Organizations which deliver the highest quality of service or products are the ones who receive the most customers. Prominence is therefore important. But ability is also important, if prominence brings customers to organization, ability helps organizations to retain the customers. Ability of the organization tells who they are. So the eminence and ability consist of four operational processes volume, variety, variation and visibility. Organizations survive when operations management lays in the hands of able managers to manage core activities that transform key resources into deliverable products or services.  The process of creating the products and services are based fundamentally in creating value in each operational management processes.

Volume

This refers to how much production of a specific product is required to satisfy its overall demand in the market.  This refers to the physical number of units or items produced.  A high volume manufacturing service example would be a fast-food joint like Dominos. They sell quite literally millions of pizzas and other related food items every day around the world, and one of the known characteristics of Dominos is that they have a very high degree of consistency in all of their products and their service delivery. 

Alternatively, a low-volume example might be an artist who produces specially made commissions and pieces of artwork. They are entirely unique, which are likely to take a very long time to produce and which cannot be easily replicated or repeated exactly, if at all. This is highly resource intensive and often long-term process. Scarcity is often used to boost sales, but it can also be used to create massive brand lift. It plays on the customer’s fear of missing out. Please remember this fact that marketers use limited-time offers like daily deals, limitations on quantities, or one-time only promotions to create a sense of urgency and leverage scarcity.

Volume is significant tool because it shows the confidence of buyers in a product or service. Though volume should never be used alone to determine price or selling patterns, but it is a base to gain insight into the markets and determine the next strategies.

Variety

This relates to the variety of goods/services to be produced and sold to customers. This V is all about diversity. Selling a variety of products or services helps organizations to increase sales and profit potential and reduces their dependence on one or two products, which can lead to business closure if demand for that product ends or wanes out.

For example HUL sells 44 brands spanning 14 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. HUL has a product to offer each segment of the society. In an given product category its has maintained variety.

The high variety gives more flexibility to produce goods services to match the customer’s requirements. Variety and volume correlate, the higher the variety the lower the volume of the products or services.

Variation

This refers to how much the level of demand changes over some time due to external factors. However, several factors make it difficult to predict variation. For example, a natural disaster such as Covid 19 pandemic struck the world which made the entire world go topsy-turvy in all walks of life. Most business processes do not exist as singular entities but rather as a plurality of variants that need to be collectively managed. Most of these approaches are built on the assumption that the variation points and variation drivers are given as input. The question of how process variation is drawn and conceptualized in the first place has received relatively little attention. It takes lot of experience and maturity of managers to fill the gaps. When processes fail to follow a precise pattern, it causes quality issues both in transactional and production processes.

Visibility

This refers to value chain of a company’s all processes put together. The customers need to experience the company’s product/service. The service industries have a high level of visibility compared to the manufacturing industries. For example, Amazon has a track and trace software on their website which enables their customers to have visibility of where their packages are at any given time. It is important that potential customers can locate the company they are looking for. Most people have had the experience of being lost. It is truly  frustrating driving around unable to find the location a customer is searching – may be its company’s workshop, warehouse, retail store, head office, customer care centre anything.  Organizations must make sure that their signage is clear and visible so visitors can easily locate. Otherwise the experience can turn into a negative one. High-visibility signage has already helped easy to find repeat customers.

Unilever’s operations management is responsible for keeping the four Vs integral with high productivity throughout the global organization. Operations managers develop procedures and processes to support the organization in achieving higher volume, variety, variance and visibility. The operations team of Unilever directly supports marketing, sales, financial and HR performance. It essentially addresses concerns in all strategic decision areas to maintain high productivity. As a leading consumer goods firm, Unilever has evolved operations management approaches to keep all four Vs highly productive.

A group of closely related products constitutes a Product Line. Managing supple product lines involves more than just complementing resources for existing products.  Product managers must help maintain a full pipeline of new products and product enhancements. For Product managers managing various product lines and the overall product mix of the company requires resourcefulness and watchful market intelligence. Product management raises complex issues and to solve those issues the product managers need to juggle the product portfolio wisely.

