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Product-Mix Strategies (Product Expansion (Example
A Laundry detergent…
Product-Mix Strategies
Product Expansion
Example
A Laundry detergent company may develop detergents that included additional scents, fabric softeners, and bleach to expand their product line.
Disadvantages
Adding items to a product line or introducing an entire product line can be expensive, be difficult to manage, and not always be successful.
Advantages
Adding items to a product line or introducing an entire product line can capture market share and meet customer's needs and wants.
Product Contraction
Advantages
Deleting products from a product line or the entire product line can be cost effective and easier to manage while creating simplicity and consistency
Disadvantages
Deleting products from a product line or the entire product line is giving away market share to your competitors
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Product alteration
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Advantages
Improving an established product can capture new customers and meet customer's unmet wants as trends change.
Trading Up
Disadvantages
Adding higher priced items to a product line is expensive and may not attract new customers while hurting the image and sales of the lower priced items
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Advantages
Adding higher priced items to a product line will attract the higher income market and may help increase the image and sales of the lower priced items.
Trading down
Advantages
Adding lower priced items to a product line of expensive products can capture a lower income market who cannot afford the higher priced items
Disadvantages
Adding lower priced items to a product line of expensive prodcuts can hurt the image and sales of the higher priced items in the line.
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Positioning
Disadvantages
Images of a product are difficult to change once they are established and very expensive
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Advantages
Creating an identity of a product helps fond a place for the marketplace while strongly identifying with a specific target market and possibly creating brand loyalty.