Review of the fast moving consumer goods (FMCG) market. Fast-moving consumer goods (FMCG) market overview What are pre-selection products

Introduction

Everyday goods, FMCG (Fast Moving Consumer Goods) are products that are relatively cheap and sell quickly. Although the absolute profit on the sale of such products is relatively low, they are usually sold in large quantities, so the overall profit can be high. This market is characterized by a high level of competition, seasonality of sales for certain product categories, as well as the constant emergence of new brands and types of goods. The usual prerequisites for success in this market are: a wide representation of goods on sale, affordable prices, a wide range, as well as standards for the placement and display of goods in retail outlets, since the choice of most goods of this type is made by the consumer “at the last moment.” Examples include a wide range of frequently purchased consumer products: personal care items, soaps, cosmetics, teeth cleaning and shaving products, detergents, as well as other non-durable goods such as glassware, light bulbs, batteries, paper products and plastics. Also sometimes included are drugs, consumer electronics, and packaged foods and beverages, although the latter are often classified as a separate category.

Convenience goods must be distinguished from durable goods and consumer electronics, such as kitchen appliances, which are usually replaced no more than once a year.

The largest FMCG companies: Japan Tobacco International, Philip Morris, British American Tobacco, Reckitt Benckiser, Colgate, Procter & Gamble, Henkel, Unilever, Coca-Cola, PepsiCo, Nestle, Danone, Mars, Heinz, Kraft, Cadbury, Carlsberg, SUN Interbrew, Heineken. The majority of all global FMCG brands belong to this list of companies.

Everyday goods and ratings of these goods

Everyday goods are consumer goods and services that are often purchased without much thought, with minimal comparison with other products. As a rule, these are inexpensive goods of fairly short-term use. FMCG products are divided into basic products, impulse products and emergency products.

A product is not only specifications, quality parameters and packaging. First of all, a product is a benefit that a consumer acquires by becoming the owner of this product.

Today, the Russian consumer market in general and the consumer goods market in particular are among the fastest growing in the world.

But if a few years ago the general direction of development of a relatively young market, not spoiled by assortment, was easily predictable - what was sold was bought - then recently changes have become noticeable in the attitude of consumers to the choice of place to make purchases and in the nature of consumption of Russians. Russians have become more demanding of the level of service in retail trade, which is an important sign of mature markets.

Every year, the volume of private consumption in Russia grows by 12% and is one of the main incentives for the further development of the Russian economy. Stable levels of consumer confidence, the growth of the middle class and household incomes have a positive impact on sales of a wide variety of consumer goods - from premium alcohol, confectionery and innovative healthy functional products to high-tech devices and cars. While Russia has the largest number of retail outlets than any other country in Europe, the level of development of the retail trade structure is still low, which provides an opportunity for manufacturers and retailers to compete for public preferences and success in this huge market.

Russian retail trade in consumer goods is growing at an impressive pace. Since 2002, the number of supermarkets has increased sixfold, and hypermarkets tenfold. However, trade density is still extremely low compared to other mature markets: there is 1 hypermarket and 20 supermarkets per 1 million population. At the same time, the importance of this channel for sales of consumer goods has grown and already accounts for 37% (by value) of total sales in urban Russia. St. Petersburg seems to be the only metropolis where the level of retail development has reached the average European level. Here, per 1 million population there are 11 hypermarkets and 56 supermarkets, and the share of the modern trade channel reaches an extreme 76% for Russia.

Modern trade formats are the most attractive place for consumers to shop for everyday goods in Moscow and St. Petersburg. According to ShopperTrends 2009 research, about 80% of households in Moscow spend the majority of their budgets on everyday goods in this channel - compared to 75% in 2007. Supermarkets have strengthened their position and are now leaders in the fight for consumer preferences and wallets. According to a Nielsen survey, 35% of respondents said that they leave most of their family budget for everyday goods in stores of this format. Hypermarkets and discounters (low price stores) each accounted for 20% of the respondents' votes.

In St. Petersburg, modern formats have practically replaced traditional retail: 95% of households surveyed by Nielsen prefer to spend their budget on food, fresh produce and personal care products in these retail outlets. Hypermarkets and discounters are the leaders of consumer preferences here. Each format accounts for 40% of consumer votes. Although the importance of the hypermarket channel in St. Petersburg has increased compared to 2008, for only 10% of respondents this channel is the main place for purchasing everyday goods.

