STAMFORD UNIVERSITY BANGLADESH

Assignment Assignment

Strategic ManagementStrategic Management

Course code Course code : : MGT 604

Date of Submission: 25/12/2009

SUBMITTED TO

Mohammad Thoufiqul IslamAssistant Professor,

Department ofManagement StudiesUniversity of Dhaka

SUBMITTED BY

Tabenda HossainID No. MBA 04011138

Batch: 40 (2nd) batchProgram : MBA

Stamford University Bangladesh

Product Life Cycle andProduct Life Cycle and Promotions of BICPromotions of BIC

This is a word of competition. Consumers’ expectations and requirements change over time, and there are many options available in the market; so firms need to develop new product. Sometimes they come with completely new idea, sometimes make improvements on existing ones. And the various products of company stay in different level of product life cycle. On the basis of their position on the product life cycle the promotional activities differs. Like the company called “BIC”. They follow different strategy of promotion on the basis of their product life cycle.

Company OverviewCompany Overview

Name of the Company: BIC

Founder of the group: Marcel Bich.

Type of Business: Multinational Corporation. Stationery products

Product Range: Pen, the pocket lighter, the one-piece shaver. They are going to introduce a new mobile phone.

First started at: Marcel Bich introduces his ballpoint pen in Europe, which he calls “BIC” a shortened, easy-to-remember version of his own name.

Starter Journey from: 1950

First Goes International:1956; BIC begins operations outside of

Europe and opens in Brazil. BIC launches the M10 Clic retractable ballpoint pen.

Market of BIC: Europe, Sweden, Brazil, USA, Japan, Greece and Italy, France, Eastern Europe, Middle East, Africa and Asia

Vision of BIC:

BIC offers simple, inventive and reliable choices for everyone, everywhere, every time.

Philosophy of BIC:

Honor the past, invent the future.

The Values:

The vision and philosophy of BIC are central elements of their culture, guided by shared values: ethics, responsibility, teamwork, simplicity, and ingenuity.

Their Product Philosophy:

Since it’s founding more than 50 years ago, BIC has built its success on a clear vision: to make top-quality, affordable BIC products available to everyone. While responding to the need for new product lines, the company continues to fulfill this mission by observing three fundamental values.

1. Functional

A BIC product, above all, is designed to perform a specific function—draw a line, produce a flame, shave a hair. Design and technology reflect the efficiency with which each product carries out its function. BIC® products make the consumer’s life easier.

2. Affordable

Offering everyone the opportunity to buy quality products at affordable prices is a priority for the BIC Group. Optimizing design, materials, manufacturing and various distribution channels helps the company realize this promise.

3. Universal

BIC products are known and appreciated the world over for quality, affordability and ease of use. The ballpoint pen, the pocket lighter, the one-

piece shavers are all part of the daily lives of millions of consumers. These products make BIC one of the best-known international brands.

Key Words Key Words

Product Life CycleStrategies

Promotional StrategiesProduct Philosophy

ValuesVision

The Boston BoxProblem Children

StarsCash Cow

DogsMarket Share

Add ValueBelow the Line

Core RangeMarket Research

Promotional Activity

Summary of the Case Summary of the Case

On the basis of consumers’ expectations and requirements firms need to develop new product. Sometimes they come with completely new idea, sometimes make improvements on existing ones. And the company carried its older product too. In this situation company have products which just starter now, which give them good profit or some items which are not profitable now. BIC is the multinational company with Stationery products. They have many products, which are stands on the different stages of product life cycle. On the basis of “The Boston Box” which is develop by The Boston Group, there are four types of products, 1) Problem Children, 2) Stars, 3) Cash Cow, 4) Dogs. Problem Children are newly launched products. Many products fail to move beyond this phase. There are some products of BIC have recently entered in market include Cristal Colours and Cristal Pocket in the pen market, and Comfort 3 and Soleil in the shavers market. In 1951 Cristal Ball pen was launched. It has 30% of market share and UK’s best selling ball pen. In 1964 BIC launched BIC Orange. Stars are products that have successfully reached the growth stage and they need ongoing promotional support, they are already providing high cash returns. The Cristal Grip and Cristal Gel Pens, and Twin Lady shavers are stars with well-established growth patterns. In 1990s Cristal and Orange Ball pens become more mature and encountered fierce competition from lowed price brands. Cash Cows have reached the maturity stage and now yielder. They have a high market share in the market. Like The Cristal Ball Pen and Classic

Shaver are popular and wee established products with very unit sales. Dogs are products in decline. These have a low market share in a low growing or declining market. The Tough Beard are now is declining stage; has not warranted further development. These products have become well-established icons, the promotions empathies rewarding loyal customers. When BIC launched the Comfort 3 razor, it chose Martin Johnson to represent the brand.

