Brand Equity for Short Life Cycle Products

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Brand Equity for Short Life Cycle Products

  1. 1. Presented by: Prashant Saxena Priya Rammohan Department of Management Studies Indian Institute of Technology, Madras
  2. 2. IIT Madras 07/19/09 2
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  5. 5.  The PLC concept is one of the most important concepts in marketing.  The PLC consists of four stages: De line c IIT Madras 07/19/09 5
  6. 6.  The products that follow a short PLC are called “Fads”  Some recent Fads:  1960’s - Banana Seats, Rickie Tickie Stickers, Bellbottoms & Platform Shoes.  1970’s - Dashboard Hula Girls, Mexican Jumping Beans, Daisy Dukes & Disco Music.  1980’s - Penny Loafers, Jelly Shoes, Friendship Bracelets & Break Dancing.  1990’s - Polly Pocket Toys, Napster, Beanie Babies & Furby.  2000’s - Energy Drinks, American Idol, Flare Jeans & Suped Up Cars. IIT Madras 07/19/09 6
  7. 7. FADS Literary Works FMC Ind try G us FADS IIT Madras 07/19/09 7
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  18. 18. “The consumer isn't a moron; she is your wife.” David Ogilvy IIT Madras 07/19/09 18
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  21. 21. Consumer Promotion Product Buying Distribution Design Attention Behaviour Span Advertising Utility Quality Purchasing Power Products with Short Life Cycle Profit Margin Implicit Cost Resale Value Channel Explicit Locations Price Wars Cost Discounts Distribution Strategies Channel Producer Place Price IIT Madras 07/19/09 21
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  23. 23.  Short attention span of the present generation  Varying Consumer Choice  Lack of availability of the product at all joints  Expensive with no long term benefits IIT Madras 07/19/09 23
  24. 24.  Lack of significant usage  Disappearance of motivating factors that induce buying behavior  Fatigue Factor  Utility of the product is for a short period and/or a specific cause IIT Madras 07/19/09 24
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  28. 28.  The Kane’s Simulation Model  The methodology adopted:  All variables are converted from Nominal to Ordinal scale  Any variable of human significance can be transformed into a zero to one scale  As a variable’s magnitude increases, it has a larger effect on the rest of the system  Net change in variable is a result of net impact of all variables on the particular variable. IIT Madras 07/19/09 28
  29. 29.  SCALE:  0.8 ≤ Very High ≤ 1  0.6 ≤ High < 0.8  0.4 ≤ Moderate < 0.6  0.2 ≤ Low < 0.4  0 ≤ Very Low < 0.2  VARIABLES:  Short attention span of the present generation – 0.5  Variation in Consumers’ choice – 0.6  Lack of availability of the product at all joints – 0.3  Expensive with no long term benefits – 0.7  Lack of significant usage – 0.8  Disappearance of motivating factors that induce buying behavior – 0.5  Increase in Fatigue Factor – 0.7  Utility of the product is for a short period and/or a specific cause – 0.8 IIT Madras 07/19/09 29
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  34. 34.  Fads have been famous since the early 1920s  Fads are immensely popular and every individual has used a fad at least once in their life time  An incentive for marketers to increase the product life cycle of fads  Innovative Integrated Market Communication is the way to develop Brand Equity of Fads IIT Madras 07/19/09 34
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