Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
Product Life Cycle (PLC) & Brand existance
1. A brand is more than just a name, catchy tagline and logo
design.
Presented By,
Reba Jain
Mathew
S2 MBA
MACFAST
College,
Tiruvalla,
2. The Product Market strategies that helps them to stay for such long time
in the market!
3. PRODUCT LIFE CYCLE (PLC)
The product life cycle is an important concept in marketing. It
describes the stages a product goes through from when it was first
thought of until it finally is removed from the market. Not all
products reach this final stage. Some continue to grow and others
rise and fall.
4. The main stages of the product life cycle are:
Introduction Stage
o Product launched into the market.
o Sales grow slowly.
o Informative advertising is done.
o Firm might not earn a profit at this stage.
o Price skimming may be used if the product is new invention and has no
competitors.
o Competitive pricing may be used if it already has lot of competitors.
Growth Stage
o Sales grow rapidly.
o Persuasive advertising may be used.
o Prices may be reduced if faced by stiff
competition.
o Firm starts earning profits.
5. Maturity Stage
o Sales increase slowly and reach the highest sales figures.
o Competition is at the maximum level as many new „me too‟ products are in
the market.
o Promotional pricing might be a good option.
o Profits are at the highest level as the firm is also getting economies of scale.
o Repetitive advertising is done to remind the consumers.
Saturation Stage
o Sales are stagnant.
o Maximum competition but no new competitors.
o Promotional pricing or competitive pricing may
be a good choice.
o Advertising efforts at its highest point.
Decline Stage
o Sales start to decline.
o Profits start to come down.
o Marketing research it done to find out whether this decline is permanent or
temporary. If the decline is permanent in nature then stop the production of
the product, otherwise implement extension strategies.
o Advertising is reduced.
6. Product Extension
Strategy
Extension stage
o Introduce new variations of the original product
o Try to sell the product in different markets.
o Make small changes in the color, design or packaging
o Start a new advertising campaign.
o Add more retail outlets to boost sales.
9. Chandrika is a heritage brand. The brand came into existence in
1940. This hand made ayurvedic soap owes its existence to the
founder C.R Kesavan Vaidyar who identified the potential for an
ayurvedic soap way back in 1940.
From a humble beginning, the brand has come a long way
withstanding the test of time. In 2004, Wipro acquired the
marketing rights of this brand
Chandrika has survived all these years without changing any of
the marketing mixes. Now after 6 decades, Chandrika is
changing…
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The brand‟s marketing strategies include;
A. Positioned as a traditional ayurvedic soap gifted by nature
B. The brand differentiates itself from other ayurvedic soaps with its 7
essential oils;
Orange oil
Patchouli
Cinnamon leaf
Wild ginger
Sandalwood oil
Lime peel and,
Coconut oil
C. The brand changed the shape and packaging, Chandrika was in the
cake form ( rectangular), but it changed to oval form and the
packaging was made more contemporary
11. D. To attract new users especially the new generation.
Chandrika took the two qualities : Natural and Exotic as
its core brand values.
E. The brand chose to use the brand imagery of a SPA to
convey the new positioning. The big idea was to equate
the bathing experience with Chandrika to an oil bath at a
SPA.
( The agency chose the luxurious Pangkor Laut Spa
Resort in Malaysia as its location for the ad. )
F. Chandrika also introduced a line extension –
Chandrika Amrutham. The variant has an innovation in
the form of an aromatic oil that comes with the soap
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13. Bajaj Auto is a major Indian automobile manufacturer started by a
Rajasthani merchant. It is based in Pune, Maharashtra. Bajaj Auto
makes and exports motorscooters, motorcycles and the auto rickshaw.
To replace a legend is never easy, to replace a legend when the legacy
needs a major overhaul is even more difficult.
Rahul Bajaj had created an extraordinarily triumphant company, and it
required enormous courage for Rajiv Bajaj, Rahul‟s son to tinker with
the business model and change the success formula. But given the
changes in the environment: more competitors and fiercer competition,
changing customer needs and tastes, new technology and more
sophisticated management tools and techniques, transformation was a
necessity, not a luxury.
