Product Policy & Brand Management - Unit-2

1. Product Policy
&
Brand Management
UNIT - 2
S. Thowseaf

2. Product Life Cycle Management
Definition
• Product life cycle (PLC) is the cycle through which every product goes
through from introduction to withdrawal or eventual demise.
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Introduction Growth Maturity Decline
SALES
TIME
Product Life Cycle

3. Marketing implications of PLC Stages
Introduction Growth Maturity Decline
Sales Low Sales Increasing Sales Peak Sales Falling Sales
Profits Loss Profit Rises Profit high Profit falls
Costs High Cost per Customer Cost per Customer Falls Cost per Customer is lowest Cost per Customer is Low
Competitors Few Competitors More Competitors Stable No. of Competitors Number of Competitors Falls
Customers Innovative Customers Increasing No. of Customers Mass Market Contract based Customers
Introduction Growth Maturity Decline
Marketing Objectives Create awareness Maximize market share Maximize profit Taper off expenditure
Product Strategies Offer basic functional product Offer product extensions Differentiate by offering
diversity of products
Delete weak products
Distribution Develop selective distribution Build more extensive
distribution
Build more extensive
distribution
Have selective distribution and
stop unprofitable outlets
Promotional Strategies Build product awareness among
early adopters and dealers
Develop Mass market & reduce
sales promotion
Increase sales promotion and
emphasis on brand, quality and
difference
Reduce promotional activities
and just retain few loyal
customers
Pricing Strategies Industrial Product: Skimming
Electronic Product: Penetration
Skimming Penetration Decline if necessary
Strategies Consideration

4. Product line Extension
Definition & Introduction
• A product line extension is when a company creates a new product in the same product
line of an existing brand. The strategy for an extension could be a different color or size,
and it may have different ingredients or come in different flavors. The company is
marketing the value and quality of the existing product line to introduce more choices to
consumers. E.g. Maggi noddle’s, Maggi Atta noddle’s, Maggi Multi-grain noddle’s etc.
Significance
• Risk
• Loyalty
• Market Expansion
• Versions
• Development
• Branding

5. Product Line Decisions
Definition & Introduction
Product line refers to a group of same products. Product line decisions refer to decisions relating to
addition or deletion of product from the existing product line. Addition and deletions in product can
be explained as follows:
• Line Stretching Decisions: Line stretching implies increasing the length of product line. It can take
place in three directions.
• a) Downward Stretching: Downward stretching refers to addition of a new product into existing product line but at
a lesser price. For example; TATA introduced low cost car "Nano" in the market.
• b) Upward Stretching: Upward stretching is the opposite of downward stretching. When an organization adds a
new product in the current product line but at higher price than the existing one, it is called upward stretching.
For example; Parle started with low cost biscuits like Parle G then introduced high cost product of same category
like Hide and Seek.
• c) Two-way Stretching: Two way stretching refers to addition of product in product line in both the directions. So, a
low priced as well as a high priced product are added at the same time in product line. Marriot- Hotels & Resorts
started Renaissance Hotels to serve upper end of the market and Town Place suites to serve lower section of the
market.
• Line Filling Decisions: Product line filling involves adding a new product in the existing product
line to face competition and increase consumer base. Under product line filling price of the new
product is normally same. For example, Maruti Suzuki introduced Alto when Maruti Zen was
already available in the same range.
• Line Pruning or Deletion Decisions: Line pruning decisions refer to removal of unprofitable
product from the product line. For example Pepsi launched Pepsi Gold but the product was not
successful in the market. So after some time it was removed from the market

6. New Product Planning & Development
Launch
Planning: Project Management Techniques: Total Coverage Launch, Roll Out Launch
How to Launch: Pre-Launch Preparation, Announcement,
Beachhead, Early Growth.
Market Testing
Planning: Conventional testing & simulated testing Techniques: Door to Door Selling, Free Sample, Local Advertisement, Coupons
Product Development
Planning: Technical knowledge on Product Design & Development Techniques: Prototype marketing, Alpha & Beta testing
Business Analysis
Planning: Data for financial decisions Technique: Estimate- Demand, Cost, Profit, Environmental Impact
Concept Development & Testing
Planning: Creativity & Design Development Techniques: Test the Concept
Idea Screening
Planning: Market & Cost Information Techniques: Checklist
Phase: Ideation
Planning: Creativity Techniques: Brainstorming, Market Analysis, Gap Analysis, Morphological analysis etc.

7. Product Market Analysis
Introduction
• A product that has survived the screening stage of development called the New Product Development or NPD stage needs a focused product market analysis next. The
analysis of product market will not only reveal the demand that the market has for the product but also the expected profits in the future years along with a fair idea of
survivability of the product. It will also assist firm in determining the cost of proposed NPD. An analysis that has been carried out fairly will go a long way in helping firm
eliminate inappropriate ideas as well as unnecessary costs involved in product marketing.
Dimensions of product market analysis
• Market size
• Market trends
• Market growth rate
• Market opportunity
• Market profitability
• Industry cost structure
• Distribution channels
• Success factors
Benefits of Product Market Analysis
• Estimation of product price
• Identification of product’s market potential
• Forecast sales volume
• Identification of break-even point
• Determination of minimum sale price

8. Thanks For Your Time
Kindly come prepared for Synopsis test during next class