INDEX

1.

1.

PRODUCT

Definition

Product Level

Product Hierarchy

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

PRODUCT

A Product is anything that can be offered
to a market to satisfy a want or need.
Products that are marketed includes
physical goods, services, experiences,
events, persons, places, properties,
organizations, information, and ideas.

PRODUCT LEVELS
Potential
Augmented
Expected
Basic
Core
Benefit

PRODUCT HIERARCHY
 Need Family
 Product Family
 Product Class
 Product Line
 Product Type
 Item (also called Stock keeping unit or product variant)

Product Mix Decisions
Product Mix
A product mix (also called product assortment) is the
set of all product and items that a particular seller offers
for sale.

Example:
Wipro’s product mix consist of two strong product
lines:
FMCG products
Software Solutions

Product Mix Decisions

Consistency

Width
Width -- number
number
of
of different
different
product
product lines
lines

Length
Length -- total
total
number
number of
of items
items
within
within the
the lines
lines

Depth
Depth -- number
number
of
of versions
versions of
of
each
each product
product

Product
Product Mix
Mix -all
all the
the product
product
lines
lines offered
offered

STEEL AUTHORITY OF INDIA LIMITED
Product-Mix Width
Semis

Long
Products

Flat
Products

Tubular
Products

Railway

N

Blooms

Bars

CR Coils

Pipes

Rails

E

Billets

Rods

GC Sheets

Wheels

Slabs

Rebars

Tinplates

Axles

L

Wire Rods

Electrical Steel

Wheel Sets

E

HR Coils

N

Sheets

G

Skalp Plates

L
I

H
T

PRODUCT-LINE ANALYSIS

Build

Maintain

Harvest

Divest

1. Sales And Profits

2. Market Profile

SALES AND PROFITS
50
45
40
35
30
25
20
15
10
5
0

SALES
Profits

1

2

3

4

5

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

HINDUSTAN UNILEVER LTD.

1.

Laundry

2.

Personal Wash

3.

Tea

4.

Toothpaste

5.

Skin Care

6.

Hair Care

7.

Coffee

8.

Processed foods

1800
1600
1400
1200
1000
800

Market Size in
Mn $

600
400
200
0

1

2

3

4

5

6

7

8

MARKET PROFILE

Point-of

QUALITY

High
D
Medium

D

B

displays
B

D

C

B

Purchas
e
X

X

General
printing

C

C

X

Office
Supplies

Low

A

A
B

Low

Medium

WEIGHT

High

Extra High

PRODUCT LINE LENGTH

Product
Product Line
Line Length
Length

Number
Number of
of Items
Items in
in the
the Product
Product Line
Line

Stretching

Filling

Lengthen beyond
current range

Lengthen within
current range

Downward

Upward

 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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