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. Burman dabur india limited is indias leading fmcg company with interests in. Nov 08, 2016 learn more about the product mix in the latest lecture from alanis business academy. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same. Product mix a companys assortment of product lines and individual offerings product mix widththe number of product lines offered. Thus, it is essential to have these products readily available and have the brand name well known. Ch8 managing products, product lines, brands, packaging. However, the product line is a subset of the product mix. The restaurant had experienced success with chicken mcnuggets and the egg mcmuffin earlier as nonhamburger and fries menu additions and. Reframing the product mix problem using the theory of constraints. The product mix constitutes not only a single product line but all the products within an organization. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
The marketing mix established for one product may affect the sales of another product. As mentioned in the previous example, colgate has 3 product lines. Product mix analysis how to drive richer product mix. A product line is a group of products that are closely related either because they satisfy a class of need, are used together, are sold to the same customer groups, are marketed through the same type of outlets or fall within given price ranges. Each product requires time on each of three machines in the following manner figures in minutesunit.
Product mix and product line understanding product length. Every product line covers a certain full part of total possible range. Such products function in similar manner, sold to the same customer group, sold through the same type of outlets, and fall within a same price range. The product mix, also called product portfolio, is the set of all product lines and items that a company offers for sale. After getting a taste of success and with an availability of more resources, companies decide to expand their product line andor introduce newer product lines in consonance with market opportunities or in response to competitors moves. It may be defined more narrowly in specific cases to mean only that set of products in a particular product line or a particular market. A mathematical modeling approach to product line decisions glen. 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. Product line depth refers to the number of versions offered of each product in the line. Every product line has its own distribution of margins, by product. Product planner must consider what other products his company offers to the market.
Product is defined as anything that is offered to public for purchase by the company. Product line both manufacturers and retailers must decide on width and depth of a product mix. In marketing jargon, product lining is offering several related products for sale individually. Line stretching occurs when a company lengthens its product line beyond its current range. Jan 14, 2019 let us discuss each type of product mix pricing in detail. Product mix decision making pmdm definition operations. The breadth of a product mix shows the different kinds of product lines that firm carries. Products arent only tangible objects, they can also be services. The width is all about the number of different product lines the company carries. What perplexed me was whether this was an example of the broadening or deepening of jellos product line. Product line is nothing but type of product and it will have different variants.
May 22, 2020 the width of the product mix is equal to the number of product lines within a company. Demand modeling in product line trimming teckhua ho. Product mix, branding, packaging, labeling, warranties, customer service. Aug 03, 2014 discuss different productmix and productline strategies. The total assortment of products and services marketed by a firm. In modem times on producer or distributor or retailer deals in a single product.
This represents a wide product mix 3m, for example, makes a large assortment of goods that are thought to be related in the sense that they use the firms ability to bond. Learn more about the product mix in the latest lecture from alanis business academy. Product mix this means the range or variety of products sold by a business. Sep 17, 2015 product mix pricingbritannia often offers some of its biscuits in bundles and provides a discount on them. Or your product lines may be vastly different, such as diapers and razors. The product mix sometimes called product assortment is made up of both product lines and individual products.
Jun 21, 2016 product line is a subset of product mix. Product line lengththe number of different products a firm sells under a product line. For instance, a company might want to maintain longer product lines to protect against economic swings. Thus, product line width is a depiction of the number of product lines which a company has. A product mix has certain width, length, depth and consistency the width of a product mix refers to how many different product lines the company carries. Simply, it shows the number of items in the product line. Product lifecycle also concerns the origin of products that do and do not result from software product lines spl. A product line refers to a unique product category or product brand a company offers. The product mix of a company is generally defined as the complete set of all products a business offers to a market. These allowed the development of new product lines and allowed the group to diversify their range from solely jute products into cotton.
Reframing the product mix problem using the theory of. Products, services, and product mix decisions marketing. If philips has a line of mixer grinders, then it will have one in the lower range, one in the medium r. For example, patanjali deals in different categories of products which include shampoo, flour, toothpaste, etc. This is done with strategies that determine a target market and an image. Product mix strategy and manufacturing flexibility. Pepsico product line delopment is closely relates to product mix because when product line is big then company product mix also developed. 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. A product mix is defined as the number of product lines that a company sells.