Hindustan Unilever (HUL) the leader of consumer care products juggles its detergent product line. To elude competition for its premium brand ‘Surf’ from brands like Ghari, Sasa, Point etc HUL has down stretched its detergent line downwards with low priced detergents such as Wheel.  For many companies, this part of the process is driven internally, while focusing purely on allocating resources, concentrating on ROI, and risk/return.  Juggling with product mix needs constant thinking, re-thinking and a lot of market information. Companies need to strategies their product offerings while internally shifting their efforts on product positioning.

One of the many reasons Google consistently brings novel, world-changing products to market is because of their collaborative efforts in Product Management. They are constantly focusing on the future and their team works closely with creative and industrious technicians and engineers to design and develop technologies that improve access to the enormous world information. Google takes the responsibility of guiding its customers right from educating them. Google believes that innovation comes from anywhere; it can come from the top down as well as bottom up, and in the places you least expect. The focus is always on the user.  To give another example of how Google keeps inventing – its engineers came up with the idea of driverless cars after seeing that millions of traffic deaths come from human error. Google already had all the building blocks in place to build a self-driving car – Google Maps, Google Earth, and Street View cars. Working with an artificial intelligence team at Stanford University, Google engineers have produced experimental cars that now have travelled to Lake Tahoe and back to the Bay Area and have given the blind more independence by driving them to shop and carry out errands.

Appraisal of each product line is non-stop process in progressive organizations.  These organizations are high on market intelligence. A constant monitoring of the product line helps organizations   in line stretching, line pruning, line filling, brand/line extensions, brand rejuvenations, brand re-launches, portfolio restructuring, product quality up-gradation, packaging innovation etc.

All said and done, when managing ideas for building an expandable portfolio project and products, it’s difficult to know which opportunities show true promise and which don’t. That’s why it’s imperative that product portfolio management be integral with the tools that product development teams use to collaboratively create products and execute the project plan.

One of the major challenges Indian pharma companies are facing today is of handling diverse product lines; the reason why they are unable to handle flexibility  in diverse product lines is that their profit margins do not reflect the constantly increasing investment in drug development. Frost & Sullivan the famous market research company reports that the low returns on investment coupled with various regulatory issues account for the declining focus on research and innovation in the pharmaceutical industry in India.

Since product line involves a collection of related products, sometimes, it may so happen that a particular product line adversely affect the sales of a product in the line, instead of being complimentary to it. HUL controls about 60 per cent of the soaps in the Indian market with brands including Lifebuoy, Lux, Rexona, Breeze, Jai, Moti, Hamam, Liril, Breeze, Dove, and Pears. These brands compete with one another on the shelves creating brand cannibalization. Many of these take thrashing from their sibling brands.

Line filling

In today’s markets, various products ranged from tires to clothes are becoming increasingly value centered. More and more buyers are turning from status and luxury to lower-cost brands that deliver satisfactory quality and features. To fight this trend or to take advantage of it, firms are offering minor versions of their traditional brand-product package. Firms like HUL, P&G, Dabur, and Godrej everybody is forced to offer differently priced products – so their product lines are filled with products that suits peach pocket in each segment.

Cannibalization starts as soon as the consumer exhibits brand switching behavior or even before that. It starts manifesting itself when the manufacturer asks the retailer to stock the new product. The new product launch gets a priority and is at times stocked even at the expense of other brands. But, companies need to take balanced view on cannibalization while line filling.

Firms like Videocon have done line filling fruitfully to plug certain gaps in a range. The intention of the firm was to be seen as ‘full line’ company and customers find a full basket of the products under one roof. In its product line of room air conditioners Videocon initially had just two or three models. But within two year of entry, Videocon introduced a dozen of models. The offers included three models in split ACs, two models in window ACs with rotary compressor and six models in split ACs with reciprocity compressor. By doing this Videocon rapidly improved its market standing and rose from the position of new entrant to a company offering relatively full line products.

Line pruning

Global marketer P&G feels it is better to get rid of complexities and maintain simpler lines. The company firmly believes that whenever it can apply an existing product formula, or package to a new market, it can save a lot of resources and can also move faster. It is famous that this company in 1990s slashed the number of items to almost half: fewer shapes, fewer sizes and package formulae. P&G had thirty one versions of Head & Shoulder shampoo and fifty two versions of Crest tooth paste. The Head & Shoulder brand was pruned to less than half, to 15 variants. It went ahead and pruned its famous Crest toothpaste brand also substantially.

