Product mix ppt

1. 1. Anything that can be offered to a market for attention, acquisition, use, or

consumption that might satisfy a want or need
2. 2. Any activity or benefit that one party can offer to another that is essentially
intangible and does not result in the ownership in anything
3. 3. Core Benefit Actual Product Brand Name Quality Level Packaging Design
Features Augmented Product Delivery and Credit After – sale service Installation
Warranty
4. 4. CONSUMER GOODS - Convenience Product - Shopping Product - Specialty
Product - Unwholesome or Unsought Product INDUSTRIAL GOODS - Installation -
Accessory Equipment - Component parts and materials - Raw Materials - Supplies -
MRO Item
5. 5. CONSUMERS PRODUCTS CONVENIENCE GOODS Candy, soda, Newspaper,
Milk, Disposable Camera Gasoline SHOPPING GOODS Car, Furniture, Home
Appliances, Computers, Electrical and Electronic Goods Rolex Watches, Ferrari Cars,
Lexus and all Luxury Cars SPECIALITY GOODS Blood Donation, Cemetery Plots,
Insurance, Long term health care UNSOUGHT GOODS
6. 6. CONVENIENCE PRODUCTS • Convenience Goods – Bought frequently and
immediately – Low priced – Mass advertising – Many purchase locations
7. 7. SHOPPING PRODUCTS • Shopping Goods – Bought less frequently – Higher
price – Fewer purchase locations – Comparison shop
8. 8. SPECIALTY PRODUCTS • Specialty Products – Special purchase efforts – High
price – Unique characteristics – Brand identification – Few purchase locations
9. 9. • Unsought Products – New innovations – Are often products consumers do not
want to think about – Require a lot of advertising and personal selling UNSOUGHT
PRODUCTS
10. 10. BUSINESS PRODUCTS INSTALLATIONS Oil Rig, Boeing 7E7, Regional
Shopping Center COMPONENTS Computer chips, truck bed, jet engines, lawn
equipment ACCESSORY EQUIPMENT Canon copiers, T-mobile cell phones,
Blackberry hand held computers RAW MATERIALS Soya, Milk, Poultry, Bauxite,
Cotton MRO SUPPLIES Xerox, Scotch tape, copy paper, staples, Post-its BUSINESS
SERVICES Wackhenhut, Ryder, Pinkerton
11. 11. INSTALLATIONS Major capital investment by a business buyer that typically
involves expensive and relatively long-lived products, such as a new factory or piece
of heavy machinery
12. 12. ACCESSORY EQUIPMENT Capital product, usually less expensive and shorter-
lived that insulation, such as a laptop computer
13. 13. COMPONENTS PARTS AND MATERIALS Finished business products that
become parts of buying firms’ final products, such as spark plugs for new cars
14. 14. RAW MATERIALS Business product, such as a farm product (wheat, cotton,
soybeans) or natural product (coal, lumber, iron ore) that become part of a final
product
15. 15. BUSINESS SERVICES Intangible product purchased to facilitate a firm’s
production and operating processes such as financial services, leasing of vehicles,
legal advice and consulting
16. 16. MRO ITEMS Part of business supplies categorized as maintenance items, repair
items, or operating supplies such as light bulbs, nuts and bolts used in repairing
equipment, or pencils
17. 17. Product Attributes Branding Product Support Services Packaging Labeling
18. 18. PRODUCT & SERVICE ATTRIBUTES • Product quality – Performance quality
– Conformance quality • Features – Value to consumer – Cost to company • Style and
design – Influences experience
19. 19. BRANDING • A brand is a name, term, sign, symbol, or design, or a combination
of these, that identifies the maker or seller of a product or service.
20. 20. PACKAGING • Designing and producing the container or wrapper for a product.
21. 21. LABELING • Printed information appearing on or with the package.
