Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts. This presentation describes how a firm can limit product proliferation without incurring reduced sales or lowering consumer loyalty. An effective product proliferation reduction program needs to be based on several principles: resisting the temptation of asking consumers if a greater assortment is required; classifying goods into consumer behavior-based tiers; using interfunctional product pruning teams; practicing mass customization, where appropriate; placing absolute limits on product choice; and implementing effective strategies for product pruning.

1. STRATEGIES TO REDUCE
PRODUCT PROLIFERATION
Team 10
Chronis Sokratis
Karalis Dionysis
Palamida Lilian
Papakosma Marianna
Course Title: Marketing Planning
Instructor: Christos Koritos (Ph.D)

2. Summary
• Introduction
• Managerial Concerns
• Causes of Product Proliferation
• Effective Strategies
• Big Ideas

3. Introduction
• What is Product Proliferation?
“ Product proliferation is the marketing of insignificant variations (e.g., color)
of the same basic product by manufacturers and/or resellers ”
(Berman, 2002)
Negative Impact of Product Proliferation
45%
35%
32%
29%
24%
Capital efficiency
Profitability
Product Quality
Sales Effectiveness
Customer Service/
Satisfaction

4. Managerial Concerns
• Added cost associated with shorter production runs
• Increased cost due to trade promotion and slotting fees
• Higher levels of consumer confusion and stress
• Increased susceptibility to stockouts
• Success Story : 90% of Clorox SKU’s have met sales and profit targets

5. Causes of Product Proliferation
“All things
to all people”
strategy
Causes
Tendency of
managers not
to prune
products
Demand for
unique
products
Product life
cycle
Part of a
“barrier to
entry”
strategy
Pressure
from
functional
areas within
the frame
Low risk
strategy to
increase
sales

7. Effective Strategies
Impact of SKU’s
assortment size
Goods based on
consumer
behavior
Product pruning
teams
Mass
Customization
Limits on
product choice
Product
withdrawal
strategies

8. Big Ideas
• Implementing mass customization programs
• Selling to
Value – based consumers
Consumers willing to accept the tradeoff between
reduced choice and lower prices
• Avoid offering special product variations or unique private labels

10. Thank you !