Product mix concepts Product Mix Product line- E. For example, if you own Width of product mix proctor gamble Tool Company and have two product lines -- hammers and wrenches -- your product mix width is two. For example, your company may sell health bars and a health magazine in retail stores.
For example, EZ Tool has two product lines, hammers and wrenches. If the company also has another line of toothpaste, and that line comes in two flavors and two sizes, its depth is four.
The production consistency of these products would vary as well, so your product mix is not consistent. They may also add to their lines similar products that are of higher or lower quality to offer different choices and price points.
It can stretch its product line in either the down marketup market or both Down Market stretch — introduce the products at a lower price E. Line filling Vs Line Pruning Kimberley Clark —closed underperforming business —Midwest express Company might be carrying some products in the product line that yield lower or no profits.
However, over time, the company may want to differentiate products or acquire new ones to enter new markets.
This is called stretching the product line. A company serving in the middle market might indulge in stretching its product line both ways — upward and downward Strategies: The focus View More Presentations.
Reasons for Line extensions Marketing Managers perceive line extension as a low costlow risk way to meet the needs of various customer segments. For example, your company may sell multiple lines of products. They have the same use and are produced and distributed the same way.
Thus if a toothpaste comes in three formulations and in three sizes, it has a depth of nine 3x3. The company can expand its business in four ways. Product Mix Strategies Trading up-Offer high pricedprestige products to their existing product line in an effort to increase the sale of their low priced products and enhance the company image Trading down —new products, low priced to the existing line E.
A total group of products that an organization markets. Product Market Mix Strategy Small companies usually start out with a product mix limited in width, depth and length; and have a high level of consistency. Product mix concepts Depth — the depth of the product mix is the assortment of all sizes, colors and variations offered for each product in the product line For example- Lifebuoy Active Red comes in three sizes- gms, gms and 60 gms cakes Consistency: Or your product lines may be vastly different, such as diapers and razors.
Food Division Slide For example, if your company sells three sizes and two flavors of toothpaste, that particular line of toothpaste has a depth of six. Image and reputation of parent brands will get tarnished if the brand extension fails Confuse and frustrate the consumers.
Brand Extensions Extend and transfer the equity of established brands than to establish new ones. Line stretching A company stretches its product line beyond the current range of products.
Profits are short lived ,efforts can be duplicated by the competitors!! Product Variations Depth of a product mix pertains to the total number of variations for each product.
Variations can include size, flavor and any other distinguishing characteristic. Extension helps reducing the cost of Marketing research and direct marketing. Retailers unwilling to provide shelf space for the extensions May Obscure the identity of the parent brand Recent failures:Product line width.
The width of the product mix is equal to the number of product lines within a company. Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only.
The width, or breadth, of a company's product mix pertains to the number of product lines the company sells. For example, if you own EZ Tool Company and have two product lines -- hammers and. Width: Total Numbers different product lines of company.
e.g. HUL, Proctor and gamble, Godrej, Tata, Reliance having having product mix width of more than five lines. Product Line and Product Mix. Adjustments to Products.
Proctor and Gamble has various product lines. You may also hear the product line breadth referred to as the product width, product assortment width, and merchandize breadth.
Product Line Breadth and the Product Mix. Product Mix Of Procter & Gamble’s 3.
WIDTHHow many different product lines the company carriesin the case of P&G, we just saw 5 such lines. Procter & Gamble (P&G) is an American consumer goods corporation with many globally marketed brands Contents 1 Brands with net sales of more than US$1 billion annually.Download