Trend in product variety for some models in the USA

Product proliferation occurs when organizations market many variations of the same

product Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produ ...

s. This can be done through different colour combinations, product sizes and different product uses. This produces

diversity Diversity, diversify, or diverse may refer to: Business *Diversity (business), the inclusion of people of different identities (ethnicity, gender, age) in the workforce *Diversity marketing, marketing communication targeting diverse customers * ...

for the firm as it is able to capture its sizable portion of the market. However, it can also be considered that marketing so many new products leads to economic resources being wasted; the

consumer A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

becomes confused and mistakes are made in the purchase of products. Other problems associated with product proliferation include higher production, higher inventory and larger record-keeping costs. The very dynamism of product proliferation makes it hard to manage. Complexity is spawned by an ever-changing landscape of customer demand and companies' attempts to meet that demand with configurable products and more product variations. Product proliferation can sometimes also lead to cannibalisation of the existing product line of the company and should be justified by overall increase in market share.

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External links

* * Brand management Branding terminology Brands Product management {{Microeconomics-stub