Traditional grocery stores, kiosks, minimarkets and open markets are visited by many consumers, but rather for occasional and small purchases in terms of volume and range.

The decline in the share of open markets has been a trend for the last four years. The overall share of this channel in total sales of consumer goods in urban Russia decreased to 11% (in money terms). It is interesting that just two or three years ago open markets were the most popular place to buy fresh food in Russian megacities; in 2008 the picture changed. According to Nielsen research, about 60% of respondents preferred to shop fresh meat, fish, vegetables and fruits in a store of modern trade formats. The most popular channel, according to the survey, is supermarkets. ~30% of respondents in Moscow and 39% in St. Petersburg gave their preference to him.

As the results of the study showed, when choosing a store, most consumers are driven by habit, i.e. visit a store they are used to. And every third person buys in the nearest store from home or work. Although store accessibility is still an important factor in choosing a place to make a purchase, its importance in the system of consumer motivation is decreasing, giving way to "good value for money" in Moscow and " high level service" in St. Petersburg.

Demanding levels of service and the quality of training of sales personnel are signs of a mature retail market. At the same time, promotions are not the main argument for Russians when choosing a place to buy. Only 5% of respondents in Moscow and 9% in St. Petersburg reported that they change stores in search of attractive discounts.

Several surveys were compiled with more than 500 respondents: “What do you buy every day” and “How much do you spend on it.” According to the survey, the most popular answer was food. Based on this survey, a ranking of the most purchased everyday goods was compiled

Fig.1 What do you buy every day

Fig.2. How much do you spend on it?

Based on this, a selection of goods was carried out (Bread, vegetable oil, tea, margarine, juices and nectars), according to several criteria, namely: demand, quality, price.

At the first stage, the demand for the product and the breadth of distribution of the product - a candidate for Russian market. The product must be available in at least 25% of the surveyed enterprises. Market research is carried out by regional associations of the Russian Consumer Union. At the second stage, the SPRF Center for Independent Consumer Expertise anonymously, without notifying manufacturers, purchases samples of goods that have passed the 25 percent barrier in terms of distribution in the retail chain and conducts comparative tests using special methods. At the same time, the physicochemical and microbiological composition, organoleptic characteristics, appearance, packaging, completeness of consumer information, product compliance in terms of weight, volume, expiration dates, etc. are assessed. On the third final stage Based on demand, the best ratio of the integral quality indicator and selling price, it determines the winners in various categories.

Table 1 Vegetable oil

Table 2 Tea

Result of the table: first place goes to “Princess Nuri”, “Princess Gita”, “Imperial” tea

Table 3 Margarine

Table 4 Juices and nectars

Based on the data, the first place among juices is occupied by “Fruit Garden” juice, and among nectars - “Favorite Garden”

Table 5 Beer

Products that received a place in the rating as a result of comparative tests were not assigned.

We are all, to one degree or another, consumers of something, some kind of production product or service. IN modern world there is no escape from this! Each of us simply needs them in order to carry out life activities and improve everyday life. In this regard, there are different ones intended for different purposes. Therefore, a little scientific excursion will not hurt.

Definition of the concept of “product”

Roughly speaking, this is everything that satisfies our needs and wants. Something that is offered for the purpose of consumption and further use or to attract attention. goods in a modern “consumer society” are practically self-regulated and subject to basic economic laws. It is known from history that artificial regulation leads mainly to disastrous results and is a destructive factor for the economy. Any product is essentially a service to solve a problem, as many outstanding sellers claim. So, Elmer Wheeler, for example, said that it is not the steak that needs to be sold, but the very process of its delicious sizzling in the frying pan. And Charles Revsoy stated that his factory produces cosmetics, and his store sells hope!

Classification of goods

There are two large groups:

Let's take a closer look at the last one. It includes the following groups.

