Product mix and product line pdf

There are various product lines in a company but only one product mix. Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its. This is an application of the, dont put all your eggs in one basket. The consistency is the degree to which product lines are related 1. A product line is a group of related products produced. Product mix, also known as product assortment, refers to the total number of product lines that a company offers to its customers. Sep 27, 2018 various concepts are explained such as the product line length, product line width, product line depth, product line consistency etc. Evaluate your product mix to increase your bottom line. Pdf on aug 1, 1974, jerry wind and others published product portfolio.

The width is all about the number of different product lines the company carries. The product mix includes both product lines and product items. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Product mix overview, dimensions and practical example. In order to analyse each product line, product line managers need to know two factors. The key to successful implementation of the product line concept is a close working. The product mix of a company is generally defined as the complete set of all products a business offers to a market. A particular brand of a product is a product item, such as. This article develops a mathematical product line model that analyzes the marketing strategy implications of product interdependency.

When a business has a competitive advantage, it has an edge over its rivals. Philosophy that makes considerable sense when one views the rapidity with which a single productline can become outmodel or obsolescent and hence unprofitable. The depth of the product mix refers to the total number of products within a product line. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. In the textbook essentials of marketing, the authors use the campbells soup co. Product mix, also known as product assortment or product portfolio, refers to the complete set of products andor services offered by a firm.

The product mix could include several lines of products or individual products that do not fall into a line. This is where the concept of product mix and product line decisions occur, this. Product mix the perfect product must provide value for a customer the chartered institute of marketing, 2009, p. A product mix consists of product lines, which are associated items that consumers. Width the number of different product lines the company carries length the total number of items the company carries within its product lines depth the number of versions offered of each product in the line consistency how closely related the various. The 3 types of product line stretching and why companies. Product mix is the composite of products offered for sale by a firm or business unit. A companys product mix has four important dimensions product mix powerpoint presentation. Stretching the product line the marketing study guide. Retailers carry a mixture of products to satisfy various customers.

A product mix consists of product lines, which are associated items that consumersbuyer typesbuyer types is a set of. Total number of items in the product mix of the company. Product line product line refers to a group of products that function in a similar manner, sold to the same customer groups via same distribution channels and fall within the same price range. The goods or services that a company produces must be with regard to the needs and the wants of the consumers and the company must be clear if they are providing what the consumers want from them the chartered institute of. Generally, there are three price bands which exists in any market lower priced products, middle priced products and premium products. Evaluate your product mix to increase your bottom line by ami albernaz posted. Large firms would generally offer several product lines to the marketplace. Difference between marketing mix and product mix compare. Nov 08, 2016 learn more about the product mix in the latest lecture from alanis business academy. The difference between a product item, product line and the product mix product line is vertical, which a firms total product offering designed to satisfy single need for target customers. In the above example of nike, the footwear, apparels and equipment are all product lines. A bakery, for example, might have four categories say, breads, rolls, pastries and cookies.

A group of individual products that are closely related in some way. Marketing executives believe that product lines give companies a competitive advantage. Another text, marketing management, uses as an example avon products inc. A product line is a broad group of products, intended for similar uses and having similar characteristics. When a company has many product lines and groups them together, it creates a product mix collins dictionary has the following definition of the term. Our goal, using theories from finance, production management, and product offering management, is to conclude that there is a relevant difference between the evaluation of the technology that is to be chosen, and the potential value due to product mix adaptations that are able to provide the maximum return from investment. Every company deals with limited capacity, so smart decisions about product mix can greatly increase your profit. Product mix in any organisation, we find product the focal point.

The first of the product mix decisions refers to the product mix width. Product planner must consider what other products his company offers to the market. Product item a specific version of a product that can be designated as a distinct offering among an organizations products. Buyer types buyer types is a set of categories that describe the spending habits of consumers. For example, apple offers computers, smart phones, tablets, mp3 players, smart watches, and online services. It can be said as the average number of product items offered by the firm in each product line. Product mix components in an attempt to satisfy customer needs, marketers must make many decisions about their product and product mix.

Product line and product item, marketing management. Ch8 managing products, product lines, brands, packaging. Width in a product mix is sometimes also referred to as breadth. In essence, to cater to all the various types of customers out there, a company can come up with a complete product mix so that each customer is satisfied with different variants of the same product. For example, a small company may sell multiple lines of products. A product line is just a group of related products from a single manufacturer, like the cars on a dealers lot or the shampoos at your hairdresser.

