Product - Mix

• A product is any thing that can be offered to the market that satisfy customers needs and wants.

PRODUCT

PRODUCT

TANGIBLE INTANGIBLE

• A product is both what seller has to sell and what buyer has to buy.

• It is a bundle of physical, chemical or intangible attributes that have the potential that satisfy present and potential customers wants.

• It means goods and services which combination of company offers to the target market .

• A product is anything that can be offered to market to satisfy a want or need.

• Product that are marketed include physical good, services, experiences, events, person, place, properties, organization, information and ideas

• A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

• While formulating the marketing strategy, product decision include: What to offer? Brand name Packaging Quality Appearance Functionality Accessories Installation After sales service Warranty

Features of Product

• Tangible• Intangible• Associated attributes• Exchange value• Customer satisfaction

Product mix

• Product mix: As the total composite of products offered by a particular organization, consists of both product lines and individual products.

• 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

• Product width: It refers to the no. of different product lines the company carries.

• Product length: It is the total no. of items the Company carries within its products lines.

• Product depth: refer to the no. of versions, offered of each product in the line.

• Product consistency: refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

PRODUCT MIX

UNIQUE SELLING PROPOSSITION

• A unique selling proposition (USP) is a description of the

qualities that are unique to a particular product or service and

that differentiate it in a way which will make customers

purchase it rather than its rivals.

UNIQUENESS

• By offering at the lowest price• By offering the highest quality• By being exclusive• By offering the best consumer service• By offering widest choice

Unilever products

Soap Shampoo Cream Toothpaste

PERSONAL CARE FOOD & DRINKS

Tea Ice cream Lux

Dove

Lifebuoy

Clear

Dove

Lifebuoy

Close up

Pepsodent

Cornetto

Magnum

Lipton

Supreme

Ponds

Dove

Fair & Lovely

Product Mix

Depth

Product Line - 1

Product Mix Width

Product Line - 2

Product Line Length Product Line Length

Product Mix Length

Consistency

Product mix strategies

(HUL’s )Product policyColor cosmetics

Skin care

Oral care

Confectionaries

Hair care Deodorants

Soaps & detergents

Toilet Soaps

Beverages

food

Lakme Fair & lovely

pepsodent

Max Sunsilk Axe Surf Liril 3 roses Knorr Annapurna Atta

Aviance Pond’s toothbrush

Clinic Pond’s Rin Lifebuoy Lipton yellow label

Knorr Annapurna Salt

Close up Rexona Wheel Lux Lipton green label

Modern foods range

Denim Vim Breeze Lipton Ice tea

Kwality Wall’s feast

Ala Pears Red Label

Kwality Wall’s cornetto

OK Hamam TajMahal

Sundae’

Dove Brooke Bond

Kissan

Savlon Bru

Product mix concepts

Product Mix – set of all products offered by the company for sale

Product line- a group of related products constitute a product lineE.g – Bata had a range of 1138 product lines(2009)

Width of Product mix- no of product lines in the product mix e.g 10 lines in HUL’s product mix

Length of the product mix is the total no of items in the mix(in example ,it is 46)

Avg length of a line- total length/no of lines

Product mix concepts

• Depth – the depth of the product mix is the assortment of all sizes, colours and variations offered for each product in the product line– For example- Lifebuoy Active Red comes in three sizes-

125 gms,100 gms and 60 gms cakes• Consistency : closeness exhibited by the product lines in

production requirements , distribution and end usage – For example- most of the HUL Product lines are consistent

as they are consumer goods distributed using similar channels and produced using similar facilities

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 E.g. – Lifestyle

Trading down –new products, low priced to the existing lineE.g –Marriot Corporation introduced a new chain of Hotels called ‘Holiday Inn’ to cater to the needs of not so affluent customers

Product Mix strategies

• Product line analysis – too short Vs too long • Company’s objectives affect product line length • Market share and Higher Profitability

Line stretching

• A company stretches its product line beyond the current range of products.

