PRESENTED BY

SOMDEEP KUMAR SEN

A product is anything that has the capacityto satisfy customer’s need/want/demand

A product is anything offered for attention,use or consumption that might satisfy theneed/want/demand

The term product covers both goods andservices

The core product – the core benefit that satisfies the consumer’s need

The actual product – the specific product offering designed to satisfy the need

The augmented product – additional bundle of benefits

Core product benefit: Transportation

Actual product: The car itself – design, styling,quality, performance, reliability, etc.

Augmented product: Warranty, Extendedwarranty, credit, zero % finance, etc.

The product mix is the set of all productsoffered for sale by a company

A product mix has two dimensions: Breadth - the number of product lines

carried. Depth - the variety of sizes, colors, and

models offered within each product line

A product line is a broad group ofproducts, intended for similar uses andhaving similar characteristics.

Product Line- I Product Line- II Product Line - III

Bath Soap Detergent Beverage

•Dove•Lirl•Lux•Pears•Rexona•Lifebuoy•Hamam•Jai•Breeze•Moti

•Surf•Rin•Wheel•Sunlight•501

•Bru•Brook-Bond•Taaza•Tajmahal

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Product Breadth

LINE STRECHING

Whenever the marketer feels that they can increase the profit by either addingor dropping items from the product line, it is called Line stretching

Line Stretching can be both- upward or downward

Downward Stretching – P & G’s “Ariel” detergent begun at a premium end& then down stretched to lower market segment by introducing “Ariel Bar”

Upward Stretching- HUL’s Lifebuoy started as a hygienic bath soap, but latermoved to premium segment as HUL introduced Liquid Hand-Wash

Line Modernization-

Even when the product is adequate, the line might need to be modernized

In modern business line modernization is carried out to gain competitiveadvantage as the competitors are also upgrading their products

TATA Sumo (1994) >> Sumo DX (1996) >> Sumo DI Spectra (2000)……………..So on

Line Pruning-

Company may find out that one end of its line selling well & other end is not &hence they may try to boost the demand for slower sales

Line Extension-

Adding a new product line in the product mix is called Line Extension

In economics and marketing, productdifferentiation is the process of distinguishing aproduct or offering from others, to make it moreattractive to a particular target market

This involves differentiating it from competitors'products as well as a firm's own product offerings

Product differentiation can be achieved on thebasis of price, style, packaging, size, flavor etc.

The stages through which a new product idea goes through from beginning toend

It is a generic description of the way a product behaves in the market place

Every product passes through certain identifiable stages

Basically, it is a model that describes the stages a product goes through

This is stage where the product is first introduced to the market

This stage is most risky and expensive as the brand awareness & the volume of sales is very low (almost zero)

This is also known as the stage of negative return

The product has developed gained certain degree of brand awareness

The sales volume starts to grow quickly & the profits peak

However during the later phase of the stage sales volume starts to dip as newcompetitors enter the market

The most profitable Stage as the product has achieved acceptance by most potential customers

Sales continue to increase but at a slower pace

Advertisement expenditures will be reduced as the brand awareness is strong

Company not only looks to extend its market share but also it looks to defend its existing one

Sales begins to decline as the demand for the product decreases

The product becomes technologically obsolete

During the decline phase the firm generally have following options

1. Maintain the product & hope that the competitors will exit the market

2. Decrease the price of the product or use other pricing techniques toincrease the sales

3. Reposition the product

4. Discontinue the product

MARKETING OBJETIVES

To create the product awareness and to attract the customers towards the product

Product

They offer only on product in the market. They did not come up with the differentiated product

Price

In the initial stages of the product, they offer the relatively higher price than their competitor(LIFEBUOY). Because, they want to recover their initial cost of making the product

Promotion

In the initial stages, they allocated more advertising budget So that more and more customers couldbe attracted towards the product

In ads they targeted the early adopters, who were readiest to buy the product

The first ambassador, Leela Chitnis.

Place

Distribution was selective and only covers the major cities of India to get recognition in those cities.

Marketing Objectives

The marketing objectives of the Lux were to expand their market to the other cities of India

MARKETING STRATEGIES

Product

In the growth stage, the company had offered the same product in the market.

Price

In this stage, the company had changed their price to some extent because of maximizing themarket share. ( Slightly cut down the prices )

Place

In this stage, company had expanded their market to the other cities of INDIA. Their distribution channel was the same as in the initial stages of the product.

Promotion

In the growth stage, they had increased their advertising budget as in the initial stages because of attracting the new customers or to retain the existing customers.

Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi

MARKETING OBJECTIVES

The marketing objective of Lux is to maximize more profit while defending the market share. And to expandthe market to all the cities of INDIA.

MARKETING STRATEGIES

Product

The Lux has made the modification in the product by introducing

Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Chocolate, Lux Oil and Honey.etc

Price

The Lux products are now available at higher prices in the market, the reason behind is that the company’smarketing objectives is to maximize more profit

Place

Now Lux products are available in almost all the cities of India

Promotion

In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers.

Recently, they have shown Aishwarya Rai , kareena kapoor & ShahRukh khan

A product that opens up entirely a newmarket

A product that replaces an existingproduct

An old product introduced in a newmarket

An old product packaged in a differentway

An old product marketed in a differentway

A new product launched in a new market

A new product launched in an old market

Throx

Socks with a spare - Throx is a company thatsells socks, claiming to have solved theproblem of the missing sock: by selling threesocks instead of two

The Fizz

The screw on ice-cream top - The Fizz is aplastic cup that screws on to a plastic PETbottle allowing you to create a mobile icecream float

Neglect of market research

Inaccurate market research

Poor marketing after launch

Poor distribution

Performance below expectation

Product too complex

Market not ready for the product

To add to product mix

To replace declining products

To take advantage of new technology

To maintain/increase market share

To defeat or to keep up with rivals

To maintain competitive advantage

To bring in new customers

Idea Generation

Idea Screening

Concept Testing

Business Analysis

Product Development

Test Marketing

Commercialization

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New Products by their very nature are the results of innovations

These innovations result from creative & free thinking

The sources of Idea generation are:

R & D Department

Production Department

Sales Team

Employees

Customers

Competitors

Market Sources

The main objective of idea screening is to spot good ideas and rejectpoor ones

Ideas are checked for technical feasibility, financial viability &marketability

Ideas are rated according to marketing, production & strategic factors

During this stage the consumers are presented with a proposed product tomeasure their attitude & intentions

Sample of potential buyers are presented with the product idea through awritten or oral description to determine the attitudes & initial buyingintentions

In this stage potential profitability of the new product are evaluated

During this phase potential sales, profit, BEP , ROI, etc. are reviewed

During this phase the company analyzes the feedback of the sample of thepotential buyers.

Analysts look to study the technical & the financial feasibility of the product

Several statistical analysis such regressing, hypothesis testing etc. are usedduring this phase

R&D turns the idea into a product

Engg. & production issues are involved

Concern with design, materials, production, processes, quality & safety

Developing the product concept into a physical product

Launching a product in small geographical area

A field experiment in realistic market setting

Releasing the product into a small but representative market where consumer reactions can be assessed & the marketing mix checked and adjusted

Objectives Forecast likely results of a national launch Test the operational effectiveness of the marketing plan To identify possible problems & customer reaction

Introducing a new product in the market

Heavy promotional expenditure at the launch as the product is in theintroduction stage

Product has to be well targeted and positioned

Choice of skimming or penetration pricing