...CADBURY V-5 9/8/05 1:38 PM Page 1 Extending the Product Life cycle through Repositioning Overview This study looks: ◗ The Cadbury Snack range ◗ The product life cycle ◗ Repositioning as a strategy for maturity introduction Cadbury Ireland is a subsidiary of Cadbury-Schweppes plc, a global leader in the manufacture of confectionery and beverage products. Cadbury Ireland was set up in 1932 and today has three production plants, in Coolock and Dun Laoghaire in Dublin and Rathmore, Co. Kerry. More than 200 products are exported from Ireland to 30 countries around the world, contributing over €110m to Irish trade. The distinctive taste of Cadbury Ireland’s products is due to the use of local ingredients and the company is one of the largest users of indigenous Irish materials. The Product Life Cycle concept The product life cycle model helps marketers identify the different stages that the sales and profits of a product go through during the course of its lifetime. There are five stages to the product life cycle: introduction, growth, maturity, saturation and decline. Cadbury Snack The Cadbury Snack range was launched in the 1950s in Ireland. The range consists of three main products: ◗ ◗ ◗ Snack Wafer in distinctive pink packaging Snack Shortcake in distinctive yellow packaging Snack Sandwich in distinctive purple packaging The Snack range is the third biggest confectionery brand in Ireland accounting for over €22m of Cadbury...
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...effective ways to sell a product or service. With the increased competition in the business industry an effective branding strategy makes products more popular. Branding strategy analysis includes market, customers, competitors and brand analysis. Branding strategy involves brand communications, analytical techniques and creative positioning. Evaluating the performance of the brand portfolios helps guide decisions on new products, modified products, and eliminating products (Cravens & Piercy, 2013). The methods for analyzing product portfolio performance are: Product life cycle analysis: determine the length and rate of change in the product life cycle. it identifies the current PLC stage and select the product strategy and anticipate threats and find opportunities for altering and extending the PLC Product performance analysis: determine whether each product measures up to the minimum performance criteria and looks at the strengths and weaknesses of the product compared to other products in the portfolio. Brand positioning maps: consists of relating buyer preferences to different brands and indicates possible brand repositioning options Standardized information services Research studies Branding strategy is an important component of every business. Branding strategy is the most effective way to sell a product/service and to enhance the demand for a product/service in the market. Increasing competition in business develops similar products with good quality from different...
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...A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below: The first stage is known as the Introduction Stage. In this stage, the main goal of the organization is to commercialize the product, and make potential buyers aware of its existence. At this point, the sales generated are usually low and the profits are typically low or none at all. Due to the fact that the company is paying a lot for advertising and brand building, the customer pays a high price for the product. This stage is also characterized by high distribution costs. At this point of time the product offered is still in its most basic form. The second stage is known as the Growth Stage. This stage is mainly characterized, for successful products, by a tremendous increase in sales. New customers are added while existing customers are making repeated purchases. By now however, competitors have introduced similar products, with a large number of sales and competitors the price is lowered to make the product more attractive for potential buyers.”. The next stage for products is the Maturity stage. Typically, this is the longest part of the cycle. At this point of time, their sales...
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...did not trust each other’s numbers. The lack of formalized process and communication of forecasting was the key reason underlying. Also, the data most relevant to forecasting was often not accurate or inusable and Leitax had no built-in system to monitor demand planning. Life cycle of certain products was often extended in order to push sales to resellers. Sell-in rather than sell-through was relied upon. The other aspect is the industry aspect that digital camera is a rapidly changing industry that new products had to be introduced frequently. These further distorted the forecasting and demand management issue. * What are the successful elements of the consensus forecasting process that should be maintained in the organization? Key player such as Fowler who has the capacity to influence the senior leadership in Leitax at the same time Fowler has what it takes to be a successful supply chain professional, the good technical know-how and understanding of this industry and the product. Before Fowler got started, he obtained buy-in from different functional groups. There would be 3 forecasts made, one is the top-down forecast from PPS focused on macro economic demand for the product; the other is the bottom-up forecast from sales focused on demand information collected from sales point; the final one is the sale-through forecasts from DMS focused on statistical inference. All these forecasts were well communicated through Excel format and a final consensus...
