1. Assortment
By Peter Baskerville
4/07/2019

2. Product planning horizons
H3 – Growth – Blue Ocean
SALES
H2 – Breakeven – Developed assortment/features
H1 – Launch – Minimum Viable Product
TIME

3. Product development
Launch – MVP – the minimum acceptable features and assortment.
Breakeven – Developed features & assortment – extensions of the MVP. Nothing too innovative
Growth – Blue ocean – New products, new markets, innovations. Areas of no competition

4. Key product strategies
A COST LEADERSHIP STRATEGY
- good quality product or service at a lower cost than your competitors.
A DIFFERENTIATION STRATEGY
- perceived as being unique "throughout the industry".
A FOCUS STRATEGY
- a more 'intense' form of previous strategies - "focused" on a particular segment

5. % Goods + % Service = Product
Ikea
Clothing
Cars
Fast Food
Fine Dining
Education
Lawn Mowing
Service
Goods

6. Total product approach
Product bundle = Goods + Services + Benefits
GOODS
SERVICE
SERVICE
GOODS
Delivery, warranty, repair, spare parts, instructions & training
Glossy folder, reference material, instructions, certificates.

7. Agony of Choice

8. What are you really selling? What need are you really satisfying?
“Lite ‘n easy’ sells meals, but they don't advertise meals. They advertise happiness & confidence.“
“In the factory we make cosmetics; in the store we sell hope” Charles Revlon - Revlon
What need are you really satisfying?

9. What is a Café selling? Escape a stressful office
Maintain or grow a relationship
Do Reflective work
Lonely time - connect
A place to do business or reach agreement

10. We help our individual customers ….
get more knowledge
make or save money
gain self esteem
set themselves free to express their unique abilities, talents & expertise
get more love
to feel secure & safe
to be better organised
to fulfil their desires.

11. We help our business customers ….
increase their revenue
decrease their costs
Increase profitability
Improve productivity
Improve time/speed cycle
ensure satisfaction, retention & growth of their customers
Improve the quality of their offer
improve the satisfaction of their employees.

12. What products are you selling?
Vitamins - a luxury
Aspirin - nice-to-have
Antibiotics - need-to-have

13. Profit squeeze determines strategy
Threat of new competition
Threat of substitute products or services
Bargaining power of customers (buyers)
Bargaining power of suppliers
Intensity of competitive rivalry
Easy market entry
Big business – deep pockets
Make it themselves
Brand dominance
Limited big purchase buyers

14. Profit squeeze by industry
New Competition
Online business
Substitute
Take-away food
Customer Power
Consumer goods - Coles
Supplier power
Fuel
Intense rivalry
Airlines