 In Japan, P&G cut the number of Max Factor brand of mascara and foundation items from 1,385 was slashed to 828; the cut took place within just one year, but the sales went up by 6%. P&G also withdrew brands from the market in which it could not be leaders.  In the product line of soaps and cleaning materials, it withdrew 11 brands, like Lest Household cleaner and Lava soap. P&G’s pruning exercise is an excellent example of harmonizing the product lines.

 Stretching down the line

I want explain this conceptby giving a brilliant example of TTK Group. Sometimes,when a company initially takes its position in the high price-slot segment stretches its product line downwards by offering lower-priced products in the same line for lower markets.  For the TTK group, pressure cookers are one of its major product lines their brand ‘Prestige’ is one of the leading pressure cookers in the market. Prestige enjoyed 26% market share in the 1990s. Its major competitor being Hawkins, TTK decided to expand the reach of Prestige to the lower end markets also. The company launched Prestige Popular. It was designed as an economy model and offered to the price sensitive segment. Through this down stretching Prestige increased its market share sizably.

 One more example of stretching down the line is of Parker pens. It was operating in the high price slot of the pen market for several decades. To reach the mass market Parker pens decided to down stretch its line by offering low priced models of pens which the masses could afford. This strategy worked wonders for the pen company it has now become a house-hold name.

 Stretching up the line

This happenswhen acompany is initially positioned in the lower-end of markets and decides to pull its product line by offering high-priced products for top slots. This is called stretching up. The firm moves up its original posture and makes higher priced offers from its basket. Earlier, Philips was synonymous with low-priced two-in-ones, with its wide offers in the Rs.1, 000-2,000 price range. The company soon found that to become worthwhile player in the market it had to stretch up its line for the richer customers. Philips stretched up the line by bringing its powerhouserange in 1991 which ranged between Rs.6,000 – Rs.9,000. In 1993, Philips also climbed the ladder by offering power play range to cater to the top and middle ends of the market. The Power Play priced from Rs.15,000 – Rs.25,000 Philips doubled its profits by stretching up the line and became a household name for the higher end markets too.     

Companies should rationally position and re-position product conflicts within the product line. The marketing strategy of a firm
can place products in a product line in such a way that the products can co-exist, grow, complimenting the streak. A company can add new brands, prune some brands, and rejuvenate some brands by stretching the product line upwards or downwards. A marketing savvy organization can come up with new parallel lines.   The results of efficient product lines depend on formulating elastic lines depending on internal and external environment conditions. The parameters of the product line such as the length, width and depth speaks a lot about the firm’s business policy. Just a piece of advice that the leaner the line the better it is to handle in crisis. To conclude, successful organizations are customer-sensitive and flexible to change.

Marketing plays fundamental role in economic growth in the present global world.  It is therefore basic reason for studying marketing. Marketing stimulates research and new ideas resulting in new goods and services. Late Peter F. Drucker considered marketing to be the responsibility of the managing leadership within a business, not a separate function; he believed that sensible marketing strategies ensure planned economic growth in the developing economy where the scarcity of goods, services, ideas and excessive unemployment create hurdles in the growth of society. Good marketing efforts are needed for mobilization of economic resources for additional production of ideas, goods and services resulting in greater employment. The fundamental objectives of most companies are survival, profits and growth. Marketing contributes directly to achieving those objectives and is in fact seen as a key to profitability.

Marketing strategies represent the plan by which the firm delivers its value to the customers. In Michael Porter’s value chain, Marketing & Sales function occupies the core functions of business after inbound logistics and operations. In today’s business environment marketing is considered crucial – all functions such as sales forecasting, advertising, appointing sensible marketing channels, distribution and CRM are prioritized. Developing marketing strategies and implementing them will only help organizations to get sustainable results in our businesses.

