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The IUP Journal of Entrepreneurship Development :
The Efficacy of Product Strategy in the Formulation of Marketing Strategy in Small Scale Industries
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Product strategy is a marketing plan for a product, based on the characteristics of the target market, market share objectives, desired product positioning within the market, and profit objectives. Strategic plans for a product are based on decisions regarding the four P’s (product, place, price, and promotion), financial targets and budgets, and tactical plans. Product strategy helps in the allocation of resources. The present paper analyzes the marketing strategy of small scale industries in Himachal Pradesh in terms of the product strategy employed.

 
 
 

Product is the first and most important element of the marketing mix. Product strategy refers to the generation and update of a future view of current and new products which includes creativity and innovative thinking. The term ‘Product’ refers to ‘Whole Product’, ‘Whole Product Range’, including the intangible as well as the tangible elements which make up the total product, service and brand benefits which customers buy. Product strategy calls for making coordinated decision on product mixes, product lines, brands and packaging and labeling (Kotler, 2005). Product strategy helps to stimulate the formal collection and analysis of information. It also provides the methods to integrate and interpret customer. Technology and competitive information is also provided by product strategy which helps to initiate long- and short-term projects.

Micro, Small and Medium Enterprises (MSMEs) play an important role in the progress of an economy. These industries represent a stage of economic evolution from conventional to contemporary technology. But these industries are not performing up to the expected level. In recent years, several policy initiatives and procedural simplifications have been undertaken by the government to support the small scale sector and to enhance its competitive strength. In spite of all these supportive policies, these industries are lacking in the competitive marketing of their products. Further, from the review of literature, it is observed that only a few studies have been conducted related to the role of product strategies in marketing strategy formulation. These studies have little relevance in the present context. There exists a research gap too. Therefore, the present paper is an attempt to study the efficacy of product strategy in the formulation of marketing strategy in small scale industries. Small scale industries have a tremendous scope in the state. It helps to increase the economic growth of the state.

 
 
 

Entrepreneurship Development Journal, Product strategy , Marketing plan for a product, The characteristics of the target market, Mfinancial targets and budgetsarket share objectives,Desired product positioning within the market, Profit objectives, Financial targets and Budgets