Unit 3 Product Strategies (RJU MBA MARKETING)

 

Product Strategies

1.      Concept of Product:

A product is anything that can be offered to a market to satisfy a need or want. It includes physical goods, services, experiences, events, persons, places, organizations, information, and ideas.

Nature of Products:

• Tangible or Intangible: Products can be physical goods or services.
• Satisfies Needs/Wants: Core purpose is to satisfy consumer needs.
• Lifecycle: Every product has a life cycle (introduction to decline).
• Multi-dimensional: Includes core product (basic benefit), actual product (brand, design), and augmented product (warranty, service).

2. Types of Products

A. Consumer Products:

Consumer products are goods and services purchased by individuals for personal consumption. They are classified based on how consumers buy them, the buying behavior involved, and consumer preferences.

There are four main types of consumer products:

Convenience Products:

Bought frequently with little effort (e.g., toothpaste). These are products that consumers purchase frequently, immediately, and with minimal comparison or effort.

Characteristics:

• Low price
• Widely available
• Mass marketed
• Frequently purchased
• Low involvement

Marketing Strategy:

• Widespread distribution to ensure availability
• Strong branding to build familiarity
• Mass promotion through TV, digital, in-store
• Packaging plays a crucial role in grabbing attention

Examples: Toothpaste, Soaps, Soft drinks, Snacks, Newspapers

Shopping Products:

Compared based on quality, price (e.g., shoes). Definition:

These are products that consumers buy less frequently and compare on the basis of price, quality, style, and features before purchasing.

Characteristics:

·         Higher involvement

·         Moderate to high price

·         Available in selected outlets

·         Consumers spend time evaluating alternatives

Marketing Strategy:

·         Focus on differentiation and quality

·         Use selective distribution

·         Sales support and informative advertising needed

·         Packaging and display must enhance product appeal

Examples: Shoes (e.g., Nike, Adidas), Clothing (e.g., Zara, Levi’s), Mobile phones (e.g., Samsung, iPhone)

Specialty Products:

Unique characteristics, brand loyalty (e.g., Rolex). These are products with unique characteristics or strong brand identity, where consumers make a special effort to purchase them. They are willing to go out of their way to get them and are not easily substituted.

Characteristics:

• High price
• Strong brand loyalty
• Exclusive distribution
• Customers do not compare much
• Long decision-making time

Marketing Strategy:

• Selective or exclusive outlets
• Strong brand image and storytelling
• Personalized marketing, prestige advertising
• Focus on value and status over price

Examples: Rolex watches, Rolls Royce cars, Designer clothes (e.g., Gucci, Louis Vuitton), High-end electronics (e.g., Bang & Olufsen speakers)

Unsought Products:

Not actively sought (e.g., insurance). Products that consumers do not think about frequently or do not consider buying under normal circumstances. Often, the purchase is triggered by necessity or awareness campaigns.

Characteristics:

• Often unplanned purchases
• Consumer may be unaware of the product
• Requires aggressive promotion
• May solve urgent or sensitive needs

Marketing Strategy:

• Heavy advertising and personal selling
• Awareness campaigns
• Public relations and word-of-mouth
• Sometimes emotional appeal is used

Examples: Life insurance, Emergency medical services, Fire extinguishers

Product Type	Buying Behavior	Price	Purchase Frequency	Example
Convenience	Routine, low effort	Low	Frequent	Toothpaste, snacks
Shopping	Comparison-based	Moderate	Less frequent	Shoes, phones
Specialty	Unique, brand preference	High	Rare	Rolex, luxury cars
Unsought	Unplanned, often avoided	Varies	Varies	Insurance, funeral plans

 

B. Industrial Products:

Industrial products are goods used in the production of other goods or services, rather than for personal consumption. These are purchased by businesses, industries, or organizations to aid in operations, manufacturing, or reselling.

Materials and Parts

Raw materials, components (e.g., steel). These are raw materials or manufactured components that become a physical part of another product.

·         Sub-categories:

·         Raw Materials: Basic, unprocessed goods used in manufacturing.