It refers to degree to which different product lines are related in one or other ways. Jan 26, 2019 a product line is just a group of related products from a single manufacturer, like the cars on a dealers lot or the shampoos at your hairdresser. The product mix is the variety of products a company produces or sells to the marketplace. A product line is a related set of products offered by a firm. View notes ch 11 product mix and product line decisions. Managing product line and product mix business market. As mentioned in the previous example, colgate has 3 product lines. Product mix width, length, depth, consistency with examples. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company. Product line is a group of products that are closely related either because they satisfy a class of need, or used together, are sold to the same customer group, are marketed through the same types of outlets, or fall within given price ranges or that are considered. The marketing mix established for one product may affect the sales of another product. Product line depth refers to the number of versions offered of each product in the line.

A product line is a group of closely related products with similar functions, customer groups, outlets and same price ranges. Product mix, also known as product assortment, is the total number of product lines that a company offers to its. Changes mcdonalds is the largest fast food restaurant. Marketing management assignment help, product line and product item, product item. Having a broad productmix also spreads the risk of failure over a great number of product lines. Product mix a product mix is the set of all products and items that a particular seller offers for sale. The range of products offered by a firm is a critical strategic decision that will determine how the firm and their brands compete in the marketplace and the overall positioning of the brand. Product items, lines, and mixes product item product item product line product line product mix product mix a specific version of a product that can be designated as a distinct offering among an organizations products. A specific version of a product that can be designated as a distinct offering among an organizations products. The products are similar and focus on the same market sector.

Jun 25, 2018 different between product mix and product line. In the overall product mix decision, a firm needs to consider product line. Many companies now a day develop product line instead of a single product. It refers to a number of varieties in forms of sizes, colors, and models offered within each product line. Product items lines and mixes product item product item.

Product mix is defined as the set of all products and items that a particular seller offers for sale. At uwhc, the development of a product line matrix consisting of 3 service lines has resulted in more patient care efficiency, enhanced patient satisfaction, improved margin for the hospital, and enlargement of teaching and research opportunities. All are electrically operated appliances and the firm sells them through common distribution network. For instance, colgate toothpastes come in several tastes and variations. The complete set of all products a business offers to a market. The development and marketing of an entirely new product as an addition to the product line in order to replace a particular product of the same product line is known as product replacement.

The products in a companys mix can usually be grouped into basic categories. Though, the firm has 4 productline but there are two similarities in common. A companys product mix has the certain width, length, depth and consistency. This form of product diversification is sometimes adopted by a firm as a defensive measure against the risk of dying out one of its products. This is thr product mix is a total of all variations of products present within a company. Pepsico product line delopment is closely relates to product mix because when product line is big then company product mix also developed. Companies sell multiple product lines under their various brands. A product line often evolves, as manufacturers want to take advantage of a brands value and the success of other products in the mix. The relatedness of the different product lines in a. Product mix strategy and manufacturing flexibility. A product mix is the set of all product lines and items that a particular seller offers for the sale to buyers. The example of nike product line includes, footwear, apparel and sports equipment and every product line have similar products what is product mix. Product mix and product line understanding product length, width.

Britannia biscuits product line length,width,and depth. So product line pricing is setting the price on the base of cost difference between different products in a product line. Stretching the product line again if we use the apple example above, in the mobile phone market apple only offers smart phones of high quality. Every product line covers a certain full part of total possible range. As discussed in another article on this website, firms will have sets of products in what is known as a product line. On the other hand, product line refers to related products with similar users and functions. Product mix, also known as product assortment, refers to the total number of product lines a company offers. The key difference between marketing mix and product mix is that marketing mix is a broader term which includes the complete array of marketing tactics while product mix only refers to few elements of the product variable from the whole marketing mix. The total assortment of products and services marketed by a firm. Length of the product mix refers to the total number of products in the mix. Marketers must often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer. Product line product line refers to a group of products that function in a similar manner, sold to the same customer groups via same distribution channels and fall within the same price range product mix product mix is the entire collection or assortment of products or product lines offered by an organisation product line is a group of products that are related to each other in.

Capacity and product mix in cost accounting dummies. One brand concentrates on one price brand but the larger brands have the deep pockets to start multiple product lines which can target multiple customer segments, premium or otherwise. Product line a product line is a group of similar products with slight variations to satisfy the different needs of consumers. Product line, product mix, and product line extensions are terms frequently used to refers to different aspects of the range of products offered for sale by a company. Managing product, product lines, brands, packaging 8 line stretching. A product mix is whole selection of product lines you offer. The hotel services also require a fair combination of. Difference between product mix and product line top differences. A mathematical modeling approach to product line decisions. An examination of the concepts of product mix and product line thus will help. Product mix includes product line, packaging, and brand development.

Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only. The next one of the product mix decisions is the product mix depth. This strategy is used for setting the price for entire product line. When a company has many product lines and groups them together, it creates a product mix. Product mix product mix is the entire collection or assortment of products or product lines offered by an organisation. Burman dabur india limited is indias leading fmcg company with interests in health care, personal care and foods.

The width of a product mix refers to how many different product lines the company carries. The difference between a product item product line and the. The product lines may range from one to many and the company may have many products under the same. Before turning to the product mix decisions, we first have to know what the product mix actually is. Each of these would be considered a separate product line and under each product line they could offer a broad range of different products designed for different needs. The following story is intended to help small business owners navigate some of the trickiest aspects of managing their business. Feb 06, 2019 a product line is a group of products that a company creates under a single brand. Simply, it shows the number of items in the product line. There are various decisions which the management of a company should take about products we should sell, different categories of products, different versions of products, etc. Product mix and product line understanding product length.

Sometimes, these product lines are fairly similar, such as dish washing liquid and bar soap, which are used for cleaning and use similar technologies. For instance, portable wireless pc is one product line. It is the full range of products offered by a firm. Aug 03, 2014 discuss different productmix and productline strategies. A product line is a group of products that a company creates under a single brand. Learn more about the product mix in the latest lecture from alanis business academy. For example hindustan uniliver has a broad product mix with several product lines such as soap line, food line, personal care line home care line and so on the number of items in each product line is called the product mix length. As explained, product mix is a combination of total product lines within a company. Jun 27, 2012 set of all product offered for sale by a company. Focusing on the product mix enables companies to divert all their attention on their primary business. For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company. The breadth of a product mix shows the different kinds of product lines that firm carries.

Both product mix and marketing mix are part of this tactical framework. The depth of a product mix refers to how many variants are offered of each product in the line. A company like hul has numerous product lines like. A product line refers to a unique product category or product brand a company offers.

Product line and product mix have direct relationship. The astrocosmo problem considered earlier is an example. The product mix is a vital component of the marketing mix. For example, products that are intended to be used for similar purposes or to be sold in similar types of shops. Four important dimensions of a product mix can be identified. A new approach to the product mix decision find, read and cite all. Number of different product lines carries by the company. A product line is a group of related products produced by one manufacturer. That is if a company has 5 product lines and 10 products each under those product lines, the length of the mix will be 50 5 x 10. Product mix, branding, packaging, labeling, warranties, customer service. The product mix is made up of both product lines and individual products. F a i r d e a l i n g s h o r t e x c e r p t reading. A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlet, or fall within given price ranges. Product is defined as anything that is offered to public for purchase by the company.

The product line length within a company keeps changing. If they were to offer a basic smart phone they would be stretching their product line downward that is, taking it beyond the standard offering and introducing types of products that would appeal to. Collins dictionary has the following definition of the term. However, the product line is a subset of the product mix. It plays an important role in devising the business model of an. The product mix sometimes called product assortment is made up of both product lines and individual products. In addition to learning general information about the product mix, youll also learn how some of the strategy. Product mix pricing strategies in marketing study lecture notes. Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its buyers. As the company grows, it is likely to expand its product line to widen its core business. Today, britannia is a leading food company in india with over rs. The product mix, also called product portfolio, is the set of all product lines and items that a company offers for sale. Line stretching occurs when a company lengthens its product line beyond its current range.

Aug 30, 2019 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. It refers to the number of versions offered for each product in the product line. Product mix decisions width, length, depth and consistency. Product mix, also known as product assortment or product portfolio, refers to the complete set of products and or services offered by a firm. In cost accounting, product mix refers to the mix of products you produce. You just need to work out the most profitable product mix. An organisations product line is a group of closely related products that are considered a unit because of marketing, technical or enduse considerations. Thus, product line width is a depiction of the number of product lines which a company has. A product line is a group of related products under a single brand sold by the same company. Although product mix problems are seldom encountered in their simple textbook form in practice, they very frequently constitute important.

Discuss product mix of hotel industry within the service sector management forums, part of the resolve your query get help and discuss projects category. A product mix is also referred to as a product assortment. Apr 08, 2020 a product mix is a group of everything a company sells. In this respect we can now understand britannias product mix. When the product is a part of product mix or portfolio, companies adopt five kinds of pricing strategies in marketing which are as under product line pricing this strategy is used for setting the price for entire product line. Product mix refers to the total number of products of a company offer to sell. A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels or fall within given price range. Product strategy and product mix of britannia britannia. The width of a companys mix describes how many product categories it has. A good understanding of product mix is a key element of marketing management. Product mix, product line and product items your article library. In addition to learning general information about the product mix, youll also learn how some of.