The marketing function requires flexibility and imagination; it cannot remain stagnant, it needs subtle changes as per the environment. Here is an example – Technology maverick Michael Dell founded Dell Computers in 1984. The company was based on the direct-to-consumer model, which eliminated the retailer, allowing for price discounts and constant customer feedback. In 1988, spurred by growing investor interest in technology stocks, the company went public. But it wasn’t until 1991, the height of the 1990-1992 recessions, that Dell chose to make its most aggressive marketing move up to that time, and take on the established computer giants. The campaign coincided with the introduction of its first notebook computer. In 1991 when advertising in the entire computer hardware category was down by 17.5% over the previous year. Apple, Digital, IBM and Tandy – some of the category’s leading spenders went on investing and pouring money in their promotional efforts. Contrary to this, Dell instead kept its pace on eliminating the middleman while offering superior customer service. This and other few innovative strategies put Dell for the first time in the Fortune 500 roster of the world’s largest companies.

Marketing is speaking the consumer’s language; reaching out to them the way they want and communication with them in their fashion. These days the tech savvy consumers turn to online sources for information, which requires a company to establish an effective web presence to reach them, with an interactive site. Using Facebook or Twitter for marketing is one of the latest marketing trends. Many marketers have taken it well and therefore invest a lot of money into twitter advertising, knowing that it is particularly easy to gain the attention of a younger generation through advertising. Digital marketing is the in-thing. World recognizes Procter & Gamble (P&G) as the biggest advertising champion; hence any move by Procter & Gamble (P&G) is closely watched. A lot of attention has been paid to its recent announcement that it will cut $10 billion from its marketing budget over the next five years. Procter & Gamble (P&G) is a smart brand builder. At one of its big events in USA, Procter & Gamble (P&G) declared that it does not intend to focus on digital marketing but it recognizes that it exists in a digital world. Procter & Gamble (P&G) believes in adapting to the consumer behavior and it flexibly redesigns its promotional strategies.  Procter & Gamble (P&G) has adopted digital marketing in markets like Brazil, China, and India where digital marketing offers the best way to engage with consumers. In urbanized markets like the US, Tide and Bounty will continue to rely on TV commercials along side with digital integrated promotion as part of a multichannel brand-building plan.  P&G will look for opportunities to drive smaller brands with smaller budgets like Aussie and Old Spice through digital.

A good marketer can sell a comb to a bald man. Here’s how Coca-Cola’s COO, Steven J Heyer very elegantly describes the aerated drink as “Coca-Cola isn’t black water with a little sugar and a lot of fizz anymore that one of your movies is celluloid digital bits and bytes, or one of your songs is a random collection of words and notes. Coca-Cola isn’t a drink. Coca-Cola is an idea. Like great movies, like great music, Coca-Cola is a feeling.” This says it all. Marketing does the job of a dream merchant.

You can be a copy cat if required; everything fair in love and war when it comes to marketing. Since marketing evolves effective delivery of information to a targeted market which stimulates a demand for a product or service, the ability to effectively identify and reach that market is crucial. ITC in last few years filled it soap product line with products like Essenza Di Wills at the top end, followed by Fiama Di Wills in premium segment, Vivel in mid-segment and Superia at the entry level. ITC followed in the footsteps of HUL by offering each segment a product which suits the customer’s wallet. The retail shelves consist of a dozens of soaps from like Lux, Dove, Pears, Hamam, Breez, Rexona and Ayush and dozens of soaps from ITC. You have the Vivel with its variants like Sandal Sparkle, Sheer Crème and other variants priced at Rs 17 onwards seems to be in competition with Lux’s variants. These marketing wars are so fizzy and at times self-indulgent too.

A study by Harvard researchers several years ago found that in many product classes, consumers “lack either the ability or motivation to conduct a price comparison.” Their conclusions are still true today. We either can’t – or won’t – scrutinize a product price.

And how would you view this piece of advice from Robert G. Allen – the famous author of Multiple Streams of Income, and Nothing down “No matter what your product is, you are ultimately in the education business. Your customers need to be constantly educated about the many advantages of doing business with you, trained to use your products more effectively, and taught how to make never-ending improvement in their lives.”

The market consists of aware, alert, vigilant and watchful customers and also of gullible, trusting, naïve customers; God knows whether marketer are teaching the customers or customers are teaching the marketers??