Henry Ford defined the theory of limited products as a method of market segmentation through his Model T as he ruled the

markets for a considerably long period by selling and bulk producing only one variant of the automobile- Model T. His basic afterthought lay in the fact that customers don't know what they want and can't articulate their needs. He was also in favor of constraining choices in order to reduce manufacturing costs. The basic idea is that customers usually aren't very good at describing solutions. But when properly asked, they're very good at describing their needs - what they like, what they don't like, what makes their lives hard or easy, what they wish for, and what they're trying to get done. Simpler the solution, more accepted is its result. Hence forth moving along the ideology of Henry Ford, limited product line is occasionally considered as a profitable market segmentation generally targeting the average customer. The success story of Henry Ford and his theory can be well analyzed and studied through various illustrations. When it comes to serving customers, businesses can move in one of two fundamental directions. They can standardize operations so that every customer receives the same options and treatment as every other customer. Think of Henry Ford in 1908 talking about the fabled Model T: Any customer can have a car painted any colour that he wants so long as it is black. On the other hand, a business can try to operate so that every customer is treated, to the greatest extent possible, as a unique individual a market segment of one, if you will. Henry Ford, after all, could have tried to create a company that offered any color car that a customer asked for with operations split into color-coded divisions ending with a corporation in chaos. While that second option makes for great marketing theory, it is, of course,

impracticable for any company with a large number of customers. Nonetheless, we have witnessed on many occasions how segmentation champions inside companies have introduced unnecessary complexity and overcomplicated operations. The risk is perhaps greatest when a company makes the transition from a rudimentary segmentation model toward a more refined way of segmenting and servicing customers. In this situation, there is a clear risk that the pendulum swings too far and that business activities become overly segmented whether or not it actually matters to customers. This can result in fragmented operations driven more by the desire of segment champions to differentiate themselves internally within the organization than by actual customer needs. .Certain advantages prevail as to capture markets by producing just one product and companies tend to strategize and depending on such advantages which are as follows Focus: You get to narrow your focus on creating one really awesome product. Without all the distractions of building, managing and selling multiple products, you get to really hone the finer details of your main offering, making it much better than any others in the market. It also allows you razor-sharp focus in your marketing tactics, in picking the highest quality channels and in sourcing traffic that quickly converts into happy customers. Being Niche: You have the ability to be incredibly niche, and instead of building a product that serves all, you can build a product that is serving an under-served market exceptionally well. Targeting the long tail of the market can lead to great success because you will be able to easily capture most of those who feel under-served.

Being Efficient : With razor-sharp focus on one product, targeting one type of consumer, you can rapidly develop your product rather than splitting your efforts across multiple channels. In fact, you get to really know your customer, becoming more sensitive to their changing needs. At the same time, you become agile enough to reiterate your product offering to cater to those needs. Such segmentations are rare today in the modern day marketing world as more and more companies are increasing their product portfolios due to increasing cut throat competition and ruling markets through Uni-product strategy is now not feasible considering the current market scenario. But still this strategy is considered profitable targeted at the average consumers as we can see through various illustrations as how often manufactures have captured markets through unique single flagship product.

APPLE INC.
When it comes to capturing and ruling markets through limited but unique products, Apple Inc is somewhat the modern day father of this marketing theory of segmentation as it is still applicable in foreign markets where the theory is highly profitable and is targeted at the average consumer. While other companies release an inordinate number of products in an attempt to satisfy every potential customer, Apple has kept its product line-up relatively streamlined in comparison. Not only does this make things less confusing for consumers, but it also helps consumers understand what theyre actually paying for. Everyone knew what the iPhone had to offer almost immediately upon its release. Now, imagine if Apple had released an iPhone, an iPhone Nano, an iPhone Mini, and an iPhone Pro. Consumers would have no idea where to even start, and theyd actually have to study up on all the different models before they made their purchase. Most people dont have the time to do that, and to be honest, most probably dont care to either. Apple has succeeded by limiting consumer choice, and Apples small product line-up has been a key factor in that success. Apples simplified approach to selling computers helped reenergize the company as it forced Apple to focus on doing a few things extremely well, while not letting its talent and resources drift off in a number of different directions and projects. That narrow focus eventually led to the development of the iMac, the iPod, and the iPhone three products that together have helped Apple achieve record breaking financial and critical success. Apple understands that consumer choice is great, but too much choice can easily lead to customer confusion and frustration. Its also worth pointing out that its easier for companies to provide quality technical support when there arent 15 models of a product that technicians need to be familiar with.

MICHELIN TYRES
In a day and age where most companies have almost too much going on, Michelin has remained faithful to the cause of strictly manufacturing quality tires. Planes, cars, bikes and more have benefited from over 100 years of tire-making success, giving the creator of the first radial tire a customer base that spans the globe. While this company has dabbled in the fine art of creating rocket fuel components and designing road maps, the famous tire division is what keeps this company moving forward. In the cutthroat age of competition, Michelin has stuck to its strategy of limited but efficient products and is a market leader in the tyre industry and has never tried to expand its product portfolio.

Maruti 800
Maruti Suzuki revolutionized India as it targeted the average consumer and launching just one of its product, the maruti 800 which redefined the automobile history of our country. Based on the Fordism approach, Maruti aimed at mass production, but limited product and became the market leader and retained this coveted position for a considerable amount of years. The following sales figures show us how consistent was Maruti with its Maruti 800 as it ruled the Indian automobile market Fiscal years 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Domestic sales 106114 139403 183593 184584 161975 189061 151976 144387 143322

CROCS INC
Crocs Inc is one of the shoe manufacturers who has kept its strategy at its simplest best- woo customers buy mass selling and promoting its single flagship product- The CROCS. The Company is itself named after its flagship product and does not wish to increase its product portfolio and banks on capturing major market share especially the average customers through its single product These ugly, but super-comfy, foam clogs have been a huge hit since they were first released to the public. Over 100 million pairs of the Crocs shoe have been sold to date, and the footwear giant shows no signs of stopping. With a wide variation of the basic clog from which to choose (toddlers, women, men, athletic, dress and beach-inspired, to name a few), the sky really is the limit for this business.

DOCTORS ASSOCIATE INC- SUBWAY

Subway is an American restaurant franchise that primarily sells submarine Sandwiches (subs) .It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 37,000 restaurants in 100 countries and territories as of June 27, 2012. It is the largest single-brand restaurant chain globally and is the second largest restaurant operator globally after Yum! Brands (over 37,000 locations) Instead of diversifying its menu cards, the fast food giant kept it simple by catering to the average consumer by selling simplistic limited products and is one of the big brands in fast food industry. The success story behind this chain Henry Fords model of limited product segmentation.

MARKET SEGMENTATION LIMITED PRODUCTS MODEL (FORDISM)

- IS IT PROFITABLE WHEN TARGETED AT THE AVERAGE COSTUMER?

NAME : SIDDHANT SHETH ROLL : 0265 ROOM : 14 SUB : PRINCIPLES OF MARKETING