Altering the design, packaging, or other features of the existing product is an option among the strategies of selecting the best mix. Giving a fresh face to selected products may often be the most profitable and less risky strategy for a company. The product mix also can be changed by eliminating an entire line or by simplifying the assortment line. The idea is to generate higher profits from fewer products.
Alternatively, the management may elect to “trade up” or “trade down” relative to existing products. This involves a change in product positioning and expansion of the product line. “Trading up” means adding a higher-price product to a line in order to attract a broader market. The firm intends that the new product’s prestige will help the sale of its existing lower-price products. “Trading down” on the other hand, means the opposite. It involves the addition of a lower-price product to the firm’s product line. The firm expects that people who cannot afford the original higher-priced product will buy the newer price one. This is based on the notion that the lower price product carries some of the status and some other substantive benefits of the higher price item.
Selecting the best product strategy involves careful study of the product’s strengths and weaknesses along with the risks involved in presenting it to the market. Know your product well and know your customers too.
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