Product Line and Mix Decisions
Product is any thing that can be offered to a market to satisfy a want or need. Product that are marketed included physical goods, services, experiences, event persons, places, properties, organizations, information, and ideas. A product mix (also called product assortment) is the set of all products and items that a particular seller offers for sale. A product line is an element in the product mix where a single line like soaps are product line for a company, e.g., Kodak's product mix consists of two strong product lines: information products and image products. A company's product mix had a certain width, length, depth and consistency. These concepts are illustrated below:
The width of the product mix refers to how many different product lines the company carries.
Example : Hindustan lever limited has different product lines. It offers different products for the consumers. Some product lines offered by HINDUSTAN LEVEL LIMITED are Detergents, Toothpaste, Bar soap etc.
The length of a product mix refers to the total number of items in the mix. This is obtained by dividing the total length by the number lines.
The depth of a product mix refers to how many variants are offered of each product in the line.
Example : Hindustan Lever Limited offers tooth paste named Close Up at different sizes like 20 grams, 50 grams, 150 grams etc. In this case HTL has a product depth of three.
The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. P&G's product lines are consistent insofar as they are consumer goods that go through the same distribution channels. The lines are less consistent insofar as they perform different functions for the buyers.
These four product mix dimensions permit the company to expand its business in four ways....
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