Product Lifecycle, Market Segmentation, and Assortment

Posted on Mar 4, 2025 in Business Administration and Management (BAM)

Attractive and Profitable Products

Attractive products are cheap and deal with high volumes, implying a high turnover. They serve to attract people to the store.

Profitable products are white label with the appropriate look of this performance (high margin and high volume).

Specific products generally have much room but with a small rotation.

  • In an attempt to establish these three types of products:

The products that are attractive are the property price image.

Profitable products are professional and safe.

The specific products are image.

Product Lifecycle

Generic products come and go with more or less time in between. For most products, commodity prices fall.

  • You can never go on the market with a cheap price.
  1. Buy.
  2. People want it because you have to recoup the investment.
  3. Use technology to cut costs.

Theoretically, the optimal price for consumers is at the stage of decline.

Life cycle of a product:

  • We call the turning point or the abrupt change of slope to large time/price product life down forever.

4 Stages

  1. Birth: Out of the generic product to market as product investment will more or less.
    When the product is of interest and sold, the competition will appear. If the product is easy to plagiarize, growth will be greater.
  2. Growth: Sales increase in greater amounts than in the birth stage.
  3. Maturity: The units sold vary little. The market is constant.
  4. Decline: The number of units sold significantly decreases. The market may follow death or residual-Investment.

Enhancement: Maximize investment in the product launch. In the epoch of maturity, you should not invest in the product (generically). A product that does not need declining investment in development only rarely.

Prices: At first, the price has to be “expensive” to recover all the investment made before. Growth in prices must be stabilized. The price at maturity will be the most tight as possible.

Products: In establishing the product alone. At maturity, we have many products to choose from.



Market Segmentation

Segmentation and positioning are two of the most important keys to marketing.

Assortment

They are the concrete manifestation of our identity. The portfolio of products defines itself.

It is defined by 3 characteristics:

  1. Size: Number of families forming the assortment (e.g., sports).
  2. Depth: Number of references to a family.
  3. Consistency: If a set has no coherence = flop.

Car Dealers: = 1 car for each model

Convenience stores: = 1 in (depth) but several families

Sell street: = amplitude “0”

Super discount = same but more space

Supermarket: = great breadth, depth enough.

Fnac = for amplitude, high depth

S = maximum depth and minimum amplitude

Great amplitude and depth = high innovation.

Panels

A company that deals with getting information of all kinds on the market. They sell the information to companies who need the information.

  1. They are a permanent source of information (regular and constant).
  2. They always work with a permanent and representative sample population.
  3. Especially suitable for large markets with competition.

3 types of Nielsen panels!

  1. Consumer Panel: Study everything concerning the person, family.
  2. Reseller Panel: Everything that has to do with the distributor.
  3. Panel to measuring the results of the actions of consumers.

Nielsen: Pareto à 20% REFERENCE = 80% sales (Pareto applied to the 20% reference range for 80% of the figures)

Furniture

Standard Furniture: Shelves

Specific furniture: furniture fridge for milk, frozen furniture

The furniture has 3 functions:

  1. Enhance section.
  2. Present a clear classification.
  3. Be appropriate for the product.

Blisters can put whatever we want whenever the shelf is small.