Analysis Part Analysis Part

In 1945, Marcel Bich, who had been the production manager for a French ink manufacturer, buys a factory outside Paris and sets up business with his partner, Edouard Buffard, as a maker of fountain pen parts and mechanical lead pencils. He sees the enormous potential of a ballpoint pen that offers both quality and value.

In 1950, Marcel Bich introduces his ballpoint pen in Europe, which he calls “BIC” a shortened, easy-to-remember version of his own name. In 1956 BIC begins operations outside of Europe and opens in Brazil. BIC launches the M10 Clic retractable ballpoint pen

In 1958 Recognizing the universal appeal that a mass-produced ballpoint pen has, Marcel Bich turns his attention to the vast United States market and buys the Waterman Pen Company in Seymour, Connecticut. BIC also starts its development in Africa and the Middle East. In 1963, Waterman-BIC moves to its present site in Milford, Connecticut, which is today the headquarters of BIC Corporation.

This case of BIC is concern about the products life cycle. The total concept of the case is a company has many products. If we concern about a particular product then we can see that there are some products, which are now in introductory stage, some are mature and some are declining. As per as consumers’ expectations and requirements firms need to develop new product. Sometimes they come with completely new idea; sometimes they just make improvements on existing ones. And there are the company carried its older product too.

Some Information When the Products Launch: -

In 1950 Marcel Bich introduces his ballpoint pen in Europe, which he calls “BIC” a shortened, easy-to-remember version of his own name.

In 1973 BIC diversifies its activities by launching the BIC Lighter with adjustable flame. With its quality and reliability, it becomes a major success

In 1975 Not content to just revolutionize the writing and lighting habits of the world, BIC also launches a one-piece shaver that offers a quality shave at a fraction of the price of more traditional systems.

In 1981 Recognizing the growth in the leisure industry, BIC begins a subsidiary called BIC Sport, which markets sailboards. Today BIC Sailboards are the number one selling sailboard in the world.

In 1985 BIC launches its BIC Mini lighter.

In 1992 BIC acquires Wite-Out Products, Inc. and prepares to launch a complete line under the Wite-Out Brand. BIC launches the Softfeel Ball Pen.

In 1998 BIC introduces more than 10 stationery products including the BIC NS Fine, Wide Body™, M.V.P Erasable™ ball pens, Great Erase™ and Softsider™ mechanical pencils, the Softfeel Bold™ permanent marker, and Wite-Out brand correction tape. The company also launches the BIC Spicy Mini electronic lighter with striking colors, the SureStart child-resistant utility lighter, and BIC Plus™ shavers.

In 1999 BIC launches more new stationery products including BIC Cristal Grip™, Round Stic Grip™, Atlantis™, and Softfeel Jumbo ballpens, Softfeel Rollers, Softfeel Finestyle, as well as the Tipp-Ex Mini Pocket Mouse™.

In 2001 BIC continues to launch new products in the stationery business (BIC CRISTAL Pocket, e.3, CONTE Triangular PLASTIDECOR), the BIC Megalighter and the BIC COMFORT TWIN one-piece shaver.

In 2002 they launch new value added products such as BIC CRISTAL GRIP and VELOCITY ballpoint pens, BIC Z4™, GRIP ROLLER, INTENSITY™ PASTEL, INTENSITY™ METALLIC, INTENSITY™ FLUO and INTENSITY™ CLIC rollers; CONTE EVOLUTION TRIANGLE color pencil; TIPP-EX/BIC WITE-OUT EXACT LINER™ correction tape; BIC Styl’it lighter case; BIC SPORT kayak.

In 2004 In stationery, BIC introduce new products with a more contemporary design, like the Flip Your BIC™ gel ink roller, the Z4™ Handwriting / Z4™ Bold felt tip pen, the Z4™ highlighter or the BIC Velleda Grip dry wipe marker.

The Boston Box: -

BIC is the multinational company with Stationery products. They have many products, which are stands on the different stages of product life cycle. On the basis of “The Boston Box” which is develop by The Boston Group; there are four types of products,

1) Problem Children, 2) Stars, 3) Cash Cow, 4) Dogs.

