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What is a Product?
A product is any tangible, intangible offering
that might satisfy the needs or aspirations of a
consumer.
A product has 3 basic levels
Core Product: This answers WHY the buyer
should have it. It is also called as Generic
Requirement.
Core Benefit
Tangible Specifications
Augmented Features
Classification of Products
Amity Business School
The classification of the product depends
upon the TANGIBILITY and DURABILITY
found in an offering.
Typical classification of Product:
Service
Durable
Non Durable
FMCG
Staples
These are goods purchased on a regular
basis. Eg. Soap, Pulses, Toothpaste etc
Whenever the stock is about to end the
consumer buys these products again.
Impulse Goods
These are the goods which are purchased
without planning or search Our external
stimuli provokes us to buy these products.
Eg. Cold drinks, Chocolates, Chips.
Most of the time the consumers aim is not
buying the product solely but when spots
them, feels, attracted and ends up in
buying them.
Emergency Goods
These goods are purchased when the
need arises. Eg. Umbrellas in rainy
season, Pullovers in winters etc..
The marketers tries for a very good
distribution chain, as the sales is not the
same throughout and whenever the need
arises, the product should be available at
maximum places
Characteristics of FMCG
Consumers Point
Characteristics of FMCG
Marketers Point
High Volumes
The volume of the product required is very
high.
Eg. An average family may require 3-4
Soaps a month Imagine No. of family
using it in the whole country???
If the organization cannot ensure high
sales volume, they will have difficulties in
surviving.
Low Margins
As the product is required in high volume, there
is an intense competition which makes the
marketer sell the product with very less margin.
They earn through high volume sales to
maximize their turnover.
The Key Becomes High Volumes Low Margins.
Product Mix
Product Line
Line Stretching
Downward Stretch : It takes place when
the company finds a particular segment
(Lower) which is un-attended by the
existing product. And introduces a product
to cater that lower segment.
Upward Stretch : It is when company a
company enters Upper market through
Line Extension.
Line Featuring
Its about featuring a particular product of
the product line, so as to increase foot
falls and then making the consumer
exposed to other products too.
Multi-brand Strategy
When a company nurtures number of brands in
a single category.
Strategy: To capture as much market share as
possible by trying to cater as much possible
segments.
Eg. HUL Bathing Soaps:
Names??????
P&G Shampoos?
Names?????
Product Flanking
Basically offering same product in different
and price combinations to tap diverse
market opportunities.
Brand Extensions
This enables the company to enter new
product categories more easily.
Eg. Lifebuoy: Lifebuoy Plus, Lifebuoy
Liquid, Lifebuoy Gold.
Eg. Amul: Amul Butter, Amul Ghee, Amul
cheese, Amul Milk, Amul Chocolates
Thank You