Marketing Management

HRM 2024-2026
Term:- 3

Dr. Piyush Ranjan

Assistant Professor (Marketing)
XLRI-Xavier School of Management
Jamshedpur-831001
Marketing Plan
What is a
PRODUCT?
 Definition of Product

A product is anything that can be offered to a market for

attention, acquisition, use, or consumption in exchange for
money or some other form of value to satisfy customers’ needs
and wants.

Kotler and Keller (2006)

 Examples of products from different perspectives:
Physical Person Service Place Idea Organization Event
Object

Apple Watch SRK Taxi Ride Eiffel Tower Atmanirbhar WHO IndvsAus
(a well-known (Tourist Bharat Match
celebrity) Destination) Scheme
 Classification of Products

1. Consumer Products 2. Industrial Products

Fruit Juice Machine HP Computer

 Classification of Consumer Product

1. Convenience Products 2. Shopping Products

3. Specialty Products 4. Unsought Products

 What’s YOUR TAKE on it?
Situation 1
Suppose you are going on vacation with your friends and Unfortunately
you forgot your camera, you bought it from a local electronics store.

Situation 2
Suppose you are a professional photographer planning to buy a camera.

Situation 3
Suppose you want to buy a new camera, and you are extremely inclined
towards the Sony brand.
 Classification of Consumer Product
Convenience Shopping Specialty Unsought
• Frequent purchase; • Less frequent • Strong brand • Little product
• Little planning, purchases; preference and awareness or
little comparison or • Much planning and loyalty; knowledge (or, if
shopping effort; shopping effort; • Little comparison aware, little or even
• Low customer • Comparison of of brands; negative interest)
involvement brands on price, • Low price • Ex- Funeral items,
• Ex-Toothpaste, quality, and style sensitivity First Aid Kit
laundry detergent • Ex- Televisions, • Ex- Rolex watches
furniture
Product Levels

Core Proposition
(Meeting the Psychological Needs).

Embodied Proposition
(Meeting the Actual Customer Needs).

Augmented Proposition
(Providing Additional Benefits).
Three Product Levels Example: Mobile Phone

Apps Zero
Installation percent
financing
Operating
System

Screen To make Color

12-month
size telephone
warranty
calls
Space
Customer
Care
Weight

24-hour
replacement service
for broken phones.
 Class Exercise
Describe the three elements of a proposition for the following:-
 Product Lifecycle
❑ A product life cycle is the length of time from the product's creation to its removal from the market.

❑ It involves five stages: product development, introduction, growth, maturity, and decline.
Product Lifecycle
Product Class Vs Product form

DVD & Blu-Ray Disc

Product Lifecycle
Extension of Product Lifecycle
1. Introducing new ways of using the existing product.

2. Developing New Attributes 3. Finding New Users

 1. Introducing new ways of using the existing product.

Amazon company allows existing

Fire TV Stick users to install
additional applications through the
App Store.
2. Developing New Attributes
Figure 1 Figure 2
 3. Finding New Users
Expanding the product line (Fire TV Stick Devices)
 What’s YOUR TAKE on it?

Do you think that every product goes through each stage

of the product life cycle?
Product Lifecycle of Style, Fashion, and Fad
 Other Forms of Product Lifecycle
Beverage Sector Electronic Goods
(Coca-Cola to New Coke) (Built-in obsolescence)
 Product Portfolio

Product mix width

Product Mix Width:

Product Line
The number of different product lines.

Length
 Product Portfolio Analysis
Apple
Technology company

Mac iPad iPhone Watch TV

iPhone 15
iPhone 15 Pro
iPhone 15 Pro Max
 Class Exercise

Question: Visit the website of any one company, you’re

interested in, to gather product portfolio information,
including its width, length, and depth.
Then, design a complete Product Portfolio Analysis based
on the gathered information.
 Product Portfolio
A company has four strategies to effectively manage the
Product lines.

1. Line Stretching 3. Line Modernization

2. Line Filling 4. Line Pruning

 1. Line Stretching
1. Downward Stretching HUL Co. 2. Upward Stretching

3. Two-way Stretching
 2. Line Filling
Pepsi Co.
(Cold Beverage Products)
3. Line Modernization
4. Line Pruning
How to Build a New Product

Vs
How to Build a New Product
New Product Development Process
 Generating Viable Ideas

1. Top-down / market-driven idea 2. Bottom-up / invention-driven idea

generation generation
– Begins with identifying a market – Starts with an invention and then
opportunity followed by seeks to identify an unmet
developing an offering specifically market need
designed to address this
opportunity
 Concept Development
• Prototype

– A working model of the offering that aims to flesh out the original idea and weed
out potential problems before the actual offering is created

1. Alpha testing

– Evaluation of the product within the firm

2. Beta testing

– Tests the product with customers

 Designing the Business Model
Three components:

– Identifying the target market

– Articulating the offering’s

value proposition

– Delineating the key attributes

of the product offering
 Class Exercise

Many beer companies now sell hard seltzer products in addition to beer.
Discuss these new product offerings.