22. 22. PRODUCT SUPPORT SERVICES • Assess the value of current services and
obtain ideas for new services. • Assess the cost of providing the services. • Put
together a package of services that delights the customers and yields profits for the
company. Scion website
23. 23. A group of products that are closely related because they function in a similar
manner, are sold to the same customer groups, are marketed through the same types of
outlets, or fall within given price ranges PRODUCT LINE
24. 24. Product Mix (or Product Portfolio) consists of all product lines and items that a
particular seller that offers for sale. Example P & G’s product mix consists of three
major product lines: Detergent, Soaps, Shampoos………
25. 25. WidthWidth Detergent ShampooSoap LengthLength DepthDepth PRODUCT
MIX DECISION P&G
26. 26. Product Width refers to the number of different product lines the company carries.
For example : P&G’s Width – Detergents, Soaps, Shampoos. Product Length refers to
the total number of items the company carries within its product lines. For Example:
P&G’s Detergent product length – Tide, Ivory, Cheer, Bold. Product Depth refers to
the number of versions offered of each product in the line. For example: P&G’s Tide
product depth – Febreze, Cold water, Downy. Product Consistency refers to how
closely related to various products lines are in end use, production requirements,
distribution channels or some other way. PRODUCT MIX DECISION
27. 27. BRAND POSITIONING Attributes Benefits Beliefs and Values BRAND
DEVELOPMENT BRAND SPONSORSHIP BRAND NAME SELECTION Line
Extensions Brand Extension Multi brands New Brands Selection Protection
Manufacturer’s Brand Private brand Licensing Co-branding BRANDING
STRATEGY
28. 28. BRAND POSITIONING • Position brands at any of three levels: – Product
attributes • Least desirable; easily copied. – Product benefits – Beliefs and values •
Hits consumers on a deeper level, touching universal emotions.
29. 29. BRAND NAME SELECTION • Desirable qualities for a brand name include: 1. It
should suggest product’s benefits and qualities. 2. It should be easy to pronounce,
recognize, and remember. 3. It should be distinctive. 4. It should be extendable. 5. It
should translate easily into foreign languages. 6. It should be capable of registration
and legal protection.
30. 30. BRAND SPONSORSHIP • Manufacturer’s brands – Operated by Manufacturer
itself • Private brands – A brand created and owned by reseller • Co-branding –
Collaboration between two companies’ department
31. 31. BRAND DEVELOPMENT Line Extension Brand extension New Brands Multi
brands Existing Existing New New BrandName Product Category
32. 32. LINE EXTENSION Existing brand names are extended to new forms, sizes, and
flavors of an existing product category. Example: Fair & Lovely Fairness Cream-1978
Fair & Lovely Ayurvedic Fairness Cream-2001 Fair & Lovely Fairness Cream with
extra brightness -2003 Fair & Lovely Menz Active-2006
33. 33. BRAND EXTENSION Existing brand names are extended to new or modified
product categories. Example: Virgin Atlantic Virgin Mobile Virgin Cosmetics Virgin
Trains Virgin Money
34. 34. MULTI BRANDS New brand names are introduced in the same product category.
HUL: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona
35. 35. NEW BRANDS New brand names in new categories are introduced. Example:
Nescafè (Coffee) KitKat (Confectionery) Buxton (Water) Buitoni (Pasta) Sveltesse
(Chilled Diary) Shredded Wheat (Cereals)
36. 36. Idea Generation Idea Screening Concept Development and testing Marketing
Strategy development Business analysis Product Development Test Marketing
Commercia lization NEW PRODUCT DEVELOPMENT STRATEGY
37. 37. IDEA GENERATION: The systematic search for new-product ideas. IDEA
SCREENING: Screening new-products ideas in order to spot good ideas and drop
poor ones as soon as possible. PRODUCT CONCEPT: A detailed version of the
product of the new- product idea stated in meaningful consumer terms. PRODUCT
TESTING: Testing new-product concepts with a group of target consumers to find out
if the concepts have strong consumer appeal
38. 38. MARKETING STRATEGY DEVELOPMENT: Designing an initial marketing
strategy for a new product based on the product concept. BUSINESS ANALYSIS: A
review of the sales, costs, and profit projections for a new product to find out whether
these factors satisfy the company’s objectives. PRODUCT DEVELOPMENT:
Developing the product concept into a physical product in order to ensure that the
product idea can be turned into a workable product.
