No product line is perfect and also does not run for all times to come.
Appraisal of the product line and the individual products
No product line is perfect and also does not run for all times to come. Changes happen in the business environment, customer tastes and preferences, extent of competition that pressurise the product policy of the firm. New, changed, advanced products are introduced or even old products are withdrawn from the market by the companies to revive the lost market image, to overcome the treat of functional obsolescence due to new improved /substitute products introduced by competitors, to regain profitability or when the product has entered a stage of decline. Firm needs to constantly monitor the company’s product policy.
This topic of Product Mix & Product Line is very important so concentrate on it.
When we say a firm’s product mix we are actually discussing about all product items it offers.
Hindustan Lever’s product mix includes agro-chemical products, soaps, detergents, toothpaste, shampoos, Talcum powders, cosmetics and now, frozen foods.
Just suppose any organization is marketing more than one product then it has a product mix.
Product item—a single product
Product line—all items of the same type
Product mix—total group of products that an organization markets
Now if I say a product line what do you understand from this?
It is basically a group of products that are related because of customer, marketing and or production considerations.
Rin, Wheel, Rin Solarox, Rin detergent powder, Surf, and Surf Ultra are part of Lever’s detergents line and Le Sancy, Lux, Rexona, Lifebuoy, are part of its soaps line.
When we are discussing about a typical large multi-product firm’s product mix includes new, growing, maturing and declining products.
Reasons many firms do not want to limit themselves to one product.
1. To counteract the effects of the PLC on a one product firm.
2. To even out seasonal sales patterns.
3. To use company resources and capabilities more effectively.
4. To capitalize on middlemen and consumer acceptance of established products.
5. To spread production and marketing costs over a wider product mix.
6. To become better known and respected by middlemen and consumers.
Tags : MARKETING MANAGEMENT - Product Mix Decisions
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