INDUSTRIAL ORGANISATION
1
ECON 331: INDUSTRIAL ORGANISATION
TOPIC: ANALYSIS OF THE NEWSPAPER ARTICLES
SUBMITTED BY:
Vishakha Agarwal
BABE-3
110144
2
INTRODUCTION
1. PRODUCT DIFFERENCIATION
“Diversity is the staff of economic life.” The theoretical tool of dealing with diversity is product differentiation. (Rosen.2002). It is an important component of imperfectly competitive strategic interaction. Sometimes, producers create physical and psychological differences between goods that are nearly identical so that consumers do not regard them as identical products. Product differentiation is most commonly done in the FMCG sector in products such as soaps, cereals, detergents, etc. It results in greater number and higher quality of the available products.
There are two types of differentiation: natural and strategic. Natural differentiation arises due to sources like geographic variation, new technology, brands and trademarks and consumer taste and preference. Strategic variation, on the other hand, arises due to sources like additional services, factor variations and consumer ignorance. Horlicks, a 140 years old brand has not only succeeded in keeping the brand alive for more than a decade but has also incorporated both strategic and natural differentiation to enter the market with products such as noodles, biscuits, oats and health bars. Though these products are usually considered to be
FMCG products, Mr. Zubair Ahmed, the managing director of GSK Consumer Healthcare proudly says “I am happy not being a typical FMCG company. As of today, Horlicks accounts for 46.4% of the approximately Rs. 5000 crore health foods drink category. The
Indian subcontinent is the brands largest market accounting for 70-80% of the total volumes.
GSK consumer health care has two major strategic plans to increase its shares. Plan A was to turn Horlicks from a malted milk brand to a healthy food brand including categories such as energy bars and noodles. This plan has already
ECON 331: INDUSTRIAL ORGANISATION
TOPIC: ANALYSIS OF THE NEWSPAPER ARTICLES
SUBMITTED BY:
Vishakha Agarwal
BABE-3
110144
2
INTRODUCTION
1. PRODUCT DIFFERENCIATION
“Diversity is the staff of economic life.” The theoretical tool of dealing with diversity is product differentiation. (Rosen.2002). It is an important component of imperfectly competitive strategic interaction. Sometimes, producers create physical and psychological differences between goods that are nearly identical so that consumers do not regard them as identical products. Product differentiation is most commonly done in the FMCG sector in products such as soaps, cereals, detergents, etc. It results in greater number and higher quality of the available products.
There are two types of differentiation: natural and strategic. Natural differentiation arises due to sources like geographic variation, new technology, brands and trademarks and consumer taste and preference. Strategic variation, on the other hand, arises due to sources like additional services, factor variations and consumer ignorance. Horlicks, a 140 years old brand has not only succeeded in keeping the brand alive for more than a decade but has also incorporated both strategic and natural differentiation to enter the market with products such as noodles, biscuits, oats and health bars. Though these products are usually considered to be
FMCG products, Mr. Zubair Ahmed, the managing director of GSK Consumer Healthcare proudly says “I am happy not being a typical FMCG company. As of today, Horlicks accounts for 46.4% of the approximately Rs. 5000 crore health foods drink category. The
Indian subcontinent is the brands largest market accounting for 70-80% of the total volumes.
GSK consumer health care has two major strategic plans to increase its shares. Plan A was to turn Horlicks from a malted milk brand to a healthy food brand including categories such as energy bars and noodles. This plan has already
References: Shah, G. 2013. We 're retiring brand ESPN to focus on 6 Star Sports channel. MINT, 6th November, p