Only if product mix decisions are taken on an ongoing basis, maximum value for customers can be created.The Product Mix – Product Mix Decisions A product line refers to a unique product category or product brand a company offers.For example – if a company produces only soft drinks and juices, this means its mix is two products wide. Generally, there are three price bands which exists in any market – Lower priced products, middle priced products and premium products.One brand concentrates on one price brand..
There are various decisions which the management of a company should take about products we should sell, different categories of products, different versions of products, etc. In addition, production and distribution channels remain similar for each product. Before turning to the product mix decisions, we first have to know what the product mix actually is. Each type is called a product line, and every line is distinct from the others in terms of its use by customers and what benefits people seek from it. Therefore, the right product mix decisions should be taken, in line with customer needs. A product mix is all the product lines that a firm has to offer, sometimes it may be only one line, but other times it may be many. The product mix of a company is generally defined as the complete set of all products a business offers to a market. A product line is a group of products within the product mix that are closely related, either because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges. Companies sell multiple product lines … Companies sell multiple product … The product (mix) consistency of Coca-Cola would be high, as all products within the product line fall under beverage. Come on! Its product mix is a key tool in this effort. On the other hand, a firm with a narrow product mix could be positioned as a boutique marketer of highly specialized goods. A good understanding of product mix is a key element of marketing management. The product mix includes four elements. The product mix (sometimes called “product assortment”) is made up of both product lines and individual products. For example – Colgate has different variants under the same product line like Colgate advanced, Colgate active salt, etc.The width of the mix refers to the number of product lines the company has to offer.Did we miss something? For example, many companies use a "good, better, best" method of pricing products. The entry-level product has the lowest price, followed by the better product and then the best product. Quality refers to the brand's dependability or durability.
A specialty store focused on athletes might carry a stellar selection of athletic shoes, bolstered by plenty of fitness-oriented accessories. It is the centre of its offerings. Each of these product lines, in turn, consists of several sub-lines. The product mix of Coca-Cola in the simplified example would be illustrated as follows: Importance of a Product Mix
A product line is a group of connected products marketed under a single brand name by the same company. To enhance the firm's overall value to its customers, marketers could add width to its product mix with a new line of fruit-based sauces.The depth of a product mix refers to the number of distinct items in a product line. If you manufacture lawn tractors, three base models and their accessories might represent a good line. Marketing executives believe that product lines give companies a competitive advantage.When a business has a competitive advantage, it has an edge over its rivals.