1. Products for durable use. These are material products intended for repeated use. Examples: clothes,
2. Non-durable goods. Consumed in one or more cycles. Examples: salt, cereals, sugar.
3. Goods of everyday (constant) demand. They are bought often, regularly, without unnecessary thought or comparisons with each other. Examples: tobacco products, newspapers, soap, toothpaste.
4. Impulsive purchase items. They are purchased, as a rule, without preliminary searches and planning; buyers are not specifically looking for them, since they are sold in many places, for example, at checkouts. These are chocolate bars, magazines, chewing gum.
5. Emergency goods. They are usually purchased when there is an urgent need for them. Examples: an umbrella during heavy rain, during snowfall.
6. Pre-selection items. The buyer selects them ahead of time, carefully analyzing and comparing them with each other in terms of quality, price, suitability, appearance. Examples: furniture, household appliances, clothing. Here an important role is played by someone who can provide the necessary information about your purchase.

In addition, there are so-called consumer goods (consumer goods) and special demand goods. What are they?

Consumer goods (consumer goods)

These are the ones that a person cannot do without. They, in turn, are divided into food and non-food. Consumer goods are used by all segments of society and are not exclusive or objects of art. All this determines their popularity and accessibility. The production of this kind of goods is the economic basis of the “consumer state”! Their deficiency leads to disastrous results, and sometimes to the overthrow of the existing system.

Special demand goods

As a rule, the buyer spends additional effort to acquire them. These are items from certain fashion brands, photographic equipment, sound equipment, evening women's dresses, men's suits, auto. They do not involve any prior comparison. The buyer already knows in advance what he is purchasing - a “company”! The only additional factor is the time it takes to get to the dealer who represents a particular brand. This is called “special demand goods”. Examples in the world of cars - expensive toys for grown-up boys - are Mercedes or BMW cars. In the world of cameras - Sony or Nikon. In the world of clothing - Adidas. Typically, “special” products are purchased based on public opinion about a particular brand, and not on a comparison of price and quality or other criteria. In this case, this plays a secondary role for the buyer.

The concept of "prestige"

But first, as they say, let’s define the terms. What exactly is prestige, and how does it determine the hierarchical ladder of modern society?

Prestige (from the French “prestige” - charm, charm) today means something close to the concept of “authority” - influence, respect (youth “respect, respect”). In the social sense, the significance that is attributed to public consciousness various aspects of people’s activities: profession, social status, psychological qualities, and social groups, organizations, institutions. Also, some benefits and physical advantages of individuals and groups. Prestige is in many ways the result of priorities set by society (or traps into which each of us can fall), a completely tangible and explainable substance, a position for which many people lose their heads and spend their lives on it.

Prestige, as opposed to money supply, which initially have their own units of measurement, are often not so specific. Everyone has their own understanding of prestige, but there are also some unspoken rules, principles, concepts that are common to everyone. After all, for some it’s “cool” to live in the center of a provincial town, while for others a penthouse in New York is a shack! But still, prestige and authority should not be confused. Because authority must be earned, and prestige is quite easy to buy if you have enough money.

The concept of “prestigious product”

So, after all, is it possible just like that, right away, to give prestigious demand - this... By purchasing attributes and benefits that cost a lot of money, a person gets the deceptive feeling that now he has, albeit one more small step, climbed up the ladder. illusory social ladder that his personal status has now increased. The point is in the apparent difference from others, the feeling of being “chosen”, increasing (and inflating) self-esteem: I bought it, but you couldn’t, I got it, but you couldn’t! Because what is more important is not what you have, but who you are. However, despite all of the above, goods of prestigious demand are an objective fact, without which it is impossible to live in our modern world. They have uniqueness, special qualities, as a rule, they have either a well-known trademark or an exclusive origin (which further elevates the owner above other people). Some buyers are willing to incur significant costs in terms of Money and time to purchase luxury goods. The examples are impressive in scale. One, in order to buy a prestigious car, takes out a huge loan, which is completely impossible to repay. Another agrees to mortgage an existing business in order to achieve the goal of prestige: to enter the circle of people who decide the fate of others.

Features of this type of product

Prestigious goods are almost always luxury. Villas, yachts, luxury and collectible cars, jewelry, watches... They are also characterized by a very high price. They are also quite rarely purchased. This means that for consumer promotion of these types of products, personal sales play a special role. Their advertising strongly emphasizes the uniqueness of the product being purchased. And manufacturers prefer an exclusive distribution method, which emphasizes their special status.

