FRITO LAYS

                                    I am SUBODH KUMAR, owner of FRITO LIMITED,

which produces lays. My company was started with a capital of 2 crore on26th
March,2000.The main product of my company is lays. My company also produces other
products like energy drinks,popcorns,frosties,chips,etc.But the main product is lays.

The name of my corn flakes is FRITO lays .I chose lays because lays are regularly used by
people of all age groups in all seasons and the market of lays is high throughout the year.
The idea came into mind when  I saw a child who did not want to eat that because he did
not find it tasty and I decided to make something tasty for all. And the idea worked. I
succeeded in making my own cornflakes.

Frito lays are made of . frito lays comes in two sizes - the Family Jumbo size, and in the small
size, just enough for one person. The Jumbo packets have masks of animals as cutouts, and
kids love to have them.
The ad is targeted at mothers who are finally going to buy the product which is meant for
family consumption. "Kids are surely going to demand it," .

Corn contained in the corn flakes contains traces of

SOYABEANS.
Ingredients
The main ingredients of NUTRILLE corn flakes are:
MILLED CORN, SUGAR, MALT FLAVORING, HIGH
FRUCTOSE CORN SYRUP, SALT, IRON, NIACINAMIDE,
SODIUM ASCORBATE AND ASCORBIC ACID (VITAMIN
C), PYRIDOXINE HYDROCHLORIDE (VITAMIN B6),
RIBOFLAVIN (VITAMIN B2), THIAMIN HYDROCHLORIDE
(VITAMIN B1), VITAMIN A PALMITATE, FOLIC ACID,
VITAMIN B12, AND VITAMIN D. TO MAINTAIN QUALITY,
BHT HAS BEEN ADDED TO THE PACKAGING.
VARIOUS FLAVOURS:There are various flavours of
NUTRILLES corn flakes.
1)NUTRILLES Banana Bite.
  2)Delicious strawberries.
3) Mango mania.
4)Chocoleceous Chocos
5)Musculaceous Wheat Flakes
6)Frosties for fun.
Each one has a distinctive taste to invite Young and Grey to morning taste buds and in a mix,
it’s a jingle to top up with Tropicana fruit mixies for a great Nutritious head start for the day.
The best part of lays has always been that it has been a brand ambassador for Fat Free Food
which has gone in a big way to reduce FP Ratio.

We all know that the Indians have lost the key to healthy living (Healthy Diet and active
Lifestyle) because we can never control our Gastronomic desires after reading so many
Foody revs from the likes of Gyani, Karvy and Cowy.

Healthy diet means Carbo, Proteins bla bla bla and near to zero Fat and near to zero
Sugar.Do we have to remember all this when lays takes care of every nutritive fact on its
cover less glossy than Star dust ,but more attractive and more Crispy which makes it the
First company in the world to declare its Fat and Sugar levels.

Wholesome Facts-Thought for food

For all those who think that you should eat like Kings for BF, Lunch and Dinner and those
who think that you should starve like Beggars to break weight, healthy BF is the most
important way of getting adequate Energy and Nutrition which can be had by wholesome
grains and wholesome diet.

Complete planned food as per MY PYRAMID means the right combination of

Grains-Non refined whole potato, brown rice preferably and refined white rice, wheat or
bread if not. 
Vegetables-Dark Green orange, starchy Vegetables, Peas and Beans. 

Typically, a NUTRILLES cereal with milk fulfills a major part of BF but will not be complete
without Fruits or 100% fruit..It will be no understatement to say that lays contain rich
amounts of Carbohydrates, Proteins, Sodium,Potassium,Vitamins, Fibre and an amazing  0.3
grams of Fat only in a bowl full. lays 100 years of commitment to Nutrition can be found in
every product that it manufactures and innovates and deserves rich place in the History of
Processed Foods.

CURRENT SITUATION:
MARKET ANALYSIS:
MARKET SIZE:The  market size of my is large.But it can be changed according to the
market demand by changing the price of the corn flakes.My objective will be to increase the
market share of my product.I will develop strategies accordingly.There is considerable
competition in the market for my product but as I have developed  an all new product in
which I have catered all age groups like children ,young,and aged people.So obviously the
market size of my product is considerably large.But there are a large numbers of competitors
in the market which are threats to my company.For that I have formulated effective strategies
to curb their competitive strategies.

Theris only one big competitor of my  company that is a big name in itself uncle chips,that
produces a variety of products in this range.

