Product Lines and Product Mixes at Gillette

1
Product Lines andProduct Mixes at Gillette
Exhibit 7.1
2
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

3
Stages of the Product Life Cycle
Exhibit 7.2
4
Marketing Strategy Duringthe Product Life Cycle
Exhibit 7.3
5
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

6
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

7
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

8
Growth Stage (2 of 2)

• Marketing strategy goals in this stage
• Leverage the products 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 products profitability
  to partners
• Find the ideal balance between price and demand
• Keep an eye focused on the competition

9
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

10
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 firms price and cost structure
• The rate of market deterioration

11
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

12
Advantages of Branding
Exhibit 7.4