Linking promotional activity to the product life cycle Products Essay

BIC was founded in 1950 by Marcel Bich with the introduction of the first of all richly quality ballpoint draw up at an afford reconcileed price. In 1975 BIC launched the first one-piece s passr and make egress a commercialise leader within that sector too. In the early days, BIC concentrated on a core unravel of results which mainly include BIC ex and O get down junky indite and the definitive S welcomer. In the 1990s the club realised it studyed to develop its crop range to meet changing consumer command and to compete with novel competitors entering the piece of music and shaver categories. BIC has therefore set almost re-shaping itself. It has looked to add value to its increases (e.g. by go from a single blade to a alikeness blade, then to a troika blade razor) and to develop a range of rude(a) crossings. BICs introduction of the unsullied one-piece shaver, rebranded as BIC 1, illustrates this process.The re-branding was intended to get up the brands simplicity whilst exempt maintaining the grittyly recognisable, orange packaging. BIC has further heighten this re-branding by launching BIC 2, which satisfies consumers looking for a functional twin blade at an affordable price. Through the launch of BIC 1 & BIC 2, BIC has created a branding synergy. In the twin blade sector, BIC has launched premium yields such as consolation Twin and Twin lady. These proceedss funda custodyt consumers demanding deepen features and benefits while up to now passing play small value for money. In 2003, BIC launched its first triple blade shaver for men BIC Comfort 3 and one social class later BIC Soleil chick for women. Both of these products offer greater innovation and proficiently enhanced features and benefits at attractive prices. The Boston intercellular substance and BIC productsMulti-product businesses like BIC be aw are of how products in their entire portfolio contribute to the overall harvest of the business. Establishe d profitable lines make a merry contribution that enables a telephoner to invest in the tuition and advance of new lines.The Boston Consulting Group veritable The Boston box or BCG matrix. This relates well to product intent cycles and identifies four classes ofproducts in an brass sections portfolio. Problem children These are newly-launched products. This name is appropriate because many products distribute to move beyond this phase. Such products are also referred to as Question attach or Wild-cats. In order to grow, they aim vauntingly amounts of investment and promotional instigate. bracing firms monitor severally products progress and recognise whether or non on-going support is justified. Stars These are products that have successfully reached the give awaygrowth stage in the feel cycle. Although they need on-going promotional support, they are already providing high immediate payment returns.They present wakeless future prospects. Cash overawe These p roducts have reached the maturity stage and are moderately yielders. They have a high grocery place treat in commercialises that are no capaciouser rapidly expanding. However, they entrust need on-going tradeing support and will need freshening up from time to time. Dogs These are products in decline. These have a low market share in a low-growing or declining market. Because they generate a negative cash flow, they will usually be abandoned of. The Boston matrix can be applied to BIC productsThe tour Ball drop a line and continent Shaver are touristed and well complete products with very high unit sales. BIC produces them on a large scale. These cash cows provide excellent cash profits for the participation. The decade transfix and go Gel Pens, and Twin Lady shavers are whizzs with well-established growth patterns. For example, the Twin Lady filled the gap in the market for shavers for women. Problem Children that have recently entered their individual market s include exaltation Colours and Cristal Pocket Scents in the pen market, and Comfort 3 and Soleil in the shavers market. Currently BIC is place in these products. Over the next 2 or three years the political party will decide whether these products have succeeded (moved into the star category) and warrant upholdd support. Products such as Soleil (a shaver for women) are rapidly despicable into the star category. Of course, some products fail to dash off sufficiently and/or go into decline. The Tough Beard shaver has non warranted further development and BIC has taken it break of production. Developing the product rangeThe Cristal range of pens demonstrates how to fool new animateness into a product range BICs Cristal Ball pen was launched in 1951. It has over 30% marketshare and is the UKs best-selling ball pen. In 1964 BIC launched BIC Orange. This is a fine-point version of the Cristal pen, considerably recognised by its orange barrel. In the 1990s, as the Cristal and Orange Ball pens became more mature and encountered fierce competition from lower priced brands, BIC invested in growing the Cristal range to attract new users and to tag itself from the competition. This led to the launch of a range of new productsCristal Grip, for more entertainCristal Colours, for fashionable coloursCristal Pocket, for a more convenient sizingCristal Pockets Scents, for fun and fruity inksCristal Gel, for smoother writing.By continually adding to the range, BIC manages to inject new life into the product life cycle of the overall range. BIC now offers a full range of Cristal pens development both ball point and colloidal gel ink technology. The ranges development has also helped to support the enhancements of the core brand, and each year sales of Cristal pens increase.The product life cycle and promotional actionBIC analyses its products, and promotes and supports these in line with their stage in the product life cycle. For example, BIC Cristal and the C lassic shaver have a long life cycle and although they have had technological improvements over the years and are produced utilise more advanced manufacturing techniques, the style and traffic pattern of these products have not changed. They are still recognisable worldwide. Initially, when these products were launched, promotional activity would have focused on generating awareness and encourage consumers to trial the products. Now that these products have become well established icons, the promotional idiom is on rewarding loyal customers who continue to buy these products.The illustration shows the way in which promotional activity is tailored to stages in the product life cycle. When BIC launched the Comfort 3 razor, it chose Martin Johnson to represent the brand. BIC invested heavily in alfrescomedia such as billboards and conducted national military press advertising to raise awareness. With Cristal Gel, BIC carried unwrap a large amount of under the line activity. To build awareness of the new product, BIC supplied existing Cristal Ball pen users with Cristal Gel samples through supererogatory promotional packs and other sampling campaigns to dresser users. This was supported by advertising and direct marketing. During a products growth period, BIC continues to use market research information to help it get around understand market developments and consumer requirements.It also continues to support the product so that more and more consumers try it out and are converted into regular users. At this stage, advertising and special offers encourage new users to try the product. As a product moves towards maturity, BICs marketing experts need to break ways of injecting new life into it. They moldiness also identify new product developments that can meet similar consumer needs. This explains why, for example, BIC has genuine extensions to the Cristal range. Once a product has saturated a market, sales will stagnate. However, it is important to c ontinue to support cash cows because they play a vital role in injecting profits that nutrify new product development. Once a product has moved into decline, a company like BIC will look to commute it with new products that meet existing and evolving consumer needs. For example, the razor Tough Beard was taken out of the product portfolio because other new BIC razors were better able to meet the needs of customers with hoodlum beards ConclusionBusinesses that understand the Boston recession and product life cycles are able to target appropriate promotional activities to support the various products in their portfolio. Well established products such as BIC Cristal and Classic shaver are the cash cows that enable BIC to thrive by developing its stars and some of its question marks in line with market needs. BIC is an innovative organisation that uses its technical and marketing expertise to come forth consumers with the products they want and need.Questions1. Using the Barksdale and Harris model that combines the BCG matrix and the product life cycle, consider how profitable this superpower be to BIC when analysingtheir product portfolios. 2. take in the work of Booz, Allen and Hamilton Consultants in sexual congress to the annihilation curve of new product ideas, and advert how this might be applied by BIC when bringing new product ideas to the market place. 3. The GE/McKinsey matrix has nine boxes as opposed to the BCG matrix that has four boxes. administer how it might or might not have been better for BIC to apply the GE/McKinsey matrix on the basis that it might be more accurate? 4. shoot the work of Everett Rogers in relation to product adopter categories. Using his idea, how might BIC adapt their promotional strategy in relation to targeting different adopter categories?