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...the division’s sales, market share, and profitability, which has been falling for the last three years. List any outside concepts that can be applied: The impact of developing new products (incremental) and extending the line of products in order to increase market share, profitability and/ or sales, as well as to gain shelf space. The power of using a recognized brand name to reduce risk, although it could also devaluate the brand. Cannibalization: developing these new products could result in cannibalization of the existing ones, for this, product developers and managers must take into account cannibalizations when they assess the value of the new products. Promotion: which covers all efforts (advertising, branding efforts, introductory coupons, and so on) the importance of investing or allocating resources in promotion in order to increase sales and market share. Pricing strategy: one of the proposed strategies talks about reducing the price of the can soups, the impact t of reducing the price of a product has on customers must be considered by the managers, consumers tend to question whether the quality of the product was put on stake or not in order to reduce price The product life cycle and the innovation of the product along this cycle: in the case it is argued that there are products in the maturity phase that lack innovation, reason why managers attribute the lost of market share. Brand equity: how the consumer’s assets the brand attributes, especially health conscious...
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...The main objective of a marketing mix is the accurate product for the accurate customer at the accurate place. Product * Produce more ‘sexy’ smart phones with slim, lightweight and fashionable designs to attract customers (e.g. the unique curved all-touch screen of Nokia N9 and Nokia Lumia 800). * Focus on extending the OVI store (including music, games, apps, map etc) with the assistance of partners and its advantages (e.g. office application) * Design more series of smart phones so that customers will have many choices based on their ages, characteristics and hobbies * The average age of people in UK is around 40.1. Therefore It is a suitable market to put up for sale business smart phones such as Nokia E7, Nokia Lumia 800 and Nokia 701. * Build up more Nokia warranty/service center in UK to meet, satisfy and solve all the needs of customers. * All the products should be ‘green’ , including eco-design (mobile phones), energy-saving (adapters) or environmentally responsible (packaging materials) as they are serious global issues nowadays Price Price of a product must be decided based on the Product Life Cycle. Products or services which are highly technological and advanced can be released into market at premium prices where as the other products can be offered at low prices in order to attract most of the customers in market. Initially, Nokia provided the products at high prices in order to attain their research and...
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...MARKETING MANAGEMENT LIFEBUOY CASE STUDY Davide Schirinzi #2458 Marketing Management - Lifebuoy Case Study 1. How is the concept of PLC useful? The concept of PLC is not just useful but crucial for the success of every product. By understanding it, the firm can be able to catch every significant signal of transaction from a phase of the products’ life cycle to another one, and therefore be ready to exploit the maximum from every following step as well as being able to anticipate and prepare the brand for its “after life” cycle. HUL and HLL managed perfectly the lifecycle of Lifebuoy being able to become market leaders since the introduction, keep the leadership during the growth and the maturity, and prevent the decline by reinventing Lifebuoy in an unmatched challenge lasted over 100 years. 2. How did Lifebuoy strategies in the early stages enabled the brand to become a leader? The success of Lifebuoy is related to the perfect timing and accurate positioning that HUL did. HUL understood the big opportunity of a nascent market being the first personal wash brand, during the end of the 19th Century, Rural India was bent by severe plague due to the extremely poor hygienic conditions. Lifebuoy was in fact introduced in the market as an effective disinfectant to fill that need promising customers that it kills germs and keeps the body healthy. Moreover, the 70% of the Indian population lives with less than 1$ for day, therefore the decision of selling it in the Economy segment...
