7/25/2019 Product Portfolio & Product Expansion

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PRODUCT PORTFOLIO & PRODUCTEXPANSION

SESSION 5

7/25/2019 Product Portfolio & Product Expansion

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PRODUCT PORTFOLIO

Both Generic Strategies o CostLea!ershi" an! Di#erentiation !e"en!on Inno$ation%

Inno$ation Ne' "ro!(ct an! "rocess!e$e)o"*ent ha$e +eco*e +asis orco*"etiti$e a!$antage across *ar,ets%

This )ea!s to an acce)eration in thes(+stit(tion o ne'"ro!(cts-techno)og. or o)!/ an! a

shortening o Pro!(ct )ie c.c)e%

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PRODUCT PORTFOLIO

Base! on the Anso#0s Gro'th 1atri2/ that"ro$i!es strategic o"tions or *ar,et"enetration- *ar,et !e$e)o"*ent-"ro!(ct!e$e)o"*ent-!i$ersi3cation%

The o"tion o "ro!(ct !e$e)o"*ent is (se!*ost). in *at(re! *ar,ets an! to a$oi! ris,s%

Base! on the BCG *atri2/ "ro!(ct !e$e)o"*ent

is (se! at the stage 'hen SBUs are in Cash4co'stage an! to s(stain the +(siness nee! to retain

the c(sto*ers 'ith high CLs%

7/25/2019 Product Portfolio & Product Expansion

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PRODUCT PORTFOLIO

Ti!e Pro)ieration is ,no'n as Pro!(ct )inee2tension6 'hereas i Ti!e starts *a,ing 7ashing1achines/ then it 'o()! +e ca))e! Bran!E2tension%

Bran! an! "ro!(ct )ine e2tensions areconsi!ere!/ across in!(stries/ as the $ita) o"tion

or gro'th "artic()ar). in *at(re! *ar,ets% 81c,inse./9::;

C(sto*er Seg*entation4 "ercei$e! as )o' cost/)o' ris, o"tion% B. (sing *ore so"histicate! an!)o'er cost *ar,et techni?(es can i!enti. an!target 3ner seg*ents 8*icro4seg*ents

7/25/2019 Product Portfolio & Product Expansion

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PRODUCT LINE EXTENSIONS

Cons(*er Desires> Cons(*ers are *ore otens'itching +ran!s an! tr.ing ne' "ro!(cts% Linee2tension is the *ost o"ti*(* 'a. to satis.!esires +. "ro$i!ing 'i!e $ariet. o "ro!(cts (n!erthe sa*e Bran! U*+re))a% This ()3))s c(sto*ers@!esire 'hi)e ,ee"ing the* )o.a) to the Bran!%

Cons(*ers no' *a,e 9-r!o their "(rchase!ecisions a+o(t grocer. an! hea)th4an!4+ea(t.

"ro!(cts on i*"()se/ 'hi)e the. are in the store%8+ase! on the st(!. con!(cte! +. POP A!$ertising Instit(teTrac,ing "ane)s he)" co*"anies to(n!erstan! c(sto*ers0 ha+it an!

"atterns in (sing the "ro!(cts% This*a. he)" co*"anies to +(i)! an!reinorce )o.a)t. 'hen the. intro!(ce

ne' )ine e2tensions% 7or, 'ith channe) "artners%