The Products mixture, Also known as product assortment, it refers to the total number of product lines that a company offers to its customers. A company can sell multiple product lines.
It is the set of everything that a company sells. It consists of product lines, which are related items that consumers tend to use together or consider similar products or services. The product line is a subset of the product mix.
A product line refers to the products that a company offers. For example, Patanjali company deals with different product lines, including shampoo, flour, toothpaste, etc..
These are different product lines for the company and together they make up the company's mix..
Product lines can be quite similar, such as dishwashing liquid and bar soap, which are used for cleaning and use similar formulas. They can also be very different, such as diapers and razors.
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The product mix is a subset of the marketing mix and is an important part of a company's business model. It has the following dimensions:
This dimension corresponds to the number of product lines that a company sells.
For example, suppose the EZ Tool company has two product lines: hammers and wrenches. The width of your product mix is two.
Companies generally do not have an extensive product line. It is more practical to start with a few commodities and increase market share.
Enterprise technology will allow the company to subsequently diversify into other industries and broaden the breadth of the product mix.
Length is the total number of items in the company's product mix.
For example, EZ Tool has two product lines. In the hammer product line there are claw hammers, ball hammers, sledgehammers, roof hammers and industrial hammers.
Wrench line contains Allen wrenches, socket wrenches, ratchet wrenches, combination wrenches and adjustable wrenches.
Therefore, the length of the EZ Tool product mix would be 10. Companies with multiple product lines calculate the average length per product line..
It corresponds to the total number of variations for each product. Variations can include size, flavor, and any other distinguishing characteristics.
For example, if a company sells three sizes and two flavors of toothpaste, that particular line will be six deep..
Describes how closely the product lines are related to each other, in terms of use, production, and distribution.
The lower the variation between products, the greater the consistency. For example, a company that sells only dairy products has more consistency than a company that is dedicated to all types of electronic products.
A company's product mix can be consistent in distribution, but very different in use. For example, a company may sell nutrition bars and health magazines in retail stores..
However, the toothpaste company's product lines are both the same. They have the same use, are produced and distributed in the same way. Therefore, these product lines are consistent.
Pricing is a critical factor in the product mix. Companies must make strategic decisions about how to price their products to achieve their business objectives..
Costing strategies range from being the cost leader to being a high-ranking option, with a high price tag for consumers..
The highest cost is the most basic cost type. It simply represents the setting of the cost of a product at a higher level than its cost of distribution and production..
For example, a jeweler may make the decision to price their products with a 100% profit margin, based on the costs involved in creating the product..
They are costs established specifically to face and respond to the prices placed by the competition on their products.
Companies can make the decision to have a higher price, a lower price or at the same level of the competition. However, their decisions are based on an assessment of what competitors are doing and how they want to position their product mix..
It is a strategy that is frequently used by new participants in a market, or companies that have developed new products, that have little or no competition..
Set prices at a high amount to take advantage of sales that will originate before competitors enter the market.
It is a product mix pricing strategy designed to gain market share by introducing a new product at a low price, thereby prompting consumers to try your product..
Even companies can lower prices on their products to capture a large share of the market..
Coca-Cola has under its name product brands such as Minute Maid, Sprite, Fanta, Thumbs up, etc. There are a total of 3,500 products handled by the Coca-Cola brand. These make up the length of the product mix.
Minute Maid juice has different variants, such as apple juice, orange juice, mixed fruits, etc. They constitute the depth of the "Minute Maid" product line.
If a company produces only soft drinks and juices, it means that its mix is two product lines wide. Coca-Cola deals with juices, soft drinks and mineral water and, therefore, Coca-Cola's product mix is three product lines wide..
Coca-Cola mainly handles beverage products and therefore has more consistency in its product mix.
Let's take P&G as a company to understand the product mix. This is not an accurate example and all P&G products may not be considered, but the example will help to understand the product mix within an organization..
Detergents: Ariel, Ariel bar, Ariel oxyblue, Tide, Tide white, Tide plus, Tide natural.
Shampoos: Head and shoulders normal, Head and shoulders anti-dandruff, Pantene, Pantene pro-v, Pantene damage repair.
From this example, you can learn the following about the P&G product mix:
- Product mixing width: 2.
- Product mix length: 12.
- Product mixing depth: 7 in detergents and 5 in shampoos.
- Consistency of the product mix: high, as both are cleaning products.
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