Unit III

Product decision: New product development – Product mix – management of product

lifecycle – product strategies – product additions and deletions.
Branding, packaging and labeling – product differentiation – planned obsolescence.

Product Decision
Product Decision
Definition: Product Decision in marketing refers to the company’s mindful decisions, major or
minor regarding their product. It ranks first among the 7 Ps of marketing management
Product, Price, Place, Promotion, People, Process, and Physical evidence. Organizations
take these decisions to attain their objectives and become profitable in the long run.
Product Decisions are vital marketing decisions to be made at various levels.
These decisions broadly cover:
 New Product Development
 Modification or Elimination of existing ones
 Variants and Visual elements
 Product Mix and Line, etc.
However, Warehousing is an activity that does not come under the span of product
decisions. This is because its core function is the storage of goods for selling and distribution as
and when required.
The factors affecting product decisions are:
1. Growth
2. Market-share
3. Cash flow
4. Profitability
Meaning of a product
Anything of value that fulfils the requirement of the end-user is known as a Product. It can be
goods or services, tangible or intangible, physical or psychological. The customers and
competitors largely depend upon the products offered by the company.
Types of Product Decisions
Major Product Decisions
The major product decisions, which are also the types of product decisions, are discussed briefly
below:

a. New Product Decision

A new product incorporates the elements of newness and varies from the existing ones. It may
include new features, qualities or be introduced differently. Besides, adding new products can
result in growth, profitability, increased market share and more.
To remain profitable and maintain sales, organizations need to launch new products. However,
the products may fail, so the marketers must take new product decisions wisely.
The product decisions may include:
1. Original Product
2. Improved Product
3. Modified Product
4. Development of Product
5. Launching Products, etc.
b. Product Mix
It refers to the aggregate range of products that a company owns. In other words, the total
number of products that a company offers for sale is the product mix of the company.
Product mix decisions depend upon the following four characteristics:
1. Length
2. Width
3. Depth
4. Consistency
There are various decisions the marketers have to take regarding the product mix. It may
include:-
1. Expansion
2. Contraction
3. Product Differentiation
4. Deepening and Alteration, etc.
c. Product line
This refers to a range of closely-related products belonging to the same class. They are sold to
the same customers, having identical attributes marketed by the same distribution channel but for
different segments.
The product decision relating to a product line are:
1. Line Stretching
2. Line Filling
d. Design
It indicates the appearance or personality of the product. The marketers have to decide whether
to go for the standard design or the creative design.
Changing the product’s design may be effective but can be risky too. The customer may or may
not like the design and face problems while using the product.
e. Branding
Branding is one of the vital decisions taken under product decisions. It involves the visual and
symbolic elements of the product.
Branding helps in monitoring the Brand Image, Loyalty and Acceptance.
The marketers distinguish the product using:
1. Band Name
2. Trade Marks
3. Logo
4. Brand Marks, etc.
f. Packaging
Packaging is the outermost covering of the product. It enables product protection, conveys
information and creates sale appeal. And is not restricted to just the safety of the product.
Packaging has evolved as the medium of marketing. Marketers use packaging
to reposition or renovate their products.
Packaging decisions include:
1. Size
2. Design
 3. Innovation
4. Aesthetics
5. Convenience
6. Material
7. Environmental factors
g. Labelling:
The label is a part of the packaging. It contains all the essential details about the product in
written form. Also, it conveys information regarding performance, features, quality and price,
etc.
The marketers must perform an in-depth analysis at the time of Labelling. It is a medium of
communicating with customers. Vital decisions based on labelling are:
1. Brand Label
2. Descriptive Label
3. Grade Label
4. Informative Labels
h. Positioning:
Positioning builds a unique image of the product in the target audience’s mind. Also, it
differentiates products from others using benefits and attributes in the customer’s mental space.
The product decision concerning positioning are:
1. Segmentation
2. Differentiation
3. Aggregation
i. Support/ Customer Support:
Support or Customer Support is the company’s added benefit for the customers. It may be
offered to the end-user by after-sale services, grievances management, and so on. It assists in
creating loyal customers and recurring sales.
Different customer support services possess varied cost structures. Therefore, marketers must
make decisions to reduce costs and improve customer experience.

Product and Product Levels

What is a product?
According to Philip Kotler, who is an economist and a marketing guru, a product is more than a
tangible “thing‟. A product meets the needs of a consumer and in addition to a tangible value this
product also has an abstract value. For this reason Philip Kotler states that there are five product
levels that can be identified and developed. In order to shape this abstract value, Philip Kotler
uses five product levels in which a product is located or seen from the perception of the
consumer. These 5 Product Levels indicate the value that consumers attach to a product. The
customer will only be satisfied when the specified value is identical or higher than the expected
value.
Five Product Levels
1. Core Product: This is the basic product and the focus is on the purpose for which the product
is intended. For example, a warm coat will protect you from the cold and the rain. The more
important benefits the product provides, the more that customers need the product. A key
element is the uniqueness of the core product. This will benefit the product positioning within a
market and effect the possible competition.
2. Generic Product: This represents all the qualities of the product. For a warm coat this is
about fit, material, rain repellent ability, high-quality fasteners, etc.
3. Expected Product: This is about all aspects the consumer expects to get when they purchase
a product. That coat should be really warm and protect from the weather and the wind and be
comfortable when riding a bicycle.
4. Augmented Product: The Augmented Product refers to all additional factors which sets the
product apart from that of the competition. And this particularly involves brand identity and
image. Is that warm coat in style, its colour trendy and made by a well-known fashion brand?
But also factors like service, warranty and good value for money play a major role in this. The
goal is to deliver something that is beyond an expected product. It is the translation of the desire
that is converted into reality.
5. Potential Product: This is about augmentations and transformations that the product may
undergo in the future. For example, a warm coat that is made of a fabric that is as thin as paper
and therefore light as a feather that allows rain to automatically slide down.

