Product Line Decision and Product Decision Briefly describe the whole key terms with daily examples.Hope so it will be very helpful

1. PRODUCT LINE DECISION & PRODUCT MIX
PRESENTED BY :
RAJA FAHAD ALI KHAN (19-ARID-1049)
MUBASHIR MEHMOOD (19-ARID-1014)
ABDUL MANAN (19-ARID-975)

2. PRODUCT LINE
A product line is a group of related products all marketed under a single brand
name that is sold by the same company.
For Example:

3. PRODUCT LINE LENGTH:
Product Line length refers to the number of products/brands that come under a single product category/line.
For example, HUL possesses a host of products under its beauty and personal care segment such as Axe, Dove,
Lux, Vaseline etc whereas under the Water Purifier segment it has a single brand – ‘PureIt’.

4. PRODUCT LINE ANALYSIS
• Product line managers have two important points.
• Product line managers need to know the sales and profits of each item in each line to determine which ones to build,
maintain, harvest, or divest.
• They also need to understand each line’s market profile and image.
A COMPANY CAN LENGTHENS ITS PRODUCT LINE IN TWO WAYS
• Line Stretching Decision
• Line Filling Decision

5. LINE STRETCHING DECISION
Downward Product Line Stretching (Down Market Stretch )
• Downward stretching occurs when a company is already offering medium and premium level products in the
market. The company has got a high level of consumptions of the lower level product and the brand doesn’t
want to lose its market.
• The consumption of the lower level product is probably higher and it would jeopardize the market of medium
and premium level. Companies perform downward product line stretching decisions to address this issue. It
could be in any form like launching a new brand name, establishing new brand equity from scratch, or
utilizing the existing brand name.
Example
• The smartphones of Samsung in Note and Edge are premium level product and they’re very costly or
premium price range. The brand also offers smartphones of A-Series that are for the lower-level market. The
consumption rate of the lower-level model is very high. Samsung does a lot of marketing and downward
product line stretching because the brand doesn’t want to lose it.

6. LINE STRETCHING DECISION
Upward Product Line Stretching (Up market Stretch)
• Upward product line stretching is contrary to downward stretching. Businesses and companies that follow the upward
product line strategy usually operate the business at the lower level product market. They follow the upward product line
strategy when they start offering premium level products.
• An upward stretching decision is an ideal position and dream of many businesses. It’s because the businesses usually start
with lower-level product line stretching and target the mass audience. When their business reaches the maturity stage, they
introduce premium level products.
• The goal of upward product line stretching is to grow and earn more profit and that’s why they offer premium products.
When it comes to premium offers, a brand should have a strong database of customers and solid brand equity to prove its
worth of offering premium products.
• Example
• The examples of upward product line stretching in the automobile industry are Honda, Toyota, Lamborghini, Bentley, Acura,
and Volkswagen. These brands followed the upward stretching decision and offered premium products.

7. LINE STRETCHING DECISION
Two-way Product Line Stretching (Two way Stretch )
• A two-way stretching occurs when a brand targets both lower and premium level markets at the same
time. The goal of two-way product line stretching is to cover and target the majority of the market. If a
brand offers a medium-level product, and it considers that the market requires lower and premium
level product stretching, then it has the option to offer two-way stretching.
• Many brands follow the two-way stretching decision and offer all types of products to increase market
share and profitability.
Example
HUL offers many premium products under premium brand names like beauty soap (Dove) and ice cream
(Magnum). The brand also offers lower level products.

8. LINE FILLING DECISIONS
Product Line Filling refers to adding a new product in the existing product line to face competition and
Increase consumer base.Under product line filling the price of new product is normally same.
For Example Maruti Suzuki introduced Alto when maruti zen was already in same range.
Line Modernization: A strategy in which items in a product line are modified to suit modern styling and tastes
and re-launched.
Line Featuring :A strategy in which certain items in a product line are given special promotional attention,
either to boost interest (at the lower end of the line) or image (at the upper end).
Line Pruning refers to removal of the unprofitable product from the existing product line.
Example :Cadbury brought in Silk at the perfect time when Dairy Milk was already a well-established brand and
there was nothing more they could have done with regards to its promotions. We allmust have noticed how the
promotion focus of Cadbury has shifted from “Kuchmeetha ho Jaye” for Dairy Milk to “Miss me Kiss me” for
Silk.

9. PRODUCT LINE DECISIONS

10. PRODUCT LINE EXTENSION
Product line extension can be described as a strategic measure adopted by brands in which they expand
or ‘extend’ their offerings by including new product types/categories or introducing more variants or
venturing into new products.
Coca-Cola's products are similar, but different in that they go after different audiences. This gives the global
brand a chance to take up more market share and grow sales for the corporation.

11. WAYS TO EXTEND PRODUCT LINE
Horizontal (Line Filling )
Horizontal product line extensions are those that keep the price and quality of the new item consistent with those that already
exist, but they change specific, potentially insignificant factors to differentiate the new items from those the brand currently
produces or those of the competition. Products that have new flavors or colors may be examples of horizontal product line
extension.
Lux Soft Touch Vs Lux White Impress Cool Ranch Doritos vs Flamin Hot Doritos

12. WAYS TO EXTEND PRODUCT LINE
Vertical ( Line stretching)
Vertical product line extensions increase or decrease the price or quality of the new product to make
it seem more luxurious or accessible to potential customers. While these products still closely relate
to others produced by the brand, they're created to target specific consumers. Products that come in
alternative forms, with added ingredients or in new packaging sizes can be examples of vertical
product line extensions.
Bata premium shoes - the Bata collection was extended with a line of shoes more qualitative than the
regular shoes. Both of these lines are sold in parallel.
Honda Civic R-Type - although the two Civics look more or less the same, the R-Type is a high-
performance sports car with a different price range than the basic Civic.

13. PRODUCT MIX DECISION
PRODUCT MIX:
Product Mix, also known as Product Assortment, refers to several products that a company
offers to its customers.
A company’s product refers to how many different product lines the company carries.

14. PRODUCT MIX DECISIONS
• 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.

15. FOUR FACTORS TO BE CONSIDERED
Length Width
Depth Consistency

16. FOUR FACTORS TO BE CONSIDERED
Length refers to the total number of products in a firm’s product mix
Width also known as breadth, refers to the number of product lines offered by
a company
Depth refers to the number of variations within a product line.
Consistency refers to how closely related product lines are to each other

17. ILLUSTRATION OF A PRODUCT MIX

18. STRATEGIES OF PRODUCT MIX DECISION
Line Expansion :Expansion in the product line.e.g Shampoo – add
new shampoo
Product Modification :Changes in the existing product.e.g
Shampoo-change the colour/flavor/packing/redesign
Product Elimination :Eliminatinate the product that does not
generate profit.e.g Rexona Soap

19. 4 WAYS TO INCREASE BUSINESS WITH PRODUCT MIX DECISIONS
• We can identify four ways in which a company can increase its business on basis of the four product mix
decisions determined above.
• Add new product lines: widen the product mix. New lines benefit from and build on the company’s
reputation in its other lines.
• Lengthen the existing product lines. More items in the product lines may result in a more full-line
company.
• Add more versions of each product: Deepen the product mix.
• Make product lines more consistent (or less). This depends on whether the company wants to have a
strong reputation in a single field or in several fields of business.