However, over time, the company may want to differentiate products or acquire new ones to enter new markets. It comprises brand awareness, or how many consumers in the market are familiar with the brand; brand associations, which are the links consumers make between the brand and its image; and brand loyalty, which occurs when a consumer will only buy that brand's offer. A product Mix consists of various product lines. Problem Children have low market share but show potential for lots of growth. What is Product Mix Breadth? Typically, smaller retailers will have smaller merchandise breadth than a larger big-box retailer. The line of products typically shares the same logo, brand and color scheme. Product Market Mix Strategy Small companies usually start out with a product mix limited in width, depth and length; and have a high level of consistency.
Minute Maid juice has different variants like apple juice, mixed fruit, etc. When a new product is added to the line it is called as Line extension. Product Mix Example has product brands like Minute Maid, Sprite, Fanta, Thumbs up, etc. The same company might also offer other product lines. Reasons for doing so include the goals to reach extra profits, to satisfy dealers, to use excess capacity etc. Tell us what you think of this article in the comments section. Having read this article, I became more renewed in my business mission and strategy.
Samsung has many models of mobile phones from cheap range mobiles to premium range. It has taught me to always exceed my customers needs and do a continuous product development in order to stay ahead of the competition. However, it is too long if profits could be augmented by dropping items. You've discovered not only a company's breadth of products offered 10 different types of toothpaste , but also another company's depth of products offered many sizes and flavors. In some cases, such as the cosmetic industry, companies also launch product lines under their best-selling brands to capture sales from consumers of various ethnic groups. Each product line requires separate product line decisions.
Understand the relationship between the product mix and the product line or lines of a company, and how to effectively monitor this mix. A product line is a group of related products under a single brand sold by the same company. Generally the 4Ps summarize all aspects of product and how, when and where they reach the customer. Each of these product lines, in turn, consists of several sub-lines. Companies sell multiple product lines under their various brands.
By offering several brands of a product, a firm can cater to widely varying needs and tastes of customers and thereby beat its competitors. It is the actual item which is held for sale in the market. I am amazed with this article. It is produced at a cost and is subsequently made available to the right audience at a price. A constant focus on marketing, brand development and the product has enabled the company to become the largest coffee shop chain in the world. For example, two wheelers including various models constitutes one of the product lines of Bajaj Company.
They need same technical skills to use them. Product: A Tool of Marketing Mix i carefully read through all these educative articles, in fact, i am fully loaded now, i flashed back and saw that all that i was doing before, the way i was managing my business, was total mess, no wonder i kept spending money and the income is not forte coming, ah, God, i really appreciate mr tony elumelu for initiating this entrepreneural programme,money apart lets talk about the free mentoring he is offering trying to make our bussinesses a sucessful one. It can be said as the average number of product items offered by the firm in each product line. One reason for this was also that the breakfast sandwich smell clashed with the traditional signature coffee smell, thus taking away from the experience. The set of all these products main range and product varieties in each range can be said as product mix. There is also a policy in place to provide a free cup of coffee if a customer is not satisfied with what they have gotten.
Or your product lines may be vastly different, such as diapers and razors. As in the foods line, the number of items is 3, in cigarettes is 3 and so on. This way, customers can easily identify other products within the same group. A successful product has to fulfill a specific need in the market. It has put systems in place to enable smooth customer interaction. There are several product items in a product line.
They are sold to similar customer groups. Will they add to the perceived and actual benefits of the product? Combination of all these product lines constitutes the product mix. To give an example: leading Japanese car manufacturers all introduced an upmarket brand: Honda with Acura, Toyota with Lexus, Nissan with Infiniti. Finally, the consistency of a product mix completes our four product mix decisions. This can be a physical item, a service or a virtual offering.
Companies often expand their offerings by adding to existing product lines, because consumers are more likely to purchase products from with which they are already familiar. The product mix has four dimensions: Breadth, Length, Depth, and Consistency. Product Line is the products that are offered by the company which are similar and can be sold for the same customers to satisfy the same want. These changes or new introductions may be targeting a newly defined customer requirement or a niche category in the market. Product Mix Depth: It refers to a number of varieties in forms of sizes, colors, and models offered within each product line. When a product is envisioned, it is an answer to an identified market need.