New Product Development

New product development (NPD) is the process of bringing a new product to the marketplace.
Your business may need to engage in this process due to changes in consumer preferences,
increasing competition and advances in technology or to capitalize on a new opportunity.
Innovative businesses thrive by understanding what their market wants, making smart product
improvements, and developing new products that meet and exceed their customers' expectations.
'New products' can be:
 Products that your business has never made or sold before but have been taken to market
by others
 Product innovations created and brought to the market for the first time. They may be
completely original products, or existing products that you have modified and improved.
The eight stages or process or steps involved in the development of a new product are listed as
follows:
1. Idea generation.
2. Idea screening.
3. Concept testing.
4. Business analysis.
5. Product development.
6. Test marketing.
7. Commercialization.
8. Review of market performance.
1. Idea generation
The first step in new-product development is idea generation. New ideas can be generated by:
a. Conducting marketing research to find out the consumers' needs and wants.
 b. Inviting suggestions from consumers.
c. Inviting suggestions from employees.
d. Brainstorming suggestions for new-product ideas.
e. Searching in different markets viz., national and international markets for new- product
ideas.
f. Getting feedback from agents or dealers about services offered by competitors.
g. Studying the new products of the competitors.
2. Idea screening
Most companies have an "Idea Committee." This committee studies all the ideas very carefully.
They select the good ideas and reject the bad ideas. Before selecting or rejecting an idea, the
following questions are considered or asked:
a. Is it necessary to introduce a new product?
b. Can the existing plant and machinery produce the new product?
c. Can the existing marketing network sell the new product?
d. When can the new product break even?
If the answers to these questions are positive, then the idea of a new-product development is
selected else it is rejected. This step is necessary to avoid product failure.
3. Concept testing
Concept testing is done after idea screening. It is different from test marketing. In this stage of
concept testing, the company finds out:
a. Whether the consumers understand the product idea or not?
b. Whether the consumers need the new product or not?
c. Whether the consumers will accept the product or not?
Here, a small group of consumers is selected. They are given full information about the new
product. Then they are asked what they feel about the new product. They are asked whether they
like the new product or not. So, concept testing is done to find out the consumers' reactions
towards the new product. If most of the consumers like the product, then business analysis is
done.
4. Business analysis
Business analysis is a very important step in new-product development. Here, a detailed business
analysis is done. The company finds out whether the new product is commercially profitable or
not. Under business analysis, the company finds out...
a. Whether the new product is commercially profitable or not?
b. What will be the cost of the new product?
c. Is there any demand for the new product?
d. Whether this demand is regular or seasonal?
e. Are there any competitors of the new product?
f. How the total sales of the new product be?
g. What will be the expenses on advertising, sales promotion, etc.?
h. How much profit the new product will earn?
So, the company studies the new product from the business point of view. If the new product is
profitable, it will be accepted else it will be rejected.
5. Product development
At this stage, the company has decided to introduce the new product in the market. It will take all
necessary steps to produce and distribute the new product. The production department will make
plans to produce the product. The marketing department will make plans to distribute the
product. The finance department will provide the finance for introducing the new product. The
advertising department will plan the advertisements for the new product. However, all this is
done as a small scale for Test Marketing.
6. Test marketing
Test marketing means to introduce the new product on a very small scale in a very small market.
If the new product is successful in this market, then it is introduced on a large scale. However, if
the product fails in the test market, then the company finds out the reasons for its failure. It
makes necessary changes in the new product and introduces it again in a small market. If the new
product fails again the company will reject it. Test marketing reduces the risk of large-scale
marketing. It is a safety device. It is very time- consuming. It must be done especially for costly
products.
7. Commercialization
If the test marketing is successful, then the company introduces the new product on a large scale,
say all over the country. The company makes a large investment in the new product. It produces
and distributes the new product on a huge scale. It advertises the new product on the mass media
like TV, Radio, Newspapers and Magazines, etc.
8. Review of market performance
The company must review the marketing performance of the new product. It must answer the
following questions:
a. Is the new product accepted by the consumers?
b. Are the demand, sales and profits high?
c. Are the consumers satisfied with the after-sales-service?
 d. Are the middlemen happy with their commission?
e. Are the marketing staffs happy with their income from the new product?
f. Is the Marketing manager changing the marketing mix according to the changes in the
environment?
g. Are the competitors introducing a similar new product in the market?
The company must continuously monitor the performance of the new product. They must make
necessary changes in their marketing plans and strategies else the product will fail.
Product Mix
A product mix is the total number of individual products and the product lines that the company
manufactures. The product mix is something that keeps varying from company to company.
Some companies have a limited number of products, while others have several lines of products,
which include a number of different products in each product line. A company can have a
number of product lines containing several products.
A product line is basically a group of several products which are similar in terms of their basic
attributes. The products which fall into the same product line generally target the same customer
base and have almost similar prices. Professionals working in the product development
department often create flowcharts to illustrate their different various product lines and to
explain how the product lines relate to one another.
Function of Product Mix:
The main function of a product mix is to provide companies with an understanding of a
particular product and the methods to advertise it to as many customers as possible. A good
product mix can provide detailed information about each and every product and the target
customers. For example, if a soap company produces a basic budget soap, an expensive soap and
nature-friendly soap, then a good product mix contains all the varieties of soaps that the company
produces with the types of consumers and their needs.
Size of Product Mix:
The larger the product mix is, the more it can help the company in planning strategies for
growing sales. If the product mix contains a product that is unpopular among consumers, it can
lead to a significant loss in sales. Companies often focus on having those products in the product
mix which are in demand. Focusing on products that are currently in demand with the customers
can help companies to stand against their competitors in the market.
Effects of Product Mix:
Product mix can help the companies know their loyal customer base and the customers who are
switching to their competitors. This can directly help them to plan and build strategies that focus
on increasing the efficiency of the sales. For example, if you are managing a chain of hotels for a
company, you can offer your customers different kinds of rooms, gardens and swimming pools
in one place. This way customers can get different kinds of facilities in one place.
Misconceptions about Product Mix:
Some companies can misunderstand a product mix as a group of several products that a company
puts into the market. A product mix provides detailed information about each product in the
group and helps in optimising the production and delivery processes. Introducing too many
products into the same group can lead to a downgrade in sales. Using product mix carefully
allows companies to make sure that their products are complementing each other instead of
competing.
Factors affecting Product Mix
The product mix can be expanded, contracted, or modified depending on the following factors:
1. Profitability: Every company has an aim of maximizing its profits and for this, they try to
