2021
3
Creating and Pricing Products
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
Product Types
Convenience Shopping
Specialty
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
2021
11
Creating and Pricing Products
Diversifying Product Mix
• The Coca-Cola Company also produces a number of other soft drinks including Fanta (introduced circa 1942 or 1943) and Sprite.
• Aquarius Mineral Water (2004)
2021
12
Creating and Pricing Products
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
Product Choice & Competition
2021
6
Creating and Pricing Products
Product Line
2021
7
Creating and Pricing Products
Product Lricing Products
Product Mix
2021
9
Creating and Pricing Products
Product Mix
Books, Electronics, Toys
2021
5
Creating and Pricing Products
Product Line
• A line can comprise related products of various sizes, types, colors, qualities, or prices.
• During the 1990s, the company responded to the growing consumer interest in healthy beverages by introducing Minute Maid and flavored tea Nestea (in a joint venture with Nestle).
2021
13
Creating and Pricing Products
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
Diversifying Product Mix
Coffee More Flavors Wireless Web Hear Music
Product Mix of LG
• Mobile Phoones • TV/Audio/Video • Home Appliances • Air Conditioners • IT products
2021
10
Creating and Pricing Products
Diversifying Product Mix
Other Pricing
Target Market
Creating and Pricing Products
Pricing
New Product
Differentiate
2021
2
Creating and Pricing Products
The Key Decisions in Running a Business
2021
4
Creating and Pricing Products
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
Product Line & Mix
Product Lines
Coke, Diet Coke, Sprite
• The Coca-Cola Company offers nearly 400 brands in over 200 countries.
• Diet Coke (introduced in 1982) • Diet Coke Caffeine-Free • Cherry Coke (1985) • Diet Cherry Coke (1986) • Coke with Lemon (2001) • Diet Coca-Cola Black Cherry Vanilla (2006) • Diet Coke Plus (2007) • Coca-Cola Orange (2007)
12 Chapter
Creating and Pricing Products
Copyright © 2007 South-Western. All rights reserved.
1
Creating and Pricing Products
Learning Objectives
Line/Mix Cycle
2021
14
Creating and Pricing Products
Line/Mix Cycle Target Market New Product Differentiate Pricing Other Pricing
Product Life Cycle
2021
15
Creating and Pricing Products
• Line depth refers to the number of product variants in a line.
• Line consistency refers to how closely related the products that make up the line are.