• It can stretch its product line in either the down market , up market or both

Down Market stretch – introduce the products at a lower priceE.g – 3 Roses for the lower end market (HUL)

Reasons- Middle market stagnation, potential for growth in Down market ,aim to tie up with the lower end competitors

Up market stretch • Enter the high end of the market • The objective of the firm may be to have higher growth ,

increase its margins, or to simply project itself as a full line mfgg firm E.g Lipton Yellow Label (HUL) is a high end stretch with Rs 75 for 250 gms tea .

• A company serving in the middle market might indulge in stretching its product line both ways – upward and downward

Presentation on Product Mix of ITC

What is product mix?

• Product Mix is the total number of product choices a company offers their customer.

• Large groups of Industries may have diversified products within core competency.

• Larsen & Toubro Ltd, Godrej, Reliance, ITC etc. in India are some of the examples.

ITC PRODUCT MIX

FMCGFOODCIGARETTESLIFESTYLE-retailingSTATIONERYPERSONAL CARESAFETY MATCHESAGARBATH

HOTELSWELCOMEGROUPWELCOME HERITAGEFORTUNELUXURY COLLECTION

ITC PRODUCT MIX

• PAPER BOARD AND PACKAGING• AGRI BUSINESS – rural services, leaf tobacco, spices, agri-

input

FMCG-ITC

FOOD -ashirwad, sunfeast, candyman,bingo, kitchen of india

FMCG ITC-CIGARETTES

• INSIGNIA• INDIA KINGS• GOLD FLAKE• SILK CUT• NAVY CUT• CAPSTON• SCISSORS

• BRISTOL• FLAKE• BERKERLY

FMCG ITC-LIFE STYLE RETAILING

• WILLS LIFE STYLE• JOHN PLAYER• MISS PLAYER

FMCG ITC-EDUCATION & STATIONERY

• CLASSMATE• PERFECT CRAFT• EXPRESSIONS

FMCG ITC-PERSONAL CARE

• FIAMA D’ WILLS• VIVEL D’ WILLS• SUPERIA

FMCG ITC-SAFETY MATCHES & AGARBATHIS

• MANGALDEEP• EXPRESSIONS• I-KNO• EXPRESSION

FMCG ITC-KITCHEN OF INDIA

• CURRY PASTES (butter chicken, fish curry,dum aloo)

• CHUTNEYS (shredded mango, mango& jeera, mango & garlic

• BIRYANIS- (noor mahal, bohri)

• DESSERTS- (jodhpuri moongdal halwa, awadhi badam halwa)

ASHIRVAD VARIANTS

• FLOUR –aashirvad, select atta, chakki atta• SALT• SPICES – chilli powder,

turmeric powder, coriander powder, pickle mirch

• INSTANT MIXES- gulab jamun, rawa idli, rice idli, rice dosa, khaman dokla, rasmalai

ASHIRWAD

• ATTA

• SALT

SUNFEAST VARIANTS

• BISCUITS –butter, cashew, crunchy coconut

• SNACKY- chilly flakes, classic salted

• GLUCOSE- orange, nice, milky magic

• DREAM CREAM -choco, vanila, orange, milk cream

• GOLDEN BAKERY -choconut, butternut, butter scotch

• FIT-KIT – multi-grain, vitamin

• PASTA –cheese, pizza, chicken

SUNFEAST VARIETIES

FOODS

• MINTO – Mint o fresh , mint o cool blue, orange mint, lemon mint

CANDY MAN

• FRUIT FUN• BUTTER SCOTCH LICKS• ECLAIRS• COFITINO• NATKAT MANGO• NATKHAT GUAVA

• MANGO LINKS• MAHA MANGO• LACTO

BINGOPOTATO CHIPS – Salted,

masala, tomato, chatkila nimbu achar, tandoori paneer tikka

MAD ANGLES – Tomato mischief, chilli dhamaka, achaari masti

HATKE JATKE –Funky masala, tomato twist

LIFE STYLE RETAILING

• WILLS LIFESTYLE (wills classic, wills sports, wills clublife, wills signature)

PERSONAL CARE

• VIVEL D’ WILLS• FIAMA D’WILLS• SHAMPOOS