make certain changes in the product mix such that it has a positive impact on the company’s
profitability. The company prefers introducing more product lines or product items to its existing
product lines to improve profitability. In the meantime, the product mix is constantly adjusted to
realize more profits.
2. Objectives and Policy of Company: The company formaulates its product mix to attain the
objectives it has set. Therefore, the addition, subtraction, or replacement of the product lines or
the product items are based on the company’s target. Hence, the product mix is prepared and
modified according to a company’s policy.
3. Production Capacity: The decisions regarding the marketing mix, depend on the capacity of
the plant or production of the company to a large extent. The company designs its product mix in
a way that hails optimum production capacity.
4. Demand: Mostly the Product mix decisions are taken concerning demand. A Marketer should
study consumer behavior to find the popularity of their products. The Change in the preferences
of the consumers’ especially for fashion, interests, habits, etc., must be reflected in the product
mix of the company. The company, naturally, prioritizes the products which have more demand.
In case of falling demand, a company must drop poor products gradually. Thus, the product mix
is adjusted to meet consumer needs and wants over time.
5. Production Costs: The product mix is widened or narrowed depending upon the production
costs of the respective items. The company will prefer those products, which can be produced
within the budgeted limit. At times, the manufacturing costs for existing products rise, then the
company decides to drop such products to reduce their production costs. It also tries to balance
selling price, profit margin, and production costs.
6. Government Rules and Restriction: Companies generally produce products that are not
restricted or banned by the governments. At times, a company has to stop certain products or
varieties when they are declared illegal. In the same way, social and religious protests also play a
vital role in this regard. The size and composition of the product mix is directly affected by the
contemporary legal framework.
7. Demand Fluctuation: Apart from the behavior of the consumer, demand also fluctuates due
to other reasons as well. Demand is affected more due to seasonal effects, non-availability of
substitutes, increase in population, war, situations of drought, flood, or any other reason. To meet
the changing demand for certain products, the company has to adjust its product mix.
8. Competition: It is one of the major factors affecting the product mix. All the companies try
to formulate their product mix in a way that the competitions can be strongly responded to. The
product mix strategy adopted by the close competitors has a direct significant impact on the
company’s product mix.
10. Impact of Other Elements of Marketing Mix: Other elements of the marketing mix such as
price, promotion, and distribution are also equally important in designing the product mix. The
company tries to maintain consistency among these all elements to carry out marketing activities
effectively and efficiently.
11. Overall Business Condition or Condition of Economy: Economic conditions domestically
as well as globally are also considered. Due to the process of liberalization and globalization, no
business can dare to underestimate the macro picture of the world economy. Therefore, a
company must keep in mind the condition of the domestic economy concerning the world
economy and is more relevant for a company that is involved in international trade.
12. Area of Operation: If a company is operating in an industry where making more products is
feasible and easier, then it would definitely have a larger product mix. For instance, there is a lot
more scope for innovation in the smartphone industry that in the chip industry
The dimensions of a product mix:
A product mix strategy helps to define each product category and the number of total products
which the company offers.
A product mix has the following four dimensions:
a. Width
The total number of product lines that a company suggests refers to as the width of the product
mix. For example, if a clothing company sells only ties and belts, then it has two product lines. If
it starts selling shirts, then it has three product lines.
b. Length
The total number of products in a product mix is the length of the product mix. You can
determine the length by adding all the products together. For example, if a company has three
product lines with five products in each line, then the length of the product mix is 15.
c. Depth
The total number of variations or types of product in a product line is the depth of the product
mix. The variations may depend on the shape, size, flavour or any other features that the
company provides. For example, a company may sell potato chips of different flavours that fall
into the same product line.
d. Consistency
The relationship between different products of product mix is called consistency. This
relationship can be about the production process and the distribution criteria of the products.
Focusing more on consistency can help companies in reducing the production cost of the
products. If there is more product variation, then there is less product consistency.
The importance of a product mix
The product mix is important for both large companies and small businesses. Product mix allows
companies to expand their customer base by introducing more products into different niches.
Having a better understanding of the basics of product mix and how to use them efficiently can
be helpful to the companies. Here are the reasons why product mix is important:
a. Meeting the need of the customer:
Proper management of products from manufacturing to distribution helps the company to fulfil
the needs of its customers. A happy and satisfied customer can again buy products from the same
company. For running the production line smoothly, companies do a proper tracking and
assessment of their customer's feedback. Product mix can help in maintaining the supply to
demand ratio and allows companies to change the speed of the production process according to
the market demand.
b. Maintaining the image of the business:
The reputation of a company depends on various factors, including delivering the best quality
products and maintaining consistency. Product mix plays a very important role in fulfilling the
demands of the customers. If a company sells its products at low prices and suddenly makes the
price high, the customers would get confused with the prices and doubt the quality of products.
c. Focusing on the primary business:
When companies concentrate on product mix, it becomes easy for them to focus on their primary
business. Many companies broaden their business by introducing new product lines. Focusing on
product mix can help companies to keep their focus on everything that is important for overall
growth.
Example of product mix:
Here is an example that can help you understand the product mix and its dimensions:
 There is a company which has two product lines, a soft drink product and a juice.
 Under both the lines, they manufacture varieties of soft drinks and juices of different
flavours but in the same size and quantity.
  All the products the company is producing are in the beverage category. The production
and distribution process is same for all them.
 In this example, we have two product lines, so the width of the product mix is two. The
length of the product mix is the total varieties of products under each line.
 Let us assume that the company produces three different flavours of soft drinks and four
flavours of juice. Here the length is seven, the depth for the soft drink product line is
three, and for the juice product line, it is four.
Common product mix strategies:
Here are some common examples of product mix strategies:
 bringing a change to an existing product strategy can help improve an existing product
 eliminating low-performing lines or products can simplify product mix
 implementing a depth strategy is useful if a company keeps and expands its current lines
 identifying and communicating new uses for existing products without affecting the
existing products or lines
 increasing the number of product lines or product variations
 adding a product with lower cost to its existing line of products
 adding a product with a higher cost to an existing line to increase the demand for its low-
cost products.
Management of Product Lifecycle
PRODUCT LIFE CYCLE
As consumers, we buy millions of products every year. And just like us, these products have a
life cycle. Older, long-established products eventually become less popular, while in contrast, the
demand for new, more modern goods usually increases quite rapidly after they are launched.
Because most companies understand the different product life cycle stages, and that the products
they sell all have a limited lifespan, the majority of them will invest heavily in new product
development in order to make sure that their businesses continue to grow.

