A brand is more than just a name, catchy tagline and logo design.

Presented By, Reba Jain Mathew S2 MBA MACFAST College, Tiruvalla, Kerala, India

The Product Market strategies that helps them to stay for such long time in the market!

PRODUCT LIFE CYCLE (PLC)

The product life cycle is an important concept in marketing.  It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage.  Some continue to grow and others rise and fall. 

The main stages of the product life cycle are:

Introduction Stage

o Product launched into the market.o Sales grow slowly.o Informative advertising is done.o Firm might not earn a profit at this stage.o Price skimming may be used if the product is new invention and has no competitors.o Competitive pricing may be used if it already has lot of competitors.

Growth Stage

o Sales grow rapidly.o Persuasive advertising may be used.o Prices may be reduced if faced by stiff competition.o Firm starts earning profits.

Maturity Stage

o Sales increase slowly and reach the highest sales figures.o Competition is at the maximum level as many new ‘me too’ products are in the market.o Promotional pricing might be a good option.o Profits are at the highest level as the firm is also getting economies of scale.o Repetitive advertising is done to remind the consumers. Saturation Stage

o Sales are stagnant. o Maximum competition but no new competitors.o Promotional pricing or competitive pricing may be a good choice.o Advertising efforts at its highest point.

Decline Stage

o Sales start to decline.o Profits start to come down.o Marketing research it done to find out whether this decline is permanent or temporary.  If the decline is permanent in nature then stop the production of the product, otherwise implement extension strategies.o Advertising is reduced.

Product Extension Strategy

Extension stage

o Introduce new variations of the original producto Try to sell the product in different markets.o Make small changes in the color, design or packagingo Start a new advertising campaign.o Add more retail outlets to boost sales.

 

Reasoning their long-term survival…

Chandrika is a heritage brand. The brand came into existence in 1940. This hand made ayurvedic soap owes its existence to the founder C.R Kesavan Vaidyar  who identified the potential for an ayurvedic soap way back in 1940.

From a humble beginning, the brand has come a long way withstanding the test of time. In 2004, Wipro acquired the marketing rights of this brand

Chandrika has survived all these years without changing any of the marketing mixes. Now after 6 decades, Chandrika is changing…

MARKETING

STRATEGY

The brand’s marketing strategies include;

A. Positioned as a traditional ayurvedic soap gifted by nature

B. The brand differentiates itself from other ayurvedic soaps with its 7 essential oils;

Orange oil Patchouli Cinnamon leaf Wild ginger Sandalwood oil Lime peel and, Coconut oil

C. The brand changed the shape and packaging, Chandrika was in the cake form ( rectangular), but it changed to oval form and the packaging was made more contemporary

D. To attract new users especially the new generation. Chandrika took the two qualities : Natural and Exotic as its core brand values.

E. The brand chose to use the brand imagery of a SPA to convey the new positioning. The big idea was to equate the bathing experience with Chandrika to an oil bath at a SPA. ( The agency chose the luxurious Pangkor Laut Spa Resort in Malaysia as its location for the ad. )

F. Chandrika also introduced a line extension – Chandrika Amrutham. The variant has an innovation in the form of an aromatic oil that comes with the soap

MARKETING

STRATEGY

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is based in Pune, Maharashtra. Bajaj Auto makes and exports motorscooters, motorcycles and the auto rickshaw.

To replace a legend is never easy, to replace a legend when the legacy needs a major overhaul is even more difficult.

Rahul Bajaj had created an extraordinarily triumphant company, and it required enormous courage for Rajiv Bajaj, Rahul’s son to tinker with the business model and change the success formula. But given the changes in the environment: more competitors and fiercer competition, changing customer needs and tastes, new technology and more sophisticated management tools and techniques, transformation was a necessity, not a luxury.

MARKETING

STRATEGY

In every manager's life, there comes a moment of truth. A handful emerge from the experience as leaders. Rajiv Bajaj faced his moment of truth when he overheard a customer say, "Yes, the Bajaj scooter is the cheapest, but that's what is deserves to be." The experience kindled in him a fierce desire to modernize the family business, the courage to change the success formula that was Bajaj Auto, and the confidence to step away from his father's shadow. Hence the following makes the Bajaj exist in the market.A. The ambition to have a local R&D and a change in

mindset. The money the company had.

