PRODUCT DECISIONS

Product Line Decisions: Product

Mix
• Product mix: set # product lines (3)
of all product lines Width
– Width: # of Detergent Soap Shampoo
product lines
ABC
– Length: # of
products in
lines
– Depth: # of
versions of
each product
carried
– Consistency:
how closely
related the
product lines
Adapted from Kotler, McDougall and Picard, p.360
are
• Product Mix Decisions
– A firm may lengthen or widen its
product mix
– A Company may decide to add
variations that will attract new users
– A product may be pruned or altered

11-3
 Two-Way Product-Line Stretch:
Marriott Hotels
Quality
Economy Standard Good Superior
Marriott
High Marquis
(Top
executives)
Marriott
Price

Above
AboveAverage (Middle
ge managers)

Average Courtyard
(Salespeople)

Low Fairfield Inn

(Vacationers)
 TENSATOR :THE
INNOVATOR
 

• Tensator :small company ,not known for its innovation.

• The company's Sales and Marketing Director Terry Green
stated that ‘I'm a very firm believer that innovation doesn't
need to be revolutionary. There's nothing my company has
done that couldn't be done by anyone else'. 
• Tensator is in a light engineering business which
manufactured the Constant Force Spring, a device used in
the manufacture of car seat belts throughout Europe.  
• In 1978 , the CEO put forward plans for the use of the
Constant Force Spring in the production of queuing barriers
for supermarkets and banks, etc.
• He persuaded the company to focus on this new product
idea.
• Research was undertaken where customers, current and
potential, were asked to give opinions on the viability of
such a product and how it could improve on the products
that were currently available.
 
TENSATOR THE INNOVATOR

• Tensabarrier was launched. By 1996, the

product was being exported to thirty‑six
countries and accounted for £3 million
turnover.
• There are now a variety of Tensabarriers in
a variety of shapes and forms. There is a
bolt‑down barrier and a special checkout
version which incorporates an electronic
movement sensor to prevent theft.
• Tensator launched thirteen new products in
the years 1995 and 1996. Total turnover
had risen more than threefold since 1988 to
£10 million,
What are new products????
Stages in the new-product
process
Marketing information and methods used in the
new-product process
 Mattel’s Barbie
Why should laboratory and safety tests
be done?
 Why do new products fail?

• One study estimated that as many as 80% of new

• consumer packaged products failed.
• Only about 40% of new consumer products are
• around 5 years after introduction
• WHY????????????????????????
• Overestimated market
• Poor design
• Incorrect positioning
• Error in pricing
• Poor marketing
• Cost overrun
• Competition
LIST OF FAILED
PRODUCTS?????
 The product lifecycle (PLC)

• Products need managing throughout their

working lives.
• This requires deciding:
• – What products should be created.
• – The best time to launch them and
introduce them to
the public.
• – How to capitalise on a product’s strengths
and iron
out any weaknesses.
• – When an older product is past its prime
and needs
Stages in PLC
 Task

• Identify products at different stages

of the life cycle