Product Planning - Parkway Schools / Homepage Planning.pdfDescribe the steps in product planning...
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Product Planning
Transcript of Product Planning - Parkway Schools / Homepage Planning.pdfDescribe the steps in product planning...
Product Planning
Objectives Describe the steps in product planning
Explain how to develop, maintain, and improve a product mix
Vocabulary Terms
• 1. Product Mix
• 2. Product Line
• 3. Product Item
• 4. Product Depth
• 5. Product Width
Product Planning Making decisions about what features should be used in selling a business’s products, services, or ideas.
Decisions relate to features such as:
Packaging, labeling, and branding
Warranties and support services
Product Planning Allows Businesses To:
Coordinate existing products and features
Add new products
Delete products that no longer appeal to customers
Product Mix All of the different products that a company makes or sells.
A retailer’s product mix is made up of all the different products the store sells.
Click on products to see Proctor and Gambles extensive product mix!
Product Mix Kraft is another great example! – Hundreds of products in 5 areas:
• Snacks • Beverages • Cheese • Groceries • Convenience Meals
– Kraft’s key brands include: Kraft, Kool-Aid, Maxwell House, Nabisco, Oscar Mayer, and Post.
Product Mix
Adding more products, may not result in increase sales, sometimes it can take away sales from existing products.
– Pepsi One takes away from Diet Pepsi sales
The type and number of products that a retail
store offers must be based on the image the business is trying to project and the market they are trying to reach
Product Line A group of closely related products manufactured or sold by a business.
– related products of various
sizes, types, colors, qualities, or prices.
• Example: range of desktop
and laptop computers manufactured by Dell.
• Apple’s Product Line Secret
Product Item
A specific model, brand or size of a product within a product line.
– Retailers generally carry several product items for each product line they sell
• Macy’s carries many styles and sizes of Guess Jeans for men, women, and kids
Product Width
The number of different product lines a business makes or sells
– A retailer that sells three brands of jeans (Levi’s Lee, and Guess) has a product width of three
Product Depth
Number of product items offered with in each product line
– Red Lobster specializes in seafood dinners and has great depth within a narrow product line. You can order shrimp prepared 16 different ways.
Width and Depth
Product Width
Kohl’s Department store stocks several brands of jeans: Lei, Levi’s, J-Lo, & Wrangler which demonstrates product width.
Product Depth The product depth is the number of sizes, price ranges, colors, and styles for each brand of jeans (Lei jeans have boot cut, flare, low rise, ankle etc).
Blades And Razors
Toiletries Writing
Instruments Lighters
MACH 3 Sensor Trac II Atra
Swivel Double-Edge Lady Gillette Super Speed Twin Injector
Techmatic
Series Adorn Toni
Right Guard Silkience
Soft and Dri Foamy
Dry Look Dry Idea
Brush Plus
Paper Mate Flair
P R O D U C T L I N E S ………….P R O D U C T L I N E S
I
T
E
M
S Cricket
S.T. Dupont
Gillette Product Mix
Determining a Product Mix
To determine its product mix, a business must:
– Identify its target market
– Identify its competitors
– Decide on the image it wants to project
Product Mix Strategies
The plan for how the business determines which products it will make or carry
1) Develop new product lines or add new products to existing lines
2) Expand or modify current lines
3) Drop existing products
Key Steps in Product Development
Step 2 Screen Ideas
Step 3 Develop Business Proposal
Step 4 Develop Product
Step 5 Test
Product
Step 6 Introduce Product
Step 7 Evaluate
Customer Acceptance
Developing Existing Products
Two ways of developing existing products are:
– line extensions
– product modifications
Line Extensions A different product that appeals to different consumers
Line extensions add new product lines, items, or services.
– Tylenol Flu, Tylenol Cold, and Tylenol Allergy Sinus are line extensions of the original Tylenol Product.
Line Extension
Product Modifications An alteration in a company’s existing product
Modified products may be offered in new and different varieties, formulations, colors, styles, features or sizes.
Write down as many Oreo product modifications you can think of.
Sign up to bring an Oreo product modification to the next class!
Deleting a Product or Product Line
Obsolescence
Loss of appeal
Conflict with current company objectives
Replacement with new products
Lack of profit
Conflict with other products in the line
What products can you think of that are obsolete or have a loss of appeal?
Activity Case Study – New Coke – Work with your table group to find an article online that discusses
the introduction of this product and then answer the following questions:
1. Why did Coca-Cola introduce New Coke and what were they hoping to accomplish?
2. Explain the impact New Coke had on Coca-Cola Classic in the marketplace.
3. What type of product mix strategy was Coke employing by adding this product to Coke’s product mix?
4. Explain the success/failure/surprises encountered during this campaign.
– Write down the questions and your responses. – Be prepared to discuss your responses as a class! – We will move next door and talk about this at 1:00.
