You are
here: Step
8: Preparing your export plan > Preparing an export
marketing strategy for your firm > The export product > Product
modification > Eliminating
obsolete products |
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Eliminating
obsolete products
It often becomes necessary to eliminate
certain products from a range because they:
- Involve expensive, short-run production lines as demand
diminishes
- ake up an excessive amount of management and salesman
time
- Project the image of a conservative and technologically
backward company
- Delay the search for new products. (Management may be
hoping that the poor product performance is temporary
or is the result of inadequate marketing.)
However, before a product is abandoned, factors
other than those highlighting current product profitability
should be taken into account. These include:
- The likely effect on sales and profits in the event
of product rejuvenation
- The likely advantages of a change in the product marketing
strategy
- Alternative product opportunities open to the company
- The extent to which the product assists in the sale
of other products in the range
Before moving to eliminate an export
product, you need take into account the market potential
for the product in all of your markets. Although the product
may be only marginally profitable in the domestic market
or in one specific export market, it may be in the growth
stage of its life-cycle in other markets where it is influenced
by different per capita incomes or different purchasing
patterns.
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