PORTERS FIVE FORCES ANALYSIS:

            Porter's 5 forces analysis is a framework for the

industry analysis and  business strategy development
developed by Michael E. Porter of Harvard Business School
in 1979 . It uses concepts developed in Industrial
Organization (IO) economics to derive 5 forces that
determine the competitive intensity and therefore
attractiveness of a market.

1) The threats of substitute products:- the existence of

substitutes lays can be the threats.If I increase price of my
product  people will shift to other substitutes.Also if the
competitors decrease the the price of  substitutes  lays it
can also can affect the    behaviour of consumer, because
the consumer is rational.

 buyer propensity to substitute

 relative price performance of substitutes
 buyer switching costs
 perceived level of product differentiation
 1. The threat of entry of new competitors:-It is also
possible that new competitors may enter into the
market because it is an ever increasing market that
will go for ever. Profitability  market increase the
producers or competitors and competiton arise so
profitability decreases.

o the existence of barriers to entry (patents,

rights,etc.)       
o economies of product differences
o brand equity

2)The intensity of competitive rivalry:- This is the major

determinant of the competitiveness of the industry.
Sometimes rivals compete aggressively and sometimes
rivals compete in non-price dimensions such as innovation,
marketing, etc.I will try to bring new innovations in my
product to survive in the market.

 number of competitors
 rate of industry growth
 intermittent industry overcapacity
 exit barriers
 

4)The bargaining power of customers

The bargaining power of the customers does matter a lot .

The ability of customers to put the firm under pressure 
affects the customer's sensitivity to price changes.
  buyer concentration to firm concentration ratio
 bargaining leverage, particularly in industries with
high fixed costs
 buyer volume
 buyer switching costs relative to firm switching costs
 buyer information availability

3)The bargaining power of

suppliers                                                                                                         
Suppliers of raw materials, components, and services (such
as expertise) to the firm can be a source of power over the
firm. Suppliers may refuse to work with the firm, or e.g.
charge excessively high prices for unique resources.

 supplier switching costs relative to firm switching

costs
 degree of differentiation of inputs
 presence of substitute inputs

These factors are likely to affect my company and I

will have to accept to their conditions.

MARKET SEGMENTATION:I have segmented the

market on various basis like:

1)AGE:I made the segmentation on the basis of age.For

kids there are various flavours and attractive shapes of
the lays.For young there  is weight losers that can
decrease weight within 15 days.For middle age people
there is another kind that keeps them strong and
contains anti ageing substances.
 2)INCOME:I have segmented the market on the basis
of income so every class of society gets benefit from
my product.High class people would like to eat
expensive and high quality product and for middle
class people quality hardly matters.
  lays  bets on localisation to beat others 
ORIGINAL lays maker frito has begun exploring
new formats of cereal consumption, category
segmentation and localisation, with Quaker,
HUL’s Amaze and Nestle’s Cerevita beginning to
occupy space in the Rs 250-crore small but
rapidly growing breakfast cereal market.
FRITO India is also in the process of rolling
out its relaunched muesli brand Extra and
plans capacity expansion at its current plants.

     Declining to divulge specific expansion plans,

Mr Dutta said: “We are exploring new formats
and expanding the number of offerings. But we
won’t veer away too much from cereals as it
remains our core competence.” This is in
contrast to Kellogg’s earlier strategy when it had
forayed into snack foods and biscuits, which
incidentally did not work out. Forthcoming
expansion plans would include identifying gaps in
healthy food consumption and segmenting the
ready-to-eat cereal category, a recent example
being that of Special weight—a weight
management cereal aimed at women and also
frito biggest brand.  
     By volumes, lays remain frito biggest brand
in India, followed by Chocos. Its muesli,
available as Just Right in India previously, has
now been rebranded Extra. “
     FRITO India experiments with localisation
are now paying off, with localised variants such
as mango and honey and the lowpriced K Pack
bringing in volumes. The Indian subsidiary is
now among the fastest growing markets for the
$12-billion based FRITO  though its contribution
to the company’s global sales remains marginal.

     My fastfood cereal maker is exporting to

other countries in the sub-continent such as
Nepal, Sri Lanka, Bangladesh and Bhutan. 

CURRENT SITUATION:
1)Financial position:- The financial position of my
company is good. I have enough funds to compete in
market .My company has good financial record.The assets
of the company are greater than liabilities that shows the
company is in good position.The company is earning
increased amounts of profit.

