1. Product Planning – Involves making decisions about the production
& sale of a businesses products
Decisions relate to:
Design  Packaging
Labeling  Warranty
Branding  Product mix
Deleting old products
Creating campaigns

2. Product Mix – Includes all the different products that a
company makes or sells
Large manufacturer may have hundreds of
products in one product mix

3. Product Line – Group of closely related products
manufactured and/or sold by a business
Example:
Cereral Pop Tarts Waffles

4. Product Items – Specific model, brand, or size of a product
within a product line
Example:

5. Product Width –
# of different product lines a business manufacturers or sells
Example:
Line #1 – Cereal
Line #2 – Crackers
Line #3 – Pop tarts
Line #4 – Waffles
Line #5 – Fruit Snacks
Line #6 - Cookies

6. Product Depth – # of product items offered within each product line
Example:
Cereal

7. 4 PRODUCT MIX STRATEGIES
DEVELOP NEW PRODUCT
EXPAND PRODUCT LINE
MODIFY PRODUCT LINE
DELETE PRODUCT LINE

8. DEVELOPING NEW PRODUCT
SIX STEPS
GENERATE IDEAS
CUSTOMERS, COMPETITORS, EMPLOYEES
SCREEN IDEAS
IDEAS ARE SCREENED AND EVALUATED; ELIMINATION; LEFT WITH ONE IDEA
DEVELOPING
TAKES PHYSICAL SHAPE – PROTOTYPE IS CREATED
MILLIONS SPENT ON THIS STAGE
CAN BE LONG DELAYS
TESTING
TESTED IN ONE GEOGRAPHICAL AREA
TESTED IN LABS/BY POTENTIAL CONSUMERS
INTRODUCING PRODUCT
COSTS ARE HIGH; ADVERTISED, DISTRIBUTED, TRAINING
EVALUATE CUSTOMER ACCEPTANCE
STUDY SALES; PREPARE FOR FUTURE CHANGES

9. 2. EXPAND PRODUCT LINE BUILD ON PRODUCT IMAGE SONY = INNOVATOR
INCREASE SALES/PROFITS
APPEAL TO NEW MARKETS

10. 3. MODIFY PRODUCT LINE PRODUCT MODIFICATION
ALTERATION IN A COMPANY’S EXISTING PRODUCT
NEW SIZES, COLORS, SHAPES
LOW RISK, QUICK, EASY, INEXPENSIVE

11. 4. DELETE PRODUCT LINE OBSOLETE CHANGING INTERESTS/TECHNOLOGY
LOST APPEAL
TASTES CHANGE
POGS, CRAZY BONES, TAMAGACHI PETS
DOES NOT MATCH COMPANY OBJECTIVE
SEARS – SOLD CALDWELL BANKER
MAKE ROOM FOR OTHER PRODUCTS
LIMITED SHELF SPACE
NO LONGER PROFITABLE
FAST MOVING/PROFITABLE PRODUCTS
PET ROCKS
CONFLICTS WITH OTHER PRODUCTS IN SAME PRODUCT LINE
WHITE CLOUD COMPETING WITH CHARMIN