MARKETING MANAGEMENT

Ans.1)
INTRODUCTION – PRODUCT PLANNING
As a newly appointed Product Manager by Balaji wafers, you are asked to develop New Product
Planning for new flavour of potato wafer.
Product: Product is anything that can be offered in a market for attention, acquisition, use, or
consumption that might satisfy a need or want.
New Product Development:
New product development refers to original products, improvements in the products, any
modifications in the product , and development of new brands from the organisation’s own
research and development.
To develop a successful product we need to understand some factors:-
1) Consumers
2) Market
3) Competitors
4) Values to Customers
PRODUCT DEVELOPMENT STEPS :
CASE STUDY: Product development planning for New Flavour Potato Wafer:
As the company already has potato wafer product they are just want to increase their
product line by adding a variant.
1) Idea Generation: It is the first step in any new product development. It is all about
finding new ideas using by internal sources and external sources.
Internal Sources: Within organization such as brainstorming, R&D.
External Sources: Outside organization such as customers, competitors, market research
firms etc.
For potato wafers flavour: for new flavour Idea can be find out by using market research
strategy and research on customers behavior towards different flavours.
Research should be done in different segments of local population.

2) Idea Screening: This step is used to analyze different ideas and take out best of it which
may be profitable in the future.

For Potato wafers market research study of customer behavior is an useful idea to
be test and then select the various flavour which is in demand currently.

3) Concept Development and Testing: This is the development of product concept which
is nothing but the detailed version of idea this is import to analyze whether the product is
right for the consumers and alternatives of the product is analyzed.
Before Launching the actual product this step is necessary to test a prototype of the
product which is a new flavoured potato wafer to a small target population.

Concept Testing: refers to testing new product concepts with groups of target consumers
to find out if the concepts have strong consumer appeal.
Different types of flavour prototype of potato wafer can be tested to check the each
concept and the product and collect the information for further analysis.

4) Marketing Strategy Development and Business Analysis: It is designing an initial

marketing strategy for a new product based on the product concept. In our case its newly
flavoured potato wafers.

Target market description: It is all about the target customers who are the one’s going
to consume products whether they are kids, young age people or old age. Definitely it
would not be old age people and the priority is given to young aged and the kids
they are the major consumer of the product potato wafers.
Any Income range can afford this product as its price may not be high and any one can
buy it.

It describes target market, planned value proposition and sales, market shares and profit
goals for the first few years.
 Value proposition planned: it is the the planning of product’s price , distribution and
marketing budget for first year.
For potato wafers whatever the flavour is not there in product line like there are
three flavour to launch tomato flavour, tangy flavour and pudina flavour with the
price range of 10rs to 80 rs , the quality is best in the market with approval of
government.

Advertising on websites , mobile apps and social media about the taste and the
quality of the newly developed product that is potato wafer.

Sales, market-share, and marketing mix: Describes the planned long run sales, profit
goals and marketing mix strategy. Example: To capture a 4% long run share of the total
auto market and realize an after tax return on investment of 18%. To achieve this, product
quality will start high and be improved over time.

Business analysis is a review of the sales, costs, and profit projections for a new product
to find out whether these factors satisfy the company’s objectives.
To estimate sales, the company might look at the sales history of similar products and
conduct market surveys. It can assess the minimum and maximum sales to assess the
range of risks. The company then uses the sales and cost figures to analyze the new
potato wafer flavour product’s financial attractiveness.

5) Product development : It is developing the product concept into a physical and actual
product to ensure that the product idea can be turned into a implementation and
workable market offering.
The R&D department will develop and test one or more physical versions of the product
concept.

6) Test marketing: It is the stage of new product development in which the product and its
proposed marketing program are tested in realistic market settings.

For the potato wafer new flavour product the test marketing is to be unlikely as it is
already existing product and this new product is just a product line extension.It may
be the copy of competitor and low cost product.
 7) Commercialization: Test marketing has given management the information needed to
make the final decision: launch or do not launch the new product. The final stage in the
new product development process is commercialization.
a) Introduction timing. For instance, the economy is down, it might be wise to wait until
the following year to launch the product.
b) Large amounts may not be spent on advertising, sales promotion and other marketing
efforts in the first year as it is an existing product variant of potato wafers.

Conclusion:
In all of these steps of the new product development process, the most important focus is on
creating superior customer value. Only then, the product can become a success in the market.
Only very few products actually get the chance to become a success. The risks and costs are
simply too high to allow every product to pass every stage of the new product development
process.
Ans2.)
INTRODUCTION- MARKET SEGMENTATION

Market Segmentation: It is the process of dividing target market into smaller, more
defined categories. It segments customers and audiences into groups that share
similar characteristics such as demographics, interests, needs, or location behaviors
that might require separate marketing strategies.