B. The first visible sign of the change in focus was the garage full of models the company launched to cater to the different market segments. Some met with partial success, a few bombed.

C. Bajaj first tasted success with the launch of Boxer for customer acceptance and better production practices.

D. Strong Industry RelationshipsBajaj Auto's relationship with Kawasaki, their long-standing Japanese partner. It was the first bike to be marketed under the Bajaj brand, the first to be entirely developed by the product engineering division.

E. Catering all segments The Bajaj Caliber 115 (launched March 2003) served the executive segment, Pulsar the premium segment, with the Eliminator being India's only cruiser bike.

With the Indian two-wheeler sector focused on motorcycles, Bajaj proposes to make Bajaj Auto the only Indian company with offerings in each user segment.

MARKETING

STRATEGY

Managers and workers also see cost cutting as a way to rip off and to make them work harder. Outside the company, among vendors and customers, the moment you talk of cost cutting, people think that the product's quality has gone down. Here in Bajaj Auto, we feel that cost cutting is all about improving quality at lower cost. That's how profitability improves. That's how customers keep coming back.“

The company is renowned for its innovative designs and techniques with a unique blend of style and mileage.

The two wheelers manufactured by Bajaj provide best services at economical rates.

When detergent marketing was considered as boring and dull. Surf excel marketing strategy was not only unique and innovative but simple enough to understood by average educated (or sometimes not educated at all) housewives in India.

SURF EXCEL – “Daag Ache Hain”. The brand was one of the oldest detergent powder in India launched in 1959.

Surf Excel marketing strategy initially was focused towards positioning itself as a brand which gives value for money. In one of the early advertisements, a woman asks the audiences that “Surf Excel ki Kharidari Mein hi Samajhdari hai”. This line struck a chord with value conscious Indian housewives and this campaign helped made Surf Excel a household name. The brand’s marketing strategies include;

MARKETING

STRATEGY

A. Surf Excel has always tried to create a differentiation strategy for its brand

B. In the year 2002, a detergent powder designed especially for washing machines was launched as Surf Excel Matic. It even came in two variants- Front Load and Top Load. Gentle Wash and Surf Excel Bar are two other major products of the brand.

MARKETING

STRATEGY

C. The global brand communication as “Dirt is Good” ad became a famous punchline and helped Surf Excel create a niche on its own and today it leads the Premium Fabric Wash category in India.

“Daag Ache Hain” has worked very well for seven years and it almost works as an irony which shows a contradiction for a category that normally talks about cleanliness and whiteness.

The brand has also portrayed human values like compassion by showing a mud soaked young student mimicking his favorite teacher’s dog that has just died.

The “Dirt is Good” or “Daag Ache Hain” campaign began with the famous puddle war commercial, where a brother was shown taking revenge on a mud pool for spoiling his sister’s clothes.

The latest campaign is a continuation of the same philosophy and encourages the value of righteousness that communicates the need to have the courage to stand up for what is right, with its badappan (dignity) campaign, which used the theme of non-violence.

The idea of portraying different values seems to be working well with people and the connect it builds between a detergent powder and a sense of freedom. Detergent advertising was usually considered anooying in the past, while Surf Excel ad series has been a pioneer in breaking out of that mould.

“Agar Daag Lagne Se Kuch Acha Hota Hai Toh Daag Ache Hain”- The brand has used this emotional appeal to help it differentiate itself from other brands. It has used mothers as that target audience letting their kids enjoy their freedom without worrying about spoiling their clothes.

MARKETING

STRATEGY

Brand strategy is about understanding the defining true need of your customer and then building a unique point of difference that satisfies their needs into everything that your company does.

When your customers true needs are aligned with the unique capabilities of your company, product or service, you have a recipe for success, like, Chandrika, Bajaj Automobiles and Surf excel…