Image and reputation of parent brands will get tarnished if the brand extension fails Confuse and frustrate the consumers. Retailers unwilling to provide shelf space for the extensions May Obscure the identity of the parent brand Recent failures: For example, your company may sell multiple lines of products.
The production consistency of these products would vary as well, so your product mix is not consistent. However, over time, the company may want to differentiate products or acquire new ones to enter new markets. Food Division Slide For example, your company may sell health bars and a health magazine in retail stores.
Product mix concepts Depth — the depth of the product mix is the assortment of all sizes, colors and variations offered for each product in the product line For example- Lifebuoy Active Red comes in three sizes- gms, gms and 60 gms cakes Consistency: Product Mix Strategies Trading up-Offer high pricedprestige products to their existing product line in an effort to increase the sale of their low priced products and enhance the company image Trading down —new products, low priced to the existing line E.
Extension helps reducing the cost of Marketing research and direct marketing. Variations can include size, flavor and any other distinguishing characteristic. For example, EZ Tool has two product lines, hammers and wrenches. Product Market Mix Strategy Small companies usually start out with a product mix limited in width, depth and length; and have a high level of consistency.
For example, if your company sells three sizes and two flavors of toothpaste, that particular line of toothpaste has a depth of six. Thus if a toothpaste comes in three formulations and in three sizes, it has a depth of nine 3x3. They have the same use and are produced and distributed the same way.
For example, if you own EZ Tool Company and have two product lines -- hammers and wrenches -- your product mix width is two.
A company serving in the middle market might indulge in stretching its product line both ways — upward and downward Strategies: Product mix concepts Product Mix Product line- E. Line stretching A company stretches its product line beyond the current range of products.
Or your product lines may be vastly different, such as diapers and razors. However, one product is edible and the other is not. Small and upstart businesses will usually not have a wide product mix.
Companies that have multiple product lines will sometimes keep track of their average length per product line. Brand Extensions Extend and transfer the equity of established brands than to establish new ones.
New ideas get stagnated Lowers brand loyalty Slide The wrench line contains Allen wrenches, pipe wrenches, ratchet wrenches, combination wrenches and adjustable wrenches.
Product Variations Depth of a product mix pertains to the total number of variations for each product. Limitations of line extensions Super saturation would lead to weakening of product lines.
Just like length, companies sometimes report the average depth of their product lines; or the depth of a specific product line.
Your product lines may be fairly similar, such as dish washing liquid and bar soap, which are both used for cleaning and use similar technologies. A small gesture of helping you revise!!!
If the company also has another line of toothpaste, and that line comes in two flavors and two sizes, its depth is four.Product Mix Of Procter & Gamble’s 3. WIDTHHow many different product lines the company carriesin the case of P&G, we just saw 5 such lines.
Product Line and Product Mix. Adjustments to Products. Proctor and Gamble has various product lines. You may also hear the product line breadth referred to as the product width, product assortment width, and merchandize breadth.
Product Line Breadth and the Product Mix. Product mix concepts Product Mix Product line- E.g – Bata had a range of product lines() Width of Product mix Length of the product mix is the total no of items in the mix(our example,it is 46) Avg length of a line- total length/no of lines.
The width, or breadth, of a company's product mix pertains to the number of product lines the company sells. For example, if you own EZ Tool Company and have two product lines -- hammers and. Product line width. The width of the product mix is equal to the number of product lines within a company.
Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only.
Procter & Gamble (P&G) is an American consumer goods corporation with many globally marketed brands Contents 1 Brands with net sales of more than US$1 billion annually.Download