Sunday, October 18, 2015

Product Line

Ideally companies should have clearly targeted and well positioned products. However over time their product line start to mass up. After some time every body gets used to this situation and things become more and more complicated. Here in this text, I propose that simplifying the product line is beneficial for almost every company. It is independent of the sector and applicable to services sector as well.

An example can be given for consumer electronics. These products become more and more complex every day. Therefore they require serious engineering to be perfected. Today's product development approach however spends less and less time on every product designed.  The end result is buggy products.  The companies try to produce as many different products as possible with minimal effort. Their product line become so fuzzy that even the top managers of the company cannot tell you their product line without looking at a paper and clearly state their targeted audience.  If a company would like to get the highest market share from their targeted customers. They should have pinpoint targeted and well designed products. This requires attention and focus. It is like a sniper shot vs machine gun shooting. If you don't have infinite number of ammunition you should target and shoot like a sniper.

One last recommendation on customer retention.  The products and even services can be made modular.  This allows the company to widen their target audience without complicating their product line.  Additionally it would allow the consumers to update their product continuously. Buying a module is cheaper than buying the whole product. This also satisfies consumers need for shopping and buying something new. Instead of buying a whole new product every couple of years. They buy modules every couple of months.  Update able products have longer life span. Therefore the company producing them improves their customer retention and brand royalty.