PRODUCT- MIX

BY ALKA SAHU MBA 2nd Sem

What is product-mix ?
Set of all product offered for sale by a company. It consist of various product line. Any companys product mix has four dimension : 1. Width
2. Length 3. Depth 4. Consistency

 Width : Number of different product lines carries by the company. Length : Total number of items in the product mix of the company. Depth : Assortment of size, colour and models offered in each item of a product line. Consistency : It refers to the relationship of various product line either in their end use, production requirement, distribution channel or other way.

Product Mix of Hindustan Unilever Limited Home & Personal Care

Personal Wash Lux Lifebuoy Rin Liril Wheel Hamam Breeze Dove Pears Rexona Vaseline Hair Care

Beverages

Laundry

Skin Care Fair & Lovely Ponds

Oral Care

Deodorants

Tea Brooke Bond Lipton

Coffee Bru

Surf excel

Sunsilk Clinic +

Pepsodent Close-up

Axe Rexona

PRODUCT-MIX DECISION
A. PRODUCT LINE ANALYSIS

Taking decision regarding whether adding new product line or not, lengthen the existing product line or not, analysis of product line is useful.

% contribution to sales and profit

50 45 40 35 30 25 20 15 10 5 0

sales profit

Product item

B.

MARKET PROFILE

Product line manager must review the position of its companys product line against competitors lines. Product map is used to show the position of their items against competitors items.

C HIGH D B X B C X

MED

LOW

LOW(90)

MEDUM (120)

HIGH (150)

EXTRA HIGH(180)

Methods of Extending Product-Line

Line stretching : every companys product line covers a certain part of the total possible range, when company lengthen its product line beyond current range known as line stretching. 1. Down-Market Stretch 2. Up-Market Stretch 3. Two-way Stretch

 Line Filling : A firm can lengthen its product line by adding more items with in the present range.

LINE MODERNIZING, FEATURING AND PRUNING

Product line need to be modernized. In rapidly changing product markets, modernization is continuous. The product line manager typically select one or few items in the line to feature. Product line manager periodically review the line for deadwood that is depressing profit.