Problem Children are newly launched products. Many products fail to move beyond this phase. There are some products of BIC have recently entered in market include Cristal Colours and Cristal Pocket in the pen market, and Comfort 3 and Soleil in the shavers market. In 1951 Cristal Ball pen was launched. It has 30% of market share and UK’s best selling ball pen. In 1964 BIC launched BIC Orange.

Stars are products that have successfully reached the growth stage and they need ongoing promotional support, they are already providing high cash returns. The Cristal

Grip and Cristal Gel Pens, and Twin Lady shavers are stars with well-established growth patterns. In 1990s Cristal and Orange Ball pens become more mature and encountered fierce competition from lowed price brands.

Cash Cows have reached the maturity stage and now yielder. They have a high market share in the market. Like The Cristal Ball Pen and Classic Shaver are popular and wee established products with very unit sales.

Dogs are products in decline. These have a low market share in a low growing or declining market. The Tough Beard are now is declining stage; has not warranted further development. These products have become well-established icons, the promotions empathies rewarding loyal customers. When BIC launched the Comfort 3 razor, it chose Martin Johnson to represent the brand.

Promotion on the basis of Boston Box: -

BIC Cristal and the Classic shave have a long life cycle and although they have had technological improvements over the year, the style and design of these products have not changed.

When these products were launched, promotional activity would have focused on generating awareness and encouraging consumers to trial the products. These products

have become well-established icons, the promotions empathies rewarding loyal customers.

When BIC launched the Comfort 3 razor, it chose Martin Johnson to represent the brand. BIC invested heavily in outdoor media such as billboards and conducted national press advertising to raise awareness.

With Cristal Gal, BIC carried out a large amount of below the line activity. To build awareness of the new product, BIC supplied existing Cristal Ball pen users with Cristal Gel samples through special promotional packs and sampling campaigns to office users. BIC continues to use market research data to help it better understand market developments and consumer requirements; they make the customer as their regular customers.

At the stag, advertising and special offers encourage new user to try the product. As a product moves toward maturity, BIC’s marketing experts need to identify ways of injecting new life into it.

They must also identify new product developments that can meet similar consumer need. Once product has moved into decline, a company like BIC will look to replace it with new products that meet existing and evolving customer need.

Market Positions: -

Not content to just revolutionize the writing and lighting habits of the world, BIC also launches a one-piece shaver in 1975 that offers a quality shave at a fraction of the price of more traditional systems. BIC Shavers now have a leading market share among one-piece shavers.

Recognizing the growth in the leisure industry, BIC begins a subsidiary called BIC Sport in 1981, which markets sailboards. Today BIC Sailboards are the number one selling sailboard in the world.

In 1998 BIC introduces more than 10 stationery products including the BIC NS Fine, Wide Body™, M.V.P Erasable™ ball pens, Great Erase™ and Softsider™ mechanical pencils, the Softfeel Bold™ permanent marker, and Wite-Out brand correction tape. The company also launches the BIC Spicy Mini electronic lighter with striking colors, the SureStart child-resistant utility lighter, and BIC Plus™ shavers. From 1998 until 2003, CITROEN, the famous French car manufacturer, launched in partnership with BIC, a limited edition of the SAXO model: the Saxo BIC.

BIC reinforce their partnership with Disney by launching Disney Magic Artist BIC full range of coloring products; CONTE coloring products are progressively commercialized under BIC KIDS brand. In shaver, BIC launch the first triple-blade in the one-piece segment specifically designed for women: BIC Soleil. BIC Sport enlarges its kayak range.

Recommendation Recommendation

On the basis of the stage of product life cycle BIC can plan about the cost cutting strategy.

Today is the day of high competition, the have to more focused on the public relationship.

BIC must make research about their position on the costumer mind.

The product which are in declaring stage BIC should have to find out that is the reason behind it, then they can reintroduce those products and also can increase the knowledge level of them that where and what could lead to wrong.

BIC have to make more investment on Research and Development.

They also have to focus on their product, which are very popular, cause on the age of competition customers can easily switch form one product to another. So they have to make a good amount of promotional investment on those products.

Conclusion Conclusion

BIC is an innovative organization that uses its line technical and marketing expertise to supply consumers with the products they want and need. BIC continue to grow their geographic presence and offer higher-quality products at a fair price to consumers, launch of Cristal Pocket Scents™ and Orange™ Grip ballpoint pens, Cristal Gel and Velocity Gel rollers. Businesses that understand the Boston Box and product life cycles are able to target appropriate promotional activities to support the various products in the portfolio. Well establish products such as BIC Cristal and Classic shaver are the cash cows that enable BIC top thrive by developing its stars and some of its questions mark in the line with market needs.