Product Mix Strategy in Marketing - A presentation by www.smartkeeda.com
Product Mix Strategy
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
– Mixes of these
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
• Pure Tangible Goods : Ex. Toothpaste, Television Set
• Tangible good with accompanying services (car + repair
• Hybrid offer – equal parts of good and service
• Service with accompanying minor good (flight + snacks)
• Pure service (doctor's exam)
– 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.
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
Line stretching occurs when a company lengthens its
product line beyond the current range.
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.
• The company may find that the middle market is stagnating or
declining. Ex: Tata Nano
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
Companies serving the middle market might decide to stretch
their line in both directions.
Swift LXI Dezire ZXI
Line Filling is a strategy where the company introduces new
products within the same( existing) price range or with just a
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
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