Why is product proliferation important?
First, product proliferation can help brands with a broader product variety meet heterogeneous, evolving consumer needs (Bayus and Putsis 1999; Kekre and Srinivasan 1990). If their unique needs are met, consumers should be more satisfied with and hold more favorable attitudes toward the brand.
What are the advantages of product selection?
Having a good selection of products can help to increase and improve customer loyalty. Adding new products or variants of existing products enables companies to sell more to existing customers without the effort and cost of acquiring new customers.
What is a product proliferation strategy?
“A product proliferation strategy comprises strategic actions — product line extension, new product introductions — that businesses use to increase variety in a product category,” Zhang said. “Such strategies are particularly effective when they align unique products with varied and dynamic consumer needs.
What is the meaning of product proliferation?
Product proliferation is the strategy whereby a firm extends its product offer in a market or submarket so as to saturate the product space and minimize unmet demand (Mainkar, Lubatkin, & Schulze, 2006).
What are the reasons for Stock proliferation?
Product proliferation occurs when organizations market many variations of the same products. This can be done through different colour combinations, product sizes and different product uses. This produces diversity for the firm as it is able to capture its sizable portion of the market.
What is brand proliferation examples?
Brand Proliferation occurs when a large company acquires or absorbs multiple smaller brands in similar market areas. Unilever is a prime example of this phenomenon. The company has, over time, acquired more than twenty-five brands of ice cream, each of which develop, market, and sell their own unique flavors.
What are the advantages and disadvantages of product differentiation?
Advantages and Disadvantages of Product Differentiation
- It creates additional value. Product differentiation will give your prospective customers added value.
- It develops brand loyalty.
- It allows businesses to compete in different ways.
What are the benefits of product development strategy?
A successful product development strategy can also increase revenue and profitability, but careful planning is essential to minimize the risk of costly mistakes.
- Manage and Measure for Success.
- Win Business with Improved Performance.
- Improve your Reputation for Quality.
- Reduce Costs to Improve Competitiveness.
What causes product proliferation?
What is the part proliferation and results of it?
Part proliferation occurs as parts are designed or redesigned to increase safety, comply with changing regulatory rules, improve profitability, serve niche customer demands and increase percentage of industry sales (PINS).
What is proliferation in inventory management?
SKU proliferation refers to the process of adding more products to your inventory based on changes in the market, thus increasing the number of stock keeping units (SKUs). For example, you may decide to introduce your best-selling item in a variety of new colors, which will result in several new SKUs to keep track of.
Why does brand proliferation happen?
Brand proliferation is a malady that afflicts certain kinds of entities, particularly global corporations, conglomerates and holding companies. It generally affects companies that have grown by acquisition in consolidating industries and the condition can be exacerbated by self-inflicted brand development.
What is proliferation in business?
What are the advantages of having multiple product range?
Having a wide range of product lines increases the chances of satisfying more customers and can improve productivity. However, each line needs its own development, marketing and support, and this can drive up costs.
What are the advantages and disadvantages of adding new product lines?
Adding new products to your existing product line can also help you compete more broadly in your industry. On the downside, there’s the potential for overextension-new products may cannibalize sales of older ones, or your resources may be disproportionately siphoned off for slower-moving products.
What is proliferation in supply chain?
Abstract. Product proliferation occurs in supply chains when manufacturers respond to diverse market needs by trying to produce a range of products from a limited variety of raw materials. In such a setting, manufacturers can establish market responsiveness and/or cost efficiency in alternative ways.
What is proliferation of brands?
What are the issues in industrial proliferation?
Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts.
What is part proliferation?
What is brand proliferation in marketing?
How can we prevent product proliferation?
Placing absolute limits on product choice. One way for a marketer to avoid product proliferation entails placing absolute limits on product line length. For example, while a typical Costco stocks perhaps just four toothpaste brands, Wal-Mart may carry 60 sizes from multiple manufacturers.
What are the benefits of new product development?
Developing new products provides a means to target new markets, increase market share, sell more and increase revenue streams. Meanwhile redesigning existing products enables costs to be cut, margins to be increased and ultimately more profits to be made.
What is product proliferation and why is it important?
Besides, the concept of product proliferation has other implications related to logistics, marketing and overall product management among others, while opting not to proliferate also has its implications.
Does product proliferation lead to product space positioning?
If a firm designs new products so as to increase the heterogeneity of product attributes within the targeted submarket, then product proliferation will not only lead to a more defensible positioning in product space, but it will also automatically generate commitment.
What drives innovation in Product proliferation?
Innovation in product proliferation takes two distinctive approaches, either by nature and trust, where innovation trickles from management downwards, or it may be characterized by innovation rising from bottom-up.
Does product proliferation lead to cannibalisation?
Product proliferation can sometimes also lead to cannibalisation of the existing product line of the company and should be justified by overall increase in market share . ^ Aichner, T. and Coletti, P. (2013).
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