The Product and the Product mix Product-line decisions Product-line analysis: Sales and Profits Four types of product classes: a Core product a Staples penalties a Convenience items Product-line length: down-market/up market/two-way stretching
10-11 The Product and the Product Mix Product Product-line decisions line decisions Product Product-line analysis: Sales and Profits line analysis: Sales and Profits Four types of product classes: Four types of product classes: Core product Core product Staples Staples Specialties Specialties Convenience items Convenience items Product Product-line length: line length: down -market / up market / up - market / two market / two -way stretching way stretching
Product-tem Contributions to a product lines Total sales and profits 50 Profits 40 30 20 Product item
10-12 Product-Item Contributions to a Product Line’s Total Sales and Profits
The product and the Product mix Market profile Point-of High purchase plays Product Map General printing Office for a Low ④ Paper-Product Line Low(90) Medium(120) High(150) Extra high(180) Paper weight 10-13
10-13 The Product and the Product Mix Market profile Market profile Product Map for a Paper-Product Line
New Product Development 10-14
10-14 New Product Development
New Product Development Process Evaluate at each Opportunity Identification stage to determine Go/No Go whether to proceed Design Go/No Go Key is to manage Testing risk of introducing a Go/No go failure or not Introduction ntroducing a Go/No Go success Life-cycle Management Proactive vs Reactive 10-15
10-15 New Product Development Process Opportunity Identification Opportunity Identification Design Design Testing Testing Introduction Introduction Life-cycle Management Life-cycle Management Evaluate at each stage to determine whether to proceed. Key is to manage risk of introducing a failure or not introducing a success. Proactive vs. Reactive Go/No Go Go/No Go Go/No Go Go/No Go