Business English Course Lector dr.

Adriana L ] UHVFX

PRODUCTS
1. Product policy

1a Discussion

Give three examples of brands to which you are

loyal (i.e. which you buy without giving it a
moment’s thought). Why are you loyal to them?

Are there any products for which you have no

brand preference or loyalty but are what marketers
call a ’brand-switcher’?

Can you think of any products for which the name

of the brand is totally unimportant, so that you do
not even notice it? (There may be some in your
bag or briefcase.)

Give an example of a product line (a group of

related products made by the same company).
Think of clothes, cosmetics, food, and so on.

1b Reading

Read the following text, and write a brief heading for each paragraph.

PRODUCTS AND BRANDS

1 ……………………………………………………………………....
Marketing theorists tend to give the word product a very broad meaning, using it to refer to
anything capable of satisfying a need or want. Thus services, activities, people (politicians,
athletes, film stars), places (holiday resorts), organizations (hospitals, colleges, political
parties), and ideas, as well as physical objects offered for sale by retailers, can be considered
as products. Physical products can usually be augmented by benefits such as customer advice,
delivery, credit facilities, a warranty or guarantee, maintenance, after-sales service, and so on.

2 ……………………………………………………………………....
Some manufacturers use their name (the ' family name' ) for all their products, e.g. Philips,
Colgate, Yamaha. Others, including Unilever and Procter & Gamble, market various products
under individual brand names, with the result that many customers are unfamiliar with the
name of the manufacturing company. The major producers of soap powders, for example, are
famous for their multi-brand strategy which allows them to compete in various market
segments, and to fill shelf space in shops, thereby leaving less room for competitors. It also
gives them a.greater chance of getting some of the custom of brand-switchers.

3……………………………………………………………………....
Most manufacturers produce a large number of products, often divided into product lines.
Most product lines consist of several products, often distinguished by brand names, e.g. a

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Business English Course Lector dr. Adriana L ] UHVFX

range of soap powders, or of toothpastes. Several different items (different sizes or models)
may share the same brand name. Together, a company’s items, brands and products constitute
its product mix. Since different products are always at different stages of their life cycles,
with growing, stable or declining sales and profitability, and because markets, opportunities
and resources are in constant evolution, companies are always looking to the future, and re-
evaluating their product mix.

4 … … … … … … … … … … … … … … … … … … … … … … … … … … ....
Companies whose objectives include high market share and market growth generally have
long product lines, i.e. a large number of items. Companies whose objective is high
profitability will have shorter lines, including only profitable items. Yet most product lines
have a tendency to lengthen over time, as companies produce variations on existing items, or
add additional items to cover further market segments. Additions to product lines can be the
result of either line-stretching or line-filling. line-stretching means lengthening a product line
by moving either up-market or down-market, i.e. making items of higher or lower quality.
This can be carried out in order to reach new customers, to enter growing or more profitable
market segments, to react to competitors'initiatives, and so on. Yet such moves may cause
image problems: moving to the lower end of a market dilutes a company' s image for quality,
while a company at the bottom of a range may not convince dealers and customers that it can
produce quality products for the high end. Line-filling - adding further items in that part of a
product range which a line already covers - might be done in order to compete in competitors'
niches, or simply to utilize excess production capacity.

1c Comprehension

1 Why do the big soap powder producers have a multi-brand strategy?

2 Why do companies'product mixes regularly change?
3 What factors influence the length of companies'product lines?
4 What are the potential dangers of line-stretching?
5 Why might companies undertake line-filling?

1d Vocabulary

Find words or expressions in the text which mean the following.

1 the possibility of paying for a product over an extended period

2 a promise by a manufacturer or seller to repair or replace defective goods during a certain
period of time
3 a surface in a store on which goods are displayed
4 consumers who buy various competing products rather than being loyal to a particular brand
5 the standard pattern of sales of a product over the period that it is marketed
6 the extent to which an activity provides financial gain
7 possibilities of filling unsatisfied needs in sectors in which the company can produce goods
or services effectively
8 the sales of a company expressed as a percentage of total sales in a given market
9 the set of beliefs that the public at large holds of an organization
10 a small, specialized, but profitable segment of a market

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Business English Course Lector dr. Adriana L ] UHVFX

2. Developing a new product

You will hear Jogishwar Singh, a director of the Swiss holding

company Tégé, talking about the forthcoming launch of ' Fresh
Fries'
, a fast food product that will be sold in vending machines.

2a Discussion

Do you ever use vending machines?

If so, what for, why and when?

What are the potential advantages and disadvantages of this form

of distribution, for both the seller and the customer?

2b Listening

Listen to the interview. Which of the alternative answers is correct?

1 Fresh Fries machines will be installed

A in cafes and restaurants and other public places.
B in all kinds of places where people come to eat.
C in places where there are lots of people.
2 Fresh Fries are made from
A dried potatoes and water.
B fresh potatoes and oil.
C powdered potatoes and various secret ingredients.
3 The vending machine will be followed by a smaller machine
A for home and commercial use.
B for people to use at home.
C for smaller restaurants.
4 The machine has been through a series of prototypes because
A the inventor came up with further inventions.
B the inventor made design improvements.
C other people gave the inventor new ideas.
5 Inventors usually do not know enough about
A industrial engineering.
B raising finance.
C the economics and realities of industrial production.
6 Jogishwar Singh thinks the most important reason the product will succeed all over the
world is
A its speed in delivering the fries.
B the fact that the fries will always have exactly the same quality.
C the quality of the fries and especially their crispness.

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Business English Course Lector dr. Adriana L ] UHVFX

2c Vocabulary

Look at the following words and expressions, and then listen to the interview again, and write
down the words and expressions used in the interview that mean nearly the same.

1 a serving of food designed for one person

2 an alternative British word for what Americans call french fries
3 eye-catching, noticeable
4 from which water has been removed
5 the components of which a food product is made
6 a small booth used for selling newspapers, cigarettes, ice cream, and so on
7 the owners of a company
8 a large amount of money
9 uniformity, regularity, sameness (of a product sold worldwide)
10 a symbol or design or the particular form of lettering of a trade mark

2d Discussion

Where would you be most likely to use such a machine?

What do you think are Tégé'
s chances of successfully launching this product in your country?
And in 180 countries?

English for Business Studies

@ Cambridge University Press 1997