·         Examples: Crude oil, iron ore, cotton, wheat.

·         Manufactured Parts and Materials: Semi-finished or finished parts used in assembling.

·         Examples: Steel sheets, tires, microchips, glass panels.

Characteristics:

·         Purchased in large quantities.

·         Standardized and quality-specific.

·         Often bought through long-term contracts.

·         Price and delivery reliability are crucial.

Marketing Strategies:

·         Direct selling to manufacturers.

·         Emphasis on quality consistency.

·         Competitive pricing and reliable supply.

·         Technical support is often provided.

Capital Items

Used in production (e.g., machinery). These are long-lasting goods that help in producing other goods and services. They are not part of the final product but are essential in production or operations.

Sub-categories:

• Installations: Major equipment and buildings.
• Examples: Machinery, generators, factory buildings.
• Accessory Equipment: Portable and less expensive tools.
• Examples: Computers, forklifts, office furniture.

Characteristics:

• High cost, long-term investment.
• Purchased less frequently.
• Require customization, after-sale service, and installation.
• Often involves technical evaluation and multiple decision-makers.

Marketing Strategies:

• Personal selling and relationship management.
• Custom demonstrations and consultative selling.
• Offering maintenance contracts, warranties.
• Targeted advertising in trade publications.

Supplies and Services

Maintenance and repair items (e.g., lubricants). These are non-durable items and support services that assist in the day-to-day operations of a business but do not become part of the final product.

Sub-categories:

• Operating Supplies: Used in routine operations.
• Examples: Lubricants, cleaning materials, paper, light bulbs.
• Business Services: Intangible services supporting operations.
• Examples: Maintenance, IT support, legal, consulting services.

Characteristics:

• Low cost, high frequency purchases.
• Often purchased in bulk.
• Focus is on availability, price, and reliability.

Marketing Strategies:

• Catalog and online marketing.
• Efficient supply chains for timely delivery.
• Vendor relationships and volume discounts.
• Focus on service quality and customer satisfaction.

Category	Definition	Examples	Key Focus
Materials and Parts	Inputs that become part of the final product	Steel, cotton, microchips	Quality, pricing, consistency
Capital Items	Equipment or assets used in production	Machinery, tools, computers	Customization, durability, service
Supplies and Services	Items/services aiding daily operations	Lubricants, maintenance, IT help	Convenience, reliability, support

 

 

3. Product Line and Mix Strategies

Product Line:

A group of related products under a single brand offered by the company. A Product Line is a group of related products offered by a company under a single brand, which cater to a similar need, are marketed together, and often share common features, customers, distribution channels, or price ranges.

Example: Coca-Cola's soft drink line includes Coke, Diet Coke, Sprite.

Characteristics of a Product Line:

§  Product Similarity: Products in a line serve a similar function or fall within a specific category (e.g., skincare, smartphones, beverages).

§  Common Branding: Usually sold under the same brand name, enhancing brand recall and customer trust.

§  Market Segmentation: Targets various customer needs or segments through variation in features, prices, sizes, or usage.

§  Shared Resources: Often use similar production processes, technology, or packaging.

Examples of Product Lines:

Colgate (Oral Care Product Line)

·         Colgate Total

·         Colgate MaxFresh

·         Colgate Sensitive

·         Colgate Kids

·         Colgate Herbal

All are toothpastes, but they serve different consumer needs such as freshness, sensitivity, or child-friendly formulas.

Samsung (Smartphone Product Line)

·         Galaxy A Series (affordable)

·         Galaxy S Series (premium)

·         Galaxy Z Series (foldable phones)

·         Galaxy M Series (mid-range online models)

All are smartphones, but each line targets a different price and feature segment.

Product Line Strategies:

Product Line Stretching

When a company extends its product line beyond its current range.

·         Upward Stretching: Adding higher-end products to appeal to premium markets.
Example: Toyota launching Lexus.

·         Downward Stretching: Adding more affordable options to attract price-sensitive customers.
Example: Samsung introducing the Galaxy M series.

·         Two-Way Stretching: Adding both high-end and low-end products.
Example: Marriott with budget Fairfield Inn and luxury Ritz-Carlton.

