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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
Care
Beverages
Personal
Wash
Laundry Skin Care
Hair
Care
Oral Care Tea Coffee
Deodorants
Lux
Lifebuoy
Liril
Hamam
Breeze
Dove
Pears
Rexona
Surf excel
Rin
Wheel
Fair &
Lovely
Ponds
Vaseline
Sunsilk
Clinic +
Pepsodent
Close-up
Axe
Rexona Lipton
Brooke
Bond
Bru
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.
0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5
sales
profit
Product item
%
contribution
to sales
and profit
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.
D B C
C B
D
X X A
D C
B
X A
B
LOW(90) MEDUM
(120)
HIGH
(150)
EXTRA
HIGH(180)
LOW
MED
HIGH
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.
productmix-yuo can120627024119-phpapp02.pdf

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productmix-yuo can120627024119-phpapp02.pdf

  • 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 Care Beverages Personal Wash Laundry Skin Care Hair Care Oral Care Tea Coffee Deodorants Lux Lifebuoy Liril Hamam Breeze Dove Pears Rexona Surf excel Rin Wheel Fair & Lovely Ponds Vaseline Sunsilk Clinic + Pepsodent Close-up Axe Rexona Lipton Brooke Bond Bru
  • 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. 0 5 10 15 20 25 30 35 40 45 50 1 2 3 4 5 sales profit Product item % contribution to sales and profit
  • 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. D B C C B D X X A D C B X A B LOW(90) MEDUM (120) HIGH (150) EXTRA HIGH(180) LOW MED HIGH
  • 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.