PRODUCT SERVICE MANAGEMENT FUNCTION MKT-MP-9 Employ processes and techniques to develop, maintain, and improve a product/service mix to utilize market opportunities.

Product Planning How are decisions made to introduce new products and delete old ones?

Product Planning Involves making decisions about those features that are needed to sell a business’s products, services, or ideas.

Product Planning These decisions relate to: packaging labeling warranties guarantees branding product mix

What is Product Planning? (cont.) Product Item: A specific model, brand, or size of a product within a product line. Product Line: A group of closely related products manufactured or sold by a business. Product Mix: All the different products that a company makes or sells. Product Width: The number of different product lines a business manufactures or sells. Product Depth: The number of product items in a product line.

Product Mix and Product Line The set of all products offered for sale by a company PRODUCT LINE A broad group of products for similar uses and with similar characteristics

Product Mix http://www.fritolay.com/index.htm Includes all the different products that a company makes or sells.

Identify ways in which product lines can be organized. Product Line = group of closely related products manufactured by a business Product Item = specific model, brand, or size of a product within a line Ex: P&G has over 250 products within 21 product lines Dish care is a product line Cascade, Dawn, Joy, & Ivory are product items

Describe product mix dimensions. Some companies have different brands for different markets Coca-Cola has different drinks for sparkling beverages, water, juice, performance, coffee, tea, and international flavors.

Product Line A group of closely related products manufactured and/or sold by a business.

Product Item A specific model, brand, or size of a product within a product line.

DIMENSIONS WIDTH = number of product lines carried by a company. NARROW = offering a limited number of product lines BROAD = many different product lines carried DEPTH = number of products and the assortment of sizes, colors, and models offered in a product line SHALLOW = limited variety within a product line DEEP = extensive variety within a product line

Product Mix DEPTH PRODUCT MIX Variety of sizes, colors, models within a product line PRODUCT MIX BREADTH The number of product lines carried

Product Width The number of different product lines a business manufactures or sells. Width of the Gillette Product Mix Oral Care Blades & Razors Personal Care Batteries Appliances

Product Depth The number of product items offered within each product line. Oral Care Blades & Razors Personal Care Batteries Appliances

NARROW PRODUCT MIX = Limited product lines carried, typically very specialized. A description of the width of a business's product mix offering a limited number of product lines.

Broad Product Mix = Many different product lines carried. A description of the width of a business's product mix offering many product lines.

Shallow Product Mix = Limited variety within a product line. A description of the depth of a business's product mix offering few items in the product line.

Deep Product Mix = Extensive variety within a product line. A description of the depth of a business's product mix offering a great many items in the product line.

Identify reasons that a business would offer a narrow product mix. Product Width – number of different product lines CONTRACTING - Pruning weak brands can strengthen the remaining brands in the line. Ease on management Cost effective Simplicity Consistency

Identify reasons that a business would offer a broad product mix. Product Width – number of different product lines EXPANDING Reach all markets Competitive advantage Ex: Red Lobster specializes in seafood, but offers chicken and steak to broaden their product mix.

Identify reasons that a business would offer a deep product mix. Product Depth – number of items offered within each product line EXPANDING Variety Quantity Ex: Kohl’s carries various quantities of sizes, colors, & styles of Levi Jeans.

Identify reasons that a business would offer a shallow product mix. Product Depth – number of items offered within each product line CONTRACTING Cost effective Satisfy small markets Ex: Only 2 chicken items on Red Lobster’s menu.

Work Session: Choose a company that offers a variety of products. Outline the product width and depth.