1. Chapter 30
Product Planning

2. Product Planning
Making decisions about those features that are needed to sell a business’s products, services, or ideas
Packaging, labeling, branding, warranties

3. Product Mix All the different products that a company makes or sells
All items sold by a particular retailer
Image, target market, and business objectives determine the product mix

4. Exercise
With a neighbor, decide on ten products you would want to offer if you opened your own gas station

5. Product Lines and Items
Product Line – a group of closely related products manufactured or sold by a business
Product Item – a specified model, brand, or size of a product within a line

6. Product Width and Depth
Product Width – the number of different product lines a business has
Product Depth – the number of product items offered within a product line

7. Think and respond Think of a product line.
What are product items in that line?
What is the product depth of the company?
What is the product width?
I will call for volunteers to share answers.

8. Product Mix Strategies
Developing New Products
Developing Existing Products
Deleting a Product or Product Line

9. Developing a New Product
Generating Ideas
Screening Ideas
Developing a business proposal
Developing the product
Testing the product
Introducing the product
Evaluating customer acceptance

10. The Hunchpack A combination coat/backpack
Go through the six steps and decide potential snags
Generate Ideas, Screen Ideas, Develop the Product, Test the Product, Introduce the Product, Evaluate Customer Response
Also brainstorm ideas to make the product a success
I will make this product one day and I may use your ideas to succeed…thanks

11. Developing Existing Products
Line extensions – expand offerings of popular items
Product modifications – change colors, sizes, features, or styles

12. Deleting a Product or Product Line
Obsolescence
Loss of Appeal
Conflict with current objectives
Replacement with new products
Lack of Profit
Conflict with other products in line

13. Getting the Axe Think of a product that is no longer available
Why do you think it went away? Obsolescence, loss of appeal, lack of profit, conflict with other products, etc.

14. Product Life Cycle
4 stages – Introduction, Growth, Maturity, and Decline

15. Introduction Stage Focus is on promotion and production
Looking to draw in new customers
Special promotions, incentives

16. Growth Stage Advertising focuses on customer satisfaction
Competing products on the market
Introduce new models, features to continue growth

17. Maturity Stage Sales level off or slow down Product is widely owned
Advertising expenses rise to try to draw in more customers

18. Decline Stage Sales fall
Profits may reach the point where product is a liability
Rather than discontinue a product, companies may license, discount, regionalize, or alter the product

20. Category Management
Process that involves managing product lines as individual business units
Manufactures work closely with retailers to maximize profits within their category
Planograms are computer-developed diagram that show product shelf placement