Product mix

decisions
• Product System:
• • Group of diverse but related items that functions in compatible
manner.
• • Example: Computer CPU/ keyboard/ monitor/ printer/ UPS.
• Product Mix (Product Assortments):
• • Set of all products/ items that a particular seller offers for sale to
buyers.
• Company’s decision making on product relates to:
• Product Mix Decisions.
• Product line Decisions.
• Individual product/brands.
Product mix
• in this illustration, the product mix shows a:
• Width of 3
• Length of 5
• Product Line 1 Depth of 2
• Product Line 2 Depth of 1
• Product Line 3 Depth of 2
• The mix is considered consistent if the products in all the
product lines are similar.
importance of a Product Mix
• The product mix of a firm is crucial to understand as it exerts
a profound impact on a firm’s brand image. Maintaining high
product width and depth diversifies a firm’s product risk and
reduces dependence on one product or product line.
• Expanding the width can provide a company with the ability
to satisfy the needs or demands of different consumers and
diversify risk.
• PRODUCT MIX- AN EXAMPLE
A company’s product mix has a certain:
Width: How many different product lines the company carries?
Length: Product mix length: Total number of brands in its product.
Product line length: Total no. of brands within special product
line. Example: HLL soaps:
• Lifebuoy.
• Lux.
• Liril.
• Pears.
• Dove.
Depth:• Product variants offered of each product in the line.
• Example: Lux: 3 sizes / 2 formulations.
• Hence depth =6
• Average depth for product mix/ product line can be calculated.
Consistency: How many related various product lines are in terms of:
o End use or,
o Distribution channel or,
o Production requirement.
o Example: Reliance, LG electronics
 • Hindustan Lever Limited
• Product Mix : Width = 4; Length = 13; Total Depth = 76; Average
Depth = 76/13
Soap (Length = 5) Detergent (L = 4) Shampoo (L = 2) Toothpaste (L = 2)
lifebuoy (D = 8) wheel (D = 4) clinic (D = 8) closeup (D = 4)

Lux (D = 6) rin (D = 4) Sunsilk (D = 12) pepsodent (D = 6)

Dove (D = 2) surf (D = 6)
breeze (D = 12) Surf excel (D = 2)
pears (D = 2)
t.depth 30 16 20 10
Avg depth 6 4 10 5
Product & service differentiation
Product differentiating
• Form – size, shape or other unique physical attributes like moov, maggi cup
a noodles
• Features-variety of features supplementing the basic ones
• Durability- measure of product’s operating life-woodland, duracell
• Reparability- how easily product can be fixed
• Style- looks and feel of the product-fastrack watches
• Performance- level at which the product’s primary features operate –harpic
• Price- nano, big bazaar
• Customizability- linux
Service differentiation
• Ordering ease- book my show,
• Delivery( speed & accuracy)- dominoes pizza, amazon prime
• Installation- eureka forbes, tata sky
• Repair- Maruti suzuki