They may have blouses, pants, dresses, and shoes among their product line breadth. Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. Definition brand Term 30 Which of the following terms best describes the process of designing and producing the container or wrapper for a product? The Product Mix — Product Mix Decisions 4 Dimensions of the Product Mix — 4 Product Mix Decisions Four important dimensions of a product mix can be identified. Each of those shows us the variety, or depth, of a particular product line. Which of the following is one of these five links? For example, razor blades and razors manufacturers usually sell a razor handle for an unbeatable price while selling additional blade cartridges at a much higher price. For instance, vehicle manufacturers produce their vehicle in different models including economy models, environmental models, luxury models and more.
Let's learn more about each. A company could have one line or several lines, but all the products within this line or lines would be the mix. With that being said, in order for any pricing techniques to be effective, demand elasticity, the whole product mix, product positioning strategy and the product life cycle have to be put into consideration to determine the best price for each product. The Product Mix Before turning to the product mix decisions, we first have to know what the product mix actually is. Simply, it shows the number of items in the product line. Consistency refers to how closely related the product lines are in terms of end use, production requirements, distribution channels or any other way. As in the foods line, the number of items is 3, in cigarettes is 3 and so on.
Product mix decisions need to be taken for the whole product mix and affect each line. Everything you always wanted to know. Definition Line extension Term 57 BerryBerry is a fruit juice company that has traditionally sold five varieties of mixed-fruit juices: DazzleBerry, AquaBerry, MangoBerry, FuschiaBerry, and GloBerry. A product line refers to a unique product a company offers. It refers to the number of versions offered for each product in the product line.
Having said that, some would offer numerous types of products for diversified markets, depending on the size and objectives of the entities. Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line. Let us now look at the contribution per unit as well as contribution per limiting factor which in this case is the number of hours A B C Contribution Per Unit 10 7 13. The company wants to add more products to its lineup. A company usually sells different types of products.
This dimension of the product mix represents the extent to which the activities of the firm are diversified. The uncertainty makes for the riskiest investments among companies. Go On, Tell Us What You Think! It could include five items or 500 items in a variety of product lines, but encompasses any and every product produced, manufactured, and distributed by the company. The purpose of offering similar items in each of the product line may be to attract customers by offering more varieties, and to create a good image or reputation. Therefore, businesses earn their profit off of the unplanned buying decisions by customers besides the loss leaders. Product mix has three important aspects—width, depth and consistency. Product mix breadth also encompasses all of the various product lines that a company has, as well as each product within that line.
The drug store needs to stock all of the essentials, even if there is only one option for each. Product mix, also known as product assortment, is the total number of variety of products that a firm sells to their customers. A wide product mix increases the type of s a can. Your company's product mix may be consistent in distribution but vastly different in use. The company wants to add more products to its lineup.
The product mix has the following dimensions Width The width of the mix refers to the number of product lines the company has to offer. They are used for the same purpose. So, plausible extensions that have worked well for transportation brands include after-market customizing products for autos and motorcycles, including apparel for those enthusiasts who strongly relate to the logos; larger vehicles, such as moving vans or even tractor-trailers, as a brand extension of a pickup truck or passenger van line; even heating equipment and domestic machines have made it to market, such as Chrysler furnaces or Toyota sewing machines. Variations can include size, flavor and any other distinguishing characteristic. Broader product line: A necessity to achieve success? It is the centre of its offerings. Product breadth in a retail environment is also sometimes referred to as merchandise breadth or product assortment width.
Maintenance includes new or improved design or packaging, or finding new uses of current products. If you add lesser quality, lower priced items, it's called downward stretching. The consistency of product mix refers to the degree of similarity between product lines in terms of their end-use, production requirements, price ranges, distribution channels, advertising media, etc. In this case, the average length of your company's product line is five. For example, two wheelers including various models constitutes one of the product lines of Bajaj Company. Combination of all these product lines constitutes the product mix.