A product can be an item or service. Product management is an important thing in organisation point of view. Product management is not only for customers it is equally important for inside the organisation as well.
Why product management is important to an organisation?
It’s all based on product life cycle, every product will have four stages in its product life cycle. It includes product development, product growth, maturity, and decline.
In this stage an organisation will thinks to produce a new product or service. Organisation starts focusing on market. Firstly firm will launch a product based on the data they have from the potential customers and they will try to get their patents on it. After this, organisation will think about the price fixing for the new product to build their market share. Before making it available to all customers, organisation will send this product to selected potential customers to expect the acceptance of product. Then they will start promoting the product and make it available for public.
In this stage organisation thinks to increase their market share by providing some deals with the customers. Organisation will try to maintain the quality of product and price as the organisation starts enjoying the market share when compared with other firm’s products available in market.
At product maturity stage the sales of the products or services starts to fall down due to the competition with other similar products. Usually at this stage organisation will think to maximize their profits by securing their market share by making some noticeable changes in their products or by reducing the price of the product. To maintain the products in market organisation will give some inducements to sellers and also to the customers. Also the organisation will start concentrating on the differentiating the product.
In this stage firms experiences the fall of sales. Organisations will try to maintain their product in market either by renovating it or by reducing the original price in order to attract customers who doesn’t effort the starting price of the product.
For example as Apple releasing the iPhone 7, it is reducing the prices of iPhone6 and 6s.
In this context I would like to talk about a new start-up in India “OYO rooms”. In India it was very hard to get a budget hotel rooms previously. Oyo introduced premium hotel rooms for budget prices. It gained a lot of attention and got succeeded as a best start-up in recent times. After the launch of OYO everyone is able to afford the premium hotels since they are offered at budget prices. Most of the potential customers of this start-up are youth. After conducting some campaigns OYO came to know that still some people are not happy with the service they are providing because of societal barriers. There is no law stating that any unmarried couple cannot stay together in a private room but still most of the hotels and service providers are not giving room for the unmarried couples. Now OYO launched a new a service for the couples who are unmarried. This is a huge initiative brought up by OYO in India. Before to OYO there were some people tried to do this but they haven’t achieved success due to the lack of promotion and awareness. Since, OYO are a big brand currently, they launched the new initiative and that had become a sensation.
Once chief growth officer of OYO stated that the most potential customers of OYO are youth aged between 18 and 30. But they came to know that they are unable to provide service to their potential customers as it is a societal issue. As a customer focused business they are worried about the potential customers need and started this new service. They are hoping that there will be a huge impact by this initiation in this service industry. OYO declared that from now unmarried couples can stay in any hotel in their city by providing just local proofs which will not affect the customer privacy. OYO launched this new service not to satisfy only the customers and also to attract new customers and to maintain their brand image in the general public. This new product will increase brand image of OYO with mouth publicity. In India mouth publicity is a best tactic than any other promotional strategies because people believe in experience than general publicity. By analysing the customer feedback that the unmarried couple are facing the last minute inconveniences, OYO took a step ahead and started this service to satisfy the need of potential customers.
Gorchels, L. (2000). The product manager’s handbook. Lincolnwood, Ill.: NTC Business Books.
Oyorooms.com. (2016). [online] Available at: https://www.oyorooms.com/ [Accessed 27 Aug. 2016].
The Times of India. (2016). OYO Rooms eyes new guests: Young & unmarried couples – Times of India. [online] Available at: http://timesofindia.indiatimes.com/trend-tracking/OYO-Rooms-eyes-new-guests-Young-unmarried-couples/articleshow/53882941.cms [Accessed 29 Aug. 2016].
Sri Mahesh Jonnalagadda