Product Mix Ravi Pratap

8/8/2019 Product Mix Ravi Pratap

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PRODUCT MIX

DECISIONS


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Companies in manufacturing or retailing

handle a multiple of products & productvarieties

Companies may expand new lines or

contract the old lines. (developing new

uses for the existing lines)

These activities involves managerial

strategies and policy making with respect

to the three levels of the product

aggregation viz product item, product

line & product mix.


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Product Item

It is a specific version of a product that hasa separate designation in the sellers list.

A specific model, brand or size of product a

company sellsEx.- college course on business management

Ex.- Hindustan Motors Ambassador mark II


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Product Line

A group of products that are closely related eitherbecause they satisfy a class of need, or used together,

sold to the same customer group, use similar type of

distribution channels/outlets or fall within the given

ranges Products which are meant for essentially similar uses

and possess reasonably similar physical

characteristicsEx.-P-1 (Lawn care services land mowing,

landscaping, tree trimming.)


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Product Mix

Product Mix is the full list of all productsoffered for sale by the company

All different product lines a company offers


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Structure of the Product - Mix

Width / Breadth

P 1P 2 P 3 P 4

WidthWidth means the different product lines

found with the company

I-a

I-b

I-c

2-a

2-b

2-c

3-a

3-b

3-c

4-a

4-b

4-cDepth

DepthDep

th means refers to average number of items

offered by the company within each product line


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Structure of the Product - Mix

P 1P 2 P 3

Tata

Heavy Duty

Vehicles

Army

Cars

Bus

Truck

Communication

Mobile Phones

WLL

Internet services

Tata Sky (dish

T.V.)

Steel

Extraction

Manufacturing

dimensions

P 4FoodProducts

Salt


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P 5P 6 P 7

Tata

Automobiles HotelsToiletries

P 9Education

P 10Services

Insurance


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Width of Product Mix

WidthWidth means the different product linesfound with the company

Width could be narrow or wide

Wide mix encourages one stop shopping as firms

diversify to appeal all consumer needs

Wide/narrow product line depends on organisational

objectives, capabilities and market expectations

Project management institute

Course on project management

IIT, Delhi

Engg. Mgt. Research Pure Sci.


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Depth of product mix (product line depth)

DepthDepth means refers to average number of items offeredby the company within each product line

Number of product items with in each product line.

As firm grows, it feels that expertise can be exploited by

expanding number of variations to broaden the customerbase.

This causes higher cost of inventory, product alterations& processing of orders.

IIT, Delhi

Engg.

Mechanical

ElectricalCivil

Mgt.

Marketing

FinanceHRM

Pure Sci.

Mathematics

ChemistryPhysics

Product line depth


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Length of product mix

LengthLength refers to the total number of items in aproduct mix.

3 lines, 3 items in each line = (3*3)=9

The length of the product mix is 9 items (in total)

IIT, Delhi

Engg.

Mechanical

ElectricalCivil

Mgt.

Marketing

FinanceHRM

Pure Sci.

Mathematics

ChemistryPhysics

Product line depth


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Consistency of Product Mix

Relationship amongst Product Lines in terms oftheir

sharing end use,Distribution Outlets, Consumer

Groups, & Price Range.

Generally, a consistent mix is easily manageable.

Consistent mix environment, the firms concentrate on

marketing and service delivery expertise, create a stringimage and generate a strong interpersonal image.

Excessive consistency may lead to limited product service

assortments


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Ex. Philips- lamps & tubes, mixers,

radios, transistors, electric irons, toasters,sound system and so on

All product lines are consistent ----as all are

electric appliances.


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Product Mix strategies Positioning Expansion

Alteration

Contraction

Will be giving notes

Kujnish


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Trading up & Trading down

Trading up --- Adding a higher pricedproduct to a line to attract a broader

market.

Ex. Hyundai added Sonata with their

existing Hyundai Santro & Hyundai Accent


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Trading down --- Adding a lower pricedproduct to a companys product line.

Ex. Sony coming with a cheaper pricedcolour television


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Product Port-Folio

Product port-folio or product mix is the

composite of products offered for sale by a

firm .It is the list of all the products offeredfor sale by a company. It is three

dimensional because, it has breadth,

depth & Consistency.


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CONCLUSION


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Product Items, Lines, and

Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a productthat can be designated as adistinct offering among an

organizations products.

A specific version of a productthat can be designated as adistinct offering among an

organizations products.

A group of closely-relatedproduct items.

A group of closely-relatedproduct items.

All products that anorganization sells.

All products that anorganization sells.


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Product Mix

Width how many product lines a company has

Length how many products are there in a product line

Depth how many variants of each product exist within a

product line

Consistency how closely related the product lines are in

end use

Gill tt P d t Li


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Gillettes Product Lines

& Mix

Blades and Writingrazors Toiletries instruments Lighters

Fusion 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel Silkience

Double-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mixWidth of the product mix

Deptho

ft h

eprodu

ctlin

es

Dept h

o

fthep

rodu

ctlines


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Little Remedies

How does an extensive product line benefitboth consumers and retailers?
http://www.littleremedies.com/

Product Mix Ravi Pratap

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