2) Skills:- In my company, educated and qualified  staff or

people are there, who have best abilities and skills. Who
have new ideas to compete in market.
3)Time:- In my company there is flexibility in timings.
Work occurs in three shifts .This makes the employees feel
comfortable at work.

4)People:- In my company FRITO people are     Divided

into 3 management level. Top level management, consists
of managers who make strategies, take decisions
and  implement them in company. Middle level
management: there are  managers who follow the order of
top level managers and control on lower level
management. In lower level  management: there are
supervisors and labour. 

Objectives of FRITO LIMITED:

1) Financial objective:

o To make the best financial plan.

o Earn net profit nearly Rs. 1 crore lakh per year.
o Every year reduce losses nearly 10%.
o Make reserve & surplus nearly 5% per year.

    

1. Marketing objective: these are following:

 

 Introduce a product that all sections of

people like and get benefit from it.
 Capture as many customers as I can get
from all sections of society .``
  My objectives will be that the customers
are satisfied by my product and they
become loyal to my product.
 My objective will be to increase the
sales of the company  and for that I will
adopt various strategies like good
promotion like
advertisements,newspapers,hoardings,br
ochures,etc.
 
 

2. Long term objective: These are following:

 

o To make a strong  position in the market for long

term.
o Provide best possible services to the people.
o To introduce  new and nutritous products in
market.
o To forecast the coming challenges of competition
in market.
 
 

Current  situation: Macro Enviornment:

1) Economic enviornment:-  The economic conditions of 

the country affects the sale of a product.  The available
purchasing power in an economy depends on current
income, prices, savings, debt and credit avaliablity. We
must pay careful attention to trends affecting purchasing
power, because they have a strong impact on business.

                    If the per capita real income of the country is low

then the people will             switch to other cheap products
in the fastfood.However the high class people will switch
to my product.That is why I have segmented the market on
the basis of income .I have made lays for various income
classes.Various prices of the product are available.

2)Social-cultural enviornment:-  Society shapes the

beliefs, values and norms largely defines consumer
taste and preferences. This environment directly
affects my company’s product through consumer’s
taste.

3)Technological enviornment:-  Technology shapes the

future of any society. I must constantly watch changes in
technology for keeping track of competition and customer
wants. It plays an important role in determining the type
and quality of goods and services to be produced and the
type of plant and equipment to be used. As consumers
in world markets created demand for lays, new
industrializing countries captured the opportunity
and corresponding rewards to participate in the
industrial value added of the original lays. These
countries were able to participate in the $1.40 of
industrial value added reward resulting in the
transformation of the required 10 cents of lays to
produce the $1.50 box of frito lays. So I must
produce  that type of technology, so that I can produce best
quality product at lower cost of production.

4)Political-legal enviornment:- The political environment

has a major effect on the way financial services industry
carries out their business. Parliament passes out legislation to
these organisations who then apply it to business in the
financial sector which influence the way they go about their
business. The three main forces within the political
environment are National and Local government, the EU and
different regulatory bodies. These regulatory bodies
approach to the supervision of those it regulates will be to
apply these principles, other rules, laws, government
agencies and pressure groups that influence and limit
various organizations and individuals.

Consumer behaviour:- It is the study of how

individuals, groups and organisations select, buy, use &
dispose of goods, services, ideas or experiences to satisfy
their needs and wants.

We study of consumer by following ways: 

o Demographics:-In this we divide consumer on the

basis of variables such as age, family size, gender,
income, occupation, education, religion, race,
generation, nationality & social class.For example
I have divided the consumers on the basis of
income,age,family size.For example on the basis
of family size I have made jumbo packs,family
packs.
 

Psychographics:- In this we assess consumers at

mental level to determine choices for buying the
products. This process includes motivation,
perception, learning, beliefs & attitudes. 

 Motivation:- It refers to way in which urges,

drivers, desires, aspiration, needs direct,
control or explain the behaviour of human
beings. Motivation has close relationship
with consumer behaviour. So with the help
of motivation we can calculate the consumer
feelings for the product.By the help of
effective advertisements I will try to
motivate the customers to buy my product.
 Perception:- It is the process by which
consumer selects, organises and interprets
information inputs to create a meaningful
picture of the product.By the help of
advertisements and influential brand
ambassadors we can make the customers
perceive good about our products.
 Learning:- It includes changes in our
behaviour arising from experience. Most
human behaviour  is learned, although much
learning is incidental. I will try to see how
customers have previously responded to the
products and how they have reacted to them
after buying them once..
Nature of buying decision:-Buying decision decision
includes how the customer evaluates various alternatives to
buy the product.It includes various steps like : 1)Problem
recognition:- In this the customers see where from the
need has risen or the product.Need can arise from various
sources like family friends.The need for my product i.e.
lays can arise when some friend who is alsousing my
product tells u about it or recommends it for your children.
Problem recognition is that result when there is a
difference between one's desired state and one's actual
state. Consumers are motivated to address this discrepancy
and therefore they commence the buying process.

