Step 1: Select a product line that has a wide range of options and variety. Good examples include hair care products, automobiles, iPods and other MP3 players, mobile and smartphones, laptops, and the like. Ideally you want to select a product line that offers basic products, intermediate products, and luxury or "expert" products at various price points.
Step 2: Describe the current product line and make adjustments. First, make a list that describes the current product line, including specific features and price for each product. After making your list, put yourself in the role of a newly hired Chief Marketing Officer (CMO) of the company. Imagine that as a new hire one of your first tasks is to review your existing product lines. Do you think that the current pricing strategy for the product line is sound? Why or why not? What gaps or redundancies do you see in your product and pricing range? What are your ideas to fill or fix them? What might you gain or lose by adjusting your product and pricing line?