Presentation on theme: "What is Product Planning? Chapter 34. What is Product Planning? Product Planning - involves making decisions about the production and sale of a business’s."— Presentation transcript:
What is Product Planning? Product Planning - involves making decisions about the production and sale of a business’s products. These decisions can include: Packaging Labeling Warranties Guarantees Branding Product Mix
Product Mix, Line & Items Product Mix – all of the different products that a company makes or sells. Product Line – is a group of closely related products manufactured and or sold by the business (detergents) Product Item – is a specific model, brand or size or a product in a product line. (Tide)
Product Width & Depth Product Width – is the number of different product lines a business manufactures or sells. Product Depth – refers to the number of product items offered within a product line.
Product Mix Strategies Developing New Products Expand a Product Line Modify a Product Line Delete a Product or Product Line
Developing New Products 1. Generating Ideas 2. Screen Ideas 3. Develop the Product 4. Testing the Product 5. Introduction 6. Evaluate
Expand the Product Line Build on a Product or Company Image – Hershey’s came up with the Hugs after having a successful Hershey’s Kisses Brand for many years Increase Sales or Profits Appeal to New Markets – SUV’s
Modifying Product Lines Product Modification – is an alteration of an existing product. Usually Quick and Easy 16,000 health, beauty household products introduced in one year 70% are modifications. New Packaging, New Ingredients, New Size etc…
Deleting a Product Line The Product is Obsolete The Product has lost its appeal The Product is dropped to make room for Other Products. No Longer Profitable Conflicts with other products in the product line.
The Product Life Cycle Introduction Growth Maturity Decline
Introduction Stage High Promotion and Production Costs Goal is to increase customer awareness Special Promotions may be tied in to the product. Least profitable stage of the Life Cycle.
Growth Stage Enjoying Success Increasing sales and profits. The competition has been made aware of the success of the product and have started to compete.
Maturity Stage Sales have started to level off Lots of money being spent to fight off the competition. Continue to Improve the product to gain additional sales.
Decline Stage Sales Fall Companies can use any of the following strategies Sell or License the Product Recommit to the Product Line Discount the Product Regionalize the Product Modernize or Alter the Product.
Product Positioning Product Positioning refers to the efforts a business makes to identify, place and sell its products in the marketplace.