Housing as a luxury product

The fundamental center of the economy is man, his interests and needs. And the most difficult thing for society to do is satisfy its needs in the area of ​​housing. Some researchers even argue that the lower you spend on food and clothing (basic necessities), the higher you spend on housing. In addition, “a roof over your head” is also a product of prestigious demand. People seeking to emphasize their high status try to buy comfortable housing not only for the sake of convenience, but also to demonstrate their wealth to others. As an example, in Russia last years The construction of magnificent expensive mansions has begun, showing who is the “master of life” here! Whether this is good or bad - judge for yourself.

Results

Of course, goods of prestigious demand are a kind of life motivator, one of the ways to move a person up the social ladder. One cannot deny their certain positive role in the formation of states and communities. But still, we must not forget that prestige is an insidious and changeable thing, and it is better to acquire and conquer authority than to use purchased prestige.

Classification of goods is necessary to formulate a marketing strategy for promoting goods. The manufacturer has to deal with the need to classify goods by time of consumption, make purchasing decisions, etc. I will formulate a truly complete system of classification of goods, in any case, I will give the maximum possible number of classifications of goods. It’s safe to say that there is simply no more complete classification on the Internet.

Classification by material tangibility, product attribute:

• product - as an object, commodity;
• product - as a service;

Classification of goods by importance for consumption:

• The main product is a product that constitutes the main value for the consumer, an item of consumption;
• Additional product – a product that expands the functionality of the main product;
• Accessory – an optional product, but accompanying the main product;
• Consumable material – a product consumed in the process of using the main product;
• Spare part (spare parts, spare part) – a product for repair and extension of the operational period of the main product.

Classification by relationship of goods:

• Interchangeable goods (substitutes);
• Complementary products (complementary);
• Not related.

Classification of goods based on duration of consumption:

• durable goods;
• non-durable goods.

Durable goods– material products that can usually withstand repeated use. Examples of such goods include refrigerators, machines, and clothing.
Non-durable goods– goods that are completely consumed in one or several cycles of use. Examples of such products include beer, soap, and salt.

Classification of goods depending on rhythm making a purchase:

• everyday goods
• durable goods;
• pre-selection products;
• impulse purchase goods;
• emergency supplies;

Everyday goods- goods that the consumer usually consumes on a daily basis, buys often, without thinking and with minimal effort to compare them with each other. Examples of such products include tobacco products, soap and newspapers;
- products that the consumer, in the process of selection and purchase, usually compares with each other in terms of suitability, quality, price and appearance. Examples of such goods include furniture, clothing, second-hand
new cars and basic electrical appliances.
Special demand goods– goods with unique characteristics and/or individual branded goods, for the purchase of which a significant part of buyers are willing to spend additional effort.
Emergency Items they buy when there is an urgent need for them, for example, umbrellas during a rainstorm, boots and shovels after the first snow drifts, New Year's toys;

Classification of goods by purpose:

• goods for consumption (all goods produced for the purpose of consumption);
• goods for production purposes (for intermediate use, consumed in the production process);
• materials and components: raw materials, semi-finished products, parts, blanks purchased for the purpose of further processing, improvement, in order to create goods;
• capital property: equipment, buildings and structures;
• auxiliary goods and services: business services, auxiliary materials.

Classification of goods by demand activity:

• Products in active demand;
• Goods of passive demand.

Products in active demand- the same as everyday goods, seasonal goods, special demand goods, emergency goods (under certain conditions);
Passive goods- goods that the consumer does not know or knows, but usually does not think about buying. New products such as smoke detectors and kitchen machines for food processing remain in the category of goods of passive demand until
advertising does not ensure consumer awareness of their existence. Classic examples of well-known and yet undemanded products include life insurance, tombstones, and encyclopedias.