Product Line Filling

Adding more items within the existing range to cover price or feature gaps and better serve specific niches. Example: A soap brand offering 50g, 100g, and 150g bars to suit different budgets or usage.

Product Line Pruning

Reducing the number of products in a line to focus on the best-selling or most profitable ones. A company discontinuing slow-selling smartphone models.

A product line helps a business offer variety, target different market segments, and build stronger customer relationships under a unified brand. Managing it strategically through stretching, filling, or pruning ensures market relevance and profitability.

Benefit	Description
Better Customer Reach	Serve a broader range of needs and segments
Improved Brand Loyalty	Customers can find alternatives within the same brand
Efficient Marketing	Shared promotion across related products
Competitive Advantage	More choices reduce the chance of customers switching to competitors
Economies of Scale	Shared production and packaging can reduce costs

 

Product Mix:

Total range of products offered by a company. The Product Mix (also called Product Assortment) is the complete range of product lines and individual products that a company offers to its customers.

It includes:

·         All product lines

·         All product items within each line

Example: Procter & Gamble (P&G)

P&G's Product Mix includes:

·         Hair Care: Head & Shoulders, Pantene

·         Oral Care: Oral-B, Crest

·         Fabric Care: Tide, Ariel

·         Baby Care: Pampers

·         Shaving: Gillette

Each of these is a product line with multiple products, forming the company's overall product mix.

Dimensions of a Product Mix

Understanding the four dimensions of a product mix helps companies plan better strategies.

Dimension	Description	Example (P&G)
Width	Number of product lines offered	Hair care, oral care, baby care
Length	Total number of items in all lines	30+ products across 5 lines
Depth	Variants of each product (size, flavor, type)	Head & Shoulders – 2-in-1, anti-dandruff, different sizes
Consistency	How closely related the product lines are	All P&G products relate to personal or home care (high consistency)

 

Product Mix Strategies

Companies use product mix strategies to optimize profitability, market coverage, and brand strength. Here are the main strategies:

1. Product Line Expansion (Increasing Width)

Adding new product lines to enter new markets or cater to different needs.

Purpose: To diversify risk and target new customer segments.

Example: Apple expanding from computers to phones (iPhone), tablets (iPad), and wearables (Apple Watch).

2. Product Line Deepening (Increasing Depth)

Adding more variants to existing products in the line (e.g., flavors, sizes, features).

Purpose: To cater to specific customer preferences and increase market share.

Example: Colgate toothpaste offering herbal, whitening, sensitive, and kids' versions.

3. Product Line Stretching

This strategy also applies within the product mix and refers to altering the length of each product line.

·         Upward Stretching: Adding high-end, premium products
Example: Hyundai introducing Genesis luxury cars.

·         Downward Stretching: Adding budget products to appeal to lower-income groups
Example: Nestlé launching small sachets of Nescafé in rural markets.

·         Two-Way Stretching: Adding both high and low-end variants
Example: Marriott Hotels with Fairfield (budget) and Ritz-Carlton (luxury).

4. Product Mix Pruning

Eliminating underperforming products or entire lines.

Purpose: To focus on profitable products and reduce costs.

Example: Coca-Cola discontinuing unpopular flavors or old product lines like Tab.

5. Product Mix Modernization

Updating or redesigning products to keep up with trends and technology.

Purpose: To retain relevance and attract new customers.

Example: Samsung frequently updates its Galaxy smartphone line with new models every year.

Strategic Importance of Product Mix Management

Advantage	Impact
Market Segmentation	Serve a wide variety of customers across demographics and preferences.
Risk Diversification	Reduce dependence on a single product or line.
Brand Loyalty	Offer multiple options within the brand to retain customers.
Cross-Selling Opportunities	Selling complementary products from different lines.
Competitive Advantage	Quickly respond to market changes or trends.