The product life cycle has 4 very clearly defined stages, each with its own characteristics that
mean different things for business that are trying to manage the life cycle of their particular
products.
Introduction Stage – This stage of the cycle could be the most expensive for a company
launching a new product. The size of the market for the product is small, which means sales are
low, although they will be increasing. On the other hand, the cost of things like research and
development, consumer testing, and the marketing needed to launch the product can be very
high, especially if it is a competitive sector.
Growth Stage – The growth stage is typically characterized by a strong growth in sales and
profits, and because the company can start to benefit from economies of scale in production, the
profit margins, as well as the overall amount of profit, will increase. This makes it possible for
businesses to invest more money in the promotional activity to maximize the potential of this
growth stage.
Maturity Stage – During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This is probably the most
competitive time for most products and businesses need to invest wisely in any marketing they
undertake. They also need to consider any product modifications or improvements to the
production process which might give them a competitive advantage.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what is
known as the decline stage. This shrinkage could be due to the market becoming saturated (i.e.
all the customers who will buy the product have already purchased it), or because the consumers
are switching to a different type of product. While this decline may be inevitable, it may still be
possible for companies to make some profit by switching to less-expensive production methods
and cheaper markets.
Management of Product Lifecycle (PLM)
Product lifecycle management (PLM):
Product lifecycle management (PLM) refers to the handling of a good as it moves through the
typical stages of its product life: development and introduction, growth, maturity/stability, and
decline.
This handling involves both the manufacturing of the good and the marketing of it. The concept
of product life cycle helps inform business decision-making, from pricing and promotion to
expansion or cost-cutting.
Understanding Product Lifecycle Management (PLM)
Effective product life cycle management brings together the many companies, departments, and
employees involved with the product's production to streamline their activities, with the
ultimate goal of producing a product that outperforms its competitors, is highly profitable, and
lasts as long as consumer demand and technology permit. It goes well beyond just setting up
a bill of materials (BOM).
PLM systems help organizations cope with the increasing complexity and engineering
challenges of developing new products. They can be considered one of the four cornerstones of
a manufacturing corporation's information technology structure, the others being the
management of communications with their clients (customer relationship management [CRM]),
their dealings with suppliers (supply chain management [SCM]), and their resources within the
enterprise (enterprise resource planning [ERP]).
Identifying which stage of its life cycle a product is in determines how it will be marketed. A
new product (one in the introduction stage), for example, needs to be explained, while a mature
product needs to be differentiated. PLM can affect more fundamental elements of a product,
too. Even after it reaches maturity, a product can still grow—especially if it is updated or
augmented in some way.
PLM developed as a manufacturing and marketing tool for businesses seeking to maximize the
advantage of bringing new products to the market first.
History of Product Lifecycle Management
 The concept of a product having stages of life (and the need to manage them) arose as
early as 1931.
 Around 1957, an employee of Booz Allen Hamilton, the advertising agency, theorized a
five-step life cycle for goods, beginning with the introduction phase, rising through
growth and maturity, and eventually hitting saturation and decline.
 One of the first recorded applications of modern PLM occurred with American Motors
Corporation (AMC) in 1985.
 Looking for a way to speed up its product development process to better
compete against its larger competitors in 1985.
  While lacking their larger budgets—AMC decided to emphasize bolstering the product
lifecycle of its prime products (particularly Jeeps).
 Following that strategy, after introducing its compact Jeep Cherokee, the vehicle that
launched the modern sport utility vehicle (SUV) market, AMC began the development
of a new model that eventually debuted as the Jeep Grand Cherokee.
 The first part of its quest for faster product development was the advent of computer-
aided design (CAD) software systems that made engineers more productive.
 The second part of this effort was the new communication system that allowed conflicts
to be resolved faster, as well as reduced costly engineering changes because all drawings
and documents were in a central database.
 The product data management was so effective that after AMC was purchased by
Chrysler, the system was expanded throughout the enterprise, connecting everyone
involved in designing and building products. By adopting PLM technology, Chrysler
was able to become the auto industry's lowest-cost producer by the mid-1990s.
Specific Stages of a Product
Companies may categorize each stage of a product differently. However, in general, there are
several distinct stages across the product lifecycle that almost all products experience.
a. Concept Stage
The concept stage involves the initial ideas and planning for a new product. This
includes market research, identifying customer needs, and determining the feasibility of the
product. Often led by the research and development departments, this stage kicks off the
product lifecycle as it is where the ideas are generated.
b. Design Stage
In the design stage, the product is planned, developed and tested. This involves creating product
prototypes, refining the design and ensuring that it meets all regulatory and safety requirements.
Again, companies often must commit research and development costs in this design stage as
something that has never existed before must be created and tested.
c. Production Stage
If the company feels confident in its product and feels there is a market for the product, the
product goes to the production stage. This stage involves the manufacture of the product
including sourcing raw materials, assembling components, and testing the final product. At this
point, the company should have a fully-fleshed out product and should not be continually
tweaking the design.
d. Sales Stage
Now that the product is made, it moves to the sales stage. This stage involves promoting and
selling the product to customers. This includes advertising, sales promotions, and pricing
strategies. In many cases, the sales stage and production stage occur concurrently as a company
must try to forecast how many sales will occur (and thus need to be manufactured).
e. Support Stage
The support stage involves providing ongoing support to customers after they have purchased
the product. This includes customer service, warranties, and repairs. This may also relate to
ongoing trainings or services provided to new owners to better enhance their user experience
(i.e. tutorials on how to use their new technology).
f. Retirement Stage
Whether competitors have delivered a better product or the product is simply no longer
demanded by the market, the product lifecycle ends with the product being retired. This stage
involves the end-of-life of the product, including disposal, recycling or re-purposing of the
good. In many cases, successful products will be simply enhanced through future iterations (i.e.
consider each generation of the iPhone).
  Product lifecycle management is never linear.
 Every product will have varying paths and timelines for each stage.
Benefits of Product Lifecycle Management
Sound product lifecycle management has many benefits:
1. Getting the product to market faster.
2. Putting a higher quality product on the market
3. Improving product safety.
4. Increasing sales opportunities, and reducing errors and waste.
5. Specialized computer software is available to assist with PLM through functions such as
document management, design integration, and process management.
6. Product lifecycle management strives to improve product quality and reliability.
7. Companies may need to spend less on prototyping due to a clearer structure of planning
and innovating.