Types of Market Segmentation:

1) Geographic segmentation divides the market into different geographical units such
as nations, regions, states, counties, cities, or even neighborhoods.

2) Demographic segmentation divides the market into segments based on variables

such as age, life-cycle stage, gender, income, occupation, education, religion,
ethnicity, and generation.

3) Psychographic segmentation divides a market into different segments based on

social class, lifestyle, or personality characteristics.

4) Behavioral segmentation divides a market into segments based on consumer

knowledge, attitudes, uses of a product, or responses to a product

Multiple Segmentation Bases

Segmenting Business Markets: Consumer and business marketers use many of the same
variables to segment their markets. Customer operating characteristics, Purchasing
approaches, Situational factors , Personal characteristics.

Segmenting International Markets: Intermarket segmentation involves forming

segments of consumers who have similar needs and buying behaviors even though they
are located in different countries.
CASE STUDY : Health and Nutrition Start-Up

Product: Habbit Wise Creams

Flavours: Blueberry, Crumble, Salted Caramel, Lychee, Blush
Speciality: low calorie, zero added sugar, keto and diabetic friendly

Clearly the Habbit Wise Creams is developing and launching a health oriented delicious
product for the people which can attract a large amount of population as it is an food
product and with good qualities and Healthy.

Lets talk about the segmentation of this product on the basis of Geographical
Segmentation: the product can target the local, regional ,national and international but
the condition is that the location must be not cold place like USA, Antartica, UK as no
one prefers the ice cream in cold so the location must be a summer location like India,
Africa etc.
If we talk about regionally for example in india there are cold regions and hot so the
target location must be hot places not all the regions.

Now, lets take a case of Demographical Segmentation:

1) On the basis of Age: The age for ice creams does not matter as anyone can have it
depending on health condition but the majority of the age band is around 6-35 years
but as it is a diabetic friendly people above 40 can also be targeted and attracted.
That means targeting young age, kids and middle aged people is a majority.

2) On the basis of Sex: Irrespective of male or female anyone can have it so there is no
restriction on sex.

3) On the basis of Income: Income plays major role for the success of any product
here a higher income community can easily afford the icecream even if it is little
expensive to buy product the main reason is the quality it offers and the ingredients in
the product is not harmful. A well educated and high income community always
prefer a healthy and tasty product.

On the other hand a low income community cannot desire of it if it is expensive so

there must be a range of prices from low to high and also a range of qualities from
less to more. More pay more quality less pay little less quality.

Now lets talk about the Psychographic Segmentation:

It divides a market into different segments based on social class, lifestyle, or personality
characteristics. A individual with expensive lifestyle can easily be targeted and similarly
if the individual is of good social class family definitely attracted towards good quality
and healthy ice cream. Furthure the people with preference of low calorie and health
oriented likes the product continuously.

Now the last one is Behavior Segmentation:

In Psychographic Segmentation we find about who the person is in Behavior we study

about the habits and daily activities of the person.

Like if a individual is a icecream lover and buys it regular time of interval.

The factors are Occasions , Benefits sought, User status, Usage rate, Loyalty status
Occasions: People likes to buy beverages in occasions like birthday, anniversary etc.

Benefits: If the product gives any kind of benefit to the customer it makes them to buy it
for the quality and benefits.

User Status: Some Customers buys the expesive products just for their status and show
off.

Loyalty: There are people who only prefers some specific brands only for targeting them
is very difficult as they are loyal to the brand they are using.

POSITIONING OF THE BRAND:

Positioning of the brand is the process to feed the product in the mind of people such a
way that it attracts them and creates an emotion like Jio did to his customers by feeding
jio dan dana dan. Positioning is one distinct and different thing which attracts customer.

Choose the positioning which is communicable, distinctive and can easily understand by
the customers and should make an impact on the mind of people that the features and
quality is true and not fake.

Different Strategies of Positioning:

Positioning can be as brand name like “Habit Wise Creams”.

Positioning by product features like “calorie free harm free”.

Positioning by Quality like “Healthy as well as Best”

Positioning by Company identity like “Healthy Nutrition Creams”

CONCLUSION:

The product of Health and Nutrition that is Habit wise creams can target the population
irrespective of social, gender ,geographical factors as the product is quality product and
with health benefits the range of prices of the ice creams can be variable according to the
class , personality , habits and income of the people. Quality cannot be compromised if
the price is high.

