Choose a Product

8/8/2019 Choose a Product

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choose a product

existing or make a new one

market the product in urban and rural area

media sources

the add spentis the adv successful or no

who is the target audience

make a print admake a strategy to market in the urban market

Developing a marketing plan or strategy to introduce a new technical product can be

painless, and seems confusing only when we lose site of objectives.

Start by writing an outline of your marketing strategy. Then begin by gathering required

information for each section in your outline. As you gather your market information, you

may see critical gaps. Find a way to fill the gaps (e.g. telemarketing). Then polish theinformation with helpful tables, charts and graphs. You can even use the outline to

organize your marketing presentation!

Developing a Product Marketing Strategy is one of the most challenging and exciting

aspects of product marketing and launching a new product. The marketing professional

should begin by writing a working outline of his market plan to help organize the study,gather information, and organize the presentation.

I created this outline to develop marketing strategies:

What are my short term objectives or goals.

Corporate Mission Statement.Manufacturing objectives.

Product Development objectives.

Marketing objectives.

Customers

How many customers I have?

What are they buying?


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Do they have any emotional attachment to my product ?

What is the size of market I am in?

What is my customer's price point and other economics?Exactly what my customers need?

Are my customers currently satisfied with my product?

Market Segmentation

now in market segmentation the market in divided into groups. Process of defining andsub-dividing a large homogenous market into clearly identifiable segments having similar

needs,wants, ordemand characteristics. Its objective is to design a marketing mix that

precisely matches the expectations ofcustomers in the targeted segment. Few firms are

big enough to supply the needs of an entire market, it is must tobreakdown the totaldemand into segments and choose the one or few the firms is best equipped to handle.

The four basic market segmentation-strategies are based on

(a) behavioral

(b) demographic,(c) psychographic,

(d) geographical differences.

(e) Competitors

What are they doing now?

Where do competitors advertise, and how often?

What is their sales pitch?How do competitors price?

How do they distribute?

How do competitors position themselves?How do competitors react to threats?

How do successful competitors differ from the lesser?

What are their market shares?

(f) Compare compitors to your organization in terms of your:

Strengths(g) Brand Image

(h) Reasonable quality at low or reasonable price

(i) Diversity with ranges in running, training, court, basketball, football and Outdoor(j) Footwear for the entire family

(k) Financialy Strong

(l) Conveniently accessible outlets in various parts of the country(m)Targetting all income segments

(n) Provide training for managers and employees

Nationwide retail network
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Weaknesses1. No continuity of leadership

2. In 2001, 5% decrease in net saless

3. No proper planning regarding Advertisement4. No variety in Fashionable shoes

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Opportunities

E-Commerce

2. Acquired, Partnership with small players

3. Entring new segments of Markets4. Capturing Market where no other potential competitor exists

5. Innovative Products

6. New mediums for advertisements

Threats

1. Customer Dissatisfaction

2. Price wars with competitors

3. Competitors

4. Political Instability5. Economic Threat

Changing in consumer prefernces

Product Position

With the evolving market and changing market dynamics Paragon was being given atough time by its local competitors and other footwear being imported from China.

Paragon management feared that they would not be able to survive because they could

not compete with the low cost Chinese products, hence they embarked on a plan to enterthe premium segment of the market to be able to survive, because they felt competition

from Chinese products there would be much less.

However, in my opinion, the company made a mistake by going after the premiumsegment as well, without realizing the fact that their image would be hurt and could get

diluted because they were moving into a domain for which their activities were not

aligned. Other than the activities too we have to consider the Brand image that Paragonhad developed over the past 35 years, and this image was by no means that of a brand

which could boast about having premium footwear products, in fact Paragon was just

meeting the basic functional needs of its middle class customers. Therefore their strategydoes not seem to be at all well cut out, as from most of their activities it appears that once

they were challenged they resorted to a fire fighting approach and tried their hand at

almost all possible arrangements, without gauging the fit of the activities to their strategy.

It may be concluded that Paragons management made the fatal error of just enjoying


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their successes whilst the market was not mature, but when the competitors kicked in and

the market approached maturity, they were left in the lurch because of not having made

clear trade offs in terms of image, activities & internal coordination and then had to paythe price. Their current predicament has been analyzed in detail using a strategy

framework below.

If Possible, Do Market Testing

Show product and promotional concepts to customers.Double check.

Make Strategy Decisions

Decide on new revenue growth and profits.Decide on new product development.

Decide on price.

Decide on sales force, distribution, service.

Decide on customerpsychological factors, not features and benefits.Decide on product promotion.

