1. Product Planning
Chapter 30

2. Objectives Describe the steps in product planning
Explain how to develop, maintain, and improve a product mix

3. Product Planning
Making decisions about what features should be used in selling a business’s products, services, or ideas.
Decisions relate to features such as:
Packaging, labeling, and branding
Warranties and support services

4. Product Planning Allows Businesses To:
Coordinate existing products and features
Add new products
Delete products that no longer appeal to customers

5. Click on products to see Proctor and Gambles extensive product mix!
All of the different products that a company makes or sells.
A retailer’s product mix is made up of all the different products the store sells.
Click on products to see Proctor and Gambles extensive product mix!

6. Product Mix Kraft is another great example!
Hundreds of products in 5 areas:
Snacks
Beverages
Cheese
Groceries
Convenience Meals
Kraft’s key brands include: Kraft, Kool-Aid, Maxwell House, Nabisco, Oscar Mayer, and Post.

7. Product Mix
Adding more products, may not result in increase sales, sometimes it can take away sales from existing products.
Pepsi One takes away from Diet Pepsi sales
The type and number of products that a retail
store offers must be based on the image the business is trying to project and the market they are trying to reach

8. Product Line
A group of closely related products manufactured or sold by a business.
related products of various sizes, types, colors, qualities, or prices.
Example: range of desktop and laptop computers manufactured by Dell.
Apple’s Product Line Secret
Other great examples include all the car models produced by the Pontiac division of General Motors and all the cereals produced by Kellogg’s.

9. Product Item
A specific model, brand or size of a product within a product line.
Retailers generally carry several product items for each product line they sell
Macy’s carries many styles and sizes of Guess Jeans for men, women, and kids

10. Product Width
The number of different product lines a business makes or sells
A retailer that sells three brands of jeans (Levi’s Lee, and Guess) has a product width of three

11. Product Depth
Number of product items offered with in each product line
Red Lobster specializes in seafood dinners and has great depth within a narrow product line. You can order shrimp prepared 16 different ways.

12. V.S. Width and Depth Product Width
Kohl’s Department store stocks several brands of jeans: Lei, Levi’s, J-Lo, & Wrangler which demonstrates product width.
V.S.
Product Depth
The product depth is the number of sizes, price ranges, colors, and styles for each brand of jeans (Lei jeans have boot cut, flare, low rise, ankle etc).

13. Gillette Product Mix Blades And Razors Toiletries Writing Instruments
Lighters
MACH 3
Sensor
Trac II
Atra
Swivel
Double-Edge
Lady Gillette
Super Speed
Twin Injector
Techmatic
Series
Adorn
Toni
Right Guard
Silkience
Soft and Dri
Foamy
Dry Look
Dry Idea
Brush Plus
Paper Mate
Flair
P R O D U C T L I N E S ………….P R O D U C T L I N E S I T E M S
Cricket
S.T. Dupont

14. Determining a Product Mix
To determine its product mix, a business must:
Identify its target market
Identify its competitors
Decide on the image it wants to project

15. Product Mix Strategies
The plan for how the business determines which products it will make or carry
1) Develop new product lines or add new products to existing lines
2) Expand or modify current lines
3) Drop existing products

16. Key Steps in Product Development
Screen Ideas
Step 3
Develop Business Proposal
Step 4
Develop Product
Step 5
Test
Product
Step 6
Introduce
Product
Step 7
Evaluate
Customer
Acceptance

17. Developing Existing Products
Two ways of developing existing products are:
line extensions
product modifications

18. Line Extensions
A different product that appeals to different consumers
Line extensions add new product lines, items, or services.
Tylenol Flu, Tylenol Cold, and Tylenol Allergy Sinus are line extensions of the original Tylenol Product.

19. Line Extension

20. Product Modifications
An alteration in a company’s existing product
Modified products may be offered in new and different varieties, formulations, colors, styles, features or sizes.
Ask students what other modifications Oreo has made
BandAid is also a good product to discuss!
Have them bring in Oreo modifications to share with the class.

21. Write down as many Oreo product modifications you can think of.
Sign up to bring an Oreo product modification to the next class!

22. Deleting a Product or Product Line
Obsolescence
Loss of appeal
Conflict with current company objectives
Replacement with new products
Lack of profit
Conflict with other products in the line
What products can you think of that are obsolete or have a loss of appeal?