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In every manager's life, there comes a moment of truth. A handful
emerge from the experience as leaders. Rajiv Bajaj faced his moment
of truth when he overheard a customer say, "Yes, the Bajaj scooter is the
cheapest, but that's what is deserves to be." The experience kindled in him
a fierce desire to modernize the family business, the courage to change
the success formula that was Bajaj Auto, and the confidence to step
away from his father's shadow. Hence the following makes the Bajaj
exist in the market.
A. The ambition to have a local R&D and a change in mindset. The
money the company had.
B. The first visible sign of the change in focus was the garage full of
models the company launched to cater to the different market
segments. Some met with partial success, a few bombed.
C. Bajaj first tasted success with the launch of Boxer for customer
acceptance and better production practices.
15. D. Strong Industry Relationships
Bajaj Auto's relationship with Kawasaki, their long-standing
Japanese partner. It was the first bike to be marketed under the
Bajaj brand, the first to be entirely developed by the product
engineering division.
E. Catering all segments
The Bajaj Caliber 115 (launched March 2003) served the
executive segment, Pulsar the premium segment, with the
Eliminator being India's only cruiser bike.
With the Indian two-wheeler sector focused on motorcycles,
Bajaj proposes to make Bajaj Auto the only Indian company
with offerings in each user segment.
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16. Managers and workers also see cost cutting as a way to rip off and to make them
work harder. Outside the company, among vendors and customers, the moment
you talk of cost cutting, people think that the product's quality has gone down.
Here in Bajaj Auto, we feel that cost cutting is all about improving quality at
lower cost. That's how profitability improves. That's how customers keep coming
back.“
The company is renowned for its innovative designs and techniques with a unique
blend of style and mileage.
The two wheelers manufactured by Bajaj provide best services at economical rates.
17.
18. When detergent marketing was considered as boring and dull. Surf
excel marketing strategy was not only unique and innovative but
simple enough to understood by average educated (or sometimes not
educated at all) housewives in India.
SURF EXCEL – “Daag Ache Hain”. The brand was one of the oldest
detergent powder in India launched in 1959.
Surf Excel marketing strategy initially was focused towards
positioning itself as a brand which gives value for money. In one of
the early advertisements, a woman asks the audiences that “Surf
Excel ki Kharidari Mein hi Samajhdari hai”. This line struck a chord
with value conscious Indian housewives and this campaign helped
made Surf Excel a household name. The brand‟s marketing strategies
include;
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A. Surf Excel has always tried to create a differentiation strategy for its
brand
B. In the year 2002, a detergent powder designed especially for washing
machines was launched as Surf Excel Matic. It even came in two
variants- Front Load and Top Load. Gentle Wash and Surf Excel Bar
are two other major products of the brand.
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C. The global brand communication as “Dirt is Good” ad
became a famous punchline and helped Surf Excel create a
niche on its own and today it leads the Premium Fabric Wash
category in India.
“Daag Ache Hain” has worked very well for seven years and it
almost works as an irony which shows a contradiction for a
category that normally talks about cleanliness and whiteness.
21. The brand has also portrayed human values like
compassion by showing a mud soaked young
student mimicking his favorite teacher‟s dog that
has just died.
The “Dirt is Good” or “Daag Ache Hain”
campaign began with the famous puddle war
commercial, where a brother was shown taking
revenge on a mud pool for spoiling his sister‟s
clothes.
The latest campaign is a continuation of the
same philosophy and encourages the value of
righteousness that communicates the need to
have the courage to stand up for what is right,
with its badappan (dignity) campaign, which
used the theme of non-violence.
22. The idea of portraying different values seems to be working well
with people and the connect it builds between a detergent powder
and a sense of freedom. Detergent advertising was usually
considered anooying in the past, while Surf Excel ad series has been
a pioneer in breaking out of that mould.
“Agar Daag Lagne Se Kuch Acha Hota Hai Toh Daag Ache Hain”- The
brand has used this emotional appeal to help it differentiate itself
from other brands. It has used mothers as that target audience
letting their kids enjoy their freedom without worrying about
spoiling their clothes.
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23. Brand strategy is about understanding the defining true need of
your customer and then building a unique point of difference that
satisfies their needs into everything that your company does.
When your customers true needs are aligned with the unique
capabilities of your company, product or service, you have a recipe
for success, like, Chandrika, Bajaj Automobiles and Surf excel…