Based on novelty, goods can be classified:

• New product:
• New – created for the current market, as a result of the evolutionary development of needs and offers;
• Venture product is a product, as a result of innovations in technology, created for a new market;
• Improved product:
• Concentrically diversified - a product at a new stage of development;
• Linearly diversified – optimized, modified product for a new or current target group;
• Product of active current demand;
• Old item:
• Obsolete goods;
• Rare goods;

According to seasonality of purchase, goods are classified:

• Peak sales products (Easter sets, New Year's goods, seedlings and seeds for sowing);
• Seasonal goods (sporting goods, seasonal clothing);
• Goods of permanent demand (a significant part of the goods in the consumer basket);

Classification of goods according to the number of satisfied consumers:

• mass goods;
• product for the target group;
• piece (single) product;
• exclusive product;

Classification of goods by place of production:

• export goods;
• imported goods;
• goods of tolling operations;
• local (domestic) product;

Classification of goods by personal consumption:

• personal consumption goods;
• public goods;

Classification of goods based on military/peaceful:

• military goods;
• civil goods;
• dual-use product.

Classification of goods by origin:

• products of animal origin;
• products of plant origin;
• processed goods, industrial goods;
• mineral commodities.

Classification of goods by material design:

• material “offline” goods (clothing, dishes, cars);
• electronic “online” goods (access codes, discount coupons and gift cards, games, music, e-books).

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Consumer goods- goods intended for a wide range of buyers - individuals and organizations purchasing goods for personal consumption. Includes convenience goods, pre-select goods, special demand goods and passive goods.

EVERYDAY GOODS. Serve to meet current needs. Requires the expenditure of relatively small amounts of money. The buyer practically does not think about choosing a product, and the decision to purchase is made automatically and often right in the store or near the outlet.

Basic goods of constant (regular) demand. These products are purchased regularly, some of them almost daily, e.g. bakery products, vegetables, herbs, fruits, oil, sausages, household chemicals, cosmetic products, etc. Sometimes it is possible to identify a certain average rhythm of consumption of a product. For example, dishwashing liquid Fairy or Pril purchased every 30±10 days.

Impulse purchase items. These goods are not included in the list of main goods purchased by the buyer, and the decision to purchase them is made on the spot under the influence of mood. These are chocolate or chocolate bars, chewing gum, chips, ice cream, newspapers, magazines, souvenirs, etc. Usually these goods can be seen laid out near the cash register.

Products for special (emergency) cases. Products are purchased when there is a special need for them, for example, birthday cakes, inexpensive gifts, cards, flowers, etc.

PRE-SELECTION GOODS. They have a long operating life cycle and require relatively large sums of money. The buyer spends some time collecting and analyzing information about the goods offered on the market, compares the goods by price, quality and consumer characteristics.

Homogeneous (homogeneous) goods- goods with similar physical characteristics, differing only in price and range of accompanying services. In this case, the consumer’s choice is determined by the price, as well as his attitude towards the seller (dealer, distributor). In such cases, it is better to leave the consumer the opportunity to bargain or offer him a discount, acceptable credit conditions or other additional services.

Heterogeneous (non-uniform) goods- goods with distinctive physical characteristics that, to a certain extent, relegate the price factor to the background. The product is selected so that it pleases and “suits” a specific buyer.

GOODS OF SPECIAL DEMAND. These are products with unique characteristics, the sales of which are somehow exclusive. For the sake of such goods, the consumer is ready to spend additional time, effort and money to independently find this product and purchase it. These include fashionable clothing and furniture from famous designers and fashion designers, rare and expensive cars, jewelry and ornaments, collectibles, etc.

GOODS OF PASSIVE DEMAND. The consumer practically does not think about purchasing such goods and therefore every time special efforts are required to promote and sell them. A classic example of a passive commodity is life insurance. Everyone knows about this service, but rarely does anyone take out insurance, because no one wants to think about the possibility of their own death. It is known that the most sophisticated sales methods were invented by insurance agents. Another example is new technical home appliances, such as a new fire safety device, the value of which is not obvious to the consumer. In general, goods of passive demand include goods and services, by purchasing which the consumer protects himself from threats and dangers that may occur in the future. The greater the fear in society of such dangers, the more urgent the demand for such goods, and vice versa.

Industrial products are intended for a narrow circle of buyers - businessmen, entrepreneurs and purchasing managers of various organizations who use these goods for business purposes or in production. Includes materials and parts, capital property and auxiliary materials and services.

MATERIALS AND DETAILS, those. products that are completely consumed during the manufacturing process of the final product. These products are divided into the following groups:

Raw materials- valuable materials obtained as a result of mining and procurement (oil, gas, coal, ore, timber), or as a result of growing and cultivation (agricultural products, for example, wheat, rye, barley, corn, coffee, etc. ).

