Product Mix Strategy in Marketing - A presentation by www.smartkeeda.com

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What is product mix and its strategy. Here's a presentation for your help.

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Product Mix Strategy in Marketing - A presentation by www.smartkeeda.com

  1. 1. Marketing: Product Mix Strategy
  2. 2. What is a Product? Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. – Physical objects – Services – Events – Persons – Places – Organizations – Ideas – Mixes of these
  3. 3. What is a Service? A form of a product – any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of Anything.
  4. 4. Spectrum • Pure Tangible Goods : Ex. Toothpaste, Television Set • Tangible good with accompanying services (car + repair services) • Hybrid offer – equal parts of good and service (restaurants) • Service with accompanying minor good (flight + snacks) • Pure service (doctor's exam)
  5. 5. Experiences Experiences – are memorable – take place in the minds of individual consumers Companies need to think not about goods and services, but what the goods and services do for the customer, hence orientation towards experiences.
  6. 6. Levels of Product
  7. 7. Product Classification
  8. 8. The Product Hierarchy
  9. 9. The Product Hierarchy Explained
  10. 10. The Product Mix
  11. 11. The Product Mix continues … 1. Add new product lines 2. Lengthen existing product lines 3. Add more versions of each product 4. Pursue more product line consistency
  12. 12. Line Stretching Line stretching occurs when a company lengthens its product line beyond the current range. Down-Market Stretch A company positioned in the middle market may want to introduce a lower-priced line for any of the three reasons: • The company may notice strong growth opportunities as mass retailers such as Wal-Mart, Best Buy, and others attract a growing number of shoppers who want value-priced goods. • The company may wish to tie up lower-end competitors who might otherwise try to move up-market. If the company has been attacked by a low-end competitor, it often decides to counterattack by entering the low end of the market.
  13. 13. • The company may find that the middle market is stagnating or declining. Ex: Tata Nano
  14. 14. Up-Market Stretch Companies may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full- line manufacturers. Ex: Suzuki Kizashi, Sony Bravia X-Series
  15. 15. Two-way Stretch Companies serving the middle market might decide to stretch their line in both directions. Swift LXI Dezire ZXI
  16. 16. Line Filling Line Filling is a strategy where the company introduces new products within the same( existing) price range or with just a noticeable difference. Firms adopt this strategy for: • Incremental Profits • Satisfy Dealers who complain about lost sales because of missing items in the line • Utilize existing capacity • Try to become a full-line company • Try to plug holes to keep the competitors away
  17. 17. An Example of Line-Filling Maruti Estilo - Rs 3,17,000 - Rs 3,98,000 Maruti Wagon R - Rs 3,18,000 - Rs 4,32,000 Maruti A Star - Rs 3,40,000 - Rs 4,12,000 Maruti Ritz - Rs 3,89,000 - Rs 5,10,000 Maruti Swift - Rs 4,06,000 - Rs 5,20,000
  18. 18. Thank You :)

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