Redesigning Product Lines with Conjoint Analysis: How Sunbeam Does It

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Redesigning Product Lines with Conjoint Analysis: How Sunbeam Does It Q1. What are the strengths & weakness of the studies ? Faced with declining margins and market share, The Sunbeam Appliance Company (SAC) division takes on the task of discovering what features, appearance and attributes can differentiate their aging food processor line relative to competitors. Using a complex conjoint analysis that includes 27 orthogonal arrays and 12 attributes, Sunbeam sets out to attain three critical objectives to rejuvenate their food processor product line (Page, Rosenbaum, 1987). These three goals are to define what models must stay in an overcrowded product line, how the product line's physical appearance needs to change, and what characteristics of the product need to be on the next product generation (Page, Rosenbaum, 1987). The strengths and weaknesses of Sunbeams' approach to solving these three difficult problems is first analyzed followed by recommendations for improvement. Sunbeam's Conjoint Analysis: Strengths The following is an assessment of the strengths of the conjoint analysis Sunbeam has completed. First, Sunbeam has stated that one of their key goals is to understand what the optimal market share levels are by product category and within product, by model (Page, Rosenbaum, 1987). The study does this excellently, as it captures the level of market share across several methodologies in a first pass of analysis using conjoint analysis in conjunction with

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