Processed materials- materials that have undergone primary or even secondary processing and are intended for further use in the production process. These include various types semimanufactured goods, which, during further processing, change their physical and chemical composition and shape (cast iron, steel, cement, yarn, cable, etc.) and components (assemblies, parts and other components, for example, tires, bearings, car tires , gaskets, etc.).

CAPITAL PROPERTY- various types of equipment, mechanisms, buildings, structures and other property that are used to produce other goods over a long period of time and the cost of which is transferred to the final product in parts through depreciation. Capital property is divided into the following subtypes:

Permanent structures and main equipment- used directly in the production process, for example machines, generators, electrical equipment, workshop buildings and premises, etc.;

Auxiliary equipment- includes mobile production equipment (transporters, loaders) and production tools, as well as office equipment. Their service life is shorter than that of main equipment, but longer than that of auxiliary materials (see below). They are not directly involved in the production process, except for production tools.

SUPPORTING MATERIALS AND SERVICES- non-durable goods and production services that contribute to the production and sale of the final product. They include:

Auxiliary materials- various types of consumables (fuels and lubricants, office consumables, for example, paper, stationery, etc.) and operational repair materials (paint, hardware, wire, etc.).

Ancillary services- operation and repair services (maintenance and repair of equipment, cleaning of premises) and consulting services.

Developing a marketing plan: product policy

What will you find in this article?

In the previous article (“Consultant to Entrepreneur Director” No. 15, 2003) we looked at the issues of setting goals for your enterprise, in this article we propose to move on to issues of achieving them. To do this, it is necessary to determine what should be done to achieve goals in the field of product, pricing, sales, and promotion policies.

In this article, we will tell you what actions you can take in the area of ​​product policy. Your specific actions will depend on the specifics of the enterprise and your goals, but we only pose questions that need to be taken into account, and also introduce you to possible options actions in a given situation.

Your product: basic questions

As part of the product policy, you need to answer the following questions:

What product or service can you offer (are you already offering) to your customers? How do they benefit from using this product/service?

What quality should this product/service be, what characteristics should it have? What level of service should be offered to consumers?

How often should the product/service offered be modified and new products/services offered? In what direction should we develop the range?

Should you develop and develop a brand for your product/service?

The classification of goods proposed below, as well as a description of the multi-level product model, will help you answer the first two questions. You can make informed decisions on the third question by familiarizing yourself with the theory of the product life cycle and the main directions of expansion product range. And the material regarding brand policy will help you make a decision regarding the advisability of creating a brand and its type.

What can you offer your consumers?

Getting to know the classification of products will help you take a fresh look at your products and, perhaps, give you new ideas for developing new products, modernizing old ones, or changing their positioning and methods of promotion.

So, consumer goods are divided into:

1. consumer goods;
2. pre-selection products;
3. special demand goods;
4. goods of passive demand.

Everyday goods these are consumer goods and services that are often purchased without much thought, with minimal comparison with other goods. As a rule, these are inexpensive goods of fairly short-term use. FMCG products are divided into basic products, impulse products and emergency products.

Staple products are products that consumers buy regularly.

Impulse purchase goods goods, the purchase of which is not planned in advance, are purchased based on a sudden desire. Examples: chewing gum, sweets. Scheme of action in relation to such goods ensure their representation as much as possible more points of sale, and located in those places where the consumer can easily see and immediately purchase the product.

Emergency goods goods purchased when there is an urgent need for them (classic example plastic raincoats or simple umbrellas during a rainstorm).

Pre-selection items goods that the buyer, during selection and purchase, compares with each other according to various indicators (price, quality, design, etc.). As a rule, this group includes expensive durable goods: household appliances, furniture, etc.

Special demand goods goods with unique characteristics or unique brands, for the purchase of which some consumers are willing to make significant efforts (for example, rare car models).

Passive goods goods that consumers, as a rule, do not think about purchasing life insurance, new products. In this case, active promotion of goods is necessary in order to inform consumers about the existence of this product and the benefits obtained from its use.

What exactly are consumers purchasing?

A product is not only technical characteristics, quality parameters and packaging. First of all, a product is a benefit that a consumer acquires by becoming the owner of this product. A multi-level product model will help you view your product as a set of benefits embodied in actual performance and supported by additional services and improvements (see Figure 1).