 

Product Mix Element	Definition	Example
Width	Number of product lines	P&G has oral care, baby care, etc.
Length	Total products across lines	30+ products across all lines
Depth	Variants within a product line	Tide (liquid, pods, powder)
Consistency	Relatedness of product lines	All personal/home care at P&G

Brand Equity

Brand Equity is the value added to a product due to its brand name. Brand Equity refers to the value that a brand adds to a product or service, based on consumer perception, recognition, and loyalty. A brand with strong equity can command premium pricing, inspire customer loyalty, and differentiate itself in a competitive market.

If two identical phones are sold, one from Apple and the other from an unknown brand, people will likely pay more for the Apple one. The extra value is brand equity.

Components:

Component	Description
1. Brand Awareness	How well customers recognize or recall a brand. High awareness leads to trust.
2. Brand Loyalty	The degree of consumer attachment and repeat purchase behavior.
3. Perceived Quality	Consumer perception of product quality and reliability, even beyond actual features.
4. Brand Associations	Ideas, emotions, or images connected to the brand (e.g., Nike = athleticism).

 

Apple commands premium prices due to strong brand equity. Apple's brand equity allows it to:

• Charge premium prices
• Maintain high customer loyalty
• Sell millions of devices without aggressive advertisements and discounting

Branding Strategies

Branding strategies are ways companies manage and promote their brand(s) to influence how customers perceive them.

Types of Branding Strategies:

Individual Branding: Each product has its own brand (e.g., P&G’s Tide, Ariel). Each product has its own unique brand name and identity, separate from the parent company.

• Purpose: To avoid risk spillover—if one product fails, it doesn’t hurt others.
• P&G owns Tide, Ariel, Gillette – each has its own branding.

Family Branding: All products under one brand (e.g., Samsung TVs, phones). All products are marketed under a single brand name.

·         Purpose: Promotes brand trust and recall across a range of products.

o    Samsung: Samsung TVs, Samsung phones, Samsung refrigerators.

o    Sony: Used for electronics, gaming, and entertainment.

• Co-branding: Two brands on a single product (e.g., Intel + Dell). Two or more brands collaborate on a single product or service.
• Purpose: Leverages the strengths of both brands to attract customers.
• Types:
• Ingredient (Intel + Dell)
• Complementary (Nike + Apple Watch integration)
• Example:
• Dell laptops with Intel Inside branding.
• Private Branding: Store brands (e.g., Amazon Basics). Products are branded by a retailer and sold exclusively in their stores.
• Purpose: Offers higher margins and store loyalty.
• Amazo nBasics (electronics, cables)

Brand Extension: Using existing brand to launch new product category (e.g., Dove soap to Dove shampoo).

• Purpose: Reduces marketing cost and leverages existing trust.
• Dove: Initially just a soap brand, now includes shampoo, deodorant, body wash, etc.

6. Brand Positioning

Brand Positioning is how a brand is perceived in the minds of consumers. Brand Positioning refers to how a brand is perceived in the minds of consumers, relative to competitors. It defines what unique space a brand occupies and what value it promises.

Why should a customer choose this brand over others?

Nature of Brand Positioning:

·        Differentiation: Makes the brand stand out from competitors.

·        Consumer-Centric: Based on customer perception, not just technical product features.

·        Emotional and Rational Appeals: May be based on product use or emotional connection.

Brand Positioning Strategies:

Strategy	Description	Example
By Product Attributes	Focus on a specific feature or characteristic.	Volvo = safety
By Benefits	Emphasize benefits the product provides.	Colgate = fresh breath
By Use or User	Position for a specific use or target user.	Gatorade = athletes
Against a competitor	Directly compares or opposes another brand.	Pepsi = “Choice of a New Generation” (vs. Coca-Cola)
By Category	Create or lead a new product category.	Red Bull = energy drink

Example: Nike

Slogan: Just Do It
Positioning: Performance, empowerment, and inspiration for athletes and everyday people.
Strategy Used:

• Emotional connection
• User-based positioning (active, sporty individuals)

Concept	Definition	Example
Brand Equity	Added value due to brand name	Apple
Individual Branding	Each product has its own brand	Tide, Ariel
Family Branding	One brand for multiple products	Samsung
Co-branding	Two brands on one product	Intel + Dell
Private Branding	Store brands owned by retailers	BhatBhateni
Brand Extension	Using a brand to enter new product categories	Dove soap → Dove shampoo
Brand Positioning	Perception of brand in consumer’s mind	Nike – performance & inspiration

Example:

Nike positions itself around performance and inspiration – “Just Do It.”

