Corrected PRODUCT Management Ok Details

8/9/2019 Corrected PRODUCT Management Ok Details

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PRODUCT MANAGEMENT

NEW PRODUCT DEVELOPMENT

Discuss the case of Maruti 800 - as it is sellingwell for the last 10 years, what is the need of

sales and marketing dept. for that car now,and why do you think the company keeps on

developing and selling newer versions of carsevery year?



NEW PRODUCTS ARE INTRODUCED FOR A NUMBER OF

DIFFERENT STRATEGIC AND TACTICAL REASONS

To keep the pr of its c oming inTo keep the pr of its c oming in- - new pr od ucts arelaunched so that revenue generati on of the f ir m does not su ff er .

To increase the profit every year To increase the profit every year-- as a f ir m c omes up withnew i d eas and pr od ucts, pr of its for the f ir m is expected t o gr ow - d iscuss the inc ome f r om other sources for a

luxury hotel«

MAINTAINENCEMAINTAINENCE

OF STATUS AS PRODUCT INNOVATOROF STATUS AS PRODUCT INNOVATOR-- the productthe product

enjoys its status and goodwill in the market as theenjoys its status and goodwill in the market as the

product launcher in the market.product launcher in the market.

Say, Motorola mobile phone,which created a revolution in theSay, Motorola mobile phone,which created a revolution in thetelecom industry by launching the cell phone. It created itstelecom industry by launching the cell phone. It created itsimage in the market as the innovator in this sector image in the market as the innovator in this sector ..



NEW PRODUCT STRATEGY DEVELOPMENTNEW PRODUCT STRATEGY DEVELOPMENT

But how does that happen?But how does that happen?

IDEA GENERATIONIDEA GENERATION ± ±observe nature, brain storm, review researchobserve nature, brain storm, review research

work, gather information from the market through mkt. surveys«work, gather information from the market through mkt. surveys«

SCREENING AND EVALUATIONSCREENING AND EVALUATION-- sampling is an aspect of screeningsampling is an aspect of screening

the product, which determines its acceptability in the market.the product, which determines its acceptability in the market.

BUSINESS ANALYSISBUSINESS ANALYSIS ± ± decide through feedback and meetings, askdecide through feedback and meetings, ask

the questionthe question-- can the product be profitable, taking into account the existingcan the product be profitable, taking into account the existing

realities?«realities?«

DEVELOPMENTDEVELOPMENT ± ± through research and continuous testing & sampling,through research and continuous testing & sampling,

develop the version that may be accepted by the market.develop the version that may be accepted by the market.

TESTINGTESTING ± ± this is a critical stagethis is a critical stage ± ± test the acceptability of the product, thetest the acceptability of the product, the

use of the product, the durability, quality acceptance, health & safetyuse of the product, the durability, quality acceptance, health & safety

characteristics of the product«characteristics of the product«

COMMERSIALISATIONCOMMERSIALISATION ± ± apply advertising & merchandisingapply advertising & merchandising

techniques to build brand, awareness, and acceptance of the product«,techniques to build brand, awareness, and acceptance of the product«,

develop distributor channelsdevelop distributor channels



REASONS FOR FALIURES of IDEAS OF NEW PRODUCTS/REASONS FOR FALIURES of IDEAS OF NEW PRODUCTS/

SERVICESERVICE

MISMIS--TIMED INTRODUCTIONTIMED INTRODUCTION:: when the idea is too ahead of time.

Class room discussion:Class room discussion:

In the City of New Delhi, a newly opened, super deluxe luxury hotel decides toIn the City of New Delhi, a newly opened, super deluxe luxury hotel decides tosell a package which says that all guests who book the room a month insell a package which says that all guests who book the room a month inadvance would benefit by getting 50% discount on the room tariff. The hoteladvance would benefit by getting 50% discount on the room tariff. The hotel

hopes to beat the competition through this. Would this scheme work well?hopes to beat the competition through this. Would this scheme work well?

Argument:Argument: why is it that the high profile, very expensive Imperial Hotel in Delhi,by not giving any discount, records 100% occupancy«

- this market segment is not price sensitive

- Hotel rooms are already in short supply in Delhi«

The market has not reached saturation stageThe market has not reached saturation stage ± ± demand for rooms is stilldemand for rooms is stillmore than the availabilitymore than the availability

The idea is ahead of the time«The idea is ahead of the time«



POORLY DEFINED NEW PRODUCT / SERVICEPOORLY DEFINED NEW PRODUCT / SERVICE

DEVELOPMENT OBJECTIVESDEVELOPMENT OBJECTIVES.

Consider the case that in a busy office complex like sector V, a newlyConsider the case that in a busy office complex like sector V, a newly

opened restaurant, decides to offer a variety of food service stylesopened restaurant, decides to offer a variety of food service styles

( Formal, American, Russian, English) concurrently, to the diners.( Formal, American, Russian, English) concurrently, to the diners.

There would soon be service complains as because the server¶sThere would soon be service complains as because the server¶s

efficiency would vary from table to tables«efficiency would vary from table to tables«

Service objectives should match guest expectationsService objectives should match guest expectations ± ± in this case fast,in this case fast,

simple, compact, presimple, compact, pre--plated«plated«



UNACCEPTABLE PRICEUNACCEPTABLE PRICE--VALUE RELATIONSHIP.VALUE RELATIONSHIP.

