Length Length of the product mix refers to the total number of products in the mix. It leads to large amount of cash consumption and cash generation. Certainly, the product line is too short if the company could increase profits by adding items to it. Webers Law: Customers are more attuned to relative than absolute difference. They are sold to similar customer groups.
For example product mix of Bajaj Company has more than 100 items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters, rich-show, processing machines, and many other ranges. However, the product line is only one element of the much larger product mix. Beyond, the product strategy also requires product line decisions. It is a compose of various similar items. Supplies paint, coal, lubricant and business services maintenance and repair items.
Asian Journal of Research in Marketing, 4 2 , 98-108. For example, Bajaj Auto Ltd. For instance, one product line could be geared toward teenagers and another one toward woman older than 50 e. All of these product lines when grouped together form the product mix of the company. This close relationship comes from several product attributes: they function in a similar manner, are sold to the same target customers, are marketed in the same way or fall within the same price ranges.
Environmental considerations: Environmental considerations Prevention Waste prevention is a primary goal. Consistency Product mix consistency refers to how closely products are linked to each other. Features of Product Lines The product mix includes four elements. Width of the product mix is measured by the number and variety of product lines offered by a firm. They generate more cash than required. Through the Internet, the company now offers some of its products through the online Starbucks Store.
There can be variations in the products of the same product line. Tell us what you think of this article in the comments section. The purpose of offering similar items in each of the product line may be to attract customers by offering more varieties, and to create a good image or reputation. The life cycle concept applies best to product forms rather than to classes of products or specific brands. Line depth refers to the number of product variants in a line. The company also has an ongoing product innovation process that aims to offer new products to attract and keep more customers. We can differentiate between downward, upward, and 2-way stretching.
A company serving in the middle market might indulge in stretching its product line both ways — upward and downward Product Mix Strategies: Product Mix Strategies Trading up-Offer high priced , prestige products to their existing product line in an effort to increase the sale of their low priced products and enhance the company image Trading down —new products, low priced to the existing line E. This component of the marketing mix focuses on what the business offers to customers. Core product high sales-high promoted. Line stretching means lengthening the product line beyond the current range. Colgate has different variants under the same product line like Colgate advanced, Colgate active salt, etc.
Quality and Value PowerPoint Presentation: the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. The uncertainty makes for the riskiest investments among companies. They function in similar manner. Start your search now on this startup guide. For example, product lines of Philips India Ltd.
This component of the marketing mix refers to the communication strategies used to disseminate information about the firm and its products. This means nothing else than the number of items in a product line. Maruti 800 to alto and Zen, nokia. It is the actual item which is held for sale in the market. Less the variation among products more is the consistency. For example:- product mix of Nirma ltd. Upward stretching is appropriate if the company wants to add prestige to the current product line.
A motor vehicle manufacturer may have several product lines. Packaging Packaging types: Packaging types Primary packaging The material that first envelops the product and holds it. Such varieties are based on quality, size, colour, capacity, price, model, performance, and so on. Health Supplements comes under Health Care. They fall within same price range.
Consumer attitude metrics for guiding marketing mix decisions. It is only a descriptive way of looking at the behavior of a product and the life cycle can not predict the behavior of a product. For example, a company dealing in just dairy products has more consistency than a company dealing in all types of electronics. Length- the total number of items in the mix 25. Product line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. Question marks have potential to become star and eventually cash cow but can also become a dog. So far we have served over 5M+ satisfied users and counting.