8. This also leads to potentially more accurate and timely requests for quotes (RFQ).
9. Companies that are intentionally during the retirement stage may be able to incur
savings due to the reuse of information.
10. This also means companies can plan ahead and minimize waste or reduce material costs
due to a greater understanding of what phase each product of theirs is currently in.
Elements of Product Lifecycle Management
 Product lifecycle management requires extensive collaboration between departments
across the entire life of a product.
 Product lifecycle management often begins with product data management (PDM).
 PDM is the management of all product-related data such as designs, specifications, bills
of materials, and engineering change orders.
 This streamlined process allows different departments to more seamlessly collaborate as
a product goes from one stage to the next.
 This process also often requires a product product design repository.
 This database of information involves the creation of new products, ideas, designs,
prototypes, and what tests have been performed on each one of them.
 Because different goods must flow in from different suppliers across the entire lifecycle,
product lifecycle management is also often closely related to supply chain management.
 This ensures that, regardless of what stage a product is in, the company is able to
procure, plan, gather, and distribute resources.
 Last, there are many elements to consider as products are used and enter the later stages
of its life.
 Sales and marketing departments must collaborate heavily to devise appropriate
promotion and selling strategies.
 This may also coincide with service and support offerings, especially as the company
transitions away from a product or offers end-of-life incentives as part of sales.
 This may also include recycling or redistribution services for items to be disposed of
with consideration.
 Sometimes, products are re-issued after "retirement". Consider 10-year anniversary re-
releases of successful video games with new, rebranded content.
Measuring Product Lifecycles
Companies must often use a combination of measurement methods to best know when to
transition a good from one stage to the next. This is especially important once a product has
been released and a company must decide when to transition away from offering the good. In
general, there are several types of measurement methods such as:
 Sales Data: One of the most obvious ways to measure a product's lifecycle is by looking
at its sales data over time. Sales trends can indicate when a product is growing in
 popularity, plateauing, or declining. This information may naturally signal to a company
when it is time to ramp down production, marketing, or offerings of the product. Most
companies may exclude expenses and only look at product revenue, though costs play a
factor and are worth considering.
 Customer Feedback: Customer feedback can provide valuable insights into a product's
lifecycle. Positive feedback early on in a product's life can indicate that it has potential
to grow, while negative feedback later in the lifecycle may indicate that it is declining.
Customers may also give insights into what shortfalls a product has, indicating to a
company whether a new iteration of the product can solve unmet consumer needs.
 Competitor Analysis: Monitoring competitors can also help measure a product's
lifecycle. As new products enter the market and others become outdated, a product's
lifecycle can be affected. For example, if other companies are offering better, faster, or
cheaper goods, it might be time to reevaluate your product. Specific examples of
measurements may include profit margins or reviews on innovation.
 Quality of Output: Companies can evaluate their output to decide whether it still makes
sense to offer a product. Using specific metrics such as quality of output, production
efficiency, or product waste, a company can get an idea of whether a different approach
to manufacturing would be more efficient.
 Warranty Claims/Returns: If a company's products continually break down or
experience the need for repairs, it might be time to reevaluate the good. This can be
measured by interactions with clients for warranty claims, repair requests, dissatisfied
reviews, and product returns.
The Future of Product Lifecycle Management
 Product lifecycle management isn't going away; however, over time, the nature of
products and their stages are likely to shift.
 As new technology emerges and consumer preferences change, the stages of product
lifecycle management may shift to these changes.
 The element with the greatest future potential disruption relates to the continual digital
transformation of information.
 Through artificial intelligence, machine learning, or the Internet of Things, companies
can collect and analyze data more efficiently than ever at every stage. This will future
enhance a company's ability to optimize performance and reduce expenses.
 Strives in technology also create opportunities for better communication.
 Product development and management is becoming more collaborative with cross-
functional teams working together to bring products to market.
 New solutions are being developed to support this trend that allow real-time tools for
strategic decisions to be made instantly. These tools continue to make it easier for team
members to work together seamlessly regardless of their location.
 As consumers become more conscious of the environment, companies can better
respond to sustainability demand.
 Product lifecycle management systems can support this trend by providing tools for
measuring and managing sustainability throughout the product lifecycle from design to
end-of-life disposal.
 This includes smart, scalable ways to measure waste or environmental impacts. This also
means smarter, cleaner ways to transfer products across the lifecycle or to consumers.
KEY TAKEAWAYS
 Product lifecycle management (PLM) handles a firm's approach to the various phases of
a product's development through to its ultimate decline.
 Product lifecycle management involves all stages, including the development and
manufacturing of a product, to its marketing and customer segmentation.
  The main benefits of project lifecycle management include shortening product
development times, knowing when to ramp up or reduce manufacturing efforts, and how
to focus marketing efforts.
 Product lifecycle management is tied to product development management, supply chain
management, and sales/marketing sales strategies.
 The future of product lifecycle management is filled with innovations associated with
technological advancements, improved communications, and environmental
sustainability.
Product Strategies
A product strategy is a business plan that sets out the goals and objectives for a company’s
product development and marketing activities.
The product strategy is a detailed plan that lays out your company’s goals and how it plans to
achieve them.
Such a plan acts as a map to develop your product and its features.
Since it is detailed, businesses use it as a reference point to make crucial decisions.
It helps ensure everything gets done correctly on time.
The strategy should take into account:
 The company’s strengths and weaknesses.
 The competitive environment.
 The needs and wants of target customers.
 And the company’s overall business strategy.
 It also outlines how the product would benefit the business by describing the problem that
the product solves and how it will impact the customers.
 This strategy can be used to explain what product is being built and when, it gives a clear
definition of the product.
 It acts as a baseline to measure success before, during, and after product development.
Process of Product Strategies:
1. Generating - Using SWOT analysis (strengths, weaknesses, opportunities, threats) and
current market trends to generate ideas. The company may want to develop several
different roadmaps to suit different types of projects along with risks management
involved.
2. Screening the Idea - Set specific criteria for the product ideas in terms of if it should be
continued or diminished. Will customers in the market benefit from this product?
3. Testing the Concept - Using quantitative or qualitative responses to assess consumer
responses to the product idea before introducing the product to the marketplace.
4. Business Analytics - A detailed marketing strategy will be included in terms of whether
the product will be profitable in the marketplace. This will also include the reactions
from the target markets and product positioning to evaluate if there's demand from the
market.
5. Marketability Tests - Prototype product will be introduced followed by a test of the
