Diversification
ë Diversification means adding a new
product to the existing product-line or mix.
÷arious Products of ITC Ltd.
Diversification of ITC Ltd.
Diversification
ë It involves the broadening of the product line.
ë Product replacement.
Product simplification-
implification refers to reduction of types, size colors and
other characteristics.
INTY DUCTI N
Concerned with the modification of the
existing product
Using less expensive material with the
objective of reducing the overall cost of
manufacturing
It is a cost reduction technique
Technique that is used to avoid unnecessary
cost and improve the utility of the existing
product
AIM Ô ÷ALUE ANALYI
This includes:
implifying the product
Use alternate cheaper material for manufacturing
Use of efficient and easier methods of
manufacture
Yeduction of product cost
Increase the utility of the product and
ave money or increase the profits
CAUE Ô UNNECEAYY C T
Lack of information
Lack of ideas
Wrong beliefs, habits and attitudes
Changed circumstances
Yesistance to change
÷ALUE ANALYI PY CEDUYE
1. Identify the product
2. Collect relevant information
3. Define different functions
4. Create different alternatives
5. Critically evaluate the alternatives
6. Develop the best alternative
7. Implement the alternative
Yesearch and development
Two forms :
Questionnaire
Telephonic urvey
IMP YTANCE
Production of new product ʹ the marketer gets valuable
information regarding customers preferences through research.
ë Probability of a product.
ë Depends on technical decisions and commercial
outcomes.
ë Internationally enforced techniques.
ë Perform without failure for a longer time.
ë Effective methodology for reliability performance
.
ë Develops a framework which links reliability
specifications and product performance.
How reliability improves?