Product Elaborate 1hul

The learning objectivesProductProduct classificationProduct life-cycle strategiesNew-product DevelopmentProduct-line decisionBrands decisions

1. What is product?Anything that can be offered to a market for attention,acquisition,use,or consumption that might satisfy a want or need.

Components of theMarket OfferingAttractiveness ofthe market offering

2. Product classificationsConsumer productsIndustrial products

Consumer productConvenience productsShopping productsSpecialty productsUnsought products

Buy less frequently Gather product information Fewer purchase locations Compare for: Suitability & Quality Price & Style Special purchase efforts Unique characteristics Brand identification Few purchase locations Products consumers dont demand normally. Require much advertising &personal sellingBuy frequently & immediately Low priced Many purchase locations Includes: Staple goods Impulse goods Emergency goodsConsumer-Goods Classification

Industrial ProductMaterial and partsCapital itemsSupplies and services

6.Product-line decisionProduct mixProduct-line analysisProduct line length

Product mix(assortment)The set of all products and items that a particular seller offers for sale.A companys product mix has a certain width,length,depth, and consistency.

Product Mix Concepts:Width:how many different product lines.

Length:the total number of items.

Depth:how many variants are offered of each product in the line.

Consistency:how closely related the various product lines are in end use,production requirement,distribution channels, or some other way.

Product Mix & Product Line- HUL

Personal wash Personal wash : Lux , lifebuoy , Liril , Hamam , Breeze , Dove , Pears , Laundry Laundry : Surf Excel , Rin , Wheel Skin Care Skin Care : Fair and Lovely , Ponds Hair Care Hair Care: Sunsilk , Clinic PlusOral care Oral care : Pepsodent , Close Up Color Cosmetic Color Cosmetic : Lakme Beverage Tea : Broke Bond , Lipton Coffee: Bru Foods Foods: Kissan , Knorr Annapurna Ice-Cream Quality Walls

Product MixWidth - number of different product linesLength - total number of itemswithin the linesDepth - number of versions of each product

Product-line analysisSales and profitMarket profile

Product-Line LengthLine StretchingDownmarket (TATA Nano)Upmarket (Maruti 800 to Maruti SX4)Two-wayLine FillingLine ModernizationLine Featuring & Line Pruning

Trading Up and Trading DownTrading up: Adding a higher-priced product to a line to attract a higher-income market and improve the sales of existing lower-priced products.Trading down: Adding a lower-priced item to a line of prestige products to encourage purchases from people who cannot afford the higher-priced product, but want the status.

3.Product Life Cycles (PLC)The course of a products sale and profit over it lifetime.It involves five distinct stages:product development,introduction,growth,maturity,and decline.

Sales & Profit Life Cycles

Product Life Cycle StagesIntroductionmost risky and expensive.

Growthboth sales and profits rise, often rapidly.

Maturitysales increase at a decreasing rate and profits decline.

Declinedemand drops, often because of another product development.

Strategic Implications of the Stagesintroductory stage: developing the market, creating awareness, reaching the innovators

growth stage: competition begins, sales grow quickly, profits peak, market penetration

maturity stage: competition is intense, sales slow down, differentiated product offerings, customers are brand loyal, few new entrants

decline stage: customers move to other options, competitors leave, profits are low, consider exit

Characteristics of Introduction StageLow sales High cost per customer Zero or Negative profits Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Awareness building advertising

Four IntroductoryPrice-Promotion StrategiesRapid-skimmingstrategyRapid-penetrationstrategySlow-penetrationstrategySlow-skimmingstrategy

Characteristics of the Growth StageRapidly rising sales

Average cost per customer Rising profits Offer product extensions

Target new market segments

Characteristics of Maturity stagePeak sales and profits Increased advertising and trade and consumer promotion.

Frequent markdowns

Market nicher develops.

Market Modification Strategy

Marketing Mix Modification Strategy

Characteristics of Declining StageDeclining sales & Profits Phase out unprofitable outlets

Cut on promotional expenditure

Liquidating, Divesting and Harvesting the business

Special categories of PLC (Style, Fashion, Fad)Style is a basic/distinctive mode of expression appearing in a field of human endeavors.-Once a style is invented, it can last for generations.

Fashion is a currently accepted/popular style in a given field.

Fads are fashion that comes quickly into the public eye, are adopted with great zeal, peak easily and decline fast

5.new-product developmentWhat is new product?Major stages in new product development

What is new product?Original productsProduct improvementsProduct modificationsNew brands that the firm develops through its own research and development efforts

Major stages in new product developmentIdea generationIdea screeningConcept development and testingMarketing strategiesBusiness analysisProduct developmentTest marketingCommercialization

New Product Development ProcessIdeaGeneration

Probability of SuccessProbabilityof technicalcompletion

Concept Development & Testing1. Develop Product Ideas into Alternative Product Concepts

Product & Brand Positioning(a) Product-positioningmap(breakfast market)b) Brand-positioningmap(instant breakfast market)

Conjoint Analysis

Consumer-Goods Market TestingSales-WaveResearch

Test offering trail toa sample of consumers insuccessiveperiods.SimulatedTest Market

Test in a simulated shopping environmentto a sample of consumers.

StandardTest Market

Full marketing campaignin a small number of representative cities.

Controlled Test Market

A few stores that have agreed to carry newproducts for a fee.

Time of adoption innovationsAdopter Categorization of the Basis of Relative Time of Adoption of Innovations

6.Brand DecisionWhat is brand?Band decision

What is brand?Brand is a name,term,sign,symbol,or design,or a combination of them,intended to identify the goods or services of one seller or group of sellers and differentiate them from those of competitors.

What is a Brand?AttributesBenefitsValuesCultureUserPersonality

An Overview ofBranding Decisions

Good Brand Names:SuggestProductBenefitsDistinctiveLack PoorForeignLanguageMeaningsSuggestProductQualitiesEasy to:PronounceRecognizeRemember

Brand StrategiesNewBrands

Why Package Crucial as a Marketing ToolSelf-serviceConsumer affluenceCompany & brand imageOpportunity for innovation

LabelsIdentifyDescribe

Promote

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