Product Planning

Product Planning

Involves making decisions about those Features that are needed to sell a business’s products, services, or ideas.

Product Mix

Includes all the different products that a company makes or sells.

Pick a company and copy and paste their product mix below:

Product Line

A group of closely Related Products manufactured and/or sold by a business.

Pick a company and show an example of their product line.

Product Item

A Specific , model, brand, or size of a product within a product line.

Pick a company and show an example of their product item.

Product Width

The number of different product Lines a business manufactures or sells.

Product Depth

The number of product Items offered within each product line.

Pick a company and show an example of their product width and depth formatted like the slide show example.

Product Mix Strategies

•      The Plan for how the business determines which products it will make or stock

•      May develop completely New products

•      May Expand  their current product lines

•      May Drop existing products

Developing New Products

• Generating Ideas

–Come from a Variety of sources

– Creativity is essential

• Screening Ideas

–Ideas are Evaluated against the company’s overall objectives.

•Developing a Business Proposal

–Consider a product’s potential Sales, Costs and production requirements.

• Developing The Product

–The new idea takes Physical Shape

–Marketers Develop a marketing Strategy

•Testing the Product With Consumers

• Introducing the Product

–The product has been Researched Successfully

–This stage also is called Commercialization

• Evaluating  Customer Acceptance

–Marketers Track new product Performance

Developing Existing Products

•      Line Extensions – new product lines, items, or services

•      Product Modifications – an alteration in a company’s existing product

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

Case Study: Coca-Cola- How they use market research

1.       What part does market research play in the marketing concept? (hint: the marketing concept is to: identify, anticipate, satisfy and meet needs profitably”)

2.       How will market research help Coca-Cola to develop an appropriate marketing mix for one of its products, e.g. Powerade? Placing marketing at the heart of the organisation enables Coca-Cola GB to grow the product range in ways that best meet consumer requirements through developing:new drink categories e.g. sports drinks

3.       Why is it important to identify different segments of the soft drinks market through market research?By dividing a category into segments, businesses can identify different groups of consumer wants. It is then possible to design products to meet those requirements

 

4.       Market research carried out by Coca-Cola revealed a growth in the number of smaller households. How did this market research information help to inform product design?

5.       Why does Coca-Cola sometimes use quantitative market research rather than qualitative research?collecting information from a broad population sample e.g. by conducting extensive surveys, used when Coca Cola GB wants to gauge appeal across a wide audience

 

6.       Why does Coca-Cola sometimes use qualitative market research rather than quantitative research?working with small 'focus' groups. This involves far more detailed investigations, e.g. gathering a small group of 'typical' consumers to taste test products or to talk about their preferences and experiences of using different products. Qualitative research, whilst not representative of the views of the general population, provides greater insight into 'why' people think what they think. 

 

7.   What are the benefits of carrying out a simulated test market before going for a full launch?simulated test market was carried out. On the basis of the background market research it was possible to forecast likely sales volumes. This calculation was based on the type and level of support the brand flavour launch would receive (e.g. advertising, sampling, promotions, price and distribution), consumer perceptions and claimed behaviour (what the consumers said they would do). The results were favourable and supported the launch of this flavour in Great Britain.

 

8.       Coca-Cola Vanilla was already an established successful product in the US. Why then was it necessary to research the feelings of the market about Coca-Cola Vanilla before launching the product in the UK?There had not been flavour innovation involving Coca-Cola since 1986 when Coca-Cola Cherry was launched. However, recently Coca-Cola Vanilla had a successful launch in the USA, so it was decided to test its potential in Great Britain

 

Blackberry vs Apple SWOT Chart

Apple
Strengths-  Quality, Value, Brand, Good service, experience in marketing, quick, efficient, competitive advantages, Marketing reach.

Weaknesses-Financials? Getting enough products in stock.

Opportunities-Trends, updating products, Developing new products, Niche target markets.

Threats - New technologies, services, ideas.

Blackberry
Strengths- Brand, Marketing reach, lifestyle trends, developing new products.

Weaknesses- Supply, reputation, service, lack of competitive strength, Gaps what they sell or dont sell.

Opportunities- Niche target marketing, updating exsiting products.

Threats- New technologies, services, ideas. Example Apple Iphone.