Prepared By:Sunil Chhajar

The Never Ending

TimeProductDevelop-ment

IntroductionProfitsSalesGrowthMaturityDeclineLosses/Investments ($)Sales andProfits ($)The course that a products sales and profits take over its lifetime

CHARASTERISTICS1.SALES2.COSTS3.PROFITS4.CUSTOERS5. COMPETTORSINTRODUCTION1.LOW SALES.

2. HIGH COST PER CONSUMER3. NEGATIVE4. INNOVATIVE

5.FEWGROWTH1.RAPIDLY SALES.2.HIGH COST PER CONSUMER3.RISING PROFITS4.EARLY ADOPTERS5.GROWING NUMBERMATURITY1.PEAK SALES.

2.LOW COST PER CONSUMER

3. HIGH PROFITS

4.MIDDILEMAJORITY.

5. STABLE NO. BEGINNING TO DECLINE

DECLINE1.DECLINING SALES

2.LOW COST PER CONSUMER

3.DECLINING PROFITS

4.LAGGARDS

5.DECLINING NUMBER

SOSYO IS IN INTRODUCTION STAGE. LOW SALES

HIGH COST PER CUSTOMER

NEGATIVE PROFIT

CUSTOMER ARE INNOVATIVE

FEW BUT BIG COMPETITORS

Non Availability

Tastes like liquor

Less Known Brand

Is sold in Ahmadabad ,Rajkot , Surat & Mumbai only

New-to-the-worldCost reductionsNew product linesAdditionsImprovementsRepositioning

Sosyo has been discarded by the consumer

Positioning can be done with adequate improvements in the product

We have identified the segments and are going to target those segments

The new product will have improvements & additions of Mint flavour

Steps In New Product Development

To develop a new drink that doesnt taste like SosyoTo bring the same drink in different coloursTo develop a new drink that can quench the thirst of the peopleTo make a drink that is mint basedTo market a health drink To develop a diet version of the same drinkTo add some flavors to the same drink

Product ideaProduct conceptCategory conceptBrand conceptConcept testing20-*Strength of Class= 55Who doesnt prefer= 2Who prefer soft drinks but not Sosyo= 47Reasons for non preference:Taste ColourNon Availability Brand Unawareness

To develop a new drink that doesnt taste like sosyo

Develop a new drink that can match with the taste preferences of the target market like a health drink or a diet drink

Marketing Strategy Development

Stage-IStage-IIStage-IIITarget marketProduct positingSales, market share &profit goalsB school students of IBS sec-c who are young, well educated, moderate to high income.Positioned as refreshing,Cool , stress buster and a soft drink with a different taste

Stage-IIPlanned priceDistributionMarketing Budget200 ml-7300 ml-10

Tie up with major distribution channels\Dealers with IBS nearby shops.And canteen selling more than 550-600 bottles addl discount of 5% except the normal 10% on list price.

Rs. 4 per bottle

Long Term Sales Profit Goals Marketing MixROI- 15-20%PROFIT @ Rs.1 per bottleAmount expected to be raised 15-20% and research should be reduced 5% every year.

Projected Sales- 450-500 bottles/month

Review of sales

Costs-Rs.6/bottle

Projected profit- Rs1/bottle

Here R & D or engineering develops the concept into physical form: A pet bottle of 200 & 300ml A diet version of Sosyo(less than 1 calorie) Tastes like mint

AUGMENTED PRODUCTCORE BENEFITQuenching the Thirst refreshinglyACTUAL PRODUCTDELIVERYAND CREDITBulk Discount on Bulk PurchaseINSTALLATIONWARRANTYAFTER SALE SERVICEContinues feedbackPACKAGINGAttractive Pet BottleQUALITY LEVELSuperiorDESIGNPersuasiveFEATURESMint FormDiet VersionBRAND NAMEMintoTHREE PRODUCT LEVEL

A stage in which the product and marketing programs are tested in more realistic market settings like :

1. Distributing free samples of 90ml.

2. Targeting the group leaders .

3. Promoting the product with ads and banner within the campus area.

Sponsoring events of the college like Scintilla, International Conferences.

The product will be launched during first week of April.

Where to launch the product? - IBSA SEC-C

9-*The differential effect that brand knowledge has on consumer response to the marketing of that brandEndowing products and serviceswith the power of a brand.Brand EquityBrand KnowledgeKnowledgeTHOUGHTSFEELINGSIMAGESEXPERIENCESBELIEFSAssociationsBrand AssociationsStrongUniqueFavorableBrand PromisePromiseThe marketers vision of whatthe brand must be and do forConsumers.Secondary Sources of Brand Knowledge

Develop new brand elementsApply existing brand elementsUse a combination of old and new

ElementsSlogansMinto Ho Saath to ban Jaye BaatBrand nameMintoUSPMint Based DrinkLogosSymbolsCharacters

More for moreMore for sameMore for lessThe samefor lessLess for lessMoreThe sameLessMoreThe sameLessBrand Positioning Map

Brand ElementsMarketing Activities

Meaning Transference

Using the Brand Elements & leveraging Secondary Associations to create higher Brand Equity

Creating SCHEMA by creating STRONG, FAVOURABLE AND UNIQUE associations with the students

Increasing Brand salience and re-use by the differential response to the brand

Extending the Brand Equity of Sosyo to the new Brand creating a Brand Family.

*The Product Life-CycleThis CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.Instructors Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.Product Life Cycle StagesProduct Development. Development begins when the company finds and develops a new product idea. During development the product has costs but no sales. Development costs must be strategically weighed against the projected length of the product's PLC.Introduction. During the introduction of new products initial sales growth is slow as the market is just becoming aware of the product. Profits are usually nonexistent at this stage due to heavy promotional spending.Growth. This stage is characterized by rapid market acceptance of the product and increasing profits.Maturity. In maturity there is a slowdown in sales growth as the product has achieved acceptance by most potential customers. Profits may level off or decline as marketing costs increase to defend existing market share.Decline. In this period sales begin to fall off and profits decline dramatically.

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