New Product Entry Strategies

The differentiatiom is mainly done on the chocolate feature which differentiates AXE DARK TEMPTATION from its competitiors Example 2 :Axe dark temptation was the new product by Axe which was launched using product differentiation strategy . The basic theme on which axe deodorants are launched is a deodorant which attracts females. The campaign was launched in three phases.

The first – the seed phase – was done by Lowe Mumbai. Lowe Mumbai put together the teaser campaign for Dark Temptation on the basis of a research study conducted in November 2007 by Unilever together with Datosclaros, a company that designs and develops market and public opinion studies. The study involved 3,571 women in 13 countries in the age group of 18-35 years. The aim was to test preferences and the relationship between women and chocolate. The teaser campaign highlighted the results of the survey, which implied that women found chocolate irresistible.

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During its Launch the model is priced at $660 (Rs 31,000).

The higher version of iPhone (16 GB) is priced at $299 in the US, against $766 (Rs 36,000) in India. What Apple shows us with its current pricing of the IPhone is no more than the classic pricing strategy known as “skimming” in the literature. Skimming is loosely speaking defined as the strategy to introduce a product a high price in order to “skim” the high willingness to pay of the early adopters of the product. Of course, this leaves the big crowd on the table, but only firsthand.

As soon as the early adopters market is satisfied, the price will be in order to attract a larger segment of adopters and speed up diffusion of the product

Example 4 : This is again an example of Skimming strategy and Segmentation strategy , The Product Nokia N97 is entered mainly for the high class segment and hence the pricing is high and once it has captured the High class market with new competitors offering lower prices for similar products , the prices will be lowered to target the middle class segment The category of snacks is characterised by a few organised players with limited offerings but the unorganised sector continues to rule the market. However, the organised sector is one of the fastest growing FMCG categories with an estimated growth rate of 30% annually.

The organised snacks category is sub-divided into the traditional segment (Bhujia, chanachur etc. ), Western segment (potato chips, cheese balls etc.

) and the newly established Finger snacks segment, which is an adaptation of traditional offerings to the western format. The launch of Bingo is symbolic of ITC Foods’ distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Bingo include an array of products in both Potato Chips ; Finger Snacks segment.

The Potato Chips offerings comprise of 4 innovative variants inspired by the snacking habits of different parts of the country as well as Masalas, Salted and Tomato flavours. Additionally a south-inspired dairy option has also been introduced under the potato chips offering.

Any modification of a current product that serves to expand the potential market implies that the company is following a strategy of product diversification. The product diversification strategy is different from product development in that it involves creating a new customer base, which by definition expands the market potential of the original product.

This is almost always done through brand extensions or new brands, but in some cases the product modification may “create” a new market by creating new uses for the product. Example 6 : A New Product is entered using an already existing product of the company as a leverage For example Parle Agro launching Grappo using Appy Fizz as a leverage Parle Agro has now launched ‘Grappo Fizz’ adding to its beverages portfolio which includes Frooti, Appy, Appy Fizz and Saint juice. Parle Agro plans to tap the youth segment through a series of television commercials, point of purchase promotions and below the line (BTL) activities.

Creativeland Asia is the creative agency behind the conceptualization of the ads while MFX Malaysia is the animation partner.

OMD India will handle the media duties of Grappo Fizz. The company also has major sampling plans for Grappo Fizz through mobile vans in colleges and other youth hangout joints apart from modern trade and retail outlets. Grappo Fizz will also share *Appy* Fizz’s unique interactive pad dedicated to their friends and fans, who can hang out at www. appyfizz. com / grappofizz*. * Known for its whacky commercials and unique sense of humor, in the forthcoming TVC’s, Grappo Fizz is introduced as Appy Fizz’s cousin from London.

The TVC will weave an entire brand persona around Grappo Fizz who is introduced as a “youthful rapper”. While it will highlight the launch of Grappo Fizz, it will also dramatize the differences between Appy Fizz and Grappo Fizz. Example 7: ITC launches new range of personal products- October 2007 Fiama Di Wills’ new premium range offers three transparent shower gels with suspended beads. Each variant provides a specific benefit to the consumer: Mild Dew- Enriched with soft beads, peach and avocado extracts for soft moisturised skin.

Clear Springs- Enriched with Jojoba Beads, Sea Weed and Lemongrass extracts for clear healthy skin. Exotic Dream- Enriched with glitter beads, bearberry leaves and black currant extracts for stimulating freshness.

Fiama Di Wills shower gels are available in 200 ml bottles. ITC has also recently launched its fourth shampoo variant, Silky Strong which is enriched with oils of Macadamia Nut and Babassu. This is in addition to the Fiama Di Wills range launched earlier in the form of Everyday Mild, Aqua Balance, and Volume Boost.

Continuing with its tradition of offering a superior product and brand experience to the modern Indian consumer, ITC also launched today the Superia range of soaps and shampoos in select markets . Superia offers a range of four soap variants and two shampoo variants with a range benefit of Glowing skin and Shiny hair.

Each of the variants have been designed to deliver specific benefits to the various consumer needs. This is a type of Focus Strategy where the different types of ITC products cater to various segments of the market The new product entry strategy used was to target the urban youth segment.

Hence it s a market segmentation strategy Virgin Mobile India is an association between Virgin Group and Tata Teleservices, which will facilitate Tata Teleservices with its experience and expertise in designing, marketing and servicing Virgin Mobile branded products for the youth segment. Virgin seem to have done extensive homework and all this is targeted at the youth, which everybody and the press kit were hell bent on reminding us. Nevertheless, their homework deserved an A grade from me, so to speak. They seem to have studied the pattern of the youth quite smartly.

And I couldn’t quite deny their research. I’ll tell you one outrageous thing. You receive talktime for receiving calls from any network. Also, the person who handles your complaint at the call center will continue to do so till you cling on to Virgin Mobile. Example 9 : Similar to virgin mobile is the FasTrack watches which is again a youth segmentation strategy Example 10 : Tata Docomo is planning to introduce a 1 second pulse instead of the usual 1 minute pulse offered by other mobile service providers.

This means that the consumers will be charged on a per second basis rather than the per minute basis and hence they will end up saving money on the seconds left unused.

Interestingly, even the VAS (value added service) like 24 hour Music, Voice Chat, Caller Tune Search etc are being charged on per second pulse rate. Though the plan sounds very innovative and unique, it is yet to see whether this pricing strategy works or not. This is a Pricing differentiation strategy

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