how can a company build and manage its product mix and product lines?
TRANSCRIPT
Product And Brand Relationship
PRODUCT LINE
A group of products manufactured by a company that are closely related because they perform functions in a compatible manner, sold to same customer group or fall within a price range.
PRODUCT MIX
The complete set of all products and items a particular company offers for sale.
Managing Product Mix
Consistency
Depth
Length
Width
Width : No. of different product lines the company carries.
Depth : The number of variants offered of each product in a product line.
Product Mix Width
Prod
uct M
ix D
epth
Length : The total number of items in a company’s product mix.
Consistency : This describes how closely related the various products lines are.
Product Line Analysis
Managing ‘Sales & Profits’ of each item in company’s line helps in determining which items to build, maintain , harvest or divest.
Product line managers must review how the line is positioned against competitor’s line to enhance ‘Market Profile’.
Inferencesfrom
Product LineAnalysis
ProductMix
Pricing
ProductLine
Length
LineStretchi
ng
Line Filling
Product Line Length
‘Line Stretching’ refers to lengthening the product line beyond its current range (whether up, down or both markets) to attract buyers from all the segments
‘Line Filling’ means adding more items within the present range to ensure tight grip in the market and keep out the competitors.
ProductMix
Pricing
Product Line Pricing
Optional-Feature Pricing
Captive-Product Pricing
Two-Part Pricing
By-Product Pricing
Product-Bundling Pricing
Created by Niharika Gujela, Delhi Technological University, during an internship by Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com