Product Line Decisions Product line refers to a group of same products Product

Product line decisions product line refers to a group

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Product Line Decisions:Product line refers to a group of same products. Product line decisions refer to decisions relating to addition or deletion of product from the existing product line. Addition and deletions in product can be explained as follows:Line Stretching Decisions:Line stretching implies increasing the length of product line. It can take place in three directions.a) Downward Stretching:Downward stretching refers to addition of a new product into existing product line but at a lesser price. For example; TATA introduced low cost car “Nano” in the market.b) Upward Stretching:Upward stretching is the opposite of downward stretching. When an organization adds a new product in the current product line but at higher price than the existing one, it is called upward stretching. For example; Parle started with low cost biscuits like Parle G then introduced high cost product of same category like Hide and Seek.c) Two-way Stretching:Two way stretching refers to addition of product in product line in both the directions. So, a low priced aswell as a high priced product are added at the same time in product line. Marriot- Hotels & Resorts started Renaissance Hotels to serve upper end of the market and Town Place suites to serve lower section of the market.Line Filling Decisions:Product line filling involves adding a new product in the existing product line to face competition and increase consumer base. Under product line filling price of the new product is normally same. For example, Maruti Suzuki introduced Alto when Maruti Zen was already available in the same range.Line Pruning Decisions:Line pruning decisions refer to removal of unprofitable product from the product line. For example Pepsi launched Pepsi Gold but the product was not successful in the market. So after some time it was removed from the market.Product Mix DecisionsProduct mix:
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This refers to all of the product lines and items that a particular seller offers for sale.Product mix dimensions include:Length: the number of items in a line.Width: the number of different product lines the company carries.Depth: the number of versions offered of each product in the line.Consistency: how closely related various lines are.BRAND EQUITYIs the value gained in having a well-known brand name.Branding Decisions Branding Decisions- Brand Positioning, Brand Name Selection, Brand Sponsorship and Brand DevelopmentBrand Positioning – Branding DecisionsA brand must be positioned clearly in target customers’ minds. Brand positioning can be done at any of three levels:On product attributesOn benefitsOn beliefs and values.At the lowest level, marketers can position a brand on product attributes. Marketing for a car brand may focus on attributes such as large engines, fancy colours and sportive design. However, attributes are generally the least desirable level for brand positioning. The reason is that competitors can easily copy these attributes, taking away the uniqueness of the brand. Also, customers are not interested in
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