A popular way to remember the function of marketing is the "four p's of marketing",

which are product (you must have a "new product development process"), place

(distribution or where you will sell your product), promotion and price. A gooddefinition of marketingwill provide a more detailed definition of the standard

marketing function, and the four p's of marketing.

I addedpsychological sales factorsas a fifth p of marketing; because, your marketing

strategy must list the relevant sales psychology factors, and state how these factors

will be addressed. Sales psychology is arguably the most important part of a

marketing strategy. Yet, customer psychology is seldom mentioned in marketingstrategies.

Write an Action Plan

Pert chart on product development.

Calendar of planned media.Budget

Implement Your Plan
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Hold routine meetings to review progress on sales leads. Provide a lead tracking

system. Nothing is status-quo. Revisit your plan and update.

Rural Marketing in India

Rural market can not be ignored because the vast population of about 63 crores

residing in the rural segment is getting richer gradually with marked awareness

thanks to the growing media reach, mobile phone users and manpower exodus to

urban jobs. Every year about two million people are being added to the rural

segments. They are more intelligent and aware in quicker time possible. The

shortcoming in rural population is the requisite income level in every household.

Therefore the primary strategy would be to categorize different segments and chose

the target groups for marketing. Even today the nature of rural market is fit formass marketing only. However, the income generation is going up because of the

guaranteed job schemes, minimum wages. There is growing recognition of the

income strength of rural people by distribution of credit and debit cards to the

farmers, growing and better lifestyle. Growing connections to rural areas through

better infrastructures and other facilities are making rural populace worthy of

attention. Hindustan Lever is the first organized company to infiltrate in to villages

to market their products. Later on others like LG, Dabur, Britannia, Godrej have

also made headway to this direction. For big companies with adequate finances it is

strategic to design products with rural emphasis that must include low prices

products that can satisfy rural urge. A product in soap category must sustain the

basic image of preserving the health power of villages, Strength of farmers. Forrural women the product must contain the basic urge of promoting beauty and

softness among women who always aspire for. After the products are designed the

awareness about these products and availability must go to the consumers through

the media available readily there. Another important strategy in the beginning is to

introduce a product that is traditionally acceptable by villages because Indian rural

population is still governed by the traditional behaviors pattern. Any attempt to

disregard it may through the product to the dustbin.

Thus the fundamental rules that will lay the foundation for a suitable strategy are

the market segmentation to categorize affordability, availability of products in the

distribution channel, awareness generation through affordable media, acceptability

of the product in the rural setting and spread of better lifestyle through proper

education.

Microsolar Brain


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, Aug 2

FOR decades, it was a price tag that drew instant jokes, sarcastic comments and

sometimes even arguments over consumer rights, but ending it all, Paragon India haswithdrawn its famous 95 paise pricing.

Now Paragon chappals, shoes and other footwear are priced sans the 95 paise. Paragon

prices still stop at `9' (such as Rs 499), but the two decimal points in the price that made

you feel like sheepishly asking the five paise back, are gone.

"I have seen it almost throughout my stint with Paragon," a manager of a Paragonshowroom, who has put in around 40 years with the company, said.

He remembers that Paragon sales people would also be curious about the 95 paise tag

when they joined the company. They would be later taught at training sessions that it was

a strategy to begin sales talk with buyers curious about price like Rs 299.95.

"It would automatically create interest in the product. And from there salesmen can start

their talk," he said. The Paragon price also had a psychological impact on the prospective

buyers as it fell short of an amount that might have looked like a high price.

Also, the price tag was devised to communicate to customers that Paragon values eventheir five paise. "We used to religiously return the five paise in those days when the coin

was available," he said.

There is also an unconfirmed theory that Paragon, then headquartered in Kolkata, came

up with a price of Rs 124.95 to avoid an entry tax, which was levied on products priced at

Rs 125 and above.

Paragon India officials said the company had decided to do away with the most

distinctive pricing in the country because the five paise coins have now gone out of

circulation.

"Returning the five paise to customers was becoming an issue. There are people who

would insist on getting it back," they said.

But the company did try to keep the price going by trying out various things. "We used to

offer customers candies, or told them that for every five paise they did not take back, we

would put another five paise and donate the amount to Missionaries of Charity. But werealised later that no such thing was working," they said.

he paragon india is making a serious effort to rejig its performance. this includes launch

of paragon's overseas brands and revamp of retail formats, among others. after aconsistent bad 2001, spurts of labour unrest and a change of guard, the company has lined

up a series of initiatives to bring the customer back into the stores. they are: importing

high-end brands from paragon's international stable, launching a slew of locally designed


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