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Price competition
from dying products becomes more vigorous, but firms with strong
brands may make profits until the end because they successfully
differentiated their products. They may also keep some sales by
appealing to the most loyal customers or those who are slow to try
new ideas. Costs, because competition is still intense, continue to
rise. Profits, as expected, continue to erode during this stage with
little hope of recovery. Typewriters are in the decline stage of the
product life cycle.
As sales decline, the firm has several options:
a) Maintain the product- possibly rejuvenating it by adding new
features & finding new uses.
b) Harvest the product- reduce costs & continue to offer it, probably to
a loyal niche segment.
c) Discontinue the product- liquidating remaining inventory or selling
to another firm that is willing to continue the product.
INTRODUCTION
Third generation mobile phones
E-conferencing
All-in-one racing skin-suits
iris-based personal identity cards
GROWTH
Portable DVD Players
Email
Breathable synthetic fabrics
Smart cards
MATURITY
Personal Computers
Faxes
Cotton t-shirts
Credit cards
DECLINE
Typewriters
Handwritten letters
Shell Suits
Cheque books
Products Offered:
This is a list of the brands owned by Reckitt Benckiser. Not all brands
are sold in every country, and the same product may be sold under
different brands in different countries. In INDIA the products are
LIZOL
LIZOL is dish washing liquid which was introduced to India in 1998. It was
the first product
which was in liquid format. Lizol in 2007 has a 25% market share and it’s a
middle class
oriented product.
MORTEIN
Mortein was introduced in India in 1999. it was a anti mosquito
Liquid vaporizer, which gave a big competition to the other products like jet
and all-out. It
started getting the market share and achieved 45% out of total market share
in India.
DETTOL
Dettol is a very famous product in India. Total market share of dettol is
86%. This product has a monopoly in the market , instead of having
competitors
AIRWICK
It is a latest product of the company. which was launched in India in 2006.
it’s a freshener
used cars and room. It’s a world famous product and having 70 % of market
share in
America and 66 % in uk.
CLEARSIL
Clearasil is a world famous product of the company and having 56% market
share in India.
It is one of its kind and very famous in uk.
DIP-IT
It’s a stain washer, and highly use full product steal and other antiques.
DISPRIN
It’s a medical product and very famous in people for headache. It’s a pain
reliever and
VANISH
Vanish is a product which already famous in the world and introduced in
India at the time
when the economy is booming in India. The market of VANISH is not very
much in India but
the company is still hoping that the market will grow in the next 4-5 years.
EASY OFF
EASY OFF BANG is a stain remover. It is meant for middle and higher
level families. It has
a 41% of market share in its category.
VEET
Veet is a latest product of the company which was introduced in India in
2001 and in 2003
this product was re-launched after some correction in the product’s quality.
Right now the
product is having 39% of the total market share.
Cherry
It’s a shoe polish and was introduced in Indian market in 1988. The market
share of the
Products Offered:
This is a list of the brands owned by Reckitt Benckiser. Not all brands
are sold in every country, and the same product may be sold under
different brands in different countries. In INDIA the products are
LIZOL
LIZOL is dish washing liquid which was introduced to India in 1998. It was
the first product
which was in liquid format. Lizol in 2007 has a 25% market share and it’s a
middle class
oriented product.
MORTEIN
Mortein was introduced in India in 1999. it was a anti mosquito
Liquid vaporizer, which gave a big competition to the other products like jet
and all-out. It
started getting the market share and achieved 45% out of total market share
in India.
DETTOL
Dettol is a very famous product in India. Total market share of dettol is
86%. This product has a monopoly in the market , instead of having
competitors
AIRWICK
It is a latest product of the company. which was launched in India in 2006.
it’s a freshener
used cars and room. It’s a world famous product and having 70 % of market
share in
America and 66 % in uk.
CLEARSIL
Clearasil is a world famous product of the company and having 56% market
share in India.
It is one of its kind and very famous in uk.
DIP-IT
It’s a stain washer, and highly use full product steal and other antiques.
DISPRIN
It’s a medical product and very famous in people for headache. It’s a pain
reliever and
VANISH
Vanish is a product which already famous in the world and introduced in
India at the time
when the economy is booming in India. The market of VANISH is not very
much in India but
the company is still hoping that the market will grow in the next 4-5 years.