This model suggests considering a product at three levels, the content of which can be illustrated, for example, using the example of a washing machine.

In this case product by design this is a high-quality laundry wash. In fact, the consumer is not buying a car; he is paying money for the opportunity not to wash clothes by hand, for saving time. Identifying a “product by design” allows an enterprise, firstly, to take a broader look at competitors (it becomes clear that a washing machine’s competitor is not only another model of the same washing machine, but also laundry services), and secondly, to select the most effective arguments , which can be used in advertising of this product.

Real product this is, in fact, the washing machine itself from a certain manufacturer, which has a certain set of functions and characteristics.

Product with reinforcement this is a washing machine plus the offer of free delivery and installation, additional service, and provision of washing powder for a certain period.

So, using this model, we can put forward, for example, at least two proposals relating to the sale of washing machines in this case. Firstly, consider the possibility of using in advertising (or in the process of presenting a product on the sales floor) not only the qualities of a specific model or brand of washing machine, but also the benefits for the buyer (for example: “the presence of the “anti-crease protection when washing” function will make it easier for you ironing and will save 2 hours a week"). Second, this model encourages you to think about what additional products and services you can offer your washing machine customers (for example, giving a laundry detergent, softener, and bleach bundle with purchase). In order not to make a mistake with the choice of “reinforcement” for a product, it is necessary to find out from consumers what services and/or product improvements are most in demand by them. The easiest way to do this is to survey your customers ().

Product life cycle

So, you have determined what products/services you sell, what benefits these products bring to the consumer, what qualities they should have, what additional qualities they need to be given and what additional services you need to offer so that the buyer is completely satisfied with his purchase. The following question arises: how often should the product/service offered be modified and new products/services offered? To answer this, you need to turn to the product life cycle model.

Product life cycle time from the moment of its initial appearance on the market until the termination of its sale. During the life cycle of a product, its sales volumes and profits change, as well as marketing costs. The product life cycle consists of four stages: product introduction, growth, maturity and decline (see Figure 2).

The stage of introducing a product to the market is characterized by extremely low sales volume and low level its growth, since consumers are not yet aware of the new product and practically do not buy it. As a rule, this stage is unprofitable due to the need for significant marketing costs (product promotion, research), small volumes of product output and the lack of development of its production.

Growth stage characterized by rapid growth in sales driven by consumer acceptance and interest in the product, increased profitability, and decreased marketing costs.

Maturity stage characterized by a slowdown and/or cessation of sales growth (the product has already been purchased by the majority of potential buyers), increased competition, as a consequence, an increase in marketing costs, stabilization or decrease in profits.

Recession manifests itself in a sharp decline in sales and profits. Various marketing techniques (price reduction, sales promotion, product modernization, advertising support) at this stage can only prolong this stage.

Thus, the answer to the question of how often it is necessary to modify products and introduce new products is quite simple. As a rule, it makes sense to release various modifications of a product at the maturity stage in order to delay the onset of decline (for example, the release of fabric softener or detergent with different scents). By releasing even slightly modified products, you can significantly extend the maturity stage, provoking more and more waves of interest in this product.

However, since the decline stage will eventually come, by this time your company needs to have products that can replace it, and these products must already be in the growth stage.

In other words, it is necessary to release modifications of a product when it is at the maturity stage, and then (at the maturity stage) it is necessary to prepare for the launch of new products on the market, so that by the time the first product enters the decline zone, the following products will already be at the growth stage approaching the stage of maturity.

Range

Now, having determined, using a product life cycle model, how to ensure the stable existence of an enterprise by constantly replacing obsolete products with new ones, let’s move on to issues of increasing the assortment.

Product range a group of products that are closely related due to the similarity of their functioning, sold to the same groups of customers, through the same types of retail establishments, within the same price range.

The decision to expand or narrow the assortment depends on the goal that you set for yourself. If you want consumers to perceive you as a company with a wide assortment, in which there is a different type of product for each group of buyers, and at the same time you do not care that some products are not very or not at all profitable, then you need to expand the assortment by introduction of new types of goods. It is advisable to expand the range of products to increase the market share occupied by your company. If you are trying to maximize profits, then it may be necessary to reduce the product range at the expense of those goods that are not highly profitable.