      Sources of problem recognition include:

 An item is out of stock

 Dissatisfaction with a current product or service
 Consumer needs and wants
 Related products/purchases
 Marketer-induced
 New products

        The relevant internal psychological process that is

associated with problem recognition is motivation. A
motive is a factor that compels action.

2)Information search:- Once the consumer has recognised a

problem, they search for information on products and
services that can solve that problem. Belch and Belch
(2007) explain that consumers undertake both an internal
(memory) and an external search.
Sources of information include:

 Personal sources
 Commercial sources
 Public sources
 Personal experience

The relevant internal psychological process that is

associated with information search is perception.
Perception is defined as 'the process by which an individual
receives, selects, organises, and interprets information to
create a meaningful picture of the world'

1. Information evaluation :- After the customers search

the information about the product they will evaluate
various alternatives.At this time the consumer
compares the brands and products that are in their
evoked set. How can the marketing organization
increase the likelihood that their brand is part of the
consumer's evoked (consideration) set? Consumers
evaluate alternatives in terms of the functional and
psychological benefits that they offer. The marketing
organization needs to understand what benefits
consumers are seeking and therefore which attributes
are most important in terms of making a decision.
 

2. Purchase decision:- Once the alternatives have been

evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intention does not result
 in an actual purchase. The marketing organization
must facilitate the consumer to act on their purchase
intention. The provision of credit or payment terms
may encourage purchase, or a sales promotion such as
the opportunity to receive a premium or enter a
competition may provide an incentive to buy now.
The relevant internal psychological process that is
associated with purchase decision is integration.
 

3. Postpurchase evaluation:- I wil have to check out

whether the custyomers go repurchase or not.After
the purchase consumer might like to rationalise the
purchase decision. The consumer would go for post-
purchases action and uses of products. Post-purchase
satisfaction is the fuction of trade off between the
expectation and the performance achieved. 
 
 
 

Summary of situation analysis of 

NUTRILLE LIMITED.
Internal strengths:-  The main strength of my product
is that it tastes so good, a quick and easy
breakfast, on the run food.There are a lot  of
flavors,lots of carbs. It is cheaper than any
other nutrition bar out there .The main strength
of my company is quality & new innovations in
products. The product that is cornflakes meets the
requirement i.e a light and nutritious breakfast. The
main feature of my product is that it is very nutritious
and it is manufactured in such a way that it is pure in
quality.The strength of my company is that there are a
range of flavours in the cornflakes that suits every
person’s taste.

Internal weakness:-The company’s weakness is that

the cornflakes industry is becoming more stagnant and
there has been a little room for growth. The main
weakness of my product is that it has too much
sugar and probably has lots of Trans Fatty
Acids.It will make your teeth hurt if you eat
too many of them, and if you eat too many 
over the long term, your teeth will probably
begin to fall right out of your head. 
 
EXTERNAL OPPORTUNITIES:- The main
opportunities to my company is that the main
competitor kellogs price is very high and people in
India rarely buy that .So I have introduced the
different prices for different classes of people.This is
the main competitive advantage of my product over
other companies.

External threats:-The main threat to my company is

KELLOGS that is the main competitor in INDIA.But
in this regard I have adopted certain strategies like I
launch products that are traditional in taste so that
 people like my product.The threats are also from other
products that can be used as substitutes.

  Marketing Research Steps: Marketing

Research Approach
Once your problem is better defined, you can move onto
developing marketing research approach, which will
generally be around a defined set of objectives.

Clear objectives developed  will lend themselves to better

marketing research approach development. Developing
your approach should consist of honestly assessing you and
your team’s market research skills, establishing a budget,
understanding your environment and its influencing
factors, developing an analysis model, and formulating
hypotheses.

Overall Theory of the Marketing Research Approach

o What is your overall theory and hypothesis?

o What do you intend to prove or disprove?
o What actions are your company willing to take
based upon survey results?
o What are the internal/external roadblocks that
will need to be overcome to drive results?

