It may be an idea, a physical thing any service or combination of the three. An article or a substance manufactured for sale. Which exists for the purpose of exchange and; Satisfies individual and organisational objectives.
Product planning encapsulates diversification of products, planning the modification, development and marketing of new products, modifications of existing ones to meet changing needs of consumers and dropping of unprofitable products.
Identifying new product candidates Gathering the voice of customers. Defining product requirements. Determine business case and feasibility. Scoping and defining new products at high level. Evangelising new products with the company. Building product roadmaps and Ensuring products are within optimal price margins and upto specifications.
CATERING TO CONSUMERS REQUIREMENT: Product planning aims at identifying consumer needs, preferences, tastes, likings, aspirations etc.. It also directs the firms resources and efforts for the satisfaction of these by producing the desired product. ENSURING OPTIMUM RESOURCE UTILISATION: Since the resources with the enterprise are limited, product planning here makes sure that all the resources are optimally
utilised. It is concerned with development of new products, improvement of existing one’s, discontinuance of unprofitable products etc.. LOCATING STRENGTH AND WEAKNESSES: It is through product planning that firms are able to pin point there strengths and weaknesses and further with its help they can improve there strengths and minimise weaknesses.
ENSURING FIRMS SURVIVAL: In today’s scenario a firm can ensure its survival in the market if it tries to get latest information about the market. It must keep a track of the changes in consumers requirements and accordingly customise the products. TO INCREASE SALES: Sales is an important factor to be considered. It helps in developing those products that satisfy the twin objective of
catering to the consumers requirements and increasing the sales to a considerable extent. Every firm must devise technology that helps in maximising production, improving quality and reducing cost.
PRODUCT INNOVATION: The very first component of product planning is innovation which an enterprise must consider while developing certain product. Through innovation a firm can have a creative edge over others.
PRODUCT LINE AND PRODUCT RANGE: Product line is a group of homogeneous products that have similar use, similar physical traits and closely related to each other and having same distribution channel. Whereas Product range basically offers variety to consumers for making choices keeping in mind their requirements and price affordability.
PRODUCT DIVERSIFICATION: Diversification implies adding more variety to existing lines of products. It provides wider choices to consumers and brings growth and stability to organisation. PRODUCT STANDARDISATION: It refers to certain standards that a firm sets for its product range. Consumers choice and selection is made easy through
standardisation. It also promotes simplification leading to economies of scale. PRODUCT ELIMINATION: A firm undergoes product elimination when a particular product’s sales start declining, it becomes unviable for the firm to continue with its production, or changes in tastes and likings of consumers may contribute to product elimination.
Under these conditions a firm is left with no option but to stop the production of that product.
Thus, it is necessary for every firm to do product planning and development for gaining fruitful results. A business concern through its effective planning and development can ensure its survival in this competitive world. So above mentioned points should be taken into tab by business enterprises for there growth.