Institute thanks to the Companys systematic practices in place.

Environment

TEMSA continues its ongoing efforts to minimize the environmental impacts that may arise from its operations. The Companys work in this area include reducing the amount of waste, waste water treatment and recycling; conserving energy through the protection of natural resources; preventing environmental accidents; using environmentally friendly raw materials; reducing costs from environmental management; reducing the carbon footprint from energy consumption; complying with legal and regulatory requirements; conducting employee trainings; and making field arrangements.

Supporting an environmentally aware production approach, TEMSA continues initiatives to expand the use of eco-friendly raw materials such as water-based paints and adhesives and to reduce the use of chemicals.

Thanks to its systematic studies in environmental protection, TEMSA extended its Turkish Standards Institute approved TS EN ISO 14001:2004 Environmental Management System Certification until 2014.

Turquality

TEMSA is the first automotive company included in the Turquality Support Program, which is the first and most comprehensive state funded brand support program in the world.

The Turquality initiative was established to support Turkish brands in international markets and create strong brands with the motto of 10 Global Brands in 10 Years. TEMSA was selected as a Star Brand by Turquality under a 4-category performance evaluation among the 78 brands participating in the program in 2009.

After its inclusion in Turquality, TEMSA entered 25 new international markets and was granted an additional 5-year term of support from the Program for its superior performance. With that support, the Company is moving toward becoming a global player in its industry.

At a time when the effects of the global economic crisis continue to linger,Turquality has provided important strategic contributions to the Company and accelerated TEMSAs branding efforts in international markets.With Turquality support, TEMSA has participated in various international trade shows.

The product strategies of temsa global

Temsa as a global corporation is well known in the Middle East region and in parts of the European market. The company core business is focused on manufacturing high end and utility based buses. To some extent the company and its product have been noted to be very innovative in terms of their designs, user-ability. Starting its operation since the early 1980s, Temsa Global today has come a long way to mark a place of itself in the international market. A study of the company and its analysis shows that the company product strategies during the 1980s and 2009 are totally different from one another.

As the case it is, during the early part of 1980s that is to say precisely since 1984 the company first made its entry in the market as licensor to Mitsubishi Motors, a global auto manufacturing giants based in Japan. However it was only after 2009 that the company took its step forward towards its global operation management that also brought its foothold in the market in the Middle East region and in parts of the European market. (Temsa Global , 2009 )

Speaking of the company from the strategic point of view, it is observed that innovation and design capabilities have been the benchmark for the company to progress. Being a global automotive manufacturing company it requires high-end manufacturing capabilities and innovation to make its mark in the market felt Temsa and its management. Further analysis of the report available with the company shows that it was part of Temsa futuristic outlook towards its operational expertise. The company since 2009 has been in the right course of strategic formulation to make its presence on a global arena. (Temsa Global , 2009 )

This is true given that competitions in the market are ripe enough. For that reason Temsa launches its new brand identity through its hybrid buses that run on CNG in 2009 that changed the course for the company and its operations globally. (Global, 2009) What we learnt is that Temsa produces mainly light trucks, buses and mini-buses from its manufacturing units and factories based in Turkey. However, a gradual shift to the company operation process and manufacturing capabilities was following the year 2009, when the company acquired development design capabilities which given the shift in its product strategy.

2. What organizational changes are required to support the shift in strategy at Temsa Global?

Operation management and its strategy are important to organization in great many ways. It should also be understood that strategic decision are most important given its long-term approach. Most importantly, it is noted by scholars that strategic decision making involves the use of many resources in its strategic formulation to get desired results. (C. Donald J. Waters, 1999 , p. 11)

The above statement is true from a theoretical point of view. Hence, when it matters to Temsa organizational changes that are required the same case also can be seen in the company since 2009 onwards, when Temsa began its restructuring of the organizational makeup and overall operational process. Firstly its name was changed from Temsa to Temsa Global. This is followed by the brandishing process, which are some aspects of organizational change taking place. To top it all, marketing and overall emphasis on branding and its strategy was to ride on the new force if their innovation that paid dividends in 40 years of their R&D initiatives. (Temsa Global , 2009 ) Above all, change should be constant, that is what Temsa Global also have been restructuring, where innovation have been the benchmark of the company to support the shift in strategy.