Expansion of the range can occur in two ways: through saturation and expansion itself.

Saturation of assortment release of new products at the same price range as old ones, aimed at the same consumer groups. There are several reasons why they resort to saturation of the assortment:

1. desire to receive additional profits;
2. attempts to satisfy dealers dissatisfied with gaps in assortment;
3. the desire to use unused production capacity;
4. attempts to become a leading company with a comprehensive range of products;
5. the desire to prevent competitors from conquering your market.

Expansion of product range can occur in two directions: up and down.

Building Down means adding cheaper goods to your assortment, targeting them at less affluent segments of the population. Growing down may be aimed at containing competitors, attacking them, or penetrating the fastest growing market segments.

Building up, on the contrary, involves the inclusion in the assortment of goods of a higher price category than those that the company has dealt with so far. This desire may be caused by higher growth rates in the upper segments of the market, and the desire to position itself as a company with a wide range. However, it is quite difficult to enter the upper segments of the market, since potential buyers may not believe that a company that has always produced low-price products is capable of releasing an exclusive product.

Sometimes a company producing goods in the mid-price category can attempt to expand its assortment in both directions at once - up and down, but this requires significant resources and is practically impracticable for a small enterprise.

Brand

And finally, the last question that needs to be resolved as part of the development of a product policy for your enterprise is the brand under which you will produce your goods / provide services. The first problem that needs to be resolved is the question of whether it is worth releasing a branded product or whether it is possible to do without developing and supporting the brand.

A branded product has the following advantages over an “unnamed” product:

1. Product recognition (the consumer recognizes a “branded” product);
2. Possibility of setting a higher price;
3. Formation of a group of loyal consumers;
4. The ability to produce similar products aimed at different consumer groups.

However, there is also a flip side to the coin. If you produce a branded product, you must strictly monitor its quality (since a consumer, having encountered a low-quality product at least once, can spread a negative attitude to all products under this brand). In addition, developing a brand and its promotion require significant capital investments, and by charging a high price for a branded product, you can scare off some potential buyers. Nevertheless, in our opinion, the advantages of developing the brand are more significant than the disadvantages.

If you decide that you need a brand, the next question will arise: what approach to choosing a brand should you take? The fact is that there are three main approaches to a product brand: single-brand, multi-brand and mixed brand.

Monomark. When using this approach, each product in a product line has its own name. This approach is used for products with a relatively short life cycle and allows each product to be clearly positioned in the minds of consumers, regardless of the name of the manufacturer. Thus, the failure of one product will not affect the image of the company itself and its other brands - this is an undoubted advantage of this type of strategy. However, due to the fact that each brand has to be promoted “from scratch,” promotion costs increase, which makes the product more expensive. An example of using this approach is the Tide, Ariel and Myth washing powders from Procter&Gamble.

Multibrand. In this case, all products of one product line are produced under a single brand. This strategy is mainly used well-known companies with a “promoted” name, for example, many manufacturers of household appliances Samsung, Philips. The advantage of this strategy is to reduce the costs and efforts of promoting new products to the market: by presenting them under a well-known brand, the manufacturer ensures that they are well received by consumers. However, if problems arise with one product sold under a given brand, other products that do not have similar defects may suffer due to the fact that consumers will no longer trust the products of this company.

Mixed brand. This approach is a hybrid of the first two strategies: famous name manufacturer's company, the name of the product is added (thus, the name of the product consists of two parts, the first of which ensures its recognition, and the second indicates differences from other products of this company). This strategy combines the advantages of both previous strategies: on the one hand, the company ensures good reception of its product by including famous name companies, on the other hand, are trying to protect themselves by adding a unique product name (example: Tefal with its brands of Caleo and Rondo food processors).

Conclusion

So, in this article we tried to provide all the necessary information so that you can answer the key questions that determine the product policy of your enterprise:

1. What products/services can you offer your customers?
2. What characteristics should the products/services you offer have?
3. How often should existing products be modified and new ones introduced?
4. In what directions should the range be developed?
5. Should consumers be offered a branded product?

In the next article we will talk about the main decisions made in the field of pricing policy of an enterprise.

The following materials were used in preparing the article: