1. What is the matrix approach to product planning? By taking an illustrative example, explain the suggested marketing strategy for a multi product company on the basis of a product evaluation matrix.
2. Why is environmental analysis important for product manager? For a product category like air-conditioners or washing machines, explain the environmental factors you would need to monitor.
3. With respect to any new product idea of your choice, explain the process of concept development and testing. What is the significance of this stage in the new product development process?
4. How is pricing affected by the other elements of the marketing mix? How do factors like competition, stage in the product lifecycle and costs affect the pricing decision for a new product? Explain with the help of examples.
5. Explain the processes of product audit and product augmentation. How does the understanding of these two concepts enable a marketer to finalize the attributes of a Proposed new product?
SECTION B
6. Read the case carefully and answer the questions at the end.
The "Success" Story
A distribution house is handling a number of consumer products of reputed companies, acting as their selling agent. The products were marked by the company under the brand names of their respective manufacturing concerns. The company lost a profitable agency since the distribution of the products was taken over by the manufacturer himself.
Based on its past experience on similar lines, the company introduced a tooth - paste in the market manufactured by itself, under the brand name of ''Success". At this point of time, 'C' was the brand leader in the tooth - paste market followed by 'B' and 'F'. When 'Success' in 'Large' size was launched initially, the distribution was fantastic, in both the rural and the urban markets. The coverage was extensive and the consumer response was very encouraging. The product was much in demand in all the retail outlets, including pan shops. However, after some time, the company started getting a number of complaints related to packaging. The caps used were unable to withstand the transportation, due to which the contents from the tubes were leaking out. Without fully rectifying the defects, the company came out in the market with bigger sizes of tooth pastes like 'Giant' and 'Economy' under the same brand name 'Success'. Simultaneously, the company introduced a new range of products like talcum powder, hair cream, tooth brush and shaving cream. Al1 these products were manufactured by the company itself. At the time of launching these products, the company was already marketing shaving cream and toothbrush under different brand names with regular trade schemes. But the company did not operate any attractive dealer scheme for the 'Success' range of products and the sudden sport in the number of products handled did not have the requisite advertising back up.
The company began to notice a sudden decline in the sales of newly introduced products. At this stage, the company also introduced the 'Success' tooth powder in two different sizes. During this period the supplies of the brand leader 'C' were irregular and restricted. The other two toothpaste manufacturers, viz., 'B' and 'F' did not have tooth powder. Therefore, the Success' tooth powder started moving well in the market.
The company again launched a new series of similar products except toothpaste under a new brand name 'Victory'. This turned out to be an utter failure due to poor marketing strategies, which adversely affected the company's image.
The company appointed a new professional marketing chief, who decided to go in for yet another range of cosmetic products grounding the 'Success' series of products, out of the market. The new venture also proved to be futile exercise, and the 'Victory' range of products also had to be abandoned finally.