Glyndwr

University
Delivering customer value

Saddam Hassan Talukder

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Answer to the question no 1a

Introduction
In marketing product life cycle is an important concept. Every year millions of consumers buy
millions of products including those products which are branded and well established and those new
products which are taking place of old established product. The demand for new, more modern
goods usually acquire more market share quite rapidly after they are launched and that force the
older, long-established products to become less popular, and eventually ended up by either
withdrawal from market or fully replaced by new product. This is called product life cycle. Depending
on the product it may vary but every product goes through a product life cycle consisting of four
certain stages: introduction, growth, maturity and decline. According to Wiersema (1982), in
response to the failure of the Heckscher-Ohlin model, Raymond Vernon introduced product life cycle
in the 1950s to explain the observed pattern of international trade. From then different authors
tried to give different shapes from different perspectives to redevelop this model.

Different model of product life cycle

1. Simple 4 stages model of product life cycle: according to Wells and Adler (1972), this product
life cycle starts with an Introduction stage when a new product launched in to the market it is
almost challenging to make profit. During the period marketer has to test the product into the
market so marketing cost stays higher. Then a product pass through Growth stage where sales
and profits rapidly grows to upward as peoples responsiveness increases and marketing cost
goes down In a Maturity stage a product becomes more profitable. Their marketing cost
becomes lower. At the mature stage, marketers start to modify their products, promoting them
as new and improved or bigger," or stronger." The final stage is called Decline, when sales
and profit of the product drop due to the changing customer demands or other means.
Therefore company has to kill or find the way to revive the product.

Sour
ce: Wells, L. T. and Adler, F. M. 1972. The product life cycle and international trade.

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2. 6 stages model of product life cycle: Niemann and Tichkiewitch et al., (2009) urged that, this
product life cycle is similar like previous one but this model is modified by a pre-introduction
stage is called Development stage where marketers spent much time on designing and testing
the product concept. Before deciding whether the company is going to launch the product
permanently or not, companies often test the targeted market with a prototype of the new
product to assess thee profitability and sales. On the other hand Saturation stage occurs when a
product has reached its highest peak in maturity stage with no alternative strategy that can
increase the sale as the number of competing products has grown significantly. So manager look
to exploit new market segments for the product.

Source: Niemann and Tichkiewitch et al., (2009) Design of sustainable product life cycles.
3. Extended model of product life cycle: Hill, 2009 suggested, these model is only suitable of
specific products such as auto mobile industry, innovative product like 4th generation smart
phone etc. where in product decline stage a product never can be killed, instead of killing the
product marketers has to find out a definite way to rectify the problem through research and relaunch the product with advanced and improved features.

Ssource: Wiersema, F. D. 1982. Strategic marketing and the product life cycle.
Appropriate product life cycle model for Felix cat food:
Felix cat food is a well-established brand of Purina pet food company which established on 1829 and
over the centuries it has been serving millions of pet lovers with variety of pet food items
(Purina.co.uk, 2014). So it is assumed that they have enough data for customer preference and they

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dont have to develop a whole new product throughout conducting a research. And saturation stage
cannot be considered with Felix as they got variety of pet food items. Therefore Six stage model is
not suitable for Felix. Besides extended PLC model is not designed for a product line such as pet
food. Moreover Catfoodinsider.com (2014) revealed that Felix has been using the same food line
name from beginning to till today except the different flavours. So there is always a way to revive
the existing product. So 4 stage of PLC model is considered to be the appropriate model for Felix in
order to make decision.

Pros & Cons of a Product Life Cycle

In marketing a product completes its life cycle by moving from 1 stage to other stages. The
movement of the products and stability in different stages depends on market sales and shares over
a period of time. It helps to forecast the sale and take precautionary strategic decision for the
product. So adhering to a product life cycle concept offers potential advantages and disadvantages
for Felix

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Answer to the question no 1b

Marketing mix: According to Kotler (2008), The marketing mix refers to the set of actions, or
strategies, that a company uses to promote its brand or product in the market. Besides Zober
(1995) argued that the typical marketing mix is consisting of Product, price, place and Promotion.
However, Akroush (2013), believes, marketing mix increasingly includes few additional Ps like
Positioning, Packaging, People and even Politics as vital mix elements to provide a distinctive view of
service marketing.

