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 FEATURESBasic component of a product.

ASSOCIATED FEATURESShape, capacity, power steering, colorBrand name

Packaging

branding

NATURE OF PRODUCT

Theodore Levitt1980The concept

Generic product

Expected product

Augmented product

Potential product

Generic productUnbranded,plainly packaged, less expensive

Expected productCustomer required attributes & conditions

Augmented productDifferenciation+adding values

Potential productAll improvements that are possible under given technological, economic and competitive conditions.

PRODUCT CLASSIFICATION

DURABILITY AND TANGIBILITYNon durablesDurablesservices

USAGE

Consumer productsConvinienceShoppingSpecialityunsought

Industrial productsRaw materialComponentsCapital equipmentsConsumable suppliesBusiness 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 mixContraction of product mixAltering existing productsPositioning the product

Trading upTrading down

• Line stretching• Beyond current range of products

• Line filling• Adding more products to existing range of product lines

• Line pruning

PRODUCT LIFE CYCLE

IntroductionGrowthMaturitySaturationdecline

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.