Product Mix

Chapter 7 Overview
Segmentation
Not
Proliferation
 One Size Doesn’t Fit
Anybody Very Well
Consumers buy benefits, and products
that BEST address their SPECIFIC
need will get purchased.

Segmentation Analysis can help you

determine where you need products to
address consumer needs.
 What It’s Not
It’s not just line-extensions….(Dove
Soap and Dove Shampoo).

It’s usually distinct, stand alone brands

that address specific consumer needs.
 Cleans, Whitens and Sanitizes
Dreft

Tide w/ Bleach

Ground in dirt & Everyday Dirt

Stains Tide

All
Cheer
Cleans & Keeps Colors Vibrant
 Generic Quality

Low Priced High Priced

Premium Quality
Product Mix Covers All
the IMPORTANT Bases
It’s all about SALES. If the number of
consumers that want a product to fulfill
that need is significant, offer it.

Don’t be a flea on an elephant’s

behind. (I.e. toothpaste for those with
braces).
 Fighter Brands
Protect the premium brands.

Are hard to detect as a consumer.

Are almost always found as “in-store

specials”.

Work particularly well in “commodity”

categories.
 The Phone Wars
History

My crystal ball from 1997……

MCI / Worldcom: Bankrupt
Sprint: now mostly a wireless
phone company.
AT&T: Still slugging away and
losing money.
 Linked Benefits
Great taste & low calories.

Clean, white teeth, fresh breath, tartar

control, fights gum disease.

Clean, comfortable shave.

NEVER try to segment
and unlink
LINKED BENEFITS
 Usage Occasion
Can be an effective way of segmenting and
creating a reason to own multiple versions of
your product:

Chapstick
 Regular
 Healing w/ Vitamin E
 Sunblock Protection
 Flavored
 Winter Protection