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PRODUCT- MIX
What is product-mix ?
• Set of all product offered for sale by a
  company.
• It consist of various product line.
• Any company’s 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                                           Beverages
                     Care


Personal                              Hair
           Laundry      Skin Care                Oral Care   Deodorants      Tea      Coffee
 Wash                                 Care

 Lux                                                                        Brooke
           Surf excel     Fair &                 Pepsodent       Axe                   Bru
                          Lovely      Sunsilk                                Bond
Lifebuoy
              Rin         Ponds                   Close-up      Rexona      Lipton
                                      Clinic +
  Liril
            Wheel
                         Vaseline
Hamam

Breeze


 Dove


 Pears


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.
50
               45
               40
               35
    %
contribution   30
to sales       25                              sales
and profit     20                              profit
               15
               10
                5
                0
                    1   2     3        4   5

                        Product item
B.    MARKET PROFILE

Product line manager must review the
  position of its company’s product line
  against competitors lines. Product map
is used to show the position of their items
  against competitors items.
C            B


HIGH
         D   B          C

             X                       X        A
         D
MED
                         B


                 C       X               B    A
        D
LOW




       LOW(90)       MEDUM   HIGH            EXTRA
                     (120)   (150)           HIGH(180)
Methods of Extending Product-Line
• Line stretching : every company’s 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.
Product mix

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Product mix

  • 2. What is product-mix ? • Set of all product offered for sale by a company. • It consist of various product line. • Any company’s product mix has four dimension : 1. Width 2. Length 3. Depth 4. Consistency
  • 3. • 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.
  • 4. Product Mix of Hindustan Unilever Limited Home & Personal Beverages Care Personal Hair Laundry Skin Care Oral Care Deodorants Tea Coffee Wash Care Lux Brooke Surf excel Fair & Pepsodent Axe Bru Lovely Sunsilk Bond Lifebuoy Rin Ponds Close-up Rexona Lipton Clinic + Liril Wheel Vaseline Hamam Breeze Dove Pears Rexona
  • 5. 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.
  • 6. 50 45 40 35 % contribution 30 to sales 25 sales and profit 20 profit 15 10 5 0 1 2 3 4 5 Product item
  • 7. B. MARKET PROFILE Product line manager must review the position of its company’s product line against competitors lines. Product map is used to show the position of their items against competitors items.
  • 8. C B HIGH D B C X X A D MED B C X B A D LOW LOW(90) MEDUM HIGH EXTRA (120) (150) HIGH(180)
  • 9. Methods of Extending Product-Line • Line stretching : every company’s 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
  • 10. • Line Filling : A firm can lengthen its product line by adding more items with in the present range.
  • 11. 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.