product & plc basic concepts

8/2/2019 Product & PLC Basic Concepts

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Product Concepts

&

Management


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Introduction

To marketers, products are bundles of benefits

delivered to the customer.

The form in which these benefits are delivered can be

both tangible and intangible.At the intangible end of the product spectrum are services.

Product strategy is derived from the company's

marketing objectives

influenced by how products are organised by line and

range, and also by the product life cycle.


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The Product - A Definition

A product is a physical good, service,idea, person or place that is capable of

offering tangible and intangible attributesthat individuals or organisations regard sonecessary, worthwhile or satisfying thatthey are prepared to exchange money,

patronage or some other unit of value inorder to acquire it.


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What is product management?


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Examples of levels of competition


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Key Product Management functions

Product Mix

Product Line

Product Mix decision

Product Line Addition / Deletion

Product Abandonment


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Levels of Product Hierarchy

Product needto satisfy a need e.g. feet protection

Product classa family of products having similar

function e.g. all shoes

Product linea group of products with closely related

functions e.g. sports shoes

Product typeproducts within a line having similar form

e.g. basket-ball shoes

Branda name representing a product or line e.g. Nike

Item (Stock Keeping Unit)a unit item e.g. one pair of

Nike basket-ball shoe


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What Are Key Strategy Planning Decisions Related

to Product?

Physical good,

service or most

often some of both

Branding

Packaging

Warranty

Life Cycle

Management andProduct

Development


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Components of the Market Offering

Value-based prices

Services mixand quality

Product featuresand quality

Attractiveness ofthe market offering


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CUSTOMERS DO NOT BUYPRODUCTS. THEY BUY

BENEFITS

AND SATISFACTION.

---Peter Drucker


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Product classifications

Products can be classified according to theirdurability and tangibility.

Non-durable products are goods consumed

quickly and used on one or a few occasions, e.g.beer, soap.

Durable products are used over an extended timeand may last for years, e.g. fridge.

Marketers also divide products and services intotwo other classifications:consumer andindustrial products.


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Consumer products

Bought to satisfy personal and family needs.

Classified according to consumer shopping habits:

Convenience products

Purchased frequently, minimum comparison and buyingeffort.

Shopping products

Process of selection, compared on bases of quality,suitability, price and style.

Unsought products

Consumer does not know about the product or perceives noneed for it.


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Marketing considerations for consumer products


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Industrial products

Products bought for further processing or the purposes of

resale.

Distinction based upon the purpose for which the product is

purchased.

Materials and parts

Raw materials.

Manufactured materials and parts.

Capital items

Installations.

Accessory equipment.

Supplies and services

Electricity to power the machines making shirts.


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Core

Product

QualityPackaging

Brand Name

ColourStyling

Attributes

InstructionManual

Consumer

Complaint

Management

Consumer

Education &Training

Installation

Delivery

Points &

System

After Sales

Service

Guarantees

&Warranties

Payment

Options

Formal

Product

Augmented

ProductFuture

Product

TOTAL PRODUCT CONCEPT


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Levels of a product

Core product

problem solving service or core benefits that consumers arereally buying when they obtain a product.

Formal product ( basic & expected)

incorporates the quality, features and design, brand name,packaging and other attributes that combine to deliver coreproduct benefits.

Augmented product

incorporates the consumer services and benefits builtaround the core and actual products which in itselfenhances functioning and use of the product..

-


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Definition of Lipstick

A crayon-like oil-based cosmetic used in

coloring the lips, usually in a tabular container.

Make-up that is used to color the lips.


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Benefits of Lipstick

Core ( different)

Look good

Look different

Look photogenic Enhance looks

Retain moisture

Freshness

Hide irregularities

Face lift

Perfection

Basic (1st stage of Formal)

Long lasting

Grace,style,poise

Heighten personality

Look attractive

Smokers to change lip color

Look presentable & complete

Different shades


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Benefits- Lipstick (Contd.)Expected (2nd stage of Formal)

Fragrance

Formal look

Social acceptance

Impress guys

Shining lipsticks

associated with diamonds Juicy effect

Reflect Mood.

