product mix&line decisions
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INDEX
1. PRODUCT
Definition
Product Level
Product Hierarchy
2. PRODUCT MIX DECISIONS
Definition
Proctor & Gamble Product Mix
Hindustan Lever Product Mix
TTTI Bhopal Product Mix
Steel Authority Of India Product Mix
3. PRODUCT-LINE DECISIONS:
Product-line Analysis
Sales and Profit
Market Share
Product-line Length
Stretching
Filling
Line Modernization
Line Featuring
Line Pruning
PRODUCTPRODUCT
A Product is anything that can be offered A Product is anything that can be offered to a market to satisfy a want or need. to a market to satisfy a want or need. Products that are marketed includes Products that are marketed includes physical goods, services, experiences, physical goods, services, experiences, events, persons, places, properties, events, persons, places, properties, organizations, information, and ideas.organizations, information, and ideas.
Basic
Core
Benefit
Expected
Augmented
Potential
PRODUCT LEVELS
PRODUCT HIERARCHY
Need Family
Product Family
Product Class
Product Line
Product Type
Item (also called Stock keeping unit or product variant)
Product Mix DecisionsProduct Mix Decisions
Product MixProduct Mix
A product mix (also called product assortment) is A product mix (also called product assortment) is the set of all product and items that a particular the set of all product and items that a particular seller offers for sale.seller offers for sale.
Example:Example: Wipro’s product mix consist of two strong Wipro’s product mix consist of two strong
product lines:product lines:
FMCG productsFMCG products
Software SolutionsSoftware Solutions
WidthWidth - number of different
product lines
WidthWidth - number of different
product lines
LengthLength - total number of
itemswithin the lines
LengthLength - total number of
itemswithin the lines
Depth Depth - number of versions of each product
Depth Depth - number of versions of each product
Product Mix - Product Mix - all the product
lines offered
Product Mix - Product Mix - all the product
lines offered
Co
nsi
sten
cyProduct Mix Decisions
Product-Mix Width
Semis Long Flat Tubular RailwayProducts Products Products
Blooms Bars CR Coils Pipes Rails
Billets Rods GC Sheets Wheels
Slabs Rebars Tinplates Axles
Wire Rods Electrical Steel Wheel Sets
HR Coils
Sheets
Skalp Plates
L
I
N
E
L
E
N
G
H
T
STEEL AUTHORITY OF INDIA LIMITED
PRODUCT-LINE ANALYSIS
Build
Maintain
Harvest
Divest
1. Sales And Profits
2. Market Profile
05
101520253035404550
1 2 3 4 5
SALES
Profits
SALES AND PROFITS
A Company classifies its products into four types that yield different gross margins, depending on sales volume and promotion.
Core Product
Staples
Specialties
Convenience items
0
200
400
600
800
1000
1200
1400
1600
1800
1 2 3 4 5 6 7 8
Market Size inMn $
HINDUSTAN UNILEVER LTD.
1. Laundry
2. Personal Wash
3. Tea
4. Toothpaste
5. Skin Care
6. Hair Care
7. Coffee
8. Processed foods
X
X X
B
B
B
D
D
D
C A
A
C
C
B
Low Medium High Extra High
High
Medium
Low
MARKET PROFILE
WEIGHT
QU
ALIT
Y
General
printing Office
Supplies
Point-of
Purchase
displays
Product Line LengthProduct Line LengthNumber of Items in the Product Line
Product Line LengthProduct Line LengthNumber of Items in the Product Line
StretchingStretching
Lengthen beyond current range
FillingFilling
Lengthen within current range
Downward
Upward
PRODUCT LINE LENGTH
Line Modernization:
Product lines need to be modernized. In rapidly changing products markets, modernization is carried on continuously. Companies plans improvements to encourage customer migration to higher valued, higher priced items. Example:- Bajaj Pulsar DTS-i
Line Featuring:
The product line manager typically selects one or a few items in the line to feature. Product line managers must periodically review the line for deadwood that is depressing profits. The weak items can be identified through sales and cost analysis.
Line Pruning:
Pruning is also done when the company is short of production capacity. Companies typically shorten their product lines in periods of tight demand and lengthen their lines in periods of slow demand.
BIBLIOGRAPHY
Text Books:
1. Principles of Marketing: Philip Kotler, Gary Armstrong
2. Marketing Management: Philip Kotler
References:
1. The Oxford Textbook of Marketing: Keith Blois
2. Marketing Management- An Asian Perspective: Slew Meng Leong, Swee Hoon Ang, Chen Tiong Tan
3. Fundamentals of Marketing: William J Stanton, Micheal J Etzel, Bruce J Warker
Journals and Magazines:
1. Effective Executive- ICFAI Press- Emerging Markets, February 2008
Websites:
1. http://www.hindustanstudies.com/files/product.pdf
2. http://www.hll.com/investor/presentation/2007/Investor_Pres_JPMorgan.pdf
3. www.mktgpower.com/mg_dictionary.html
4. www.sail.co.in/product_mix.asp
5. www.en.wikipedia.org/wiki/product_line.html
6. www.enotes.com/business-fin-encyclopedia/productmix.html
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