The Product Mix concept refers to the total products offered by an organization. A product line is a group of products within the product mix that can be classified together on account of criteria like customer needs, market served, channel used or technology employed.
In order to decide upon the product mix, the product manager also has to take decisions regarding width, length, depth and consistency of the product line.
Components of Product Mix
A product mix which includes all the product lines has four important components width, line, depth and consistency.
1. Product Mix Width
A Product Mix Width means the number of product lines which an organization produces. For example HUL, has a large number of product lines.
2. Product Mix Depth
Product Mix Depth means the different varieties of a product offered by a firm in a product line. For example, a toothpaste manufactured by P and G (Procter and Gamble) has 13 versions and a soap manufactured by HUL has different colours and sizes.
3. Product Mix Length
Product Mix Length means the total number of products which a company produces in each product. For example, P and G has many product lines and each product line in turn has many products.
4. Product Mix Consistency
Product Mix Consistency refers to the relation of various product lines with respect to its end use, production requirements, distribution channels etc. For example, HUL product lines are consistent as its consumer products uses the same distribution channels though the functionality of product lines are different.
The width, depth and consistency of product mix enables a company to define its product portfolio, appeal to different consumer needs/segments and encourages on-stop buying.
A broad width or deep mix satisfies the needs of several consumer groups, maximizes shelf space and sustains dealer support.
A consistent mix is easier to manage than a diversified mix and allows the marketer to concentrate on its core competence, build or create a strong image among consumers and trade channels.
Product Mix Decisions
Product Mix Decisions are variable. These decisions are affected by the market changes occurring in the market place. Product mix decisions, also change with the changing preferences of the customers for the product. The changes in the product mix decisions are as follows,
- Product line addition/deletion
- Product abandonment and
- Product modification.