Developing product strategies for existing products.

To develop long-term product strategies for existing individual products and product lines, following tools are used to arrive at a decision on existing products.

1. Product Evaluation Matrix: Evaluate the performance of all the existing products / product lines using this technique.
2. Perceptual Mapping Technique: Examine the relative strength and weakness of company's product in comparison to competitors.
3. Based on the above 2 analysis decide product strategy: 
1. Whether to continue
2. Whether to modify
3. Whether to eliminate or drop the product.
4. Whether to add new product or product line.

Product Elimination

If at all the company decides to eliminate the product / product line then the following factors needs to be considered.

1. Will the customer relationship be affected?
2. Will the profitability be affected due to change in overhead (fixed cost) allocation ?
3. What will be the reaction of the employee?
4. Will the sales of other products be affected?
5. Is there a new product to replace the eliminated product?
6. Will the company's image be affected?
7. What will be the possible competitive reaction?