Product Strategy

Products level: There are 3 levels of product Core product, Actual product and Augmanted
product. If you think of a product, you most likely think of only one level of the three levels of
product. Three levels of product can be identified. Each level adds more customer value.
The first and most basic level is called the core customer value. The first one of the levels of
product, the core customer value, answers the question: What is the buyer really buying? When a
marketer designs a product, he should first think of the
core problem. What does the consumer really seek? If
we buy a coil, the most basic core value we seek is
Protection from mosquito. For others, it might be they
dont likes mosquito sprays or they are environment
concious.We can see that already the first one of the
three levels of product is much more than the product
itself. We always ask ourself first when developing a
product: What benefit does the customer really seek?
What is the problem that needs to be solved?
The second one of the three levels of product is the actual product. Marketers should turn the
core benefit, the core customer value they identified into an actual product. This involves
developing product features, design, a quality level, a brand name and even a packaging. The
coil we finally buy are actual products. We buy the coil, the packaging, the functionality and so
on. All these factors at the second one of the levels of product relate to the core customer value.
This reveals that the levels of product build up on each other. The coils name, parts, styling,
features, packaging and other attributes all have been carefully combined to deliver the core
customer value of staying safe from mosquito.
Finally, the levels of product are completed with the augmented product. The augmented
product rounds of the three levels of product, being built around the core value and the actual
product. It simply offers additional consumer services and benefits. If we buy an Xtreme coil you
get more than the core customer value (e.g.more health safety), and also more than the actual
product. These are only two levels of product. The augmented product you get is the complete

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solution to your safety problems as defined by the core customer value. This complete solution
might take the form of a warranty,instructions on how to use the coil and so further.

Product Line:A product line is a group of related products all

marketed under a single brand name that is sold by the same
company. Companies sell multiple
product lines under their various brand
names, seeking to distinguish them
from each other for better usability for
consumers. Companies often expand
their offerings by adding to existing
product lines, because consumers are
more likely to purchase products from brands with which they are already familiar. As our
company is relatively new in thhis segmentation we dont have a huge product line. Currently we
have two types of coils for our targated market One is Xtreme coil for mass people. Another one
is Xtreme eco friendly coil for the upper middle class market. We have planned a Xtreme
branded mosquito Aerosol. We are also planning to bring Xtreme Branded mosquito vaporizer
tpoo.

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Brand Devolopment: A company has four choices when it comes todevoloping brands. It
can introduce line extension,brand extension, multibrand or new brand. In this purticular place
Bashundhora group has decided to create a new brand . Because Bashundhora group belives the
power of its brand name is waning and a new brand name is needed cause its completly a new
market for them. Thats why they created this completly new brand Xtreme and they are also
using their resources to help it grow.

Pricing Strategy
We have used two types of pricing strategy for our products. They are market penetration price
and we also used mix pricing strategy such as Product line pricing too.

Market penetration price: Market penetration pricing is a pricing strategy that sets a low
initial price for a product. The goal is to quickly attract new customers based on the low cost. We
used this strategy for our Xtreme coil for mass people. Cause this strategy is most effective for
increasing market share and sales volume while discouraging competition. In markets with
multiple sales or high repeat business, penetration pricing creates an advantage for firms that can
sell products at lower prices than the competition. Having high initial sales usually results in a
lower per-unit cost, allowing an acceptable profit margin while keeping competition at bay. It
creates goodwill for the company if customers perceive that they are purchasing a high-quality
product at a fair price. As a result we have gained 18% of market share quickly though we are
new in this segment.
Product line pricinng: Companies with multiple product lines often use a product line
pricing strategy to create an impression of value toward certain items. This technique is
designed to create cost categories that separate goods into different levels of perceived value.
Creating large price gaps between the levels is most effective since it makes it easier for
consumers to tell the difference of quality details among products. There are a variety of
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different product line pricing strategies; the correct one for your goods depends on what you
offer to consumers. So we decided to use this strategy. Thats why we have two coils in our
product line and one is priced at 50bdt another is priced at 80bdt.

Distribution Strategy: Xtreme realizes that being closer to the customers is essential in
carrying out its marketing strategies as well as in enabling it to build customer base. Our company
works on build to order business model and uses just the right time to distribute its products at
optimal prices thereby decreasing the inventory cost and delivery time. We have very effectively
used the direct marketing channel for the sales of coils to the last seller or retailer or super shops.
Xtreme combined operational and process innovation with a revolutionary distribution model to
generate tremendous cost-savings and unprecedented customer value in the this market. By using
a direct distribution approach, Xtreme was able to gain a competitive advantage for several reasons
such eliminating middleman’s. As the retail and wholesale businesses are booming day by day in
this countrry, we saw this as an opportunity to increase our customer equity and placed our coils
with retailers like Shawpno, Meena Bazar,Aagora etc. We also offer our coils from our websites
and many ecommerce stores like Daraz, Bdonlinebazar, Priyo shop, and ajkerdeal.com. Now the
Coils major sale is driven through the our websites as well as Ecommerce and modern retailers.

Marketing communication strategy: Xtreme is a prime example of a market oriented

company. For Xtreme, customers and their satisfaction is high value and at the same time they are
very careful not to ignore competition. Xtreme's aim is to forge lasting relationships with all its
customers. From the company’s perspective, not only customer's money but also their safety is a
top concern. Our Company achieves this through its direct marketing strategy, maximum
utilization of resources, recylying wasted, continous research, more ever cost efficient products &
eco friendly products. It is popular for its "Customer Driven innovation" theme which is as follows:

Xtreme gathers suggestions and requirements from thousands of customers on a daily basis
through numerous methods to keep themselves updated with the changing environment..
Innovations begin in two ways. A majority of them happens in house with a team of top
reasearcher, product designers, consultants and other experts. Strategic partners also play an
important role in delivering cost effective innovative solutions to solve customers' daily
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challenges. A strong connection with customers as well as serviceability is the winning factors in
the hardware & software industry and that is what dell is working on. Xtremes’s strategy is global.
It realizes that being geographically closer to the customer is essential in carrying out its marketing
strategies as well as in enabling it to build customer base.

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