39. 39. TEST MARKETING: The stage of new-product development in which the
product and marketing program are tested in more realistic market settings.
COMMERCIALIZATION: Introducing a new-product into the market.
40. 40. • Introduction stage • Growth stage • Maturity stage • Decline stage STAGES OF
PRODUCT LIFE CYCLE
41. 41. GRAPHICAL REPRESENTATION OF PRODUCT LIFE CYCLE
42. 42. CHARACTERSTICS OF PRODUCT LIFE CYCLE
43. 43. INTRODUCTION STAGE • Product - one or few products, relatively
undifferentiated • Price – use cost plus basis to set a price • Distribution - Distribution
is selective and scattered as the firm commences implementation of the distribution
plan. • Promotion - Promotion is aimed at building brand awareness. Samples or trial
incentives may be directed toward the customers. The introductory promotion also is
intended to convince potential resellers to carry the product. • Advertising –
Advertising is aimed to be high to build product awareness
44. 44. GROWTH STAGE • Product - New product features and packaging options;
improvement of product quality. • Price – Price to penetrate the market • Distribution
- Distribution becomes more intensive. • Promotion- Reduce to take advantage of
heavy consumer demand. • Advertising- Build brand awareness in the mass market
45. 45. MATURITY STAGE • Product –Either modifying the product or diversify the
brand. • Price - Possible price reductions in response to competition while avoiding a
price war. • Distribution –Build more intensive distribution. • Promotion - Incentives
to get competitors' customers to switch.
46. 46. DECLINE STAGE • Product - The number of products in the product line may be
reduced. • Price - Prices may be lowered to liquidate inventory of discontinued
products. • Distribution - Distribution becomes more selective. Channels that no
longer are profitable are phased out. • Promotion - Expenditures are lower and aimed
at reinforcing the brand image for continued products.
47. 47. LUX Lux is a brand of Hindustan Unilever India Ltd. It has four modified soaps
which are: Orchid touch Almond delight Energising fruit Aqua sparkle Lets us see its
product life cycle
48. 48. INTRODUCTION STAGE MARKETING OBJETIVES The Lux marketing
objectives in the initial stage was to create the product awareness and to attract the
customers towards the product. MARKETING STRATEGIES The Lux marketing
mix strategies in the initial stages of the product were based on: Product They offer
only on product in the market. They did not come up with the differentiated product.
49. 49. Price In the initial stages of the product, they offer the relatively higher price than
their competitor (LIFEBUOY). Because, they want to recover their cost which
incurred initially in making the product. Or another reason was that they have
segmented the niche market. Advertising In the initial stages, they allocate more
advertising budget to advertise the product. So that more and more customers could
be attracted towards the product. In ads they targeted the early adopters, who were
readiest to buy the product. INTRODUCTION STAGE
50. 50. GROWTH STAGE MARKETING OBJECTIVES In the growth stage, the
marketing objectives of the Lux were to expand their market to the other cities of
India. Another objective was to maximize more market share. MARKETING
STRATEGIES In the growth stage, company had the following marketing mix
strategies: Product In the growth stage, the company had offered the same product in
the market.
51. 51. GROWTH STAGE Price In this stage, the company had changed their price to
some extent because of maximizing the market share. Advertising In the growth stage,
they had increased their advertising budget as in the initial stages because of attracting
the new customers or to retain the existing customers.
52. 52. MATURITY STAGE MARKETING OBJECTIVES The marketing objective of
Lux is to maximize more profit while defending the market share. And to expand the
market to all the cities of India. MARKETING STRATEGIES In this stage, Lux
marketing mix strategies are based on: Product The Lux has made the modification in
the product by introducing: Orchid touch Almond delight Energising fruit Aqua
sparkle
53. 53. MATURITY STAGE Price The Lux products are now available at higher prices
in the market, the reason behind is that the company’s marketing objectives is to
maximize more profit. Advertising In this stage Lux advertising has been reduced to
some extent because of the more brand awareness in the minds of customers.
Recently, they show the ad in which the India leading television and film actress were
shown.