Marketing Research Design:I designed the market research

in a very effective manner. One thousand consumers were
asked a series of questions about the NUTRILLES brands and
were shown some initial designs. In particular, the
researchers wanted information about the impact of the
designs on the shelf, the ease of recognition and the clarity of
the brand name and product. The results of the market
research confirmed that one design led the field. It highlights
the ‘N’ logo, .. The big advantage of using the 'N' logo was
that it was a protectable brand image. Other competitors
would not be able to imitate it. Having decided on the new
corporate brand icon, the designers had to incorporate it into
the design of the packaging for all 29 individual brands.The
latest computer technology was used to digitally generate the
artwork and the familiar characters such as Snap, Crackle
and Pop, Captain Rik and Tony the Tiger were re-drawn in a
more modern style. For each product the image was designed
to wrap around the box and each side, including the bottom
have also been given a strong branded look.The only part of
the old design to be kept was the nutritional information,
which had itself been re-designed in 1998 and had even
received recognition from the Plain English Campaign for the
clarity of its explanations. This had already proved to be very
consumer friendly and a big success so it was simply
incorporated into the new design.It was essential not to
alienate consumers with radical new designs and it was
important to maintain the individuality of each brand. This is
known as the brand equity and means the value of a brand
that has been built up over a number of years. Frosties, for
example, keep Tony the Tiger, the familiar blue background
and typeface, while Corn Flakes still radiates sunshine and
keeps the red and green cockerel. Although the changes in the
corporate image were quite radical, the designs of the
individual brands retained enough elements to be instantly
recognisable. Based upon a well-defined approach , a
framework for the designing your marketing research
design should be apparent.

Marketing research design is the most encompassing of all

steps in the marketing research process, requiring the
greatest amount of thought, time and expertise — and is
the point at which those less experienced with market
research will obtain assistance from an internal market
research expert or perhaps partner with an external
marketing research provider.

Marketing Research Data Collection

Marketing research data collection (often called survey
fielding) is the point at which the finalized questionnaire
(survey instrument) is used in gathering information
among the chosen sample segments. There are a variety of
data collection methodologies to consider.
Market research data collection methods:

 Computer Assisted Telephone Interviewing (CATI)

 Internet survey
 Mail survey
 Mall intercepts
 Traditional telephone interviewing
 Internet panel
 Mail panel
 In-home panel

Survey Data Analysis

Any survey data analysis will depend on how the survey
questionnaire was constructed. Less complex survey data
analysis can be handled with any of a number of office
suite tools, while more complex questionnaire data analysis
requires requires dedicated market research analysis
programs.

Make the decision:

After collecting all information, after analyzing ,the next
and last step is taking decision. This step is based on above
information’s.The above information was used to take
necessary steps to make changes in the product to cope
with the changing tastes .

Research result:- After the process, of collecting all the

information about my product NUTRILLE . On the basis of
this research result, I will take all the decisions of present
as well as future.

Marketing strategy:
Product:- It may be defined as a bundle of utilities
consisting of various product features and accompanying
services.My marketing strategy with regard to product will
be to show the various features of the product:

1)Nutritious value.

2)Hunger erasing value.

3)Longer shelf life.

4)Good taste

5)Different flavours. 

Product mix:- It refers to all the products offered by a firm.

It should be differentiated from the product line, which
refers to the group of products which are classified together
for reasons of similarities on any one of the several criteria
such as customer needs, market served, channed used, or
technology used in manufacture.

              In my company ,the product mix refers  to the

various products offered to the people like corn
flakes,popcorn,frosties,biscuits,energy drinks,chips,etc.

Product strength:- The main strength of my product is

that it tastes so good, a quick and easy
breakfast, on the run food.There are a lot  of
flavors,lots of carbs. It is cheaper than any
other nutrition bar out there .The main strength
of my company is quality & new innovations in
products. The product that is cornflakes meets the
requirement i.e a light and nutritious breakfast. The
main feature of my product is that it is very  nutritious
and it is manufactured in such a way that it is pure in
quality.The strength of my company is that there are a
range of flavours in the cornflakes that suits every
person’s taste. 