Consider a scenario when hotel rooms in Nainital are priced at equivalentConsider a scenario when hotel rooms in Nainital are priced at equivalent

rates to that in Switzerland.rates to that in Switzerland.

Discuss how far could you match the values attached by you to the 2 placesDiscuss how far could you match the values attached by you to the 2 places

For Both Nainital & Switzerland list the following:For Both Nainital & Switzerland list the following:

Prestige factor of the placesPrestige factor of the places

Natural beauty of the placesNatural beauty of the places

Facilities available at the placesFacilities available at the placesFood & Beverage choices available at the placesFood & Beverage choices available at the places

Variety of accommodation arrangements available at the placesVariety of accommodation arrangements available at the places

Match the community lifestyles of the placesMatch the community lifestyles of the places

Match the communication and conveyance systems.Match the communication and conveyance systems.

Match the year Match the year--round climatic comforts inherent to the placesround climatic comforts inherent to the places

Match the availability of consumer products at the placesMatch the availability of consumer products at the places

Customers expect to pay a price that matchesCustomers expect to pay a price that matches

the perceived value they attach to the products / Servicesthe perceived value they attach to the products / Services

ALUEALUE



INADEQUATE ADVERTISING & PROMOTIONAL SUPPORTINADEQUATE ADVERTISING & PROMOTIONAL SUPPORT..

Example 1Example 1

Manu Maharani Resorts in NainitalManu Maharani Resorts in Nainital, a prestigious stately resort with facilities for , a prestigious stately resort with facilities for

highly customized services was once frequently being visited by Pandithighly customized services was once frequently being visited by Pandit

Jawaharlal Nehru. Today, the only way to know about that resort is through theJawaharlal Nehru. Today, the only way to know about that resort is through the

Inter Net Web site the organisation owns. Is it being rightly promoted /Inter Net Web site the organisation owns. Is it being rightly promoted /

advertised?advertised? -- poorly advertisedpoorly advertised

Example 2Example 2

What may happen if What may happen if KFCKFC, the fast food giant decides to advertise only in the, the fast food giant decides to advertise only in the

Express Hoteliers magazineExpress Hoteliers magazine ± ± a magazine read only by professional hoteliers. Thea magazine read only by professional hoteliers. The

products will not be seen by the right audience.products will not be seen by the right audience. ± ± wrong selection of media?wrong selection of media?



PRODUCT NOT PERCEIVED AS DIFFERENT FROMPRODUCT NOT PERCEIVED AS DIFFERENT FROM

COMPETITORSCOMPETITORS..Compare the 2 advertisements:Compare the 2 advertisements:

Hotel ABCHotel ABC

Comfortable bedsComfortable beds

Elaborate dining arrangementsElaborate dining arrangements

Car on hireCar on hire

24 X 7 laundry facilities,24 X 7 laundry facilities,

Tele services, room serviceTele services, room service

Attached bath«Attached bath«

Hotel XYZHotel XYZ

Comfortable roomsComfortable rooms

MultiMulti--cuisine restaurantscuisine restaurants

Car on hireCar on hire

24 X 7 laundry facilities,24 X 7 laundry facilities,

Tele services, room serviceTele services, room service

Attached bath withAttached bath with

hot & cold water«hot & cold water«

Where is the difference? Where is the UNIQUENESSWhere is the difference? Where is the UNIQUENESS

NONE«NONE«



UNSATISFACTORY POSITIONINGUNSATISFACTORY POSITIONING --

If the advertising & promotional media (or the tools) and theIf the advertising & promotional media (or the tools) and the

advertisement message selected, are not rightly directed towards theadvertisement message selected, are not rightly directed towards the

target audience the communication of the product /service will fail totarget audience the communication of the product /service will fail toreach the marketreach the market..

INADEQUATE PRODUCT PERFORMANCEINADEQUATE PRODUCT PERFORMANCE ± Consider thisConsider this: AnAn

independent tour operator escorts a group of tourists to a hotel only toindependent tour operator escorts a group of tourists to a hotel only to

realise that the services offered are subrealise that the services offered are sub--standard. The product /standard. The product /services have failed to keep up with the promises. The product /services have failed to keep up with the promises. The product /

services will finally fail to sell in the market.services will finally fail to sell in the market.

DISTRIBUTOR¶S UNWILLINGNESS TO SELL THE PRODUCTDISTRIBUTOR¶S UNWILLINGNESS TO SELL THE PRODUCT ± if theif the

parent company does not offer the right support services to theparent company does not offer the right support services to the

retailers and distributors, the latter would not be motivated to sell theretailers and distributors, the latter would not be motivated to sell the

products / services, fearing customer accusations?products / services, fearing customer accusations?



Case studyCase study ± ± product developmentproduct development













Q1) Why was the ³ FUSE´ concept developed?

Q2) Why does it happen that all pr oducts do not emerge successfully. How can this

Statement be related to the PLC aspect.

Q3)W

hat is USP! W

hat is its im

por tan

ce.Q4) The idea of pack design is impor tant f r om the mar keting point of view. Explain.

Q5) Packaging enables a manuf acturer to convey both tangible and intangible attr ibutes

Of a pr oduct. Explain.

Q6) Explain how brand name plays an impor tant r ole in success of a pr oduct?

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Corrected PRODUCT Management Ok Details