How Well Durex Is Managing Their Product Line - Essay Example

Durex- Overview SSL international is a healthcare company that owns the brands Durex, Scholl and other. The Durex was registered in 1929 and derived for the Durability, reliability and excellence. The product is accredited for restricting unwanted pregnancies and sexual diseases. The brand is now performing globally and product portfolio under the brand name includes condoms, lubricants and vibrators. Product Line management Believing in innovation and differentiation, company manages a wider product line under the name of Durex. Below presented is whole product line for the brand Durex condoms (Durex, n.d.). Analysis of Product line Looking the complete line and the positioning associated with each of the product, it can be understand that the business is managing the line well but the purpose of most of the products is ultimately same. The same set of benefits from more products lead to ambiguity and consumer choose one on the cost of other, which often decline the market share for one product in favor of other. Product Onion Kotler’s product onion model refers to draw a layer-by-layer concept for a product that strategically analyzed to map the core benefits and actual outcomes of the product (Kotler, 2012). Analysis for Product Onion Onion model for the brand durex is developed below: The onion is designed from the philosophy and commitment of business for providing aid maintaining health of people while allowing living happily. Company is maintaining product’s life with augmented product line and that’s strategy seems viable increase product life. Product Life cycle Product life cycle refers to the actual position of the brand and its product line the market (Grieves, 2005a). Four phases of the time shows the future potential of growth for making investments (Terzi et al., 2010). These four phases include (Grieves, 2005b): Introduction where after research and development product enters into the market and has great potential to grow. High investments are made during the phase. Growth refers to the phase where brand become a success and enjoy high growths for future. Marketers suggest that time best to spend more on the brand. Maturity where brand successfully achieved its potential growth and generating high revenues while moving towards expectancy by loosing essence by the time. Here investment is made to operate and reinforce the brand. Decline where growth rate starts to decline and if company feels that there is potential in brand to survive, makes investments. Analysis of PLC The product life cycle is derived from the fact that Durex is earning high revenues and expanding the maturity phase by continuous extensions in product and communications as the blue line in the given graphic shows the extensions of brand to survive in long-run. BCG Matrix Griffin (2012) described BCG (Boston Consulting Group) matrix as the evaluation tool for the relative to other brand present in the market. BCG technique is utilized to plot the potential of the product in the market and make investments accordingly (Schawel & Billing, 2014; Johnson et al., 2011). Four quarters of the matrix presents following categories (Doherty & Lu, 2012): Stars shows good continuous growth promising for investments, Cash cow shows relatively very high growth and reaching to maturity levels where growth is steady but cash generation for the company is high, so investment is beneficial Question mark is the product show quick high growths but the future or such products are uncertain. Investment decision is ambiguous here Dogs are dying products and loosing the potential to survive. Investment is useless for the product. Investments may be made to re-launch and/or rebrand the whole product with new identity may work. Analysis of BCG matrix The BCG matrix for Durex is presented below The BCG matrix plotted above on the basis of the data given below The matrix shows evidence that brand is in the phase of moving from Stars to cash cows and relatively occupy a very large market share, so the competition level for the brand is not very vital in short-term. By looking at the market growth, Dettol is at the top position, which give the idea that in long-run brand will have to face competition also for investment decisions of the company. Further, brand is now generating high sales increasing revenues for the company and investment in strengthening the brand will be profitable for the company. Strategic Gaps in reaching Target Audience Durex is a more product focus brand often communicates with the benefits of the product like health happiness, safety and relationships but not the actual outcome that is “pleasure”. Analysis of strategic gap Accepting the brand existence and reach is very high with effective advertising but there is a gap in communicating a larger segment who only seeks pleasure by having sex without any entanglement afterward. Competitors like Espire and Okamoto are more promoting the brands with fantasy associated with sex, that attract younger generation more towards the brands (Team Durex, 2013). Conclusion Using different tools for product management, it can be concluded that product is in maturity level of PLC, but global growth of the industry and continuous extensions with augmented benefits revitalizing product for long-run. However, overall management for the product is satisfactory but due to growth in industry the threat of new entrants and competitors with aggressive communication is increasing. Recommendations On the grounds of above analysis, below are some recommendations for the company to alter the strategy in favor of Durex viability. It is time to spend in the brand, as product is generating high revenue for the company1 global market is rapidly growing for the industry. Company should alter the communication strategy2 to widen the reach to the actual audience and take edge of competitive advantage. It is evident that the new markets emerging for the product has changed definition of relationships and happiness3. Now people are more into seeking the pleasure rather than happiness. Here altered communication strategy would play a role. Product extensions is the technique company is employing currently4. Now company should present a new product line with another brand name to make viability of product in long run and cater competition for the new target audience of the product. List of References Doherty, N., & Lu, F. V. (2012). Strategic Marketing: Models and Plans. Service Science Research, Strategy and Innovation: Dynamic Knowledge Management Methods, 417. Durex. (n.d.). Products. Available from http://www.durex.com/en-lat/products/condoms/pages/condomhomepage.aspx [Accessed 7 December 2014] Grieves, M. (2005a). Product Lifecycle Management: Driving the Next Generation of Lean Thinking: Driving the Next Generation of Lean Thinking: Driving the Next Generation of Lean Thinking. McGraw Hill Professional. Grieves, M. W. (2005b). Product lifecycle management: the new paradigm for enterprises. International Journal of Product Development, vol. 2, no. 1, pp. 71-84. Griffin, R. (2013). Fundamentals of management. Cengage Learning. Johnson, G., Whittington, R., Scholes, K., & Pyle, S. (2011). Exploring strategy: text & cases. Harlow: Financial Times Prentice Hall. Kotler, P. (2012). Kotler on marketing. Simon and Schuster. Schawel, C., & Billing, F. (2014). BCG-Matrix. In Top 100 Management Tools (pp. 31-33). Gabler Verlag. Team Durex. (2013). Strategic analysis. Available from http://weardurex.wordpress.com/2013/10/31/strategic-analysis/ [Accessed 7 December 2014] Terzi, S., Bouras, A., Dutta, D., & Garetti, M. (2010). Product lifecycle management–from its history to its new role. International Journal of Product Lifecycle Management, vol. 4, no. 4, pp. 360-389. Read More