2014 Productline Mgmt

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Product-Line Management

Dr. Sanjay Patro

Role of a Product Manager

Managing Current Products

Planning for New Products

Managing Internal Coordination to obtain specific product objectives (Volume, Value and Profit )

Sole person responsible for the health of the Product

Key Elements In the Evaluation of Product-line

1. Sales Benefits From Greater Variety

2. Role in expanding the customer base

Can you think of cases where new variants / new services have expanded markets significantly?

4. Fixed Costs Associated With the Line Extension

5. Cannibalization Effect

6. Complementarity Effect

What happens when a firm does not act

quickly in terms of launching variants?

Anticipated Lost Sales From Inaction

Case of Intel

FMCG s like Food Products, Biscuits, Confectionaries.

In Banking/Insurance sector what is

the cost of a lengthy product line?

What are the problems of a lengthy Product-line?

Pitfalls of a Lengthy Product-line

Weaker Line Logic

Lowers Brand Loyalty

Costs of Over-extension can Remain Hidden

Jeopardizes Trade Relations

P&G

Range Management

Builders

Parasites

Wobblers

Product-line auditing

Product-line Pruning

Rollout of Intergenerational Products

Pricing of those –Case of PS3, Xbox 360,Wii

iPhone 4

April 20, 2023 Sanjay Patro 17

April 20, 2023 Sanjay Patro 18

Product-line strategy is a time based conditional plan for the sequence of developing products within a product-line.

Purposes of a Product-line Strategy

Defines product variations aimed at specific market segment coverage

Provides a blue print for branding the diff.

variants

Schedules the rollout of the product within

a product-line

Provides guidance to product development

teams

Thank You