 

7. Product Packaging

Packaging refers to the design, production, and wrapping of a product to ensure protection, convenience, and appeal. It is the first physical interaction a consumer has with a product.

In simple terms it is the design and production of the container or wrapper for a product.

Nature/ Characteristics

·         First Point of Contact: Creates the first impression and attracts attention on the shelf.

·         Protective Function: Guards against damage, contamination, or leakage during storage and transit.

·         Communication Tool: Conveys brand image, usage instructions, ingredients, and legal info.

·         Marketing Medium: Supports brand positioning and promotion.

·         Convenience: Makes storage, handling, and usage easier for the customer.

Advantages of Packaging

Advantage	Description	Example
1. Protection & Safety	Prevents spoilage, damage, tampering	Airtight chip packets
2. Differentiation	Helps stand out among competitors on shelves	Pringles’ unique tube design
3. Branding & Appeal	Communicates brand personality	Apple’s minimalist white box
4. Information Provider	Lists ingredients, usage, expiry, manufacturer, etc.	Shampoo bottles with usage and expiry info
5. Consumer Convenience	Easy to use, store, or carry	Toothpaste tube with flip cap
6. Influences Buying Decision	Visually attractive packaging encourages impulse buying	Chocolate in gift-like packaging

 

When Not to Use Heavy Packaging

Situation	Description	Example
1. Cost Sensitivity	Extra packaging raises product cost unnecessarily	Simple paper wrap for pencils
2. Environmental Concerns	Plastic-heavy packaging can cause backlash	Toys with too much plastic casing
3. Bulk Sales	Not needed in wholesale/B2B sales	Large sacks of rice or sugar
4. Minimalist Preference	Some consumers prefer eco-friendly, basic designs	Muji’s simple, label-free products
5. Traditional Markets	Informal/street markets sell unpackaged items	Open baskets of fresh veggies
6. Short Shelf-Life Items	Packaging adds little value when products are consumed quickly	Local bakery bread sold in paper bags

 

Types of Packaging

Type of Packaging	Definition	Primary Role	Example
Primary Packaging	Directly holds the actual product	Protects product, informs user, enables use	Toothpaste tube, shampoo bottle
Secondary Packaging	Encloses primary package(s)	Branding, display, added protection	Cardboard box for toothpaste
Tertiary Packaging	Groups secondary packages for shipping	Logistics, bulk handling, storage	Shipping carton with 50 toothpaste boxes

 

These levels of packaging serve different purposes in the product lifecycle, from protection to branding to logistics.

Toothpaste Example:

1.      Primary → The plastic toothpaste tube that you squeeze.

2.      Secondary → The cardboard box that contains the toothpaste tube and has branding, ingredients, and directions.

3.      Tertiary → A corrugated box that holds 50 of those cardboard boxes and is shipped to a warehouse or store.

1. Primary Packaging

Primary packaging is the first layer of packaging that comes in direct contact with the product itself. It holds and protects the product for individual use.

Purpose:

• Preserves product integrity
• Provides product information
• Makes handling and consumption easy
• Often includes labeling and branding

Example:

• Toothpaste tube:
  The tube you squeeze is the primary packaging. It holds the actual toothpaste and is used every time the product is consumed.

Other Examples:

• The bottle of shampoo
• A can of soft drink
• A blister pack containing tablets

2. Secondary Packaging

Secondary packaging is the outer layer that encloses or groups one or more primary packages. It's typically used for branding, display, and additional protection.

Purpose:

• Protects the primary packaging during transit or handling
• Enhances shelf display
• Carries branding, instructions, and promotional messages
• May be used for gift packaging or multi-packs

Example:

• Cardboard box containing the toothpaste tube:
  This box protects the tube, provides branding and legal information, and makes the product more presentable on store shelves.

