MARKETING MANAGEMENT - Product Mix Decisions
Width of product mix - Product Mix Decisions
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You would have noticed that so many companies market just one or two product lines, and hence their product mix is narrow.
Width of product mix
Lever’s Product Mix and Product Lines (partial listing)
You would have noticed that so many companies market just one or two product lines, and hence their product mix is narrow.
It basically operates in diverse fields, and has broad product mix. You can see in Fig that each product mix has a depth, which is given by models, colours, sizes, available in each individual product lines.
As all of us know that pharmaceutical company has a product line of antibiotics. It has several dosage forms like it can be in the form of capsules,
dispersible
tablets for children, vaginal suppositories, injections, eardrops, eye drops
and Syrups under the dosage form and then the size of the package can be
different. The company has several brands of antibiotics, and each brand has
several dosage forms and sizes. We can say, that its product mix has depth. On
the contrary, a few products, in one size only as one brand is an example of a
shallow product depth.
All the decisions related to product lines offers are from company’s strategic plan and marketing plan. It considers the segmentation of the market and targeting. Just suppose an organization wishes to target young’ children, it can add a whole new product line for it.
New product lines are either a matter internal development or can be acquire. Each product line also can be expanded. The important idea is that the product line of a company reflects the objectives of the organization, the targeting decided upon and the buyer behaviour in a given market.
We have a number of reasons to alter either an existing product or a product line. The reasons could be to support marketing strategy, to improve sales, to improve profits, to expand market share. We can also consider what the product as such contributes to the product portfolio. We can modify a product line by altering either one or more than one of the following attributes:
(1) Composition of the product line
(2) Expansion or contraction of product line
(3) Value addition process
(4) Brand
(5) Packaging
(6) Physical characteristics
(7) Positioning
The first two attributes are relevant to a set of products in the product line. The rest are relevant to either individual products or product lines.
Companies do not, in general, offer single product and single model .
As you are aware that there are many models of TV available in the market. There is a large variety of radio sets from Sony. Underlines bras are available in a number of styles. Syrups and crushes are available in many flavours, e.g., Rasna concentrates and Mala’s crushes.
There are technical products with higher and lesser sophistication. We find many product categories where consumers prefer to have a great variety for their satisfaction. Marketers are adopting strategies of adding new versions with new specifications, while retaining the old versions for the less sophisticated consumers.
Sometimes this addition of new products to existing line is done to include complementary products, e.g., a toothpaste marketer may add toothbrushes to the product line. Camel may introduce paintbrushes, which go well with its watercolours.
Sometimes, there are occasion to delete a product/products from the line. A product, which shows decline in terms of sales, may be abandoned. Non-contributing products may be eliminated. While doing so, it should be seen that other products in the product line are not affected.
HUL has removed Lifebuoy carbolic soap from its line. It upgraded Lifebuoy to compete with other beauty soaps.
Lever’s Product Mix and Product Lines (partial listing)
You would have noticed that so many companies market just one or two product lines, and hence their product mix is narrow.
Do you know in which all areas General Electric operates?
It basically operates in diverse fields, and has broad product mix. You can see in Fig that each product mix has a depth, which is given by models, colours, sizes, available in each individual product lines.
As all of us know that pharmaceutical company has a product line of antibiotics. It has several dosage forms like it can be in the form of capsules,
All the decisions related to product lines offers are from company’s strategic plan and marketing plan. It considers the segmentation of the market and targeting. Just suppose an organization wishes to target young’ children, it can add a whole new product line for it.
New product lines are either a matter internal development or can be acquire. Each product line also can be expanded. The important idea is that the product line of a company reflects the objectives of the organization, the targeting decided upon and the buyer behaviour in a given market.
You can modify existing Product lines:
We have a number of reasons to alter either an existing product or a product line. The reasons could be to support marketing strategy, to improve sales, to improve profits, to expand market share. We can also consider what the product as such contributes to the product portfolio. We can modify a product line by altering either one or more than one of the following attributes:
(1) Composition of the product line
(2) Expansion or contraction of product line
(3) Value addition process
(4) Brand
(5) Packaging
(6) Physical characteristics
(7) Positioning
The first two attributes are relevant to a set of products in the product line. The rest are relevant to either individual products or product lines.
Expanding and Reducing the Product Line:
Companies do not, in general, offer single product and single model .
As you are aware that there are many models of TV available in the market. There is a large variety of radio sets from Sony. Underlines bras are available in a number of styles. Syrups and crushes are available in many flavours, e.g., Rasna concentrates and Mala’s crushes.
There are technical products with higher and lesser sophistication. We find many product categories where consumers prefer to have a great variety for their satisfaction. Marketers are adopting strategies of adding new versions with new specifications, while retaining the old versions for the less sophisticated consumers.
Sometimes this addition of new products to existing line is done to include complementary products, e.g., a toothpaste marketer may add toothbrushes to the product line. Camel may introduce paintbrushes, which go well with its watercolours.
Sometimes, there are occasion to delete a product/products from the line. A product, which shows decline in terms of sales, may be abandoned. Non-contributing products may be eliminated. While doing so, it should be seen that other products in the product line are not affected.
HUL has removed Lifebuoy carbolic soap from its line. It upgraded Lifebuoy to compete with other beauty soaps.
Tags : MARKETING MANAGEMENT - Product Mix Decisions
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