product along with the proposed marketing plan. Modification can be made when
necessary.
6. Technicalities and Product Development - Prototype will be created in the marketplace
allowing exact and real life investigations, product specifications and any manufacturing
methods. This stage also includes the process of logistics plan, supplier collaboration,
engineering operations planning and quality management.
7. Commercialize - Product will be launched into the market alongside advertisements and
other promotions.
8. Post Launch Review and Perfect Pricing - Review of the market performance in order
to assess the success of the project on the entire product portfolio. This stage will also
 include product costs and the forecast of future profit and revenue, differing price and
using competitive technologies for competition in the market. Value chain analysis will
be useful for this stage of the process.
Product Strategy Template
1. Define your vision
2. Establish your product goals
3. Create your product initiatives
1. Define your vision
Based on the template shown above, you can describe each of the outer circles. This consists of –
competitors, personas, go-to plan, strengths, weaknesses, etc. Through this process, you should
be able to get a clear picture of what problem you are trying to solve and who this will help in
the long run. This is how you can define a vision for your product.
A product vision statement talks about the long-term mission or goal of the product. It should be
written in a concise manner such that we can articulate what the product may achieve. It should
remain static. For example, one of Google’s early vision statements was “Organise the world’s
first information and make it universally accessible and useful.”
2. Establish your product goals
After defining your vision, add goals for your product. For each goal that has been decided,
figure out a quantifiable method of tracking its success. Set a deadline for achieving your goal.
Examples of product goals:
 Generate Rs.1.5M in revenue in the first two years
 Increase the free-trial downloads by 40% in the upcoming 6 months
 Improve the average customer ratings
Using SMART goals is an approach that can be followed for efficient goal-setting. Read our blog
on SMART goals to learn more about the same.
3. Create your product initiatives
Once you have established the goals, you need to add them to your product roadmap for the
cross-functional teams to be able to review them, break them into smaller detailed tasks, and
begin working on them.
Examples of product initiatives:
 Increase customer value
 Improve customer satisfaction
 Break into new geographical areas
 Increase mobile adoption
 Sustain product features
Key components of a product strategy:
Roman Picher, a product management expert, suggests that a product strategy must contain the
following key components:
 The key differentiators or USP (Unique selling proposition) of the product
 Company’s business goals in accordance with the product
 The needs that the specific product will address and it’s market
Ask yourself the following questions while setting up the product strategy:
 Who are the personas for this product?
 What problems are we solving for these personas?
 How can our product stand out in the marketplace and win the market?
 What are our short-term and long-term goals for this product?
Types of Product Strategies
Here is a list of the different types of product strategies.
1. Cost Strategy:
Being able to create a product strategy in a cost-effective manner is helpful. It allows us to assess
the resources that are being used and helps us determine where money can be saved. This
strategy is good for low-effort purchases and for certain industries only. If there’s any such
product that is typically similar to other products and customers do not have any loyalty towards
one particular brand, undercutting the competitor’s price point will make you a favorite among
the customer base.
2. Differentiation Strategy:
This approach focuses on ensuring that your product stands out from the competition in the
market. There are several factors that can be kept in mind when differentiating your product from
others in the industry. Use of the best materials for luxury products, ground-breaking features, or
any other factors that provide a USP to your product.
3. Focus Strategy:
Creating a product strategy that caters to one specific customer or buyer persona is helpful when
a company has a large customer base. It is an effective way to target a select group of people and
create a personalized solution for them. This also helps in creating brand loyalty while acquiring
new customers.
4. Quality Strategy:
To stand out from your competitors, one aspect that can surely help you is the quality of your
product. Focusing on creating a product that has the highest quality in the market will help you
stand out. Several customers may go out of their way to purchase a product if it has a greater
quality compared to others in the market since it is worth their investment.
5. Service Strategy:
Customers will base their decisions on customer service provided by a brand. If the company
does not provide customer service, people become wary of purchasing decisions. Providing
customers with quick after-sales service and response will attract brand loyalty like no other.
Importantance of product strategy
There are several reasons why a product strategy is important to the organization. Here are a few
reasons:
1. Provides clarity to your employees:
Once a clear and well-thought-out product strategy is in place, the team will be in a better
position to deliver their best work and achieve the set targets. The developers will also have a
clear understanding of the product they are working on. It’s easy to lose sight of the goal, but
with the help of a clearly communicated strategy, you always have something to fall back on.
The sales and marketing teams will be able to better articulate the USPs. And finally, your
customer success teams will also understand the use cases to help in providing better customer
support.
2. Helps in prioritizing the product roadmap:
Building a compelling roadmap and a high-level action plan will help you prioritize the right
tasks. Without a clear roadmap and strategy, the team may prioritize the wrong tasks, measure
the wrong metrics, and misuse their time and resources. Having a clear roadmap will help in
working towards the right goals.
3. Improves your team’s tactical decisions:
There is an ever-changing market and external factors can always affect our plans. Thus, being
able to adjust plans accordingly will help in improving the team’s tactical decision-making skills.
If you have a clear goal in mind, being able to adjust the plan or change the estimated timelines
becomes easier.
4. Basis - The product strategy forms the basis of implementing a product roadmap. It allows the
company to manage and measure for success, minimize the risks and to focus on a specific target
market.
5. Creates value - A strategy that focuses on specific target markets highlights the cost and
durability of a product compared to other products, which adds on value towards customers and
potential customers. It can also win businesses with improved performance, thus increasing
reputation and revenue
6. Non-price competition - Allows businesses to compete in other areas other than price. For
example, taste and design.
7. Customer-centric approach - The Company will be able to keep up with changes in the
marketplace as it approaches to targeting customers. Thus, the company will know how to
advance products tailored to a way that it satisfies consumers’ expectations.
Problems:
1. Marketing and Sales Demands - Tailoring products to certain target markets requires
increased administration efforts, thus a higher number of staffs required.
2. Higher Costs - Cost to customise and research into certain products in terms of a certain
target market is expensive, as well as the increase number of staffs hired.
3. Consistency Challenges - If the company fails to provide an efficient and effective product to
a certain market, there may be a negative damage to the brand's image. Thus, the company needs
to maintain a consistent standard of quality of its product.
4. Product-Centric Focus - The company can get too focused on a certain product's research
and development aimed towards a certain market and fail to response efficiently to changes in
customers demand and interest.
5. Risks - Market and customer research may not be sufficient, leading to product development
that do not meet the needs of potential customers. Thus, failure in delivering benefits of the
product to customers.

