Professional Documents
Culture Documents
PRODUCT
We can define a Product as a ‘need satisfying entity’.
GUARANTEES
AND DELLIVERY POINTS
WARRANTIES AND SYSTEMS
ATTRIBUTES STYLING
COLOUR
INSTRIBUTIONS
MANUAL
REPLACEMEN T Core
OR INSTALLATION
RETURNS POLICY Product
SHAPE BRAND NAME
QUALITY PACKAGING
CUSTOMER EDUCATION
AND TRAINING
PAYMENT OPTIONS
CUSTOMER COMPLAINT
MANAGEMENT
Classification of Products:
►Business Products
►Consumer Products
Types of consumer products
1. Convenience product:
►Inexpensive products
►Little shopping effort to buy
►Aware of brand names
►Also called Fast Moving Consumer Goods
2. Shopping product:
►Expensive than Convenience products
►Buy only after comparing several brands.
►Customers expend time and effort.
►Also called as Durable goods. Example: Clothing, Furniture etc.
3. Specialty product:
►Which customers have strong brand preference.
►Very rarely accept substitutes.
►Distribution is limited to few outlets in geographical
area.
►Example: Rolls Royce cars, 5star Restaurant
4. Unsought product:
►Unknown to the customers.
►Customers come to know about products through personal
selling.
►These products are needed by customers but they do not like
to think about them.
►Example: Insurance
Product offer can range from the generic to the
potential:
►Generic product
►Branded product
►Differentiated product
►Customised product
►Augemented product
►Potential product
►Generic product: unbranded product and undifferentiated
commodity.
Examples: rice, bread, flour, cloth
►Branded product:
examples: modern bread, annapurna atta
Hindustan
Unilever
PRODUCT WIDTH
Product Line : A group of product items (or) brands that are closely
related in terms of their functions they provide.
Example: Bath Soaps, Fabric Wash, Beverages, Personal Care
Products
Hindustan
Unilever
Hindustan
Unilever
MOTI A1
Product Mix of Hindustan Lever Limited
HLL now named as Unilever Limited
Hindustan
Unilever
MOTI A1
Hindustan
Unilever
DEODARANTS
HOUSE HOLD CARE AXE
VIM
COLOUR COSMETICS
LAKME
Main Tasks in Product Management
1. Appraisal of each product line and each prduct/brand in the line.
2. Decisions on packaging
3. Product differentiation and positioning
4. Managing brands and developing brand equity
5. New product development
6. Manging the PLC of products/brnds
7. Managing product quality
1. Appraisal of each product line and each prduct/brand in the line:
Increasing the Line Length
►Line Stretching
►Line Filling
Line Stretching
►Stretching Down:
examples: HLL priced surf at Rs. 40 per kg. HLL decided to
introduce Sunlight detergent powder at Rs. 26 per kg. Wheel at
the price of Rs. 10 per kg.
other examples: Parker, Prestige, Ariel
►Stretching Up:
examples: Philips two-in-one offers in Rs. 1000 -2000 price range.
for premium segment philips launched Power house range in the
Rs. 6,000 to Rs. 9000.
Philips launched power play range in the Rs.15,000 – 25,000
Line filling:
In line filling the firm introduces more items to the line to plug certain
gaps in its current range of offers.
Example: Videocon air-conditioners
Videocon entered the market for air-conditioners, with just two
models. But within two years of entry, Videocon introduced a
dozen models.
Example: Videocon colour televisions
Bazooka - for top-end consumer
Turbo tough - for middle-income buyer
Budget line - for lower middle income segment.
three 14-inch models, two 20-inch modles,
four 21-inch modles, one 25-inch model
one 29-inch model
Line pruning:
Reducing the depth of a product line by deleting less proitable
offerings in a particular product category.
Example: Procter and Gamble has 31 versions of head and
shoulders shampoo. Now head and shoulders brand was pruned
to 16 versions.