How can a company build and manage its product mix and product lines?

STRATEGY

Setting

Chapter 11

HOW can a company build and

manage its product mix

and product line?

PRODUCT MIX

It is the set of all products

and items a particular

seller offers for sale

EX:

UNILEVER manufacture many types

of products under its name by

different brands.

PRODUCT LINE

A product line

manufactures a particular

type of product from the

set of many products.

HEWLETT PACKARD manufactures

laptop, mobile phones and PC’s.

Each of which has a different

product line.

What are the ways of

managing product mixes?

1. Adding new products lines, thus widening

its product mix.

SAMSUNG has many product lines

within its product mix. It produces

mobile phones, televisions, fridge,

washing machines etc. each having

a different product line.

1. Adding new products lines, thus widening

its product mix.

2. Company can lengthen its product line.

For ex: Televisions

SAMSUNG keeps on lengthening its

product line by introducing LED, LCD, plasma,

Smart range in its television product line.

1. Adding new products lines, thus widening

its product mix.

2. Company can lengthen its product line.

3. Deepening its product mix. Adding more

products variants to each product which

can be up-market, down-market or both of

them.

For ex: Mobile Phones

SAMSUNG keeps on introducing its new

mobile phones thus deepening its product line.

1. Adding new products lines, thus widening

its product mix.

2. Company can lengthen its product line.

3. Deepening its product mix. Adding more

products variants to each product which

can be up-market, down-market or both of

them.

4. Company can pursue more product line

consistency.

These slides were created by Ankit Kumar, IIT

Delhi, during a Marketing internship by Prof.

Sameer Mathur, IIM Lucknow