EASY OFF
EASY OFF BANG is a stain remover. It is meant for middle and higher
level families. It has
a 41% of market share in its category.
VEET
Veet is a latest product of the company which was introduced in India in
2001 and in 2003
this product was re-launched after some correction in the product’s quality.
Right now the
product is having 39% of the total market share.
Cherry
It’s a shoe polish and was introduced in Indian market in 1988. The market
share of the
Source :: http://www.scribd.com/doc/22356336/Reckitt-Benckiser
Product Life Cycle Stages Examples
Decline:
West Bengal, Tamil Nadu and Kerala. It has the 110 dealers across India.
Elegance & Economy
Unmatched space, comfort, safety and sturdiness
Fuel efficient
Once the uncrowned king of Indian roads, the Ambassador has been
relegated to the ranks of also-rans by the new brigade of Japanese, Korean,
European and American cars. Its makers, Hindustan Motors, have
been making valiant attempts to re-invent the car as aContemporary classic,
much in the mould of Enfield (Bullet) motorcycles, but have been much less
successful in their efforts.
I have seen by their sales figures that they still manage to sell a couple of
thousand cars a year even today. Beats me why anyone would want an
AMBY, except for old times’ sake. When I was growing up, it was the car to
own, since it was cheaper to maintain than a Fiat, had a better turning radius
(5.4m), could go anywhere, could carry more people and luggage and last,
but not the least, could be repaired even by a roadside dabbah-wallah! No
one had heard of regular...
There were posters and outdoors all across the markets that had
messages like “ Who is Digen verma” “ Digen Verma was here” etc.
This created lot of excitement in the market and “Digen Verma
“became the most talked about faceless name at that time. The
campaign was executed by Everest communication. But the
campaign was not followed up and the hype was not translated to
long term brand building.
Frooti is basically a nectar based drink so it is not 100% fruit juice, it
also have some preservatives added to increase the shelf life.
Although Frooti did not face much competition in the category it
created, competition came from a slightly different category, 100%
fruit juices. Parle saw the emergence of the “ 100% fruit drink market
and launched “Njoy” brand but it did not clicked. Parle could have
extended Frooti to this market also .The brand Real from Dabur is the
main player in this category. Real effectively positioned itself as a
premium healthy drink for adults. Frooti was not able to appeal to
adults and was considered as a mango drink while Real is not
restricted to any flavour. Frooti also changed its positioning statement
from ‘ Fresh-N-juicy” to “ Juice Up your life” which have not clicked
with the customers.
Although Frooti enjoys a commanding (75%) market share , Frooti is
facing stagnation. May be some serious steps should be taken to
increase the usage of the product. The launch of PET bottle Frooti is
a step in this direction. Recently Frooti also launched a “Green
mango” variant just to create some hype in the market. Frooti may
have to reposition itself again to appeal to cola drinkers.
3. Ambassador : Marketing Myopia
Brand : Ambassador
Company : Hindustan Motors
Agency : Mudra/ Equus
Brand Analysis Count : 326
Ambassador can be called as the first Indian car. Although
the car has a
British legacy, it is considered as definitive Indian car. Ambassador
was born in 1958. The car owes its design and technology to a British
car model - Morris Oxford which was built by Morris Motor Co at
Oxford UK. Hindustan Motors launched the Indianised version of
Morris Oxford as Ambassador in 1958.
From 1958 to 1980's Ambassador ruled the Indian market. Infact
there were only two cars in the Indian market - Premier Padmini and
Ambassador. The licence raj, lack of capital and the unfriendly Indian
economic policies ensured that no automobile manufacturers entered
the Indian market.
3
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There were posters and outdoors all across the markets that had
messages like “ Who is Digen verma” “ Digen Verma was here” etc.
This created lot of excitement in the market and “Digen Verma
“became the most talked about faceless name at that time. The
campaign was executed by Everest communication. But the
campaign was not followed up and the hype was not translated to
long term brand building.
Frooti is basically a nectar based drink so it is not 100% fruit juice, it
also have some preservatives added to increase the shelf life.
