PRODUCT MIX
Meaning of Product Mix
Product mix or product assortment refers to the number of product
lines that an organisation offers to its customers.
Product line is a group of related products manufactured or
marketed by a single company.
Such products function in similar manner, sold to the same customer
group, sold through the same type of outlets, and fall within a same price
range .
Product mix consists of various product lines that an organisation offers, an organisation may have just one product line in its product mix and it may also have multiple product lines.
These product lines may be fairly similar or totally different, for
example -
Dish washing detergent liquid and Powder are two similar product
lines, both are used for cleaning and based on same technology;
whereas Deodorants and Laundry are totally different product lines.
As the total composite of products offered by a particular
organization, consists of both product lines and individual products.
Is a group of products within the product mix that are closely
related, either because they function in a similar manner, are sold to the same
customer groups, are marketed through the same types of outlets, or fall within
given price ranges
It refers to the no. of different product lines the company
carries.
It is the total no. of items the Company carries within its
products lines.
refer to the no. of versions, offered of each product in the
line.
refers to how closely related the various product lines are in end
use, production requirements, distribution channels, or some other way.
An organisation's product mix has following four dimensions :-
Width,
Length,
Depth, and
Consistency.
Hindustan Unilever Limited
Product Mix
Width
The width of an organisation's product mix pertains to the number
of product lines that the organisation is offering.
For example,
Hindustan Uni Lever offers wide width of its home care, personal care and beverage products.
Width of HUL product mix includes Personal wash, Laundry, Skin
care, Hair care, Oral care, Deodorants, Tea, and Coffee.
Length
The length of an organisation's product mix pertains to the total number of products or items in the product mix.
As in the given diagram of Hindustan Uni Lever product mix, there
are 23 products, hence, the length of product mix is 23.
Depth
The depth of an organisation's product mix pertains to the total
number of variants of each product offered in the line.
Variants includes size, colour, flavors, and other distinguishing
characteristics.
For example, Close-up, brand of HUL is available in three
formations and in three sizes.
Hence, the depth of Close-up brand is 3*3 = 9.
Consistency
The consistency of an organisation's product mix refers to how
closely related the various product lines are in use, production, distribution,
or in any other manner.
PRODUCT MIX CONCEPTS
Product Mix – set of all products offered by the company for
sale
Product line- a group of related products constitute a product
line
E.g – Bata had a range of 1138 product lines(2009)
Width of Product mix- no of product lines in the product mix
e.g 10 lines in HUL’s product mix
Length of the product mix is the total no of items in the mix(in
example ,it is 46)
Avg length of a line- total length/no of lines
Product mix concepts •
Depth – the depth of the product mix is the assortment of all
sizes, colours and variations offered for each product in the product line
–
For example- Lifebuoy Active Red comes in three sizes- 125 gms,100
gms and 60 gms cakes •
Consistency :
closeness exhibited by the product lines in production requirements
, distribution and end usage –
For example- most of the HUL Product lines are consistent as they
are consumer goods distributed using similar channels and produced using
similar facilities
Product Mix Decision
Product mix decision refers to the decisions regarding adding a new
or eliminating any existing product from the product mix, adding a new product
line, lengthening any existing line, or bringing new variants of a brand to
expand the business and to increase the profitability.
Product Line Decision - Product line managers takes product line decisions considering the sales and profit of each items in the line and comparing their product line with the competitors' product lines in the same markets.
Marketing managers have to decide the optimal length of the product line by adding new items or dropping existing items from the line.
Line Stretching Decision - Line stretching means lengthening a
product line beyond its current range.
An organisation can stretch its product line downward, upward, or both way.
Downward Stretching means adding low-end items in the product line,
for example in Indian car market, watching the success of Maruti-Suzuki in
small car segment, Toyota and Honda also entered the segment.
Upward Stretching means adding high-end items in the product line,
for example Maruti-Suzuki initially entered small car segment, but later
entered higher end segment.
Two-way Stretching means stretching the line in both directions if
an organisation is in the middle range of the market.
Line Filling Decision -
It means adding more items within the present range of the product line.
Line filling can be done to reach for incremental profits, or to
utilise excess capacity.
