DefinitionRange of associated products which yield larger sales revenue when marketed together than if they are marketed individually or in isolation of others.

Consumers buy benefits, and products that BEST address their SPECIFIC need will get purchased.

Segmentation Analysis can help you determine where you need products to address consumer needs.

It’s not just line-extensions….(Dove Soap and Dove Shampoo).

It’s usually distinct, stand alone brands that address specific consumer needs.

Cleans, Whitens and Sanitizes

Cleans & Keeps Colors Vibrant

Ground in dirt & Stains

Everyday Dirt

Cheer

Tide

All

Dreft

Tide w/ Bleach

Product mix chart

Generic Quality

Premium Quality

Low Priced High Priced

It’s all about SALES. If the number of consumers that want a product to fulfill that need is significant, offer it.

Don’t be a flea on an elephant’s behind. (I.e. toothpaste for those with braces).

Protect the premium brands.

Are hard to detect as a consumer.

Are almost always found as “in-store specials”.

Work particularly well in “commodity” categories.

History

My crystal ball from 1997……MCI / Worldcom: BankruptSprint: now mostly a wireless phone company.AT&T: Still slugging away and

losing money.

Great taste & low calories.

Clean, white teeth, fresh breath, tartar control, fights gum disease.

Clean, comfortable shave.

Can be an effective way of segmenting and creating a reason to own multiple versions of your product:

Chapstick Regular Healing w/ Vitamin E Sunblock Protection Flavored Winter Protection