Major dilemmas related to product proliferation contain higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; additional consumer confusion and anxiety; and increased susceptibility to stockouts. This article describes how a firm can limit product proliferation without incurring decreased sales or lowering consumer devotion.
An effective product proliferation reduction plan needs to be based on several principles: resisting the temptation of asking consumers if a greater categorization is needed; classifying goods into consumer-behavior-based grades; using interfunctional merchandise pruning teams; practicing mass customization, where appropriate; setting absolute limits on product selection; and implementing effective strategies for product pruning.
Strategies to Reduce Product Proliferation case study solution
PUBLICATION DATE: November 15, 2011 PRODUCT #: BH455-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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