To have a smoothtalk

To feel the taste

throughout the day Demonstration effect

Safety

To give Shape to

your lips


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Benefits- Lipstick (Contd.)

Augmented Beauty saloons

Non-transferable

Personality Classes

Usage pattern fordifferent occasions

Potential

Veggie classification

PRODUCT MATRIX FOR WRITING PENS


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Clarity &Speed

Body,Refill.Casing

InstructionsCustomer care

ProductLevels

Applications

Notes Writing Signing Office Use Gift

CoreLong Lasting.-Indelible

Clarity & nosmudging

Memento /Remembrance.

Basic

Light in weight &Grip, Type of penInk colour, freeflow of ink.

Smoothness.Type of pen.Ink colour

Hassle Free.Type of pen &ink, color, Grip

Long Lasting.CasingDesign & pattern

Expected CreateImpression,Pen standInstructions

BodyRefillCasing etc...

Ink Color,Pen Stand

Augmented CustomerCare,

CustomerCare,

Customer careTestimonials

PRODUCT MATRIX FOR WRITING PENS


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Washing machine types

WASHING MACHINE

WASHERS FULLY AUTOMATIC SEMI AUTOMATIC

TOP LOADING FRONT LOADING

Pulsator wash Agitator wash Tumble wash


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PARTICULARS INDIVIDUAL FAMILY FAMILY FAMILY

BULK SPECILISED COMPLETE

CORE Time

Management &

Convenience

Zero effort wash, one

time quick wash.

Fabric sensitive

Wash

Speedo wash

BASIC Storage of used

clothes,

Non dependence

on servants.

Intensive wash, Any

time easy usage,

Bulk load, Capacity,

Non dependence on

servants.

One time wash,

Stain free,

Optimum wash

quality

Gentle wash, Quick

wash

EXPECTED Wrinkle free

wash,

Clothes should

not get entangled

Instruction

manual

Additional/Superior

fabric, Talking

machine, Multiple

rinse care, purifying of

water, Silent wash. etc

Durability,

Preventing of

clothes from

becoming dull

Talking washing,

Preventing of

clothes from

becoming dull

AUGMENTED Warranty,

After sale service,

Finance,

Finance, After sales

service

Instruction

manual,

Finance

Warranty,

Instruction manual

??? ???


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Brands Individual Family

Bulk Specialized Complete

Whirlpool -E-50

-S-70

-White magic

Agisoak,

-White magic

Super

Hot wash H-55 F-65

FP-65

T-50

T-62

National NA-W-652,NA-W-607,

NA-W-605A.

NA-F-551 NA-F-521 NA-F-621

LG Electrolux WP-9031,

WP-9032,

WP-954S,

WP-1021S,

WP-1022M

WF-T-8519TE,

Direct Drive

WRT-1071

WF-T7517TE,

WD-8007-CI,

WD-1205CI

WD-10160F,

WD-10165F,

WF-S-610TD,

WF-F-6627TD

IFB ------- Digital,

Senator.

-Executive Elite,

Executive Plus

Senorita plus,

Elena

SAMSUNG WT 7100,

WT 7700,

WT 8700,

KARISMA WS

7500

WA-11K5, SWF-

P10.

WA-75N6,

WA-80K4,

WA-80K5

WA-85B9.

GODREJ GDS 400

GDS 550

GDS 650 GDF1101

GDF1201

GDF1301


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PAINTS


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DEFINITION OF PAINT

A substance usedas a coating toprotect or decoratea surface

(especially amixture of pigmentsuspended in aliquid); dries to

form a hard coating


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AUGMENTED = Soft touch feel, Washable, Waterproof ,

Additional benefit

EXPECTED = Durability , Odor free, Should notstick, Dry easily, instructions for use.

BASIC = Co lour, Looks, Combinations

CORE = Decoration, Safety Ofwall, Beautification, Sun light.


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Product / Brand Mix

Width - number ofdifferent product

lines

Length - totalnumber of itemswithin the lines

Depth - number ofversions of each

product

Product Mix -all the product

lines offered


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4 Dimensions of the product mix

Breadth or width

Wide product mix containing many different product lines.