Dds saw a 3% gain in comparablestore sales during q4. This dimension of the product mix represents the extent to which the activities of the firm are diversified. Product items, lines, and mixes flashcards quizlet. Vocabulary a product line is a group of closely related products manufactured andor sold by a business. In addition to learning general information about the product mix, youll also learn how some of. Product strategy and product mix of britannia britannia. For example product mix of bajaj company has more than 100 items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters, richshow, processing machines, and many other ranges.
Product mix is expanded, contracted, or modified depending on following factors. Product mix and brand product mix decisions are concerned with the combination of product lines offered by the company. A group of individual products that are closely related in some way. Product mix decisions width, length, depth and consistency. Product mix product mix denotes product development, packaging, branding, and research. Product mix or product assortment refers to the number of product lines that an organisation offers to its customers. Reduce product portfolio strategy is to cut product lines or product project, especially to cancel those small profit products, in order to concentrate. Managing product line and product mix business market.
Product mix also known as product assortment, it refers to the total number of product a marketer offer for sale to customers, and product line is a group of closely related products known as product line. Diversifies risk and capitalizes on established reputations. Long term research programs in software engineering usually involves a mix of these two. The removal of a weak product from the market and from the company product mix, also known as product. The product line length can be influenced by company objectives and resources. Product mix and product line understanding product. To appeal to different segments of customers to spread the risk of the business to maximise sales to make a profit this is also known as a. The product mix could include several lines of products or individual products that do not fall into a line.
What is product line, product mix, line extension, line. Product line is a group of related products manufactured or marketed by a single company. It refers to a number of varieties in forms of sizes, colors, and models offered within each product line. The basic product concepts and definitions will be discussed first in this unit. The demand is modelled as a continuous process that can be applied realistically, considering that the manufacturer accepts anywe assume that the product mix is defined by the company, which cannot influence the overall demand. Prodin mix overview video click here top 10 profit by product shinerbock burger burrito export.
Line a has 20% average margin and individual products with margins from 10% to 30%. This is where the concept of product mix and product line decisions occur, this. To be successful, a company should have a portfolio of products with different growth rates and different market shares. A product mix is a number of different types of product. Mix csv csv daily excel excel daily json print report shinerbock burger delivery charge. Machine product 1 2 3 a 12 8 5 b 7 9 10 c 8 4 7 d 10 0 3 e 7 11 2 each machine is available 128 hours per week.
Product line and product mix have direct relationship. What is product line, product mix, line extension, line width. Getting the product right is the single most important activity of marketing. While the traditional orms frames typify the hard approaches, the toc frames are softer in nature. Improved product mix helps boost bottom line at dillards. It can be said as the average number of product items offered by the firm in each product line. Product mix breadth breadth the number of product lines an organization offers i. Product line decisions building a strong product line. An examination of the concepts of product mix and product line thus will help us understand. The consistency is the degree to which product lines are related 1.
Increasing customization requires flexible investments. The depth of a product mix refers to how many variants are offered of each product in the line. University of groningen software product line engineering for. Number of different product lines carries by the company. The length of a product mix refers to the total number of items in the mix the depth of a product mix refers to how many variants are offered for each product in the line.
Company prefers to introduce more product lines or product items in existing product lines to improve. Having a broad productmix also spreads the risk of failure over a great number of product lines. The product mix problem used for illustration is the goulds fine foods case which has been described elsewhere 16, 19, 20. Product mix and brand productmix decisions are concerned with the combination of product lines offered by the company. Consumer products can be categorized as convenience goods, for which consumers are willing to invest very limited shopping efforts. Services are a form of a product that is intangible and doesnt result in ownership of anything kotler. Highlights we consider growing mix complexity problem. We refer to investment choice, product mix strategy and sales price positioning. Difference between product mix and product line the product mix of a company, which is generally defined as the total composite of products offered by a particular organization, consists of both product lines and individual products. A product mix is the set of all products and items that a particular seller offers for sale.
