how can a company build and manage its product mix and product lines
TRANSCRIPT
Chapter 11: Setting product strategy
How can a company build and manage its product mix and product lines?
By: Kartik SinglaIndian Institute of Technology(BHU), Varanasi
Product lineA group of products manufactured by a company that are closely related because they perform a similar function, sold to same customer groups or fall
within a price range.
Product MixThe complete set of all products and items a company offers for sale.
Managing
product mix
Width
LengthDepth
Consis-tency
Depth: The number of variants offered of each product in a product line.
Width: Number of product lines a company has.
Consistency: This describes how closely related the various product
lines are.
Length: The total number of items in a company’s product mix.
How to build product mix???
Lengthen each line
Increase product variants
Pursue line consistency
Add product lines
Line analysis
Line length
Sales and
Profit
Market Profile
Line Stretching
Line Filling
Managing Product Line
Managing “Sales and Profit” can help determine which items to build,
maintain, harvest or divest.
Product line managers must review how the line is positioned against competitor’s line to
enhance “Market Profile”
“Line Stretching” refers to lengthening the product line beyond its current range (whether up or down) to attract buyers from all segments.
“Line Filling” means adding more items within the present range to keep out
competitors and ensure tight grip in the market.
“Some companies which narrowed down the consumer need gaps by introducing
new product variants and forms!!”