3. What are the possible advantages of investing in the R&D center for advanced technologies? Discuss the implications considering the changing perceptions and demands of consumers.

Research and development, which is often commonly referred to as R&D is very crucial for manufacturing companies for many reasons known and unknown. As the case is many corporation that have given emphasis to Research and Development or those which have went global give huge emphasis on their Research and Development process within the company or by initiating programs of knowledge sharing.

Research and Development process as a matter of fact can take longer time frame, however; the long term benefits of it cannot be misrepresented. Take for example the case of LOreal that hugely gives emphasis to its research and development. The company today is not only a manufacturing giant in cosmetics and allied products, but it is also a global leader with a fair share of the global market across sector of the industry. This shows that Research and Development have long-term benefits which are crucial for operational expertise, especially when it matter to manufacturing companies. According to scholars it is believed and speculated that the longevity of benefits derived as a result on expenditure on Research and Development is incapable of measurement at the time the expenditure is incurred. (Thuronyi, 1998 , p. 645) That is to say, benefit when measured is incapable, since the tremendous level that Research and Development offers.

Taking this point in consideration, we feel that Temsa Global and its emphasis on Research and Development or let say R&D is a good thing to have come by since the company was established. Most importantly, Temsa Global and its Research and Development process also have been well received, where innovation have been the end results that lead the way for the company to come up with advanced hybrid and CNG design for its buses since 2009.

This shows that 40 years of integrative R&D by the company was successful, given the ability of the company to compete in the technological race as well as manufacturing its products that are high-end as well as out of the box. The ability of Temsa to meet the demand of the market and especially the ability of the company to introduce Temsa Avenue Hybrid, a hybrid bus and buses that run on CNG and green fuel is one example of the company innovation in the current schemes of things, which defines the capability of the company not only in meeting market demands for their products, but also contributing to the environment cause, as well as attending to consumer perceptions and the trends. (Temsa Global , 2009 )

4. What should be the focus of Temsa Global in supporting its market driven product strategy and customized designs?

As a global corporation, Temsa manufacture high-end CNG and hybrid buses which are a huge demand in the market. For that reason when considering the case of Temsa Global from a strategic point of view as a means to support their operation, it is believed that the focus strategy for competitive advantage in the market should be one important point to note or to be considered. Such instance is also what we can observe with Temsa Global. Fact of the matter is that by pursuing global operations they have many benefits for corporation.

Hence, it is felt further that the Temsa Global also should explore the domains of focus strategy and its approach in the most effective ways to drive their products in the international market known for innovation, customized design and most importantly product design, which started to take roots in the company since 2008. (Temsa Global , 2009 ) What we can understand is that the feasibility of focus strategy in terms of management practices are numerous, given that its theoretical and practical approach present a huge dimensional background that can be worked out perfectly in a competitive global market today as the case, especially when it matter to Temsa Global and its operational strategy for instance.

Moreover, it also should be understood that the factor encompassing focus strategy and the implication can be derived from varied grounds. Let say for example implication to be derived can directly be nurtured in context of economic volatility and its befitting end results. Besides, focus strategy also give importance to cost factor analysis in the market. To top it all, overcoming industry thresholds also is very much possible through focus strategy. Finally, the feasibility of focus strategy in most instances can be looked in respect of overcoming scale economic, which we feel can be ample for corporation with their operation in international market. (Porter, 1998, p. 266)

Thus, what we can conclude finally considering the case of Temsa Global is that initiating management approach towards focus strategy can be ample enough and has many befitting end results for corporations that hugely take course through its market-driven capabilities, which is the case with Temsa Global.

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