Professional Documents
Culture Documents
Classification of Product
Classification of Product
12/20/2023
Amity Business School
What is a Product?
• A product is any tangible, intangible offering
that might satisfy the needs or aspirations of a
consumer.
• A product has 3 basic levels
Core Product: This answers WHY the buyer
should have it. It is also called as Generic
Requirement.
12/20/2023
Amity Business School
Theodre Levit
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Core Benefit Amity Business School
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Classification of Produ c t s
A m it y Business
School
12/20/2023
Non Durable ProduAcmittysBusiness
School
12/20/2023
FMCG Amity Business School
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Amity Business School
• Staples
These are goods purchased on a regular
basis. Eg. Soap, Pulses, Toothpaste etc…
Whenever the stock is about to end the
consumer buys these products again.
12/20/2023
Amity Business School
• Impulse Goods
These are the goods which are purchased
without planning or search… Our external
stimuli provokes us to buy these
products. Eg. Cold drinks, Chocolates,
Chips….
Most of the time the consumers aim is not
buying the product solely but when spots
them, feels, attracted and ends up in
buying them.
12/20/2023
Amity Business School
• Emergency Goods
These goods are purchased when the
need arises. Eg. Umbrellas in rainy
season, Pullovers in winters etc..
The marketers tries for a very good
distribution chain, as the sales is not the
same throughout and whenever the need
arises, the product should be available
at maximum places…
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Characteristics of FM C G
A mity Business
School
School
Marketers
• High Volumes Point
The volume of the product required is very
high.
Eg. An average family may require 3-4
Soaps a month… Imagine No. of family
using it in the whole country???
If the organization cannot ensure high
sales volume, they will have difficulties in
surviving.
12/20/2023
Amity Business School
• Low Margins
As the product is required in high volume, there
is an intense competition which makes the
marketer sell the product with very less margin.
They earn through high volume sales to
maximize their turnover.
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Amity Business School
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Amity Business School
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Product Mix Amity Business School
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Amity Business School
12/20/2023
Product Line Amity Business School
• Line Stretching
Downward Stretch : It takes place when
the company finds a particular segment
(Lower) which is un-attended by the
existing product. And introduces a product
to cater that lower segment.
Upward Stretch : It is when company a
company enters Upper market
through Line Extension.
12/20/2023
Amity Business School
• Line Featuring
Its about featuring a particular product of
the product line, so as to increase foot
falls and then making the consumer
exposed to other products too.
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Growth Strategies for F M Am ity
C G
Bu sin ess School
• Multi-brand Strategy
When a company nurtures number of brands in
a single category.
Strategy: To capture as much market share as
possible by trying to cater as much possible
segments.
Eg. HUL Bathing Soaps:
Names??????
P&G Shampoos?
Names?????
12/20/2023
Amity Business School
• Product Flanking
Basically offering same product in different
and price combinations to tap diverse
market opportunities.
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Amity Business School
• Brand Extensions
This enables the company to enter new
product categories more easily.
Eg. Lifebuoy: Lifebuoy Plus, Lifebuoy
Liquid, Lifebuoy Gold.
Eg. Amul: Amul Butter, Amul Ghee, Amul
cheese, Amul Milk, Amul Chocolates
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Amity Business School
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Amity Business School
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Amity Business School
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Amity Business School
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Amity Business School
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Amity Business School
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Amity Business School
Thank You
12/20/2023