Difference Between Product Line & Product Mix
The Best Way a Company Can Build & Manage Its Product Mix & Product Lines Why Is the Concept of a Product Mix Important?
How To Determine an Optimal Product Mix
What Is a Product Mix?
Product Mix Pricing Strategies
Product mix is the sum total of all products that a company offers. For example, a pet food manufacturer may offer several varieties of dog and cat food. These multiple products may serve different customers, dog and cat owners, but the products are all part of the company's product mix. Products within a product mix can either be similar or variegated. There are also four dimensions to product mix: width, length, depth and consistency.
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The width of product mix includes all the product lines that a company sells. For example, if a vitamin company sells various vitamins, diet products and sports drinks, its product width is three. Upstart companies usually start with a narrower product width. It is not practical for small companies to start out with multiple product lines. The company will use enough resources producing or purchasing one line of products for sale. Some companies may even start out with one or two products. A company can also broaden its product line as sales for the initial products start taking off.
The length of a company's product mix pertains to the total number of products the company sells, For example, a small consumer products company may have three product lines: snacks, cereal and canned meats. This consumer products company may sell five snack items, four cereals and three varieties of canned meats. Therefore, the company's product mix length is 12. Some companies will also calculate an average product length if they have numerous product lines. For example, the hypothetical...
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