1. Product Planning Product/Service Mix Standard 9

2. Unit 9 Vocabulary Aseptic Packaging Blisterpacks Brand Brand Extension
Brand Label
Brand Licensing
Brand Mark
Brand Name
Category Management
Cause Packaging
Co-Branding
Descriptive Label
Generic Brands
Grade Label
Label
Mixed Brand
Mixed Bundling
National Brands
Package
Planograms
Price Bundling
Private Distributor Brands
Product Depth
Product Item
Product Life Cycle
Product Line
Product Mix
Product Modification
Product Planning
Product Positioning
Product Width
Trade Name
Trade Character
Trademark

3. How are decisions made to introduce new products and delete old ones?

4. What is Product Planning?
Product Planning: The decisions made about what features should be used in selling of a business’s products.
These decisions relate to:
guarantees
branding
product mix
packaging
labeling
warranties

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

6. What is Product Planning?
A well defined product plan allows a business to:
Create sales opportunities.
Design appropriate marketing programs.
Develop effective advertising campaigns.
Coordinate the product mix offered to customers.
Add new products.
Delete older products that no longer appeal to customers

7. Determining what to produce or sell
Businesses will use different product mix strategies to determine what to produce or sell.
Product mix strategies depend on:
Resources
Objectives
Past and current sales
Consumer trends

8. Product Positioning
Product positioning: Efforts a business makes to identify, place, and sell its products in the marketplace.
Positioning by price and quality:
Ex: Ford Motor Company positions its Focus as an economical passenger car while still emphasizing quality.

9. Product Positioning Positioning by features and benefits:
Ex: Oil of Olay was positioned as a premium facial moisturizer and cleanser to keep skin soft and young.
Positioning by unique characteristics:
Ex: Cell phones that can text message or take pictures and send them.

10. Product Positioning Positioning in relation to the competition:
Ex: Warner-Lambert Company introduced Cool Mint Listerine by positioning against the “theraputic” benefits of Original Listerine and the “cosmetic” benefits of Scope.
Positioning in relation to other products in a line:
Ex: Binney & Smith introduced washable crayons and positioned them as a specialty item in the company’s Crayola crayon line.

11. Product Mix Strategies
Developing New Products
Follows six steps:
Generate Ideas
Screen Ideas
Develop a Business Proposal
Test the product with consumers
Introduce the product
Evaluate customer acceptance

12. Product Mix Strategies
Developing Existing Products
Line Extensions: Adding new product lines, items or services.
Ex: Tylenol
Product Modifications: An alteration to an existing product:
New and different varieties
Formulations
Colors
Styles
Features
Sizes

13. Product Mix Strategies
Deleting a Product or Product Line
Obsolescence
Loss of Appeal
Changes in Company Objectives
Replacement with New Products
Lack of Profit
Conflict with other products in the line

14. What is Product Bundling?
Multiple products or components packaged together into one bundled solution.
Price bundling: when two or more similar products are placed on sale for one package price

15. Benefits for Businesses and Customers
Introduce New Products
Acquire New Customers
Higher Profits
Increase Product Turnover (distressed inventory)

16. Benefits for Businesses and Customers
Save Money
Perception of Greater Value
Low Risk to Try New Products

17. Example
1. Astound

18. Product Positioning Assignment: Pick 10 products that you use and tell me the product, how it is positioned in the market, and how you know it is positioned that way

19. Branding, Packaging, and Labeling
Brand: Name, design or symbol that identifies the products of a company.
Brand Name:
Word or group of words that can be spoken.
Ex: Nike, Coca-Cola Classic, Cover Girl, Tylenol
Brand Mark:
Symbol, design, distinctive coloring, or lettering

20. Branding, Packaging, and Labeling
Trade Name:
Identifies the company or a division of a particular corporation.
Trade Character:
A personified brand mark.

21. Branding, Packaging, and Labeling
Trademark:
When used, it is followed by the registered trademark symbol ®

22. Branding, Packaging, and Labeling
Package: Physical container or wrapping for a product.
Label: Information tag, wrapper, seal, or imprinted message that is attached to a product or package.

23. Branding, Packaging, and Labeling
Branding Strategies:
Brand Extension:
Uses an existing brand name to promote a new and improved product in a company’s product line
Can you have too many products in a line?
Brand Licensing:
Allows others to use the brand name for a fee
Ex. Sports logos must be officially licensed
Mixed Brands:
National manufacturer makes the product for a private label
Ex. Michelin Tires for Sears Brand
Co-Branding:
Combines one or more brands
Ex. Crest with Scope Mouthwash, Pop-Tarts with Smucker’s Fruit Filling

25. New Product Opportunities
Changes in life cycle
Changes in technology
Changes in market/society
Changes in economy

26. Finding the GAPS! Find the opportunities when you find the gaps!
Gap=the difference between what is currently available and what is needed/desired

27. Changes in Life Cycle
Product planning does not end when a product is new!
Must decide what to do with existing products as they change through the life cycle

28. Product Life Cycle Maturity Decline Growth Introduction
Delete or Reinvent
What do we do when a product declines?
Have to decide to modify or delete
THIS IS AN OPPORTUNITY!

29. Changes in Technology Smartphones GPS Social Media
Voice recognition technology
Siri
GPS
Garmin, Tom Tom
Google Maps
Social Media

30. Changes in Market/Society
Health Conscience
McDonalds Happy Meal
Apple Slices, Milk
Salads, wraps
Bottled water
Convenience
Entertainment
Games, music, movies, culture

31. Changes in Economy Economic downturn
Created opportunity for new product and product expansion
Generic brands, discount stores, low cost alternatives and substitutes

32. Ways To Find the Gaps Market research Surveys Focus Groups
Asking customers what they would like, what's lacking
Focus Groups
Sales records
Where are sales decreasing/not improving?
Competitors
What are our competitors offering that we aren’t?
What are they doing better than us?

33. New Product Categories
Products that create a new market or niche segment.
Paper disposable diapers.
Additions or line extensions to existing products.
New flavors and new sizes of existing products.

34. New Product Categories
Product improvements.
Cars.
Cell phones
Repositioned products.
Tums repositioned itself to feature its high calcium content as a benefit for women's health.

35. Product Development
The first step is to generate new business ideas that are unique.
Can the product be
Repositioned
Improved
Brought out in a new size, flavor, or package?

36. Product Development Techniques used to generate new product ideas:
Periodically screen your products and compare them with competitors' products, with an eye toward:
improving attributes of products
combining the features/benefits of several separate products into a single new product
examining users' needs that are not being met by current competitive products
using idea-generating methods like brainstorming