INDEX

1. PRODUCT

Definition

Product Level

Product Hierarchy

2. PRODUCT MIX DECISIONS

Definition

Proctor & Gamble Product Mix

Hindustan Lever Product Mix

TTTI Bhopal Product Mix

Steel Authority Of India Product Mix

3. PRODUCT-LINE DECISIONS:

Product-line Analysis

Sales and Profit

Market Share

Product-line Length

Stretching

Filling

Line Modernization

Line Featuring

Line Pruning

PRODUCTPRODUCT

A Product is anything that can be offered A Product is anything that can be offered to a market to satisfy a want or need. to a market to satisfy a want or need. Products that are marketed includes Products that are marketed includes physical goods, services, experiences, physical goods, services, experiences, events, persons, places, properties, events, persons, places, properties, organizations, information, and ideas.organizations, information, and ideas.

Basic

Core

Benefit

Expected

Augmented

Potential

PRODUCT LEVELS

PRODUCT HIERARCHY

Need Family

Product Family

Product Class

Product Line

Product Type

Item (also called Stock keeping unit or product variant)

Product Mix DecisionsProduct Mix Decisions

Product MixProduct Mix

A product mix (also called product assortment) is A product mix (also called product assortment) is the set of all product and items that a particular the set of all product and items that a particular seller offers for sale.seller offers for sale.

Example:Example: Wipro’s product mix consist of two strong Wipro’s product mix consist of two strong

product lines:product lines:

FMCG productsFMCG products

Software SolutionsSoftware Solutions

WidthWidth - number of different

product lines

WidthWidth - number of different

product lines

LengthLength - total number of

itemswithin the lines

LengthLength - total number of

itemswithin the lines

Depth Depth - number of versions of each product

Depth Depth - number of versions of each product

Product Mix - Product Mix - all the product

lines offered

Product Mix - Product Mix - all the product

lines offered

Co

nsi

sten

cyProduct Mix Decisions

Product-Mix Width

Semis Long Flat Tubular RailwayProducts Products Products

Blooms Bars CR Coils Pipes Rails

Billets Rods GC Sheets Wheels

Slabs Rebars Tinplates Axles

Wire Rods Electrical Steel Wheel Sets

HR Coils

Sheets

Skalp Plates

L

I

N

E

L

E

N

G

H

T

STEEL AUTHORITY OF INDIA LIMITED

PRODUCT-LINE ANALYSIS

Build

Maintain

Harvest

Divest

1. Sales And Profits

2. Market Profile

05

101520253035404550

1 2 3 4 5

SALES

Profits

SALES AND PROFITS

A Company classifies its products into four types that yield different gross margins, depending on sales volume and promotion.

Core Product

Staples

Specialties

Convenience items

0

200

400

600

800

1000

1200

1400

1600

1800

1 2 3 4 5 6 7 8

Market Size inMn $

HINDUSTAN UNILEVER LTD.

1. Laundry

2. Personal Wash

3. Tea

4. Toothpaste

5. Skin Care

6. Hair Care

7. Coffee

8. Processed foods

X

X X

B

B

B

D

D

D

C A

A

C

C

B

Low Medium High Extra High

High

Medium

Low

MARKET PROFILE

WEIGHT

QU

ALIT

Y

General

printing Office

Supplies

Point-of

Purchase

displays

Product Line LengthProduct Line LengthNumber of Items in the Product Line

Product Line LengthProduct Line LengthNumber of Items in the Product Line

StretchingStretching

Lengthen beyond current range

FillingFilling

Lengthen within current range

Downward

Upward

PRODUCT LINE LENGTH

Line Modernization:

Product lines need to be modernized. In rapidly changing products markets, modernization is carried on continuously. Companies plans improvements to encourage customer migration to higher valued, higher priced items. Example:- Bajaj Pulsar DTS-i

Line Featuring:

The product line manager typically selects one or a few items in the line to feature. Product line managers must periodically review the line for deadwood that is depressing profits. The weak items can be identified through sales and cost analysis.

Line Pruning:

Pruning is also done when the company is short of production capacity. Companies typically shorten their product lines in periods of tight demand and lengthen their lines in periods of slow demand.

BIBLIOGRAPHY

Text Books:

1. Principles of Marketing: Philip Kotler, Gary Armstrong

2. Marketing Management: Philip Kotler

References:

1. The Oxford Textbook of Marketing: Keith Blois

2. Marketing Management- An Asian Perspective: Slew Meng Leong, Swee Hoon Ang, Chen Tiong Tan

3. Fundamentals of Marketing: William J Stanton, Micheal J Etzel, Bruce J Warker

Journals and Magazines:

1. Effective Executive- ICFAI Press- Emerging Markets, February 2008

Websites:

1. http://www.hindustanstudies.com/files/product.pdf

2. http://www.hll.com/investor/presentation/2007/Investor_Pres_JPMorgan.pdf

3. www.mktgpower.com/mg_dictionary.html

4. www.sail.co.in/product_mix.asp

5. www.en.wikipedia.org/wiki/product_line.html

6. www.enotes.com/business-fin-encyclopedia/productmix.html