Product Lines and

Product Mixes at Gillette

Exhibit 7.1
 Product Classification (3 of 3)
• Product Lines and Mixes
– Product Line
– Product Mix
• Benefits of offering a wide variety and
deep assortment of products:
– Economies of Scale
– Package Uniformity
– Standardization
– Sales and Distribution Efficiency
– Equivalent Quality Beliefs
Stages of the Product Life Cycle

Exhibit 7.2
Marketing Strategy During
the Product Life Cycle

Exhibit 7.3
 Development Stage
• No sales revenue during this stage
• Components of the product concept:
– An understanding of desired uses and benefits
– A description of the product
– The potential for creating a complete product line
– An analysis of the feasibility of the product concept
• Customer needs should be discerned before
developing marketing strategy
 Introduction Stage
• Begins when development is complete
• Ends when customers widely accept the product
• Marketing strategy goals during this stage:
– Attract customers by raising awareness and interest
– Induce customers to try and buy
– Engage in customer education activities
– Strengthen or expand channel and supply relationships
– Build on availability and visibility
– Set pricing objectives
 Growth Stage (1 of 2)
• Be ready for sustained sales increases
• Rapid increase in profitability early in the
growth stage that decreases at the end of this
stage
• Length depends on nature of product and
competitive reactions
• Two strategies:
– (1) Establish a strong, defensible marketing
position
– (2) Achieve financial objectives
 Growth Stage (2 of 2)
• Marketing strategy goals in this stage:
– Leverage the product’s perceived differential advantages
– Establish a clear product and brand identity
– Create unique positioning
– Maintain control over product quality
– Maximize availability of the product
– Maintain or enhance the product’s profitability to partners
– Find the ideal balance between price and demand
– Keep an eye focused on the competition
 Maturity Stage (1 of 2)
• Few, if any, new firms will enter the
market
• Still an opportunity for new product
features and variations
• Typically the longest stage in the product
life cycle
 Decline Stage
• Two options:
– (1) Attempt to postpone the decline
– (2) Accept its inevitability
• Harvesting
• Divesting
• Factors to be considered during this stage:
– Market segment potential
– The market position of the product
– The firm’s price and cost structure
– The rate of market deterioration
 Branding Strategy
• Key Issues In Branding
– Brand Loyalty
– Brand Equity
– Brand Alliances
• Packaging and Labeling
– Packaging
• Protection, storage, convenience, etc.
– Labeling
• The Nutritional Labeling and Education Act of 1990
• Food Choking Prevention Act
Advantages of Branding

Exhibit 7.4