Page 28 - PRODUCT
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CATEGORIES OF NEW PRODUCTS
IMPROVEMENT & REVISION OF
EXISTING PRODUCTS:
New products that provide improved
performance or greater perceived value &
replace existing products. Companies
restudy their products, thus can offer a
better quality product.
Ex: Perodua launch new Myvi, which more
better in engine
REPOSITIONING:
Existing products that are targeted to new
markets or market segments. Also being
reintroduce for other usage.
Ex: Honey can now be used in beauty care
beside as food item
COST REDUCTION:
New products that provide similar
performance at lower cost. After careful study
sometimes companies find out that the same
product can be made at lower cost and thus
its price can also be reduced.
Ex: Stool made from plastic, instead from
wood
