Product-Line Management

Dr. Sanjay Patro

 Product Classifications

Melvin Copelandss Classification of Consumer Goods

Convenience Shopping

Specialty

Unsought

Industrial Goods Classification

Materials and parts

Capital items

Supplies/ business services

Durability and Tangibility

Nondurable goods Durable goods

Services

Product-Line Management

Key Elements In the Evaluation of Product-line

1. Sales Benefits From Greater Variety

2. Role in expanding the customer base

Can you think of cases where new variants / new services have expanded markets significantly?

4.

Fixed Costs Associated With the Line Extension

5.

Cannibalization Effect

6. Complementarity Effect

What happens when a firm does not act quickly in terms of launching variants?

Anticipated Lost Sales From Inaction

FMCG s like Food Products, Biscuits, Confectionaries.

In Banking/Insurance sector what is the cost of a lengthy product line?

Pitfalls of a Lengthy Product-line

Weaker Line Logic
Lowers Brand Loyalty
P&G

Costs of Over-extension can Remain Hidden

Jeopardizes Trade Relations

Range Management
Builders

Parasites
Wobblers Product-line auditing

Product-line Pruning

Product-line strategy is a time based conditional plan for the sequence of developing products within a product-line.

Purposes of a Product-line Strategy

Defines product variations aimed at specific market segment coverage

Provides a blue print for branding the diff. variants

 Schedules the rollout of the product within a

product-line

Provides guidance to product development teams

 Rollout of Intergenerational Products

Pricing of those Windows 8 , Case of PS3, Xbox 360,Wii

Tablets Market In India

Thank You