Some firms have one very focused or narrow product line e. Feedback on the nrt soil moisture product can be provided. A product line is a group of related products produced by a manufacturer or sold by a business. The width of product mix is one of the four dimensions of product mix along with the length. Strategic mix decisions usually relate to the width of the product mix. 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. Each product within the structure forms a part of the product mix. Product mix, also known as product assortment or product portfolio, refers to the complete set of products andor services offered by a firm. Set a daily goal to positively impact on a customers purchase or a specific product line in general. In case of insurance sector, the product mix comprises of life and non life insurance policies that are offered to the customer by the company. The product has since been discontinued but based on past articles and advertising, it appears that the way to consume this vegetable flavoured jello was to throw in various vegetables into the jello mix, chill it and then serve. Product mix and product line are two words used in connection with the range and variety of the products of a company.
A product line in business is a group of related products under the. Total number of items in the product mix of the company. The company says demand in ladies apparel and shoes categories were. New products and existing product portfolio management can increase. Consumer product convenience product customer usually buys frequently, immediately, and with a minimum of comparison and buying effort shopping product in the process of selection and purchase consumers characteristically compare goods based on suitability, quality, price, and style. Four important dimensions of a product mix can be identified. It refers to degree to which different product lines are related in one or other ways. In addition to learning general information about the product mix, youll also learn how some of the strategy. Apr 08, 2020 a product mix is a group of everything a company sells. The benefits from having a successful product line is the brand identification from customers which. A company may have a single product line in which case its product mix becomes the number of products being offered in the line length. It makes certain changes in its product mix in a way to realize positive impact on profitability. Product mix also known as product assortment, it refers to the total number of product a marketer offer for sale to customers, and product line is a. Product line depthtotal number of items under each brand in the line in terms of variants, shades, models, pack sizes.
Jun 27, 2012 set of all product offered for sale by a company. Product mix notes product mix or product assortment refers. Product mix is the totality of all product lines and individual products sold by a company. A product is anything that can be offered to a market to satisfy a want or a need,including physical goods and services, experiences,persons,events,places,properties,organisations,information and ideas. Burman dabur india limited is indias leading fmcg company with interests in health care, personal care and foods. Apples product line consists of four major sub lines. Managing product, product lines, brands, packaging 8 line stretching. 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. The four dimensions to a companys product mix include width, length, depth and. Marketers must often make product adjustments in order to keep the product competitive and continue to provide satisfaction to the buyer.
It refers to the total number of items in all the product lines in product mix. Now let us understand the products offered by britannia industries limited and their product strategy. Expanding the product line is the second one of the product line decisions. Selling more of a higher margin product line does not necessarily improve product mix or vice versa. Philosophy that makes considerable sense when one views the rapidity with which a single productline can become outmodel or obsolescent and hence unprofitable. Different product lines comprise a businesss product mix. A description of the width of a businesss product mix offering a limited number of product lines. The first of the product mix decisions refers to the product mix width. The product mix includes all product lines and categories. 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. A product mix is a group of everything a company sells. A product mix is whole selection of product lines you offer.
On the other hand a company may have number of product lines each of which may then have a number of products indicating width. A good understanding of product mix is a key element of marketing management. Selling price positioning can minimize customization costs. Product mix overview, dimensions and practical example. The product mix of a company involves all of the products that a company has for sale. When a company has many products in a line it has a product mix kotler. Product item a specific version of a product that can be designated as a distinct offering among an organizations products. The difference between a product item product line and the. This is an application of the, dont put all your eggs in one basket. To identify it as part of the mcdonalds product mix, the pizza was branded with the mc prefix. Over the last century and a quarter, britannia has been serving the indian consumer with a.
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. What is the differencebetween product line and product mix. Once you clearly understand opportunities through data analysis and have performed the appropriate strategic mix planning, pass the baton to the sales team, they can take your insights to drive richer product mix and improve the companys bottom line. Many companies start as a single product item or product line business. Dior product mix analysis research journal of human resource. Before turning to the product mix decisions, we first have to know what the product mix actually is. Own your analytical findings to fully engage effective product mix as a companywide effort. Product line pricing is used when the prices within the product line is kept variant so that the customer purchases one or the other product within the product line.
Eliminating existing products items from an established product line due to being obsolete, declining sales, and new product line direction. A product line is a group of products within the product mix that are closely related either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets. The impact of software product lines from a product management. The width of the product mix is equal to the number of product lines within a company. Detergent is a product line and liquid detergent, powder, bar soap etc are variants. A product is anything that can be acquired by a consumer to satisfy their specific wants and needs.
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