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...ASSIGNMENT N0 1 Describe the stages of the product life cycle and how marketing strategies change during the product life cycle. INTRODUCTION All products and services have certain life cycles. The product life cycle refers to the period from the product’s first launch into the market until its final withdrawal and it is split up in phases. During this period significant changes are made in the way that the product is behaving into the market i.e. its reflection in respect of sales to the company that introduced it into the market. Since an increase in profits is the major goal of a company that introduces a product into a market, the product’s life cycle management is very important. Some companies use strategic planning and others follow the basic rules of the different life cycle phase that are analyzed later. The understanding of a product’s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product’s success or failure. For a company to fully understand the above and successfully manage a product’s life cycle, needs to develop strategies and methodologies. The product’s life cycle - period usually consists of five major steps or phases: Product development, Product introduction, Product growth, Product maturity and finally Product decline. These phases exist and are applicable to all products or services from a certain make of automobile...
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...Another example is my favorite restaurant Wishbone, recently the service quality seemed very poor to me as the staffs do not greet in a friendly manner plus the food takes so much time to get served which makes us even more frustrated. As with manufacturing firms, successful service businesses use marketing as a tool to strongly position themselves to selected target markets. These firms develop their positions by using marketing mix activities. Since services are different from tangible products, they need additional marketing approaches. For example, products of Pure Fiji are manufactured to the premier American Quality Control Criteria with the use of the proper manufacturing guidelines. Pure Fiji produces in bulk, stocks their outputs and sells them as orders pour in. Even procedures and tests of the products are tested on a person’s skin to check for allergies or to see if it is suitable for their skin type. Thus, at the end of the day, the buyer is fully satisfied purchasing the product due to good internal quality service or greater service value. Another example is Rewa Co-Operative Dairy Company. It adds value to local raw milk...
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...Prangel is preparing to inherit a multi-generational business and wanted to explore the implications for expanding beyond Mountain Man Brewing Company’s (MMBC) one product offering-Mountain Man Lager. After reviewing MMBC’s current state of affairs and analyzing it with different marketing tools and financial forecasting, I recommend that MMBC move forward with a premium light beer product, start research and development on a recipe and retain a marketing firm to help build brand awareness in 2006 and launch in Q1 2007. A premium light beer will not only capture a new demographic by extending the MM Lager brand, but will steadily and profitably replace the 2% annual decline in Lager revenue. (See exhibit 3). In order to defend my recommendation, I utilized a few different assessment tools including a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis (See exhibit 4). This analysis quickly pointed out areas of brand strength and the opportunities available in diversifying the product portfolio. Additionally, both the threats and weaknesses detail the unfavorable position the company faces when launching the light beer line. I also performed a portfolio analysis incorporating the product/market expansion grid which allowed me to outline market segmentation and product positioning. I concluded with the product lifecycle and the revenue light beer would generate by forecasting both Lager revenue decline and 5% and 20% cannibalization rates. (See exhibit 3). Recommendation...
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...11 • The marketing mix o Marketing mix is the blend of the four strategy elements—product, distribution, promotion, and price—to satisfy the target market o Other variables of the marketing mix—distribution channels, promotional plans, and pricing decisions—must accommodate the strategy selected o Marketers develop strategies to promote both tangible goods and intangible services ▪ Any strategy begins with investigation, analysis, and selection of a particular target market ▪ It continues with the creation of a marketing mix designed to satisfy that segment o Strategies to promote goods are often quite different from those designed to promote services • What is a product? o We tend to think of products as items, but services, as well as physical goods, are products o The concepts that goods are used for—such as providing entertainment, allowing communication, or performing certain tasks—are also considered products o Marketers now realize that people buy want satisfaction rather than objects—i.e., a television set and its cable programming are two separate products o Marketers think of a product as a compilation of package design and labeling, brand name, price, availability, warranty, reputation, image, and customer-service activities o So a product is a bundle of physical, service, and symbolic attributes designed to satisfy a customer’s wants...