Product Addition/ Product Line Extension: Definition, Benefits and Types

Product Addition/ Line extension: This is when a company with an established brand introduces
additional items in a product category.
The company uses the value of the existing product to market and introduce new choices to
consumers.
The goal of line extension is to satisfy a refined customer segment in the market.
In marketing and production, line extensions involve expanding an existing product line.
This tactic can help a company increase its reach and target audience using the preparation,
development and marketing procedures they already have available.
If you work in an industry like food, fashion, makeup or office supplies, you may find this tactic
beneficial to learn about when creating a business strategy.
Product line extension is a marketing strategy that uses an existing brand to introduce a new item
into the same product line.
The new item may differ slightly from what a company already offers. Here are a few ways the
product may differ:
 Flavour
 Colour
 Form
 Ingredients
 Packaging size
Advantages of extending a product line:
Product line expansions may be beneficial for companies in a variety of ways, including:
a. Identifying the needs of a niche market
Product line expansions may help companies find and provide for a niche market. This may
allow the company to generate more revenue by connecting with new customers. For example,
adding additional ingredients to a popular product or changing an item's form may appeal to a
specific subset of consumers and allow a company to capitalize on a previously unknown need.
b. Providing product variety
Extending product lines may afford companies the opportunity to provide variety to their
customers. Providing similar products with different flavors or added features may give
customers the chance to continue using a particular item even if their mood or preference
changes. This may be especially useful in the following industries:
 Food
 Fashion
 Technology
 Makeup industries
c. Meeting changing market needs
Certain industries and markets may be highly susceptible to changes in trends and public
perception. For example, technology companies might pay attention to new trends in phone and
computer technology and ensure they add those capabilities to company products. Adding an
extension of a product line may allow companies to provide content for such changes with little
disruption to their current manufacturing and distribution processes.
d. Increasing a brand's portfolio
Expanding a product line may allow a brand to increase their portfolio. This type of marketing
strategy may help companies offer more similar to what they already produce. They may also do
so without purchasing many new materials or putting time and resources into research or
alternative production methods.
e. Increasing a company's revenue
Adding additional product lines to an existing brand may allow a company to increase their
revenue by selling new items. If products are similar to what they already produce, the
production costs may be similar to what the company already pays. This means that new product
lines can potentially create additional revenue with minimal extra costs.
f. Engaging with direct competitors
Expanding a product line may be a way to engage directly with competitors. This may be
common in industries like food or fashion that are affected by constant societal and cultural
changes. Beating competitors to, or meeting those competitors at, a new trend item is achievable
through product line extension.
g. Reducing risks associated with product development
Product line expansions may be similar to products a company already creates and sells, so there
may be fewer opportunities for risks in the development process. Creating similar products may
make customers feel more confident in their purchases. It can also require less market research
before the product launch.
h. Maintaining customer loyalty
Adding extensions for product lines may help companies to maintain loyal customers. An
organization can monitor and meets trends, then capitalize on niche markets. Customers may
recognize the willingness to grow and expand to meet their needs. This may increase their
loyalty and their purchases.
Line extension vs. brand extension
Line extension and brand extension are both marketing strategies that address the expansion of a
commercial goods market. Unlike line extension, brand extension is the movement of the
company into a new territory or market.
This means that a company markets and sells a product that's fundamentally different from its
current items. The brand, not the product, is what drives consumers to purchase. For example, a
well-known shoe company that introduces a line of handbags may engage in brand extension.
Types of product line expansions
There are two ways to expand product lines. They include:
a. Horizontal extension
Horizontal product line expansions are those that change specific, small factors on a new version
of a product. These minor changes can differentiate the new item from the version the brand
currently produces or those of the competition. The company may keep the price and quality of
the new item consistent with those that already exist. Examples of horizontal line extensions
include:
 Food or drink that a company produces in new flavors
 Products that a company produces in new colors
b. Vertical extension
Vertical product line expansions increase or decrease the price or quality of the new product to
make it seem more luxurious or accessible to potential customers. While these products still
closely relate to others that the brand produces, they can target specific consumers. For example,
a cake company might develop a cupcake that contains less sugar to target parents or other
health-conscious customers. Other examples of vertical integration include:
 Producing food items with added ingredients
 Selling items in new packaging
 Offering items in new sizes
Tips for expanding a product line:
Use these tips to help expand a product line within a company:
a. Review growth and progress of existing lines
Before creating a new line, look at how current products perform in the market. Examine factors
such as:
 Sales
 Profit
 Market growth
 Return on investment
 Market share
Understand how these items relate to company success, both for the company at which you work
and your direct competitors. If existing product lines are still new to the market, consider giving
them time to earn customer loyalty and brand recognition before expanding.
b. Get customer feedback
Asking customers and target audience what they want out of a new product line may be
beneficial to the processes of creation and sales. To get feedback, you may use tactics like:
 Phone interviews
 Feedback surveys
 Digital responses
Consider asking for opinions on current product lines and improvements. You can also ask what
specific features attract them to certain products and what circumstances might make them more
likely to make a purchase.
c. Evaluate the competition
Pay attention to the extensions of competitors. Research what makes their new lines successful to
better understand what target audiences want. Finally, use this information to determine how to
improve upon existing company and competitor products to make new product lines unique.
d. Evaluate finances and resources
Before extending a product line, review company funds and resource availability. If you're
unsure if the company for which you work has the means to start a new venture, consider
implementing alternative ways to increase resources to allow for expansion in the future. The
amount that a company might require to fund an extending product line might differ depending
on the company and the cost of the products it produces.
Factors Responsible for Addition of a New Product Line:
Some of the important factors generally responsible for addition of a new product line are
as follows:
(a) Excess Capacity:
This is perhaps the most important considerations for product diversification. If a firm has some
excess capacity, it can produce a new product at a much lower cost while getting a reasonable
price in the market. This would raise profits of the firm.
Generally, the firm suffering from excess capacity goes for product diversification; they do so in
the direction of vertical integration, i.e., producing raw materials or intermediate goods besides
finished goods. Such a policy helps in fuller utilisation of capacity and also gives strategic
market advantage.
(b) Changes in overall economic, political and social environment:
In order to survive and grow the firm adjusts to the changing circumstances. Product
diversification is a part of this overall adjustment. Firms search for new products on the basis of
people’s preference, tastes and income levels.
Example:
ITC Ltd., a Cigarette Company diversifying into hotel business, Tata Group diversifying from
Steel to Chemicals (Tata Chemicals) etc. Raymond Ltd, from special fabric to Retail Marketing.
(c) Profit Maximisation:
When the firms decide to diversify, they do so in the direction of that product-line which can
maximise their profits. In the long period, profit maximisation is the goal of an optimum
product-line. If the net return from the new product is expected to be more than the return from
alternate
(d) In case a better substitute than what the firm proposes to introduce is already available in the
market, they need not go ahead with the proposed product.
(e) In case the new product is complimentary to products already in line, it will increase the sales
of other products. On the other hand, if the new product is a substitute of the existing products in
the line, it will adversely affect the sales of the latter.
Thus, while considering product diversification one must look into its relationship with other
products in the line. The total contribution of a complementary good would be more than its
direct contribution which it would be less than its direct contribution if the new product is a
substitute.
(f) New products must be introduced only when the excess capacity is available.