Although Frooti did not face much competition in the category it
created, competition came from a slightly different category, 100%
fruit juices. Parle saw the emergence of the “ 100% fruit drink market
and launched “Njoy” brand but it did not clicked. Parle could have
extended Frooti to this market also .The brand Real from Dabur is the
main player in this category. Real effectively positioned itself as a
premium healthy drink for adults. Frooti was not able to appeal to
adults and was considered as a mango drink while Real is not
restricted to any flavour. Frooti also changed its positioning statement
from ‘ Fresh-N-juicy” to “ Juice Up your life” which have not clicked
with the customers.
Although Frooti enjoys a commanding (75%) market share , Frooti is
facing stagnation. May be some serious steps should be taken to
increase the usage of the product. The launch of PET bottle Frooti is
a step in this direction. Recently Frooti also launched a “Green
mango” variant just to create some hype in the market. Frooti may
have to reposition itself again to appeal to cola drinkers.
The brand which was launched in 1972 virtually owned the two
wheeler segment. If reports are to be believed, Chetak was an
unavoidable dowry in 1970's and 80's. It had a waiting period of more
than 10 years ( can you believe it ? ) and now here I am after 34
years, writing the epitaph of this brand.
The brand which was named after the legendary stallion of the Rajput
king Maharana Pratap, was known for the reliability and sturdiness.
The brand thrived during the license raj with virtually no competition.
It was during 1990-91 that the brand began the journey to the end.
Bajaj Chetak had a huge brand equity . The brand had the persona of
a " work horse” With reasonable price and the low maintenance cost
made this product a huge hit among the middle class
Indians.Promoted along the base line " Hamara Bajaj", this was the
Indian Family vehicle - a position now owned by Maruthi 800.
But then How can a brand that was so popular and
successful fail?Frankly, I am not sure.
But here is what I think about this brand...
The primary reason is that the Brand forgot the customers. Another
case of Marketing Myopia. The company failed to understand the
changing perception of the customers towards scooters. Rather than
looking at the customers, the company focused on influencing
Government to block the opening up of economy. Bajaj never did
anything with the product. For 40 years Chetak had the same look,
same quality and style.
During the mid nineties the company realised lately that the segment
has shifted to motorcycles. Scooters were no longer the option. But
did the company made a mistake in discarding the scooter segment ?
Looking at the way the share prices are going, the market thinks that
Bajaj Auto made the right decision. But I think that
they made a mistake in leaving the scooter segment
completely. Contrary to expectation,
the scooter segment has not died. It has only changed.
Chetak lost its identity some where during the nineties. What should
be the future of the brand : no body knew. It was only in 2004 that
company made any change in Chetak. In 1994 Bajaj introduced
Classic another scooter with same style as Chetak, but failed.
Bajaj never was serious about product development. The R&D spent
for a long time was a miniscule 1%. The average cycle time for the
new product development was 4-5 years compared to 2-3 years of
Japanese competitors.
Even after the opening up of economy, the scooter segment did not
witness much competition. The players like Vespa did not had much
of success in this segment. Kinetic Honda managed to carve a niche
with its gearless scooters. Another segment which was growing was
the scooterette segment which was dominated by TVS scooty.
Bajaj never seriously looked at customer perception about Chetak.
The product had serious problems like starting trouble and riding
comfort. The " Tilting the chetak to the side for starting " was a
common joke. Did the company do anything for that ? no
There was nothing wrong with the Promotion. " Hamara Bajaj " and "
No one can beat a Bajaj " were famous base lines. There was
nothing wrong with distribution and the pricing was very reasonable.
The major problem was in the first P : Product.
Brand : Ganga
Company: Godrej Consumer Products
Brand Count: 163
Ganga soap was launched with much fanfare in 1993. The soap was
positioned on the religious platform and was claimed to be made of
water from the river Ganges. The soap attained salvation in the early
2000.
The brand comes from an accomplished marketer who
markets such iconic brands like
Cinthol. The brand was promoted heavily and even had the
film stars like Govinda
endorsing it. Promoted using the tagline " Now bath in Ganga" very
directly puts the soap in a religious platform. Reports suggest that the
brand's initial sales was encouraging and also there are reports that
blame on the P&G and Godrej break up caused the brand to decline.
Ganga had a revitalisation effort in 1997 when Godrej tried
to relaunch the brand under
the name Doodh Ganga. But those effort went in vain.