Other Examples:

• A cereal box that contains a sealed plastic bag of flakes
• Perfume boxes
• Cartons containing bottles (e.g., a 6-pack of soda)

 

3. Tertiary Packaging / Shipment Packaging

Tertiary packaging is used for bulk handling, shipping, and storage. It groups secondary packages to facilitate transportation and warehouse storage.

Purpose:

• Prevents damage during transit and stacking
• Makes distribution and logistics efficient
• Used mainly in B2B environments (wholesale, retailers, warehouses)

Example:

• Carton with 50 toothpaste boxes:
  This large cardboard box holds numbers of toothpaste packages for delivery to a retail store or distributor.

✅ Other Examples:

• Pallets shrink-wrapped with multiple boxes
• Large plastic containers with dozens of small shampoo bottles
• Shipping crates or drums

Product Labelling

Labelling refers to the written or printed information on the product or its packaging. It is a crucial element of marketing, legal compliance, and consumer decision-making. Labels may include product name, ingredients, usage instructions, brand logo, barcode, legal disclaimers, and promotional messages.

 

 

Importance of Labelling

Purpose	Description	Example
1. Legal Compliance	Labels ensure the company adheres to government regulations.	Food packets must list expiry dates, net weight, manufacturer details, and nutritional facts.
2. Product Info	Customers get to know how to use a product, what's inside, and safety measures.	A medicine label explains dosage, storage, side effects.
3. Brand Recognition	The label often includes logos, taglines, or brand-specific fonts/colors.	Coca-Cola’s red label, white script, and design are instantly recognizable.
4. Persuasion	Eye-catching or emotion-driven labels attract buyers and influence purchases.	Labels saying “100% organic”, “GMO-free,” “Dermatologist tested.”
5. Customer Guidance	Helps the customer choose the right version or type of a product.	Shampoo bottles marked as “For Dry Hair” vs. “Anti-Dandruff” help customers select accordingly.

Example

Label Component	Details Found on Wai Wai (Noodle) Packaging
1. Brand Name & Logo	Large “Wai Wai” text in bold red and yellow — highly recognizable. Often accompanied by the CG Foods logo.
2. Product Image	A photo of the cooked noodles garnished with vegetables to appeal to visual senses.
3. Nutritional Facts	Per 100g: ~450 kcal, protein, fat, carbohydrate, and sodium values are clearly listed.
4. Allergen Info	"Contains wheat (gluten), soy, and may contain traces of eggs or peanuts."
5. Usage Instructions	“Ready-to-eat or boil for 2 minutes. Add tastemaker for best taste.”
6. Manufacturing Info	Manufacturer's name, plant location (e.g., CG Industrial Park, Nawalparasi), and FSSAI/Nepali standards.
7. Expiry Date / MRP	Printed separately on the back – includes batch number, date of manufacture, and expiration.
8. Taglines or Slogans	Often includes: “Ready to eat – crunch it, munch it, soup it.” or "The real taste of Nepal."
9. Certifications	BIS, ISO, or other food safety logos (if applicable).

 

Product Life Cycle (PLC)

The Product Life Cycle is a business management concept that describes the progression of a product through four stages – from launch to withdrawal – in the marketplace.

 

 

Nature of the PLC:

1.      Not all products follow the same path – some skip stages or experience revivals.

2.      Time spent in each stage varies – tech products change fast, while food staples may stay longer.

3.      Each stage needs tailored marketing strategies – pricing, promotion, and placement must evolve.

Major features or assumptions

Nature	Basis	Overview	Example
1. Stage-wise Progression	Time & Market Response	Every product goes through distinct stages: Introduction → Growth → Maturity → Decline.	Nokia mobile phones (1990s–2010s)
2. Variable Duration	Product Category & Market Dynamics	Duration of each stage differs. Some products mature quickly; others take decades.	Fidget spinners (short cycle), Coca-Cola (long cycle)
3. Changing Marketing Strategies	Stage Characteristics	Strategies shift: Awareness in Introduction, Differentiation in Maturity, Cost-cutting in Decline.	Smart TVs require aggressive promo early, discounting later.
4. Sales & Profit Patterns	Financial Performance	Sales and profits usually rise in growth, peak in maturity, and fall in decline.	DVD players had peak sales in early 2000s, declined post-2010.
5. Influenced by Innovation & Trends	External Factors (Tech, Fashion, Consumer)	New technology, fashion, or consumer behavior can alter or shorten the PLC.	MP3 players were replaced by smartphones quickly.
6. Not All Products Reach All Stages	Product Success/Failure Rate	Some products fail early and never reach growth or maturity.	Google Glass (discontinued early)

