Megastores Case

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Introduction

Growth

Maturity

Decline

Q 4: For each of the

products, which brand(s) are

sold in this store?

No other brands with similiar products, which means there are no competitor yet. A substitute can be a knife.

Robijn, Ariel

(Laundry detergent)

No other brands for this type of product.

House brand, no other brands are sold.

Q 5: Choose one brand for

each product. What is the

added value of this brand?

This is the only only brand that is offering the product. Because of this there is also no added value.

Robijn is a very well-known and popular brand, and thus attracts more costumers in comparison to other brands. The customers have a loyal connection with the brand.

No distinguishable added value, product is available on the shelf. Not highlighted or advertised in any way.

There is no added value of this brand.

Q 6: Are there any line or

brand extensions of this

brand in the store? If yes,

mention some of them.

There are no other brand extensions of this product in the store.

Yes, Robijn morning fresh dryer sheets, Robijn morning fresh Fragrance sachets, Robijn morning fresh Refresh

Yes, there are. Main product was the 100 Christmas lights. Brand extensions include but are not limited to , 20 lights, 10 lights and 80 LED Set Outdoors

There are no other brand extensions.

Q 7: Given the life-cycle

stage of this product, what

strategy would you advice to

the company to create more

sales (see table 9.2 p. 303 of

the book)

To create product engagement and trial.

Use heavy sales promotion to make people try the product.

Advertise to build product awareness among the customers and dealers.

To offer more product extensions, services and maybe warranty.

Set a good price in order to penetrate the market.

Advertise more to build engagement and interest.

Reduce the sales promotion to take advantage of the big consumer demand.

Advertising the product more. In the sense of extending the product line to more stores therefore have a wider audience. Furthermore do not promote the image of cheap quality. By that we mean the packaging. The cardboard gave the product a rather poor character.

Set a price to match or beat the competitors.

Advertising: Reduce to level needed to retain hard-core loyals.

Create sales promotion cut sell faster all the inventory.

**There are 5 stages in the Product Life Cycle; the first one: Product Development is NOT used in this assignment!!!

[pic 5][pic 6][pic 7][pic 8][pic 9][pic 10]Q 2 to Q7: 1 correct answer = 2 pts; 48 pts total[pic 11][pic 12][pic 13][pic 14][pic 15][pic 16][pic 17][pic 18][pic 19][pic 20]

Q8: a) What is the key difference between a product line and a product mix? Be specific!

(8 pts)

In order to answer the question, first we have to define and understand the two concepts.

A product line is a group of products that are related to each other because they have a similar manner of function, are sold to the same target groups, and have similar price ranges. A company can expand its product line in two ways: by line filling or line stretching. Product line filling involves adding more items within the present range of the line. Product line stretching occurs when a company lengthens its product line beyond its current range. The company can stretch its line downward, upward, or both ways.

A product mix (or product portfolio) consists of all the product lines and items that a particular seller offers for sale. A company’s product mix has four important dimensions: width, length, depth, and consistency.

Product mix width refers to the number of different product lines the company has and sells. Product mix length is the total number of items a company has within its product lines. For example, if 3 products in three brands exist, the product length is 9. Product mix depth is the number of versions offered for each product in the line. The versions can be different in size, flavor, or any other characteristics. Finally, the consistency of the product mix refers to how similar the various product lines are in end use, production requirements, price, advertising, etc.

The key difference between product line and product mix is that product line is basically a subset of product mix. Product line is nothing but a type of product that has different versions. Product mix is a broader term which is used for developing the company’s product strategy and effective implementation of marketing strategies.

b) Give an clear example of a product line and a product mix for products of a company that you are familiar with.

(8 pts)

Product mix: The Coca Cola Company is best known for it’s Coca-Cola drinks. But The Coca-Cola Company is a firm that makes and markets a full product mix which consists of many different lines and brands. Coca-Cola divides its overall product