The primary reason why the brand failed was that the differentiation
was not sustainable over time. Although Hindu's are very religious in
nature and revers the tradition but the consumers are discerning
when it comes to purchasing products. There is a clear divide
between religion and products. Consumers seldom like mixing the
two. It is OK if religion and politics are mixed not soups and gods.
That may be the reason why thetoys of Hindu mythological
characters are not popular in India.
The brand when launched was really praised for its innovative
thinking. One could see through the logic of the launch. Just looking
at the crowd at Kumbh Mela would encourage any marketer to think
about launching a product for the devotees of Ganga. But a closer
look at the customers could have proved the marketer wrong. Why
would a customer buy a product? That is a question that could reveal
that Love for Ganga would not rake in sales.
You can see that Kelvinator brand lost its place because it fell into a
cobweb of ownership issues. Whirlpool did not invest in Kelvinator
since it had the rights to the brand only till 1997. So why invest in
some other's baby. So during these years, Whirlpool harvested
Kelvinator while developing its own brand. When the brand came
back to its original owner, Electrolux did not had the money to build
this baby. In 2005, Kelvinator was killed. When the brand was taken
off, it had a market share of over 14 %.
Tagline : Its the coolest one. During its peak years, the brand was
heavily built. During 2000 , the Australian circket team endorsed
Kelvinator and Adam Gilchrist was the main character in the TVC ran
during that time.Kelvinator's main positioning was based on its
cooling power. The tagline aptly captures the USP of the brand.
Kelvinator's compressors was one of the best available globally.
Besides that , the brand was considered to be a tough and reliable
one.
One of the best and most apt tagline for any refrigerator brand
"Coolest one" , this tagline is still in the mind of many Indian
consumers. The brand equity was so powerful that even without
much promotion, the brand had two digit market share during early
2000.
I would blame the death of this brand on its owners Electrolux. In
2005, when Electrolux decided to go for the parent brand, Kelvinator
still had a life left. It could have been a wonderful entry level brand for
Electrolux. A brand with so much heritage could have easily created
volumes for this company. But alas....
Kelvinator will soon fade away from the memories along with
it one of the coolest
brands.
Brand : Margo
Company: Henkel
Agency: FCB Ulka
Margo is one of the oldest herbal soaps in India. The brand which is
more than 85 years old is famous for its neem content. The product
although famous for its positive effects to the skin is nowhere in the
market. This is a brand which never changed with the customer.
During its launch, the product had dedicated customer base and
since the product was unique due to its medicinal value , customers
tend to be loyal. The whole brand was having Neem as its core
identity.
luxury Multi Purpose Vehicle from Maruti 's stable. Versa was the
logical upgrade brand for Maruti Omni. Omni was successful as a
family van and Maruti thought that there is a market for a luxuri van
that can carry more passengers than an ordinary car. Versa is the
Indian version of the popular Japanese van EVERY/ Carry. Versa
was called MPV which is the acronym for Multi Purpose Vehicle
Versa had a dream launch. Maruti roped in the Big B and the
small B ( Amitabh and
Abhishek Bachchan) to endorse the brand. The commercial
featuring the father son duo
was a big hit at that point of time. According to reports,
Versa was Abhishek's first brand
endorsement.
Watch the TVC here : Maruti Versa. But these campaigns did not had
the desired results. Although sales peaked immediately after the
announcement of price cut, Versa was not able to sustain the volume.
More over the brand was eclipsed with the success of Maruti Wagon
R which was priced higher than Versa but with less space and engine
power.
Tamariind was the readymade brand from the textile major S Kumar's
Ltd. The company wanted to tap the emerging readymade segment .
Tamariind was targeting the middle and upper-middle class segment.
Initially the company planned to use the brand name Cinnamon for its
readymade venture. But a retail chain having the same brand name
moved to court and restrained SKumars from using Cinnamon. That
caused the company to come up with the new brand name
-Tamariind.
Price was the critical issue in this case. Tamariind was steeply priced
and this repelled many potential customers . Those who bought the
brand could not be convinced about the quality which did not justify
the steep price.
The brand also tried to focus more on exclusive outlets
which again severely restricted its
reach among the audience.