 

Stages of PLC and Associated Strategies:

Stage	Features	Marketing Strategies
1. Introduction	Product is new; low sales, high development and marketing costs.	Create awareness via heavy advertising, use penetration pricing or price skimming, focus on product education.
2. Growth	Demand grows, competitors emerge, profits increase.	Focus on product improvement, wider distribution, increase brand loyalty, invest in customer service.
3. Maturity	Sales stabilize, market saturates, pressure on prices and profits.	Use product differentiation, add new features, extend product line, offer discounts or bundling.
4. Decline	Sales drop due to newer alternatives, changes in technology or preferences.	Decide to withdraw, rejuvenate, target niche segments, or heavily discount stock.

 

Example: Nokia Phones

Stage	Timeline	Description
Introduction	1990s	Nokia introduced early mobile phones – expensive, low penetration.
Growth	Early 2000s	Nokia dominated the market with simple, durable models like the 3310.
Maturity	Mid to Late 2000s	Peak popularity, widespread usage, but smartphones began to rise.
Decline	Post-2007	Lost relevance after Apple & Android innovations; failed to adapt quickly.

 

Nokia eventually exited the mobile market and later re-entered through brand licensing with Android-based phones.

PLC Stage	Product	Price	Place (Distribution)	Promotion	Promotion Mix Focus	Example
Introduction	Basic version, new features highlighted	Skimming (high price) or Penetration (low price)	Selective or limited – only in key outlets	Create awareness, educate customers	Advertising, PR, Direct Marketing	Product: Electric car (e.g., BYD in Nepal) Service: New mobile banking app
Growth	Product improved; variants added	Competitive pricing, sometimes reduced	Wider distribution – more channels, retailers	Promote brand preference, differentiate	Advertising, Sales Promotion	Product: Smartphones Service: Ride-hailing service (e.g., Pathao)
Maturity	Full product line, brand differentiation	Competitive pricing, discounts & bundling	Intensive – available everywhere	Remind customers, strengthen brand loyalty	Sales Promotion, Loyalty Programs, Personal Selling	Product: Wai Wai noodles Service: Ncell voice/data packages
4. Decline	Simplified version or discontinue low sellers	Heavy discounts or clearance pricing	Withdraw from unprofitable channels	Minimal – maintain only loyal customers	Personal Selling, Direct Marketing	Product: DVDs and players Service: Old cable TV services

 

Explanation of Strategies by 4Ps:

1. Product

• Intro: Focus on launching a minimum viable product.
• Growth: Add variants, improve quality.
• Maturity: Diversify, repackage, brand reposition.
• Decline: Phase out or simplify offering.

2. Price

• Intro: High (skimming) or low (penetration).
• Growth: Competitive pricing.
• Maturity: Promotions, discounts.
• Decline: Clearance sales, discount offers.

3. Place

• Intro: Limited stores or platforms.
• Growth: Expand to more channels.
• Maturity: Maximum reach.
• Decline: Remove from underperforming outlets.

4. Promotion

• Intro: Awareness-focused campaigns.
• Growth: Emphasize benefits vs. competitors.
• Maturity: Reminders and loyalty.
• Decline: Cost-effective promotion only.