Product Deletion - Meaning, Importance, Stages & Example

Product Deletion
Product deletion is the process through which a product or an entire product line is removed from
the product portfolio either through product elimination or product replacement.
Usually, product deletion is done when a product reaches the decline or death stage of the
product life cycle or there is a dramatic decline in its sales and profits.
A failing product reduces the profitability of the firm and results in draining of resources.
This process of product deletion requires the company to evaluate its entire product mix and
analyze where can the resourced be used to generate more reliable revenue streams.
Along with declining sales, there are several factors which contribute to product deletion
including the firm's business model, failure of alignment with marketing strategies, local
preference and culture, political and government rules and regulations, legal constraints and
product malfunction.
Product deletion or product elimination is a complex process. It involves communication with
customers, proper production planning, evaluation of contracts etc.
Eventually a product reaches the end of its life. This is the least understood stage of product
management, because we human beings are very reluctant to think about death, even that of a
product.
Reasons for Deleting a Product:
There are several reasons for deleting a mature product.
 First, when a product is losing money, it is a prime deletion candidate. In regard to this
indication, it is important to make sure that the loss is truly attributable to the product and not
just a quirk in the company's accounting system.
Second, there are times when a company with a long product line can benefit if the weakest
of these products are dropped. This thinning of the line is referred to as product-line
simplification. Product overpopulation spreads a company's productive, financial, and marketing
resources very thin. Moreover, an excess of products in the line, some of which serve
overlapping markets, not only creates internal competition among the company's own products,
but also creates confusion in the minds of consumers. Consequently, a company may apply
several criteria to all its products and delete those that fare worst.
A third reason for deleting a product is that problem products absorb too much management
attention. Many of the costs incurred by weak products are indirect: management time, inventory
costs, promotion expenses, decline of company reputation, and so forth.
The final reason for product deletion is the Missed opportunity costs. Even if a mature
product is making a profit contribution and its indirect cost consequences are recognized and
considered justifiable, the company might still be better off without the product because of its
opportunity cost. The opportunity cost of a mature product is the profit contribution that a new
and healthy product could produce if the effort and resources being devoted to the mature item
were redirected.
The final issue is actually going through a product deletion procedure. Sometimes, however, a
product can be revived (see “Integrated marketing”).
Product Deletion Stages
Product deletion has four distinct stages:
1. Identification of products to be deleted.
2. Analysis of products to be deleted.
3. The decision to remove the product
4. Implementation of the deletion process
i. Identification of products to be removed: This is the first stage where the organizations
firstly identifies the obsolete products or the products that has no demand in the market.
ii. Analysis those products: The organizations then analyses that whether these products can be
updated or there is no scope for any up gradation. The firms also analysis that what innovation or
changes are required in the products as per the customers demand.
iii. Decision making: In this stage the organization finally decides to remove the product from
the portfolio and stop its further production.
iv. Implementation of elimination process: This is the final action stage where the deletion of
the product takes place.

Importance of Product Deletion

 If a product is not at a proper position in the market and not generating enough revenue,
then all the resources invested in it are washed out which could have been used for the
production of some other product or enhance some existing product. This calls for
product deletion. Sometimes, there is a presence of a lot of products in the product line
 which leads to increased use of capital and resources being distributed too thinly. In these
cases, the deletion of some products is essential.
 A weak product demands more managerial efforts with respect to different marketing
decisions and may also lead to debilitation of the company's image and dissatisfaction of
its shareholders. As the taste and preference of consumers change, there arises a need of
deleting some products which no longer appeal to the new preferences.
 The old products can be totally eliminated by product deletion or replaced with some
other new products.
 Sometimes, products which do not align with the current objectives of the company face
deletion.
 Sometimes, when there are a lot of products in a product line, it leads to product
cannibalism in which some products take away the business of some other products. It
calls for product deletion of some products and thinning the product line depth.
Difference between Product Deletion & Brand Deletion
Some firms market an array of several brands. For example, General Motors owns brands like
Buick, Chevrolet, Cadillac, GMC, Holden, and Wuling. Sometimes, firms decide to discontinue
some brands from their brand portfolio which is known as Brand Deletion. It involves the
elimination of all the products under that brand name from the market. Taking the case of
General Motors, a number of brands have been killed from the market like Hummer, Pontiac and
Saturn and some brands like Saab, Vauxhall or Opel have been sold to other firms which are
commonly termed as Brand Disposal.
Every brand has several products which constitute its product mix. For example, P&G owns
several brands like Ambi Pur, Ariel, Gillette, Head & Shoulders, and Olay. Every brand, in turn,
has a product line. For instance, Under the brand name of Ariel, there are several products like
Ariel Matic Concentrated Liquid, Ariel Matic Front Load Washing Powder, Ariel Perfect Wash
Washing Powder, and Ariel Matic Top Load Washing Powder. If Ariel decides to discontinue
one or more products from its product line, then it will be called a Product Deletion.
Examples of Brand Deletion
Some examples of product deletion by companies are:
1. To compete with Pepsi Vanilla, Coca- Cola launched its own variant known as Coca- Cola
Vanilla in the early 2000s. But the product did not appeal to the customers and due to low sales,
it was completely phased out by 2005.
2. Hewlett Packard released its Touch Pad with a robust processor and stirring video capability
with the anticipation of giving Apple's iPad a run for its money. But the product was a colossal
failure due to a flaw in its operating system and was discontinued immediately by product
deletion.
3. P&G in an attempt to reposition its brand as a natural and organic brand released its "Touch of
Yogurt' shampoo in 1979. However, customers failed to associate dairy with a hair product.
Another shampoo 'Look of Buttermilk' also faced similar problems and both the products sold
poorly. They are no longer available in the market.