Product Mix Strategies
Trading up - Offer high priced , prestige products to their
existing product line in an effort to increase the sale of their low priced
products and enhance the company image
E.g. – Lifestyle Trading down –new products, low priced to the
existing line
E.g –Marriot Corporation introduced a new chain of Hotels called
‘Holiday Inn’ to cater to the needs of not so affluent customers
Product line analysis –
too short Vs too long
Company’s objectives affect product line length
Market share and Higher Profitability
Line stretching •
A company stretches its product line beyond the current range of
products. •
It can stretch its product line in either the down market , up
market or both
Down Market stretch – introduce the products at a lower price E.g –
3 Roses for the lower end market (HUL)
Reasons- Middle market stagnation, potential for growth in Down
market ,aim to tie up with the lower end competitors
Up market stretch •
Enter the high end of the market •
The objective of the firm may be to have higher growth , increase
its margins, or to simply project itself as a full line mfgg firm E.g Lipton
Yellow Label (HUL) is a high end stretch with Rs 75 for 250 gms tea . •
A company serving in the middle market might indulge in
stretching its product line both ways – upward and downward
Unilever products
Soap Shampoo Cream Toothpaste PERSONAL CARE FOOD &
DRINKS TeaIce creamLux Dove Lifebuoy Clear Dove Lifebuoy Close up Pepsodent
Cornetto Magnum Lipton Supreme Ponds Dove Fair & Lovely
Product Mix of ITC
ITC PRODUCT MIX
FMCG FOOD CIGARETTES LIFESTYLE-retailing STATIONERY PERSONAL CARE
SAFETY MATCHES AGARBATH HOTELS WELCOMEGROUP WELCOME HERITAGE FORTUNE LUXURY
COLLECTION
ITC PRODUCT MIX • PAPER BOARD AND PACKAGING • AGRI BUSINESS – rural
services, leaf tobacco, spices, agri- input
FMCG-ITC FOOD -ashirwad, sunfeast, candyman,bingo, kitchen of india
FMCG ITC-CIGARETTES • INSIGNIA • INDIA KINGS • GOLD FLAKE • SILK CUT
• NAVY CUT • CAPSTON • SCISSORS • BRISTOL • FLAKE • BERKERLY
FMCG ITC-LIFE STYLE RETAILING • WILLS LIFE STYLE • JOHN PLAYER •
MISS PLAYER
FMCG ITC-EDUCATION & STATIONERY • CLASSMATE • PERFECT
CRAFT • EXPRESSIONS
FMCG ITC-PERSONAL CARE • FIAMA D’ WILLS • VIVEL D’ WILLS • SUPERIA
FMCG ITC-SAFETY MATCHES & AGARBATHIS •
MANGALDEEP •
EXPRESSIONS •
I-KNO •
EXPRESSION
FMCG ITC-KITCHEN OF INDIA •
CURRY PASTES (butter chicken, fish curry,dum aloo) •
CHUTNEYS (shredded mango, mango& jeera, mango & garlic •
BIRYANIS- (noor mahal, bohri) •
DESSERTS- (jodhpuri moongdal halwa, awadhi badam halwa)
ASHIRVAD VARIANTS • FLOUR –
aashirvad, select atta, chakki atta • SALT • SPICES – chilli
powder, turmeric powder, coriander powder, pickle mirch • INSTANT MIXES- gulab
jamun, rawa idli, rice idli, rice dosa, khaman dokla, rasmalai
ASHIRWAD • ATTA • SALT
SUNFEAST VARIANTS • BISCUITS –butter, cashew, crunchy coconut •
SNACKY- chilly flakes, classic salted • GLUCOSE- orange, nice, milky magic •
DREAM CREAM -choco, vanila, orange, milk cream • GOLDEN BAKERY - choconut,
butternut, butter scotch • FIT-KIT – multi-grain, vitamin • PASTA –cheese,
pizza, chicken
SUNFEAST VARIETIES
FOODS •
MINTO – Mint o fresh , mint o cool blue, orange mint, lemon mint
CANDY MAN •
FRUIT FUN •
BUTTER SCOTCH LICKS •
ECLAIRS •
COFITINO •
NATKAT MANGO •
NATKHAT GUAVA •
MANGO LINKS •
MAHA MANGO •
LACTO
BINGO —
POTATO CHIPS –
Salted, masala, tomato, chatkila nimbu achar, tandoori paneer tikka
—
MAD ANGLES – Tomato mischief, chilli dhamaka, achaari masti —
HATKE JATKE –Funky masala, tomato twist
LIFE STYLE RETAILING
WILLS LIFESTYLE
(wills classic, wills sports, wills clublife, wills signature)
PERSONAL CARE
VIVEL D’ WILLS
FIAMA D’WILLS
SHAMPOOS
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