A better positioning of the brand is important for the success of the product as it creates
an emotion in the people which triggers them to buy it whenever they want to have
icecreams proper position results in effective segmentation.
Ans 3

INTRODUCTION: PRODUCT LINE EXTENSION

Product Line length Extension: It is basically a extension or addition of product in the

existing inventory of similar product. It can be stretched downward or upward.

Product line stretching occurs when a company lengthens its product line beyond its
current range. The company can stretch its line downward, upward, or both ways.
Companies located at the upper end of the market can stretch their lines downward. A
company may stretch downward to plug a market hole that otherwise would attract a new
competitor or respond to a competitor’s attack on the upper end. Or it may add low-end
products because it finds faster growth taking place in the low-end segments.

3.a) Yes, I agree that the brand name “Clingers Gold” is right for the top end segment. As
the brand Clinger is already very popular in the market and amongst the people so there
already exist a brand value of the company “Clingers” which is popular and one of the
best for middle range shopping of shirts and clothes.

Now lets come to the top end segment where the they want to play a value game with
increased price and better quality than before so basically their target now are the high
income people and customers for this product. The product is premium and costly which
is taken in the reference with gold as not everyone can afford gold only high income and
high social class people can afford it just like gold this product targets the premium
customers rather than others as there already exist a variable range of prices below this
which is for the customers which don’t have such high income and do not want to spend
more money on shirts.

Hence for premium quality and high price value of the product the Brand name “Clingers
Gold” is well suitable. One more factor is the customers of Clingers are now have a
option to try their new brand “Clingers Gold” quality product and existing customers who
all are trusting the clingers have a good opportunity to try new brand shirts for their status
and better quality experience.

There are chances for those customers who are fascinated about only premium products
and never tried Clingers product in their life.

Also there are competitors who are already in the business of premium and high price
value shirts so to see and analyze the new high price premium brand “Clingers Gold”
shirts performance in the market with competitors it’s a excellent move to enter in this
market to compete with the other brands.
Conclusion:

The Brand name “Clinger Gold” is a good move to enter in the market of high price
premium shirts and provides the value as gold to their buyers. This move is also used to
see the effects of the competitors on the sales and profit and how to improve if possible in
future in case if the business do not gives the desired result. If the brand works and gives
revenues than more such ideas can be thought and can be launch in the market.
 3.b)

Factors that needs to be studied before making such entry in the market:

1) Target Consumers/Customers
2) Business Market
3) Competitors
4) Demand and Supply
5) Capital
6) Segment

Now lets talk about first factor Consumers and Customers:

Consumers are the end user of the product and customer can be both retailer and consumer.
Consumer behaviour is very important factor to understand if there are less customers of buying
premium products of the brand then may be it is not a good idea to start a new premium high
price value product .
It depends on the income of the people , people of high class is the target so the target customer
must be clear before starting and enter into the market.
Business Market is also a important factor as first market research is important to analyze the
current situation of the market to know how big the market is if this product is launched by doing
a market research and after market research only company decides that in which market they
have to enter.
Competitors: Before entering into market company must know their competitors in the market
who is doing same business and analyze their strategies this will give and idea about how
difficult it is going to be success of their product with their competitors and then find ways to
tackle the problems and difficulties.
Demand and Supply: This is important to analyze the current demand of the product they are
going to launch and whether they can able to supply the demand or not analyzing their
production capabilities will help them to reduce or increase their cost according to the market
and consumer demand.

Capital: It tells the ability of the company to invest in the new brand and product whether they
are financilay strong or weak , whether the company can bear the loss if in case possible and
whether the company capital is able to bear all expenses in the brand and product from
showroom opening to maintaining quality.
Segment: It is very important to understand the target segment the market according to the brand
and product because if they try to target wrong segment the company is surely going to have
huge losses so the target segment must be clear to the company it can be demographic,
geographic, behaviour and psychographic.

Conclusion:
The factors are very important to understand and analyze before having entry in the market it
helps organization to make efficient decision and hence a effective strategy for their brand and
products for high value product if customer and target segment not analyzed in correct way then
the losses may be larger as the cost of production may be high for the premium products.
By going through each and every factor company finds the risks and problems before launching
the product and ensures a development of good strategy to tackle the risks and difficulties timely
before entry in the market.
REFERENCES

1) Product Development Image, google images by Google.com

2) Marketing Management by Philip Kotler | Kevin Lane Keller , NMIMS