Length

Total number of products in the product lines

DepthDifferent versions, such as size of packaging and different

formulations.

ConsistencyHow closely related the various product lines are in end use,

production requirements, distribution channels etc.


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Product mix implications

Positive:

More closely reflects the segmentation of the market

Closes gaps for competitor entry/meets competition

Increases profile with customers and consumers

NegativeGreater costs

Greater complexity

Reduced concentration

Therefore objective is : optimisation of the mix


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Product mix strategies

Company can add new product lines, thus widening

the product mix.

Company can lengthen the existing product lines to

become a more full line company. It can add more product versions of each product and

deepen its product mix.

The company can pursue more product lineconsistency, or less, depending upon whether it wants

to have a strong reputation in a single field or in

several fields.


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Product-Mix Width and Product-Line Length for

Proctor& Gamble Products

Charmin

Puffs

Banner

Summit

Pampers

Luvs

Ivory

Kirks

Lava

Camay

Gleem

Crest

Ivory Snow

Dreft

Tide

Cheer

Ariel

Paper

TissueDiapers

Disposable

Bar SoapToothpasteDetergents

Product-Mix Width

PRODUCT-

LINE

LENGTH


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Various Product decisions

Building product lines

Line stretching- DOWN MARKET & UP MARKET

Line Filling

Line modernization

Line featuring.

Multibrand strategy

New product development.

Innovations in core product.

Extending markets by usage

Th P d t Lif C l


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The Product Life Cycle

+

-

$ 0

Market

Introduction

Sales growslowly, at acost

Time

Th P d t Lif C l


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Total

IndustrySales

Total IndustryProfit

+

-

$ 0

Market

Introduction

Market

Growth

Market

Maturity

Sales

Decline


Salesgrowth, butprofits level

off

Sales levels,but profitsdecline

Manage it orsay goodbye

Time



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+

-

$ 0

Market

Introduction

Market

Growth

Market

Maturity

Time



off




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Total

IndustrySales

Total IndustryProfit

+

-

$ 0

Market

Introduction

Market

Growth

Market

Maturity

Sales

Decline

Time



off


Manage it orsay goodbye

Avoid Confusion about PLC


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Avoid Confusion about PLC

Product-market, not brand

Markets may have different

cycles

Timing of stages may vary

Strategy must change over

time

Key PointsAbout the

PLC...


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TotalIndustry

Profit

+

-

$0

MarketIntroduction

MarketGrowth

MarketMaturity

SalesDecline

Time

TotalIndustry

Sales

PlaceBuild

Channels

Maybe

selective

distribution

More of the

same, but

more channeloutlets

available

Move toward

more

intensivedistribution

Find a way to

reach loyal

laggards



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TotalIndustry

Profit

+

-

$ 0

MarketIntroduction

MarketGrowth

MarketMaturity

SalesDecline

Time

TotalIndustry

Sales

PromotionBuild

primary

demand

Build selective demand

Informing/Persuading Persuading/reminding

Frantically competitive!



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TotalIndustry

Profit

+

-

$ 0

MarketIntroduction

MarketGrowth

MarketMaturity

SalesDecline

Time

TotalIndustry

Sales

Price

Skim the

cream at a

high price

or

Low to

penetrate

faster

Meet competition (especially in oligopoly)

or

Price dealing and price cutting

or

Value pricing for long-term relationships


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Life Cycles and Marketing Strategy

Introduction

Growth

Maturity

Maximize distributionBuild awareness & obtain trial

Decline

Extend distributionAdvertise & promote heavily

Advertise product imagePersuade customers to switch

Milk the product for profitsDetermine if to terminate product

Postmortem Plan for postmortem expensesDevelop phase-out plan


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A NEW LOOK AT PLC

Exploit the PLC-Theoder Levitt : HBR:1965

Forget the PLC-Nariman Dhalla : HBR :1977

EVERY BUSINESS IS A GROWTH

BUSINESS!-Ram Charan : 2000

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