INDEX

1. PRODUCT
 Definition
 Product Level
 Product Hierarchy

1. 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
 PRODUCT

 A Product is anything that can be offered

to a market to satisfy a want or need.
Products that are marketed includes
physical goods, services, experiences,
events, persons, places, properties,
organizations, information, and ideas.
PRODUCT LEVELS

Potential
Augmented
Expected
Basic

Core
Benefit
 PRODUCT HIERARCHY

 Need Family

 Product Family

 Product Class

 Product Line

 Product Type

 Item (also called Stock keeping unit or product variant)

 Product Mix Decisions

Product Mix
A product mix (also called product assortment) is the
set of all product and items that a particular seller offers
for sale.
Example:
Wipro’s product mix consist of two strong product
lines:
FMCG products
Software Solutions
 Product Mix Decisions

Width
Width -- number
number
of
of different
different
product
product lines
lines
Consistency

Length
Length -- total
total Product
Product MixMix --
number
number of of items
items all
all the
the product
product
within
within the
the lines
lines lines
lines offered
offered

Depth
Depth -- number
number
of
of versions
versions of
of
each
each product
product
 STEEL AUTHORITY OF INDIA LIMITED

Product-Mix Width

L Semis Long Flat Tubular Railway

Products Products Products
I
N Blooms Bars CR Coils Pipes Rails
E Billets Rods GC Sheets Wheels
Slabs Rebars Tinplates Axles
L Wire Rods Electrical Steel Wheel Sets
E HR Coils
N Sheets
G Skalp Plates
H
T
 PRODUCT-LINE ANALYSIS

 Build
 Maintain
 Harvest
 Divest

1. Sales And Profits

2. Market Profile
 SALES AND PROFITS

50
45
40
35
30
25 SALES
20 Profits
15
10
5
0
1 2 3 4 5
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
 HINDUSTAN UNILEVER LTD.

1. Laundry 1800
1600
2. Personal Wash 1400
3. Tea 1200
4. Toothpaste 1000
Market Size in
800
5. Skin Care Mn $
600
6. Hair Care 400
7. Coffee 200
0
8. Processed foods 1 2 3 4 5 6 7 8
 MARKET PROFILE

Point-of C B
High Purchas
QUALITY

D C e
B
displays
D X X A
Medium
General B
printing Office
D C X A
Supplies
Low B

Low Medium High Extra High

WEIGHT
 PRODUCT LINE LENGTH

Product
Product Line
Line Length
Length
Number
Number of
of Items
Items in
in the
the Product
Product Line
Line

Stretching Filling
Lengthen beyond Lengthen within
current range current range

Downward

Upward
 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