Product Policy

Is the product mix right for the market and for the company?

The high incidence of new product failures suggest you neglect the consumer at your peril!

Techniques and planning tools

• Consumer requirements
• Business performance

Product Audit to determine strengths/weaknesses

• Market share
• Consumer likes/dislikes
• Sales trend
• Seasonality
• % of company sales
• Contribution
• Degree of facility useage
• Return on investment
• Fits into firms product mix

Product Audit aftermath

• Consumer oriented research
• Maximising return on investment

Do we want new products? - Questions to ask

• Has profitable growth potential of existing products been fully explored.
• Is company dependant for profits on one or two products only.
• Do we have the resources to mount a successful new product programme.
• Will other products have to be dropped to make way for new ones.
• What is the companies basic attitude to new products.

Management considerations - Marketing Manager must

• Address himself to the market place
• Be aware of attitudes within the company to "growth v quality"
• Appreciate the contribution the various products make to the health of the company
• His options are limited by what has happened before

Are the products being marketed as effectively as possible?

Analyse strengths / weaknesses of own and competitor products

Check that products are not over supported

Be prepared to experiment

New product development

• Group discussion
• Screening
  • Market size
  • Market growth
  • Competition
  • Margin level
  • Fit distribution channels
  • Degree of exclusivity
  • Manufacturing ease
• Placement tests
• Final check
• Screening