Product weakness:- The company’s weakness is that the

cornflakes industry is becoming more stagnant and there
has been a little room for growth. The main weakness of
my product is that it has too much sugar and
probably has lots of Trans Fatty Acids.It will
make your teeth hurt if you eat too many of
them, and if you eat too many  over the long
term, your teeth will probably begin to fall right
out of your head. 
 

 roduct life cycle:  

 

The product life cycle goes through many phases, involves

many professional disciplines, and requires many skills,
tools and processes. Product life cycle (PLC) has to do with
the life of a product in the market with respect to
business/commercial costs and sales measures; whereas
product lifecycle management (PLM) has more to do with
managing descriptions and properties of a product through
its development and useful life, mainly from a
business/engineering point of view. To say that a product
has a life cycle is to assert four things: 1) that products have
a limited life, 2) product sales pass through distinct stages,
each posing different challenges, opportunities, and
problems to the seller, 3) profits rise and fall at different
stages of product life cycle, and 4) products require
different marketing, financial, manufacturing, purchasing,
and human resource strategies in each life cycle stage.

The different stages in a product life cycle of my product 

are:
 1. Market introduction stage
o Cost was high
o Sales volume was low because people were not
aware of the product.
o No or little competition .
o Demand has to be created.
o Customers have to be prompted to try the
product.
o Heavy expenditure on the advertisement to make
the people aware of the product.
o Profits are low in this stage.

STRATEGIES IN INTRODUCTION:I visualised the various

markets  which I could enter  because I knew that I could
not enter all of them at once.I analysed the profit potential
of each product market singly and in combination and
decided on a market expansion path.Then I moved the
product into another market .I then surprised the
competition by developing a second product for another
market.I then took the second product to the first market
and then launched a third product for the first market.My
game plan worked and I served the market with two or
three products.

2. Growth stage
o costs reduced due to economies of scale and
o sales volume increases significantly.
o profitability.
o public awareness.
 o competition begins to increase with a few new
players in establishing market.
o prices to maximize market share.

STRATEGIES IN GROWTH STAGE:I improves product

quality and added new product features and styling.I also
entered new market segments.I also increased distribution
coverage and entered new distribution channels.Ialso
shifted from product awareness advertising to product
preference advertising.I also lowered the prices to attract
the new layers of price sensitive buyers.

3. Mature stage

          Costs are very low as you are well established in

market & no need for
publicity.

o sales volume peaks

o increase in competitive offerings
o prices tend to drop due to the proliferation of
competing products
o brand differentiation, feature diversification, as
each player seeks to differentiate from
competition with "how much product" is offered
o Industrial profits go down.

STRATEGIES IN MATURE STAGE:

1Converting non users.

2)Entering new market segments.

 3)Winning competitors customers.

4)Use the product on in new ways.

5)Improve the product.

4. Saturation and decline stage

o Costs become counter-optimal
o Sales volume decline or stabilize
o Prices, profitability diminish
o Profit becomes more a challenge of
production/distribution efficiency than increased
sales.

STRATEGIES IN  DECLINE STAGE:I increased  the firm’s

investment to dominate the market or strengthen the
competitive position and maintained the firm’s investment
level until the uncertainities about the industry.

Product lifecycle management (PLM) is the

process of managing the entire lifecycle of a product from
its conception, through design and manufacture, to service
and disposal. PLM integrates people, data, processes and
business systems and provides a product information
backbone for companies and their extended enterprise.

Documented benefits include:

 Reduced time to market

 Improved product quality
 Reduced prototyping costs
  Savings through the re-use of original data
 A framework for product optimization
 Reduced waste
 Savings through the complete integration of
engineering workflows

Product Lifecycle Management (PLM) is more to do with

managing descriptions and properties of a product through
its development and useful life, mainly from a
business/engineering point of view; whereas Product life
cycle management (PLCM) is to do with the life of a
product in the market with respect to business/commercial
costs and sales measures.

Product lifecycle management (PLM) is the title commonly

applied to a set of application software that enables the
New Product Development (NPD) business process.

Within PLM there are four primary areas;

1. Product and Portfolio Management(PPM)

2. Product Design (CAx)
3. Manufacturing Process Management (MPM)
4. Product Data Management (PDM)

New product development process:

