Product Planning and Product Life Cycle (PLC): Branding, Packaging and Labelling Questions

Question 1

Define product life cycle (PLC).

Accepted Answer

Product life cycle is the concept that a product passes through stages—introduction, growth, maturity and decline—based on sales and profit pattern.

Question 2

What is a product line?

Accepted Answer

A product line is a group of related products offered by a company.

Question 3

Define brand.

Accepted Answer

A brand is a name, symbol or design that identifies a seller’s product and differentiates it from competitors.

Question 4

State one function of packaging.

Accepted Answer

Packaging protects the product from damage and spoilage.

Question 5

What is labelling?

Accepted Answer

Labelling is providing information on the product/package for identification, description and legal compliance.

Question 6

What is augmented product?

Accepted Answer

Augmented product includes additional services like warranty, delivery and after-sales support along with the actual product.

Question 7

Explain the levels of product (core, actual and augmented) with an example.

Accepted Answer

Levels of product are:
1) Core product: basic benefit/problem solution (e.g., phone enables communication).
2) Actual product: features, design, brand, packaging (e.g., camera, RAM, brand, look).
3) Augmented product: extra services like warranty, installation, after-sales service (e.g., 1-year warranty and doorstep service).

This helps firms compete beyond features by adding service and experience.

Question 8

Differentiate between product line and product mix.

Accepted Answer

Product line is a group of related products (e.g., shampoo variants).

Product mix is the total collection of all product lines offered by a company (e.g., soaps + shampoos + detergents).

In short: product line is part of product mix; product mix is broader and includes multiple lines.

Question 9

Explain product mix dimensions: width, length and depth (brief).

Accepted Answer

Product mix dimensions are:
- Width: number of product lines the company offers.
- Length: total number of items/products across all lines.
- Depth: number of variants of each product (sizes, flavours, models).

Example: adding a new product line increases width; adding more flavours increases depth.

Question 10

State stage-wise characteristics of PLC (any three points).

Accepted Answer

PLC characteristics (stage-wise):
- Introduction: low sales, high cost, low/negative profit, limited competition.
- Growth: sales rise fast, profit increases, competitors enter.
- Maturity: sales peak/slow growth, intense competition, price pressure, profit stabilises/declines.
- Decline: sales and profit fall, many competitors exit.

These patterns guide marketing strategy.

Question 11

Explain branding and its importance (any three points).

Accepted Answer

Branding means giving a product a distinctive name/symbol to identify and differentiate it.

Importance (any three):
1) Creates recognition and trust.
2) Builds perceived quality and reduces buyer risk.
3) Supports premium pricing and loyalty.

Thus, branding helps create competitive advantage.

Question 12

Explain functions of packaging and labelling (brief).

Accepted Answer

Packaging functions: protection, convenience, branding/identification, information and promotion (shelf impact).

Labelling functions: identifies product/brand, describes contents/size/ingredients, provides usage and safety instructions, and ensures legal compliance (MRP, expiry date, net quantity).

Both improve customer experience and support marketing.

Question 13

Explain the Product Life Cycle (PLC) and discuss stage-wise marketing strategies for each stage.

Accepted Answer

Product Life Cycle (PLC) is the concept that a product goes through stages—introduction, growth, maturity and decline—based on sales and profit pattern.

Stage-wise strategies (write in 4Ps format):

1) Introduction stage
- Product: basic version, focus on quality and correct positioning.
- Price: skimming (high price) or penetration (low price) depending on objective.
- Promotion: heavy awareness building and education.
- Place: selective distribution and ensure availability in key outlets.

2) Growth stage
- Product: improve features, add variants, improve service.
- Price: competitive pricing as competitors enter.
- Promotion: persuasive advertising to build preference and brand loyalty.
- Place: expand distribution coverage.

3) Maturity stage
- Product: modify/differentiate, new uses, packaging improvements.
- Price: discounts, deals, value packs to defend market share.
- Promotion: reminder advertising, sales promotion, stronger branding.
- Place: intensive distribution and better shelf visibility.

4) Decline stage
- Product: simplify line, drop weak variants, or reposition for niche.
- Price: price cuts to clear stock or maintain premium niche.
- Promotion: minimal, only selective support.
- Place: selective distribution, withdraw from unprofitable channels.

Thus, PLC helps marketers plan product and marketing mix decisions over time.

Question 14

Discuss product planning and product mix decisions. Explain width, length, depth and consistency with examples.

Accepted Answer

Product planning is the process of developing and maintaining products and product lines to satisfy customer needs and achieve company goals. It includes decisions on product features, improvements, new products, and managing product lines/mix.

Product mix decisions involve managing the product portfolio using these dimensions:

1) Width (number of product lines)
- Example: A company sells soaps, shampoos and detergents → width = 3 lines.
- Adding a new line like toothpaste increases width.

2) Length (total number of items across lines)
- Example: If soap line has 4 variants and shampoo line has 5 variants, total items = 9. Adding more items increases length.

3) Depth (variants within a product)
- Example: a shampoo available in 50ml, 100ml, 200ml and multiple types (anti-dandruff, herbal) increases depth.

4) Consistency (relatedness among product lines)
- If product lines share similar technology or channels, consistency is high (e.g., all personal care products).

Why these decisions matter:
- They help balance risk and profit, serve different segments, and respond to competition and changing customer needs.

Thus, product planning and mix management help the firm build a strong product portfolio.

Question 15

Explain branding, packaging and labelling decisions and their importance in marketing.

Accepted Answer

Branding, packaging and labelling are key product-related decisions that directly influence customer perception and purchase.

1) Branding
- Meaning: creating a name/symbol/design that identifies and differentiates the product.
- Importance: builds recognition, trust and perceived quality; reduces buyer risk; supports premium pricing and loyalty.
- Good branding creates brand equity through awareness and positive associations.

2) Packaging
- Meaning: designing the container/wrapper of the product.
- Functions: protection from damage/spoilage, convenience in handling/storage, identification and shelf appeal, information display, and promotion.
- Good packaging is attractive, safe, eco-friendly, easy to open and cost-effective.

3) Labelling
- Meaning: information printed on package/label.
- Functions: identifies product/brand, describes ingredients/usage, provides safety warnings, and ensures legal compliance (MRP, expiry date, net quantity, customer care).

Overall importance:
- These decisions shape brand image, influence purchase at the point of sale, improve customer experience, and help the firm comply with laws and build long-term loyalty.

Product Planning and Product Life Cycle (PLC): Branding, Packaging and Labelling

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