Explain in detail product line and product mix. Product Line Vs. Product Mix 2022-10-29
Explain in detail product line and product mix Rating:
A product line is a group of related products that are marketed under a single brand or identity. These products may be similar in nature or target a similar customer base, and they may be sold through the same channels or distribution channels. A product mix, on the other hand, refers to the total set of products that a company offers for sale.
The concept of a product line is important for companies because it helps them to focus their marketing efforts and resources on a specific group of products. By developing a clear product line strategy, a company can better understand its target market and create a consistent branding message that resonates with its customers. This, in turn, can help the company to differentiate itself from its competitors and build a strong brand identity.
A product mix, on the other hand, represents the entire range of products that a company offers for sale. This can include not only products within a single product line, but also products that may be unrelated or that target different customer segments. For example, a company may have a product line of sports equipment and another product line of outdoor gear, but it may also offer a range of other products, such as clothing or accessories.
The concept of a product mix is important because it allows a company to diversify its product offerings and reach a wider customer base. By offering a range of products, a company can appeal to a variety of different customer segments and increase its overall sales and profitability.
In order to effectively manage a product line and product mix, a company must have a clear understanding of its target market and the needs and preferences of its customers. This can involve conducting market research, analyzing customer data, and regularly reviewing and adjusting the product mix to ensure that it meets the changing needs and preferences of the target market.
In conclusion, a product line is a group of related products marketed under a single brand or identity, while a product mix represents the entire range of products that a company offers for sale. Both concepts are important for companies as they help to focus marketing efforts and resources, and allow companies to diversify their product offerings and reach a wider customer base.
Product Mix explained in a practical way with Helpful Examples.
As you enter a Starbucks shop, you will be able to choose multiple product lines such as coffee, tea, and snacks. What is a product line? If the products in your mix typically target a female audience from ages 20 to 40, then adding a product tailored to a male audience may alter the image of the brand which is something that could confuse current consumers. They give their customers several products under these brands, trying to make it more convenient for users as well as to bring about more revenue. The length of the product mix is the total variety of products under each line. If the product mix contains a product that is unpopular among consumers, it can lead to a significant loss in sales. For example, a company might sell multiple lines of products, with the product lines being fairly similar, such as toothpaste, toothbrush, or mouthwash, and also other such toiletries. For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company.
A product mix has the following four dimensions: Width The total number of product lines that a company suggests refers to as the width of the product mix. A product mix strategy has four dimensions: Width Total number of product lines a company offers. All the companies try to formulate their product mix in a way that the competitions can be strongly responded to. Also, this can be handled wrong and the business could take years to recover. These products are related and target a specific group of people and preferences. The product mix consists of every product a business develops and sells.
For example, when a company creates a group of products that deal with hygiene, such as shaving cream, soap and shampoo, this is known as a product line. For example, if you are managing a chain of hotels for a company, you can offer your customers different kinds of rooms, gardens and swimming pools in one place. Many businesses that sell multiple products use product lines and product mixes to monitor the different products they produce and sell to customers. Going back to our Innisfree example, there is a product line of products made from Green Tea. Focusing on products that are currently in demand with the customers can help companies to stand against their competitors in the market. A company can have multiple product lines with lots of products in each line, but it can only have one product mix. It has three dimensions downward, upward, and both-ways.
This is where the concept of product mix and product line decisions occur, this article clearly explains the differences between product mix and product line in a detailed manner along with examples. A product mix is the total number of product lines and individual products or services offered by a company. A product line is considered to help a company to attract new purchasers, improve its competitiveness, and influence in a market or field. This way, customers can easily identify other products within the same group. What Do You Mean By Product Mix? The students can avail the Product Mix - Meaning, Definition, Example, and FAQs from the website of Vedantu for free of cost. Demand is affected more due to seasonal effects, non-availability of substitutes, increase in population, war, situations of drought, flood, or any other reason. It includes the total number of varieties or models offered by the company.
What is a Product Line? Examples, Product line vs Product mix
Therefore, that company produces less sugar homemade nut milk to attract people who are on a diet. A lawn tractor manufacturer might broaden its mix by also building tillers, lawnmowers, snowblowers and light construction equipment, for example. Depth The total number of variations or types of product in a product line is the depth of the product mix. Every product category target the same customer group. Focusing on product mix can help companies to keep their focus on everything that is important for overall growth. Companies often focus on having those products in the product mix which are in demand.
A specialty store focused on athletes might carry a stellar selection of athletic shoes, bolstered by plenty of fitness-oriented accessories. Product mix can also be understood as the complete set of products and services that are offered by a firm. In each product group, a number of varieties are offered. Neither the polish nor the polish remover is used for the same purpose, so they are in different product lines. They need same technical skills to use them. The length of the mix would be 18.
What is Product Line? Definition, Explanation & Examples
That is, similar outlets market them. The choices can be higher and low-price versions that cater to different customer requirements and segments. LINE MODERNIZATION Line Modernization is that the company like to upgrade their product offerings with new technologies to make the customers upgrade to high valued, higher priced items. Line Filling Decisionsmeans adding new products to the same product range to use excess capacity, increase customer base, extra profit, and keep competitors away. For example, if a breakfast food company has a product line for hot cereal, cold cereal and breakfast snacks, it would have a width of three because it has three product lines.
It indicates how closely various product lines are related. Suddenly, Apple was not regarded as a Computer company anymore but a Technology one. The plan is a blueprint that outlines how a company will implement its marketing strategy, and use a combination of these resources to achieve its business objectives, including sales targets or customer acquisition. Important product line attributes include line stretching, line filling, line modernization, and line featuring. This homemade nut milk is preferred by people who are allergic to animal milk, but there are a lot of benefits that drinkers can take from this kind of milk, one of which is its help to lose weight.
The products are not exactly the same, but they typically share some of the same characteristics. PRODUCT LINE Product Line is defined as the group or set of products that are closely related because they perform a similar function, targeted at the same customer groups and distributed through same channels,etc. Using them in your business can help determine which products have been effective in producing more sales, so you can create less of some products and add more that are likely to benefit the company in the future. They fall within same price range. Some of the larger companies have multiple product lines marketed under various brand names, which is a strategy to differentiate the products from each other so that the companies can easily target the requisite customer segment for each brand.
People usually are driven towards products of those brands that they have used in the past because they feel they can trust any new product under that brand. Thus, the total number of product line against the total number of product lines forms the length of the product mix. For example, many companies use a "good, better, best" method of pricing products. The products which fall into the same product line generally target the same customer base and have almost similar prices. For example, if a clothing company sells only ties and belts, then it has two product lines.