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 HindustanUnilever Limited

Home & Personal

CareBeverages

PersonalWash

Laundry Skin CareHairCare

Oral Care Tea CoffeeDeodorants

Lux

Lifebuoy

Liril

Hamam

Breeze

Dove

Pears

Rexona

Surf excel

Rin

Wheel

Fair &Lovely

Ponds

Vaseline

Sunsilk

Clinic +

Pepsodent

Close-up

Axe

Rexona Lipton

BrookeBond

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.

05

101520253035404550

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

DX 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.