The product life cycle may be broadly described as follows:
1. Introduction: This stage is characterised by Low competition, efforts to educate consumers about the product, trials and free samples. 2. Growth: This stage is characterised by mass promotions and attempts to differentiate the product from that of competitors. 3. Maturity: In this stage, firms focus on finding new target segments and creating value additions. 4. Decline: In this stage, the product class mostly dies due to strong competitors or obsolete technology. Firms focus on sales promotion, tie ups or move on to emerging markets.
Godrej Chotukool currently lies in its introduction stage.
According to Godrej Appliances Vice-President (Corporate Development) G Sunderraman,the company is currently focussing on:
1. Educating the new end users, training the intermediaries and building the distribution infrastructure.
2. Communicating a distinct value proposition to the emerging consumers is also a challenge.
3. For Chotukool, the Godrej group has junked the traditional model of a proprietary channel with a sales force and a distributor-dealer chain and has joined hands with micro-finance institutions.
4. Chotukool requires demonstration and education which doesn’t happen in the trade, so Godrej was reluctant to use traditional trade channels. The company has entered into a marketing tie-up with the India Post (Maharashtra Circle) to leverage the vast reach of the latter in terms of number of offices and manpower to push sales of ‘ChotuKool' .The India Post team will not only generate sales leads, but will also book orders and collect payment from customers. For physical delivery of ChotuKools at customer's doorsteps, Godrej uses Express Parcel Post Service.
5. Apart from this, Godrej also involves village girls in selling the products at a commission of Rs 150 per product sold (something that the...