Price

Product
The Marketing
Mix
(The 4 Ps)

Promotion

Place

Source: Author cited from Kotler and Armstrong (2012)

Product: Richter (2002), believed that to satisfy a want or a need, anything offered into a market for
acquisition, attention, use or consumption is considered as a product.
Place: Availability of the product/service e.g. the market place of distribution and merchandising.
This placement includes channel length, locations, inventory, policy and transportation carrier.
Promotion: the concept and procedure of presenting the product/service before the customer.
Commonly, it is done through creating marketing net-work, advertising & interpersonal relationship
between and among concerned section of people- the prospective customers.
Price: Sargeant (2009), described, the vital part of marketing mix is what to charge for the
product/service. The decision involves list price, discounts, package facility, mode of payment and
etc. A high quality product/service is always supported by a relatively higher price, selective
placement and a unique promotion. In addition, competitive pricing influences the option to set
market price. Monopoly of the product/service also has an impact in fixing the list price.
Felixs declining product:
According to Zooplus.co.uk (2014) and different pet food organisations review it can be said that
Felix adult sensation- Salmon dipped in shrimp flavored jelly is not a great product among of all Felix
food items. Salmon fish is a great source of protein and fatty acid for cats but some experts believe
that this food contains too much fish that can make a cat sick. Beside these Felix adult Sensations

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formulas lack some important nutrients and it cannot be considered as the only meals for a cat.
Therefore it is assumed that Felix adult Sensations is the product that is moving toward decline stage
Felixs marketing mix for declining product:
Every company alike Felix and their marketing has different plans and strategies as they know that
their product will undergo a certain product life cycle. So keeping it on their mind Felix has to pre
plan for different stages with different strategies. As product moves into different stages is always
good to start with marketing mix. When any Felixs product life cycle comes its end, marketing mix
help Felix to decide whether withdraw the product from the market or give a new life to that
product with different strategies.
It is assumed that Felix can use following strategies to extend the life of Felix adult Sensation
product.
Product strategy for Felixs declining product (Felix adult Sensations)
Re-Packaging
Kotler and Armstrong (2012), suggested that when a product image has got limitation with its
targeted audience than re-packaging helps to create a new image to its existing market. By tapping
into that market with fresh packaging Felix can draw consumers visual preferences in a new part of
the market. It can be
Changing the size or shape of the product
Changes in the dimension of the old cover box
Redesigning the cover with possible visualisation
Highlighting the key issues if modified such as new flavour added or improved taste etc.
Pricing strategy for Felixs declining product
Discounting
Designing a new pricing strategy by discounting for a mature product should not be a short-term
option for Felix. Kawakatsu and Homma et al., (2012) revealed that in some cases, discounting price
can take out a product into a targeted market where the product assumed it never can be reached.
To do so Felix can lower the price in a certain price demographic such as .50 to 1 reduction per
sale to appeal and expand sales into the new market

Promotion strategy for Felixs declining product

Re-Branding
Re-branding a mature product is an extreme approach to extending its life cycle. Richter (2002)
defined, rebranding is all about providing the existing product a new name and a new appearance of
the old product. As Felix is a brand of Purina pet Food Company so as parent company Purina food
can help Felix to align with different brand.
Place strategy for Felixs declining product
Expanding Abroad
If different marketing mix strategy cannot help Felix to give a new life to adult sensation than Felix,
last alternative approach will be left is expanding the product in abroad. Even though it is costly as
Felix has to reintroduce the product to a different market newly in order to extend the product life.

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Answer to the question no 3a

Company that is promoting a service faces diverse challenges compared to those marketing a
product. Services and Products have some significant differences that have impact on the typical
way of marketing them. Baron (2010) argued that, by comparing physical attributes and
specifications of a product, consumers can easily decide whats best for them. But Services differ
from each other on a more conceptual level. So to compete in the service marketing service provider
offers something unique that no one else does. So identifying the diverse challenges in service and
product marketing can help to find appropriate approach for marketing them more effectively.

Selected Service Company:

Ryanair is a great brand and a very successful business. The Economist, (2014) revealed, low cost
marketing strategies are not the only thing that made Ryan air flight to European low cost but also
drawn the attention of marketers in opposition to what marketing mix makes a great brand.
However in the same year a journalist (Barrett, 2004, pp. 89 - 98) published on international
transport management magazine that, Ryanair's business model is based on a core focus on cost
reduction. So Ryan air has to reduce the cost in order to provide cheap and low fares. In contrast the
branded airlines argue that passengers are willing to pay more for a better service: such as free food
and drink on board, pre-assign seats, luxurious business class seat etc. However the large flag
carriers have taken notice of the low-cost model and have already implemented it as part of their
own differentiated business model.