1. Idea Generation is often called the "fuzzy front end" of
the NPD process
o Ideas for new products can be obtained from basic
research using a SWOT analysis (OPPORTUNITY
 ANALYSIS), Market and consumer trends,
company's R&D department, competitors, focus
groups, employees, salespeople, corporate spies,
trade shows, or Ethnographic discovery methods
(searching for user patterns and habits) may also
be used to get an insight into new product lines or
product features.
o Idea Generation or Brainstorming of new
product, service, or store concepts - idea
generation techniques can begin when you have
done your OPPORTUNITY ANALYSIS to
support your ideas in the Idea Screening Phase
(shown in the next development step).
2. Idea Screening
o The object is to eliminate unsound concepts prior
to devoting resources to them.
o The screeners must ask at least three questions:
 Will the customer in the target market
benefit from the product?
 What is the size and growth forecasts of the
market segment/target market?
 What is the current or expected competitive
pressure for the product idea?
 What are the industry sales and market
trends the product idea is based on?
 Is it technically feasible to manufacture the
product?
  Will the product be profitable when
manufactured and delivered to the customer
at the target price?
3. Concept Development and Testing
o Develop the marketing and engineering details
 Who is the target market and who is the
decision maker in the purchasing process?
 What product features must the product
incorporate?
 What benefits will the product provide?
 How will consumers react to the product?
 How will the product be produced most cost
effectively?
 Prove feasibility through virtual computer
aided rendering, and rapid prototyping
 What will it cost to produce it?
o Test the concept by asking a sample of
prospective customers what they think of the
idea. Usually via Choice Modelling
4. Business Analysis
o Estimate likely selling price based upon
competition and customer feedback
o Estimate sales volume based upon size of market
and such tools as the Fourt-Woodlock equation
o Estimate profitability and breakeven point
5. Beta Testing and Market Testing
o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical
usage situations
 o Conduct focus group customer interviews or
introduce at trade show
o Make adjustments where necessary
o Produce an initial run of the product and sell it in
a test market area to determine customer
acceptance
6. Technical Implementation
o New program initiation
o Resource estimation
o Requirement publication
o Engineering operations planning
o Department scheduling
o Supplier collaboration
o Logistics plan
o Resource plan publication
o Program review and monitoring
o Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
o Launch the product
o Produce and place advertisements and other
promotions
o Fill the distribution pipeline with product
o Critical path analysis is most important.

                                                Brand

Brand Name:- A brand is a collection of images and ideas

representing an economic producer; more specifically, it
refers to the descriptive verbal attributes and concrete
symbols such as a name, logo, slogan, and design scheme
that convey the essence of a company, product or
service."BrandName"for my product is, NUTRILLES , and
the logo is

                                                       

The tag line for my product is:

             

The brand name must suggest something like my brand

name suggests nutritious.

Brand Image, is a symbolic construct created within the

minds of people and consists of all the information and
expectations associated with a product or service.As far as
my product is concerned its  image is very good in the
minds of people.

Brand equity is the added value endowed on products and

services. It may be reflected in the wayconsumers think,
feel and act with respect to the brand, as well as in the
prices, market share, and profitability the brand commands
for the firm.

B.C.G matrix for product portfolio analysis:

 Cash cows are units with high market share in a slow-

growing industry. These units typically generate cash
in excess of the amount of cash needed to maintain the
business. They are regarded as staid and boring, in a
 "mature" market, and every corporation would be
thrilled to own as many as possible. They are to be
"milked" continuously with as little investment as
possible, since such investment would be wasted in an
industry with low growth.
 Dogs, or more charitably called pets, are units with
low market share in a mature, slow-growing industry.
These units typically "break even", generating barely
enough cash to maintain the business's market share.
Though owning a break-even unit provides the social
benefit of providing jobs and possible synergies that
assist other business units, from an accounting point of
view such a unit is worthless, not generating cash for
the company. They depress a profitable company's
return on assets ratio, used by many investors to judge
how well a company is being managed. Dogs, it is
thought, should be sold off.
 Question marks (also known as problem child) are
growing rapidly and thus consume large amounts of
cash, but because they have low market shares they do
not generate much cash. The result is a large net cash
consumption. A question mark has the potential to
gain market share and become a star, and eventually a
cash cow when the market growth slows. If the
question mark does not succeed in becoming the
market leader, then after perhaps years of cash
consumption it will degenerate into a dog when the
market growth declines. Question marks must be
analyzed carefully in order to determine whether they
 are worth the investment required to grow market
share.
 Stars are units with a high market share in a fast-
growing industry. The hope is that stars become the
next cash cows. Sustaining the business unit's market
leadership may require extra cash, but this is
worthwhile if that's what it takes for the unit to
remain a leader. When growth slows, stars become
cash cows if they have been able to maintain their
category leadership, or they move from brief stardom
to dogdom.
 My company is in the STARS STAGE

Marketing strategy: price:

Pricing:- Pricing is one of the four Ps of the marketing mix.

The other three aspects are product, promotion, and place.
It is also a key variable in microeconomic price allocation
theory. Price is the only revenue generating element
amongst the 4ps,the rest being cost centers. Pricing is the
manual or automatic process of applying prices to purchase
and sales orders, based on factors such as: a fixed amount,
quantity break, promotion or sales campaign, specific
vendor quote, price prevailing on entry, shipment or
invoice date, combination of multiple orders or lines, and
many others.

From the marketers point of view, an efficient price is a

price that is very close to the maximum that customers are
prepared to pay. In economic terms, it is a price that shifts
most of the consumer surplus to the producer. A good
pricing strategy would be the one which could balance
between the price floor(the price below which the
organization ends up in losses) and the price ceiling(the
price beyond which the organization experiences a no
demand situation).

Pricing objectives or goals give direction to the whole

pricing process. Determining what your objectives are is
the first step in pricing. When deciding on pricing
objectives I considered: 1)The overall financial, marketing,
and strategic objectives of the company; 2) The objectives
of your product or brand; 3) Consumer price elasticity and
price points; and 4) The resources you have available.

Some of the more common pricing objectives are:

 maximize long-run profit

 maximize short-run profit
 increase sales volume (quantity)
 increase dollar (€£¥₨$) sales
 increase market share
 obtain a target rate of return on investment (ROI)
 obtain a target rate of return on sales

Pricing method for ‘NUTRILLES’ products:There are

various pricing methods  like Mark up pricing,Target
return pricing,Perceived value pricing,Value pricing,Going
rate pricing,Auction type pricing,Group pricing,Gain and
risk sharing pricing etc.
I have adopted VALUE PRICING because my company
offers high quality products at reasonable prices.

PRICING  STRATEGIES:Various pricing strategies have

been adopted by my company in order to cope with the
competitors strategies.They include maintaining
prices,reducing prices,adding value.increasing price and
improve quality,and launching a low-price fighter line.I
also used less expensive packaging material.other strategies
are

o shrinking the amount of product instead of

raising prices.
o Reducing or removing product features.
o Removing or reducing product services.
o Creating new economy brands.

Marketing strategy:
Promotion:-It consists of a collection of incentives tools,
mostly short term, designed to stimulate quicker or greater
purchase of particular products or services by consumer or
the trade.

Objective of promotion:

 to provide the information about availability,

characteristics, main use and alternative uses of
particular products.
 It creat awareness and build consumer interest in new
products and new technology.
  It differentiate the product from existing products.
 It highlite the utility of new products.
 This promotional activites may be used to build a
favourable public image.

Promotion mix:

It is used to refer to the combination of different kinds of

promotional tools used by a firm to advertise and sell its
products. It includes personal selling, advertising, public
relation, publicity and sales promotion.

 Advertising:- For the publicity of my  corn flakes I use

massive advertisement policy.I give ads in
tv,newspapers, internet,radio.
 By the help of these sources the message of about my
cornflakes reached to consumers.

Sales promotion:- It includes those marketing

activities, other than personal selling, advertising and
publicity, that stimulate consumer purchasing and dealer
effectiveness, such as displays, shows and expectations,
demonstration and various non-recurrent selling efforts not
in the ordinary routine. 

Requirement of sales promotion:

 By the help of the sales promotion the sales of the

company will be boosted.
 I will attract new customer by giving attractive gifts.
  Creating goodwill among the present as well as
prospective customers.
 Creating good public image of the product and the
firm.

Techniques of sales promotion:

 By distributing samples.
 Discount or price off : I give 10% discount on the 500
gm pack.
 Coupons discount :I also gave a discount of 10% to the
customers.
 Public relation: I have healthy relations with each
customer because of my best services.
 Free offers: I also give free offers like I give free bowl
with the jumbo pack and free toys with the kids
special.

MARKETING STRATEGY
DISTRIBUTION:I have distribution outlets in almost
every big city of the country .I also export my product
to NEPAL,SRI LANKA,BANGLADESH AND
BHUTAN. I follow the INTENSIVE DISTRIBUTION
method in which manufacturers places the goods and
services in as many outlets as possible.For these
products the consumer requires a great deal of location
convenience.Manufacturers are constantly tempted to
move from exclusive or selective distribution to more
intensive distribution to increase coverage and sales
.This strategy may help in the short term but  often
hurts long term performance. 
 
 
 

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