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Product Policy (Product Mix Breadth: which biz to compete? (connection…
Product Policy
Product Mix Breadth: which biz to compete?
Qs
How many columns?
What's the relationship between lines?
connection with existing skills
negative correlation
leverage a key asset e.g, P&G distribution network
complementary-in-use - "total solution supplier"
considerations: what the product line is to become over time?
customer heterogeneity and requirement specifications
ability to configure the offerings to the segment: let intended customers see the product as being made for them
competitive impact
preempt a competitor
achieve a point of sustainable differentiation with a product line expansion
Legitimization
category expansion
number of category customers
average cusumption rate
net impact on own margin
Qs
optimal overall offering?
be disaggregated into SKU?
Product Line Depth: the degree of difference between the line?
Qs
how many rows?
how is the line to serve customer segments of varying tastes or WTP?