C H P T R11revised

PRODUCT & PRODUCT LINES

PRODUCT PLANNING
Is the systematic decision-making related to all aspects of the development and management of a firm’s products including branding & packaging

PRODUCT PERSONALITY
CORE FEATURES
Basic component of a product.
ASSOCIATED FEATURES
Shape, capacity, power steering, color
Brand name

Packaging
branding

NATURE OF PRODUCT
Theodore Levitt
1980
The concept

Generic product Expected product Augmented product Potential product

Generic product
Unbranded,plainly packaged, less expensive
Expected product
Customer required attributes & conditions
Augmented product
Differenciation+adding values
Potential product
All improvements that are possible under given technological, economic and competitive conditions.

PRODUCT CLASSIFICATION
DURABILITY AND TANGIBILITY
Non durables
Durables
services

USAGE
Consumer products
Convinience
Shopping
Speciality
unsought
Industrial products
Raw material
Components
Capital equipments
Consumable supplies
Business services

PRODUCT POLICY

Color cosmetics Hair care Skin care Oral care deodorants Soaps and detergents Toilet soaps beverages food

PRODUCT MIX
Set of all the products that an organization offers to customers
WIDTH- total no of product lines
LENGTH- total number of items in a mix
DEPTH- variations, sizes, colors
CONSISTENCY- closeness exhibited by product lines

PRODUCT MIX STATEGIES

Expansion of product mix
Contraction of product mix
Altering existing products
Positioning the product
Trading up
Trading down

Line stretching
Beyond current range of products
Line filling
Adding more products to existing range of product lines
Line pruning

PRODUCT LIFE CYCLE

Introduction
Growth
Maturity
Saturation
decline

Introduction
Rapid skimming-HP, HPrms
Slow skimming-HP, Low proms
Rapid penetration-LP,H promos
Slow penetration – LP,LPromos
RS55000 3.39 LAKHS

Growth
Aggressive pricing
Product benefits-niche
Improve quality
Introduce distribution channels
Enter new markets

Maturity
Abandon weaker products & concentrate on profitable pdts.
Increase sales promos
Packaging
R&D

decline
Strengthen competitive position
Drop unprofitable customer group
Divest the business.
Harvest the firm’s investment.

Thank YoU

C H P T R11revised

by guest243062 on Dec 31, 2007

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