Promotion Mix Focus (at each stage)

Stage	Primary Tools
Introduction	Advertising, PR, Digital Launch
Growth	Advertising + Sales Promotion
Maturity	Loyalty Programs, Reminder Ads, Trade Promotion
Decline	Direct Marketing, Discounts, Personal Selling

Example: Ncell Mobile Service in Nepal

Stage	Strategy
Intro	Launch campaign, TV/YouTube ads, free SIM cards
Growth	Bundle voice + data, partner with phones
Maturity	Loyalty rewards, data rollover, festive offers
Decline (for old tech like 2G)	Shut down old tech, push users to upgrade to 4G

This is a detailed explanation of how different marketing strategies are used in each stage of the Product Life Cycle (PLC), based on the Marketing Mix (4Ps: Product, Price, Place, Promotion) and the Promotion Mix (Advertising, Sales Promotion, Public Relations, Personal Selling, Direct Marketing) — with clear examples for both products and services.

1. Introduction Stage

Objective:

To create product awareness, attract early adopters, and educate the market.

Marketing Mix:

• Product: New, basic version; limited features to test market.
• Price:
• Skimming Pricing: High price to recover development costs (e.g., new iPhone).
• Penetration Pricing: Low price to gain market quickly (e.g., low-cost electric scooter in Nepal).
• Place: Selective or limited distribution (online or few retail outlets).
• Promotion: Focus on product education and brand awareness.

Promotion Mix:

• Advertising: Mass media, digital ads, influencer reviews.
• Public Relations: Product launch events, media coverage.
• Direct Marketing: Email or SMS for product introduction.

Examples:

• Product: BYD electric cars launched in Nepal – focused on eco-conscious features and media buzz.
• Service: New mobile banking app – advertised through digital media, demo booths in banks.

2. Growth Stage

Objective:

To build brand preference, increase market share, and fight competition.

Marketing Mix:

• Product: Improved quality, new variants, added features.
• Price: More competitive to attract the mass market.
• Place: Expanded to more cities, retailers, online platforms.
• Promotion: Emphasis on differentiation and value-added benefits.

Promotion Mix:

• Advertising: Highlight unique benefits.
• Sales Promotion: Discounts, free samples.
• Personal Selling: Especially in B2B or technical products.

Examples:

• Product: Pathao ride-sharing service expanded to multiple cities; offered referral bonuses.
• Service: Online learning platforms (e.g., MeroSchool) – promoted with trial classes and influencer endorsements.

3. Maturity Stage

Objective:

To defend market share, maximize profits, and retain customers.

Marketing Mix:

• Product: Fully developed, diversified product line, redesigns or packaging updates.
• Price: Often lowered due to intense competition; bundling and loyalty pricing used.
• Place: Widest possible distribution (urban + rural markets).
• Promotion: Focus on brand loyalty and reminder advertising.

Promotion Mix:

• Sales Promotion: Loyalty programs, festive offers.
• Advertising: Reminders and emotional branding.
• Trade Promotion: For retailers to push products.

Examples:

• Product: Wai Wai noodles – available everywhere, with many flavors; promoted during festivals.
• Service: Ncell prepaid packages – mature market, uses combo offers, bonus data, and music streaming bundles.

4. Decline Stage

Objective:

To minimize losses, decide whether to drop or rejuvenate the product.

Marketing Mix:

• Product: Simplified or discontinued models; only best-sellers retained.
• Price: Deep discounts, liquidation pricing.
• Place: Removed from non-profitable outlets, sold online or in bulk.
• Promotion: Minimal spending, targeting only loyal or niche users.

Promotion Mix:

• Direct Marketing: Targeted email or SMS to specific users.
• Personal Selling: Clearing old stock via retail push.
• No mass advertising: Cost reduction is priority.

 Examples:

• Product: DVD players – now discontinued in favor of streaming.
• Service: Traditional cable TV – being phased out as users shift to OTT platforms like YouTube and Netflix.

 

Summary Table (All Stages at a Glance)

Stage	Key Strategy	Example (Product)	Example (Service)
Introduction	Awareness + Early Adoption	BYD EV Cars	New online banking app
Growth	Market Expansion + Differentiation	Pathao Bikes	E-learning platforms
Maturity	Customer Retention + Brand Loyalty	Wai Wai Noodles	Ncell data packs
Decline	Cost-Cutting + Exit or Rebrand	DVD Players	Traditional cable service