Difference between Product and service:

The difference between service and product is quite real because of the characteristics of services:
Intangibility: according to Akroush (2013), service is not a physical product, cannot be seen, felt or
possessed, on the contrary a product has physical touch and it can be possessed. As a Service
marketer, Ryan air has to determine how to effectively the service process and final outcome will be
delivered to the final consumer. Ryan air service is all about its customer satisfaction and providing
excellent quality service to its customer as customer cannot touch the product they just experience.
Inseparability: Kotler and Armstrong (2012), assures that, the production of the services can't be
separated from its consumption. For example, customer involves themself in self-service using on
seat LCD TV to watch movie and play games provided by Ryan air. This means that the consumer
often expects the service to be provided in a specific way or by a specific individual, which means a
bigger burden on the image, knowledge, attitude, appearance, etc. of the person delivering the
service.
Perishability: Bebko (2010) argued that services can't store for future use. For example if Ryan air
cannot sell a flight seat today they cannot keep it for tomorrow to be sold as the value will be
vanished.
Variability: Richter (2000), revealed variability as heterogeneity. On the other hand Baron (2010)
believed that it is difficult to controlling human behavior and service as it delivered by people so
services are consistency and quality matter to excessive variability. Depending on experience,
attitude, knowledge, style, etc. quality of services may differ as they are people based. For example
Ryan air services may vary from place to place, the quality of service people are getting in the UK
from Ryan air might not be getting from the Ryan Air in Europe.

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Answer to the question no 3b

Ryanair Marketing Mix
Product or Service
According to Richter (2002), The product that a company is going to offer should be perceived
standards of the customers which satisfy the customers and their wants. Ryan Airlines can provide
its customer extra services with no cost such as easier ticketing, baggage handling, flexible scheduled
flight and quickest check in and check outs on the airport etc. They can also affiliate with different
companies to expand their services.
Price
In order to provide cheap and low cost travel to European destinations, Ryan air can stop providing
free food and drinks. Besides they can open on board food shop for customers emergency as Ryan
air fly for short distances. To retain and recruit customers they can use direct marketing techniques
rather than paying travel agency commissions. They can introduce different income streams - or
ancillary revenue. They can deal with car rental, hotel businesses, phone cards and bus tickets in
different destination to keep the costs lower.
Place
Dealing in short flights with average flight duration of an hour can provide Ryan air an excessive
control over cost and management along with excellent customer services. They can use secondary
airport to keep cost and fuel consumption low as aircrafts can turn around more quickly. Keeping
aircraft in the air as much as possible also help them to save fuel cost.
Process
Ryan air can make the process faster with no check in only passport and supplied reference number.
Customer cannot choose preferred seat which can speed up services. Ryan air should not pay for Air
Bridge as its additional cost so they can make a direct way to board through runway. Ryan air should
not associate with different baggage handling agency, instead they can deposit baggage directly to
the customer on to the terminal.
Promotion
0ooooo urged that Promotion is the element of marketing mix that makes the target customers
more aware about the product. To promote advertisement Ryan air should not employ any
advertising agency. They can use simple adverts that tell passengers that Ryan air has low fares. They
can offer customer to book online over the Internet to get 5% off if they are paying 15% agency fee
per booking. If the number of loyalty customer increase than they can put more effort on innovative
cost reducing process to provide low fare cost.
People
Ryan airs success is mostly depending on its employees contribution. They have to motivate their
employees in every possible ways in order to get their service to provide Ryans customer. Ryan air
should recruit pilot cadets in a contract basis so they try their best to take early promotion through
their hard work and dedication. Beside Ryan air should arrange different training session including
personal hygiene, uniform, situation handling etc. to train cabin crew more professionally as their
professionalism makes sure passengers safety and ancillary revenues on-board.

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Physical Evidence
For Ryan air planes are considered most expensive assets that provide physical evidence to its
customer. The increasing number of planes will create a good branding image to Ryans customer
and make them feel secure with disrupted free journey. So Ryan air should seek for the opportunity
when aircraft market price goes down or no demand. For example Barrett (2004, pp. 89 - 98)
revealed, competitors believe that Ryan air bought Boeing 737s with a 50% discount on listed price
of 40,000,000 during the invasion of Iraq and Afghanistan.

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