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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/