1. Unit 2 Product Planning Chapters 34

2. What is Product Planning? Product planning Making decisions about the production and sale of a business product Packaging, labeling, warranties, guarantees branding, & product mix Product Mix The different products a company makes or sells

3. Product Mix Items & Lines Product Line- closely related products made/sold by a business Product item- a specific model, brand or size within a product line Width & Depth Product width- number of different product lines offered Product Depth- number of different product items offered within a product line.

4. Examples of Width & Depth Retailer w/ several brands of jeans Jordache Levi’s Lee Wrangler Width or Depth Red Lobster Specialize in seafood dinners Width or Depth One of each on your own. Discuss!

5. Product Mix Strategies Mix The plan for how the business determines which product to stock or make 3 Choices Expand/modify current product lines Drop an existing product Develop new products Depends on company resources & objectives

6. Importance of Developing New Products Added to boost sales & market share New products (> 5 years) account for 35% of sales Creates image of innovator & leader Increase markup b/c they’re priced 10-15% higher

7. GENERATING IDEAS SCREENING IDEAS DEVELOPING THE PRODUCT INTRODUCING THE PRODUCT TESTING THE PRODUCT EVALUATING ACCEPTANCE 6 STEPS IN DEVELOPING NEW PRODUCTS

8. Expanding the Product Line Build on Company Image Take advantage of brand name Increase Sales & Profit Holding old customers & add new Appeal to New Market New markets = new customers Disadvantages Harmful or defective Increased inventory, promotion, distribution, and storage

9. Modifying Product Lines Product Modification An alteration in a company’s existing product Adding varieties, colors, sizes formulas & features Quick, easy and safe way to add products to product line

10. Deleting a product or line Product is obsolete Lost Appeal Doesn’t match Objectives Make Room for New Product Not Profitable Conflicts w/ other products in same line

11. The Product Lifecycle TIME DOLLARS Product Lifecycle represents the stages that a product goes through in its life INTRODUCTION GROWTH MATURITY DECLINE SALES PROFITS

12. Product Positioning Product positioning The efforts a business makes to identify, place and sell its products to the market Creates an image of a product Identify customer needs Compare to competition

13. Strategies to position products Price & Quality Benefits Unique Characteristics In Relation to Competition In Relation to other products in line

14. What is Category Management A process that involves managing product categories as individual product units Categories may include a group of product lines w/ same target market Planograms Computer developed diagrams showing how & where to display products in stores

15. Group Work!! Provide specific examples of… Expanding the Product Line Explain why you think the company… Deleting A Product Explain why you think the company… The Product Lifecycle Provide an example of a product in each stage Product Positioning Provide an example of 3 of 5 Use Computers Print out Pictures Be Prepared to explain to class

16. Book Work Page 457 Case Study Ques. 1-3 Page 460 Critical thinking1-7