– What motivated their development?

– Do they represent top-down idea generation or bottom-up idea

generation?

– Why have these products been successful?

Note: Hard seltzer is a popular alcoholic drink that combines

alcohol with flavored carbonated water.
 Case Discussion

Aqualisa Quartz: Simply a Better Shower

 Case Discussion

Aqualisa Quartz: Simply a Better Shower

About Aqualisa??
• Three product types/ Three brands… why?
Rawlinson’s Internal Moves Over the Past Three Years
 Brief Analysis
Some problems faced by consumers
• Most of all the shower sales constitute
Poor Water Temperature Replacement showers (44%)
Pressure fluctuations
• Only 60% of the homes in the UK had showers
• The plumbing has been same since time
Frequent Hard to turn
immemorial and was mainly gravity-fed
break downs vales
• No real innovation in the shower industry
• Plumbers distrusted innovations and were
Low brand
Leaky seals
awareness extremely reluctant to switch
 Important Concepts

Role of 4 Cs in
New Product Success

Strategic Approach
Value
Vs
Vs
Tactical Approach
Perceived Value
 Important Questions

Aqualisa spent three years and €5.8 million developing the Quartz.

Q 2: Is Quartz a niche
or a mainstream
Q 1: Was the Q 3: What was the
product?
product worth the need for a new

investment? product?
Brand channel segment mapping
 Cont.
Targeting customers Directly Targeting Do-It yourself Targeting Developers
PROS PROS PROS
• Targeting directly with end- • Ease of installation. • More plumbers will be
user will create a powerful • Sales Volume will be high familiarized with the product
consumer brand • High Sales Volume
• "Triton" has done it CONS CONS
• Once it is in DIY sheds, It will • Developers may demand a heavy
CONS lose its premium appeal discount
• Direct targeting will Increase • Low price/ high Discount • Significant Time lag before
the Cost to the company showers reach the customers.
• Low CLV • will lose its premium appeal
 Important Questions

Q 4: What is the Quartz value proposition to plumbers?

To consumers?

Q 5: Why is the Quartz

shower not selling?
Some reasons why Quartz showers can not be sold.
 Important Questions

Aqualisa currently has three brands:

Aqualisa, Gainsborough, and ShowerMax.

What is the rationale behind What is the Quartz value

this multiple-brand strategy? proposition to plumbers?

Does it make sense? To consumers?

 Important Questions

What should Rawlinson do to generate sales momentum for the Quartz product?

Option 1: Option 3:

Should he change his Should he do

marketing strategy to something different

Option 2:
target consumers directly, altogether?
Should he lower
target the DIY market, or
the price of the
target developers?
Quartz?
 Important Calculations

Q 1: Estimate the amount of

customer value created by
Quartz.

Q 2: Determine the lifetime

value of plumbers.
 Estimating the amount of value created by Quartz

Consumer Value
• Without Quartz: • With Quartz:
Aquavalve 609 €715 Quartz Pumped €1080
Aquaforce pump + €520 0.5 days work + € 240
TOTAL €1,320
2 days work @ 60/hour + €960
TOTAL (at least) €2,195
Plus: No excavation
Only ½ day of inconvenience
Plus: Excavation costs and other materials Better performance
Ease-of-use
2 days of inconvenience More stylish design
 Role of Plumber in the Market

Showrooms

Manufacturers Trade Shops Plumbers Consumers

Developers
Consumer Segments
 Collaborators

• Plumbers - Exhibits 4 and 5 Trade

• Plumber is primary
customer
Shops • Aqualisa was available
• Trade Shops – 73% electric in 40% of trade shops

showers, Aqualisa has about • High End products

a 40% presence and display various
bath Options
Showrooms • Offered installation
• Showrooms - Exhibit 5 – service
• Aqualisa present in
20% of mixture shower 25%

• DIY Sheds • Offered discounted

DIY products
DIY sheds • Only Gainsborough
was available in 70%
outlets.