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...the U.S. Army, my job, as well as other civilian personnel, is to help ensure military readiness by supporting the warfighter in every way possible. In today’s society, the need to develop and produce high quality systems is in high demand. It’s even higher in the defense sector. In order to be successful with providing these long lasting, high quality systems to our customer, it is important that we support these systems by ensuring that the provided product designs are supportable and also ensuring that sustainment maintenance is conducted throughout the systems’ entire life cycle. These are viewed as logistics activities. With that said, the areas of logistics that I’d like to focus on are as follows: Reliability, Maintainability, and Availability Measures, The System Engineering Process, and The Measures of Logistics and System Support. According to our textbook, logistics is defined as “the composite of all considerations necessary to assure the effective and economical support of a system throughout its life cycle”. Systems have a big responsibility. They need to be able to perform as intended, be available when needed, and be cost-effective. There are certain performance measures that are necessary to accomplish these few objectives, one of which is availability. Availability is a function of reliability and maintainability. The two, reliability and maintainability, together, are design characteristics that rely heavily on one another and affect how successful...
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...Using new product development to grow a brand Introduction 1 2 Kellogg’s and the marketing mix With annual sales of more than £4.5 billion, Kellogg’s is the world’s leading producer of cereal products and convenience foods, such as cookies, crackers and frozen waffles. Its brands include Corn Flakes, Nutri-Grain and Rice Krispies. Managers can decide when to make key changes to a core product by analysing its position within the product life-cycle. Life-cycle analysis accepts that products have a finite life, and analysts chart a product’s performance through several phases, from its launch through various phases of growth until it reaches maturity and eventually decline. A product’s life cycle may last only a few months (e.g. with a fad, or In a rapidly changing and competitive business environment, it is not easy to predict: ◗ ◗ ◗ future trends in consumer tastes and preferences competitors’ actions market conditions. Kellogg’s is a global organisation. Its products are manufactured in 19 countries worldwide and sold in more than 180 countries. In an uncertain world where the organisation’s strategy is to focus on products and brands that are either the market leader or in a strong second position the company believes that this focus upon core and successful products enables it to provide consistent and reliable returns and rewards for its stakeholders. craze) or, as with Special K, for many years. Although it was a successful product, Kellogg’s recognised...
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...Using new product development to grow a brand Kellogg’s and the marketing mix Introduction 2 1 In a rapidly changing and competitive business environment, it is not easy to predict: ◗ ◗ ◗ future trends in consumer tastes and preferences competitors’ actions market conditions. With annual sales of more than £4.5 billion, Kellogg’s is the world’s leading producer of cereal products and convenience foods, such as cookies, crackers and frozen waffles. Its brands include Corn Flakes, uncertain world where the organisation’s strategy is to focus on be expensive. It involves making investment decisions now, in the products and brands that are either the market leader or in a strong hope of making a return later. Weighing up future returns against an second position the company believes that this focus upon core and investment is a crucial part of a manager’s job. successful products enables it to provide consistent and reliable returns and rewards for its stakeholders. It always involves an element of risk, because the future is never outcomes. However, all business activities involve some element of risk. There is often said to be a link between risk and return. The accepts that products have a finite life, and analysts chart a product’s performance through several phases, from its launch through various phases of growth until it reaches maturity and eventually decline. A product’s life cycle may last only a few months (e...
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...sales and profit margins have begun to shrink as Clocky’s product cycle nears its end, and Nanda Home is faced with the difficulties of replicating success. Nanda Home’s key issues revolve around how to market and brand a succeeding product to Clocky. 2. Executive Summary: This paper has identified a number of ways to resolve Nanda Home’s issues. In particular, the following points have been proposed: - Focus on product line extensions as opposed to new categories. Create a megabrand. Hire a sales and marketing team to assist Nanda in operating the business. Seek new distribution channels and utilize online marketing tools to expand the brand’s revenues. Look into collaborations. The key impediment to achieving these goals will be in the execution of the ideas. The core solution to overcoming this issue will be ensuring that Nanda has a successful team behind her to help her reaching her goals. 3. Situation Analysis, Evaluation of Options and Recommendation(s) A) THE MARKET SITUATION Customer Nanda Home has taken a product decision to target the alarm clock sector by introducing Clocky. Therefore, its customers will be alarm clock buyers. There are two types of alarm clock buyers: “Need” based buyers require alarm clocks since waking up is a disturbance for them and generally they fall a sleep after snoozing the alarm clock. Most of the sleep researches in the US showed that disturbed sleep cycles and wake-up difficulties plagued a significant portion...
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